Dairy Products Market to Reach USD 845.50 Billion by 2033, Driven by Rising Demand for Healthy Snack Options

Asia Pacific leads the global dairy products market with 44.2% share in 2023, driven by population growth, and rising milk consumption trends

NEWARK, DE, UNITED STATES, December 19, 2024 /EINPresswire.com/ -- The global dairy products market is projected to expand significantly, with its value expected to rise from USD 529.05 billion in 2023 to over USD 845.50 billion by 2033, reflecting a CAGR of 4.8% during the forecast period. Increasing consumer demand for healthy, on-the-go snack options continues to drive dairy product sales worldwide. Naturally rich in calcium, dairy-based products are increasingly favored as a nutritious snack choice.

The rising popularity of probiotic drinks, known for their digestion and immune-boosting benefits, further contributes to market growth. Additionally, health and wellness trends have shifted consumer preferences toward low-fat, lactose-free, and calcium-enriched dairy snacks.

Over recent decades, higher incomes and urbanization have prompted a dietary shift, with consumers prioritizing protein-rich foods like dairy over traditional grains. This change underscores the growing appeal of dairy products in a modern, health-conscious lifestyle.

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Growth Impacting Factors for Dairy Products Industry

The global dairy products industry continues to experience significant growth, driven by shifting consumer preferences and expanding markets. A major factor propelling this growth is the increasing demand for protein-rich diets, prompting many consumers to transition from regular meat to dairy products as a primary source of protein. Additionally, the forecasted growth of the bakery and confectionery market is expected to further drive demand for dairy products, as milk remains a key ingredient in most baked goods. This trend is reinforced by the popularity of convenient, on-the-go snack options that are both healthy and satisfying, contributing to the steady rise in global dairy consumption.

Despite these growth drivers, the industry faces several challenges. One of the most significant obstacles is the prevalence of lactose intolerance, which affects over 60% of the global population. Lactose intolerance, the inability to digest lactose (a sugar found in dairy products), is particularly common among African and Arab populations, significantly limiting the market potential in these regions. This condition creates a substantial barrier for the dairy products market, as consumers seek alternatives to traditional dairy offerings.

Another challenge to the industry is the rise of veganism, which advocates for the complete avoidance of animal-based products, including meat and milk. Veganism has gained significant traction in recent years, particularly in developed countries, further constraining the dairy market. The movement’s focus on ethical, environmental, and health concerns has led to increased consumer awareness and demand for plant-based dairy alternatives, reducing the market share of traditional dairy products. As this trend continues to gain momentum, it poses a long-term challenge to the growth of the dairy industry.

Key Factors Driving the Growth of the Dairy Products Market

The dairy products market is experiencing significant growth, driven by a combination of population dynamics, rising disposable incomes, increased health awareness, and government initiatives. These factors are shaping the demand for products like milk, butter, yogurt, and cheese across the globe.

Population Growth and Rising Demand for Dairy Products

A rapidly growing global population is a key driver of the dairy products market. According to the Population Reference Bureau, the global population is projected to reach 9.9 billion by 2050. This growth is fueling the demand for dairy products, as they are widely consumed for their nutritional value and versatility. Products like milk, butter, and yogurt are staples in many diets, while other dairy products find applications in diverse culinary uses.

Health-conscious consumers are increasingly recognizing the benefits of dairy products. For instance, studies highlight that cheese can promote heart health, leading to a surge in demand. As awareness of dairy products' health benefits grows, more consumers are shifting from meat to dairy-based options to fulfill their protein and micronutrient needs. This trend is expected to significantly boost the demand for dairy-based products in the coming years.

Government Support and Initiatives

Government initiatives aimed at enhancing milk production and cattle development are also contributing to the market’s growth. Programs such as India’s National Dairy Plan focus on increasing milk production through cattle development and infrastructure improvements. These efforts not only enhance dairy production but also make dairy products more accessible to a broader population.

Influence of Fast-Food Chains and Evolving Consumer Preferences

The increasing penetration of fast-food chains has further driven the demand for dairy products like cheese, butter, and dairy-based desserts. These products are integral to popular fast-food dishes, including pasta, burgers, and pizza, making them household favorites. Their delicious taste and high protein content have cemented their place in both commercial and domestic culinary applications.

In summary, the growth of the dairy products market is propelled by population expansion, government-backed initiatives, increased health awareness, and the influence of fast-food culture. As consumers continue to value dairy for its taste, versatility, and nutritional benefits, the market is poised for sustained growth in the years to come.

Region-wise Insights into the Global Dairy Products Market

Asia Pacific: A Dominant Force in the Global Dairy Market
Asia Pacific is set to dominate the global dairy products market in 2023, accounting for 44.2% of the revenue share. The region is projected to generate revenues of USD 309.8 billion by 2033, maintaining its leadership throughout the forecast period. This dominance is primarily driven by the region's massive population and the high frequency of dairy consumption, which is crucial for improving children's nutritional health and supporting the livelihoods of a growing middle class. Among all dairy products, liquid milk stands out as the most widely consumed product in the region.

The demand for functional dairy products like milk and cheese, which offer added health benefits alongside taste, is on the rise in Asia Pacific. The market is further bolstered by the increasing preference for organic dairy alternatives, contributing to positive growth.

For instance, in August 2022, Universal Robina Corporation, a leading food and beverage company in the Philippines, partnered with Asahi Beverages, Philippines, to launch a variety of cultured milk drinks. These products incorporate Lactobacillus paracasei MCC1849, a probiotic known for enhancing the immune system.

The U.S.: A Thriving Dairy Products Market
The United States dairy products market is estimated at USD 61.5 billion in 2023 and is expected to grow at a CAGR of 2.8% through 2033. The country is poised to remain one of the most lucrative markets during this period.

The growth is fueled by the widespread presence of restaurants and fast-food chains like Burger King, Pizza Hut, Domino’s, and Yum Brands, which extensively use cheese and butter in their offerings. Additionally, the growing popularity of yogurt and dairy desserts among American consumers is expected to drive market growth. Awareness surrounding A2 milk, known for its digestive benefits, is another significant factor boosting the U.S. dairy market.

India: A Rapidly Growing Dairy Market
India is projected to be the fastest-growing dairy market during the forecast period, with its market value expected to reach USD 335.18 billion by 2033, growing at an impressive CAGR of 13.2%. Factors driving this growth include India’s large population, increasing milk consumption, rising disposable incomes, rapid urbanization, and robust government initiatives aimed at boosting milk production.

Growing consumer awareness of the health benefits of dairy products is significantly contributing to market expansion. The increasing use of milk in daily diets has played a critical role in driving consumption.

In addition to economic growth, the Indian dairy industry is a powerful tool for socioeconomic development. The Government of India has launched several initiatives to strengthen the dairy sector, ensuring sustained growth and profitability for stakeholders while meeting the nutritional needs of the population.

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Competitive Landscape: Top Manufacturers of Dairy Products and their Recent Developments

Several local companies operate in the market, which is moderately fragmented. Market players employ strategies to gain more market share, including investments, partnerships, acquisitions, and mergers. Additionally, companies are focusing on improving their products and maintaining competitive pricing as well.

• In March 2022, Danone's Activia Brand introduces Activia+ in the United States and other North American markets. The drinkable yogurt product comes in strawberry, peach, and raspberry flavors.
• Danone North America launched its new yogurt product under the Light+Fit brand in February 2022. There are two different flavors available, lemon and orange.
• In February 2022, New Berlin, New York-based Chobani LLC introduced two all-new dairy products, expanding its refrigerated shelf presence: ultra-filtered milk, lactose-free, protein-packed ultra-filtered milk, and half & half. Like many of the company's other new products, these items come in paper-based packaging that is widely recyclable. They are made from locally sourced milk.
• In March 2019, The Wallaby yogurt brand was introduced in the United States in three flavors to satisfy health-conscious consumers. It is yogurt with no sugar added.
• In August 2019, Arla Foods announced a partnership with Walki to provide sustainable and recyclable packaging solutions, thus contributing to its mission to reduce carbon footprints.

key Players Supplying Dairy Products include

• Arla Foods Amba
• Nestle
• Danone
• Fonterra
• Lactalis
• Frieslandcampina
• DMK Group
• GCMMF
• Dairy Farmers of America, Inc.
• Meiji Holdings Co. Ltd.
• The Kraft Heinz Company

Dairy Products Market Segmentation by Category

By Product Type:
• Milk
• Cheese
• Yogurt
• Dessert
• Butter
• Milk Powder
• Cream
• Others

By Distribution Channel:
• Hypermarket / Supermarket
• Convenience Store
• Speciality Store
• Other

By Region:
• North America
• Latin America
• Europe
• The Middle East and Africa

Explore FMI’s related ongoing Coverage in Food and Beverage Domain:

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