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Dairy Foods Market Size, Share & COVID-19 Impact Analysis, By Source (Cattle, Sheep, Goat, and Camel), Type (Lactose and Lactose-free), Product Type (Milk, Cheese, Butter, Dessert, Yogurt, and Others), Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, and Online Retail), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI103890

 

KEY MARKET INSIGHTS

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The global dairy foods market size was USD 708.70 billion in 2020. The market is projected to grow from USD 771.35 billion in 2021 to USD 1,190.39 billion in 2028 at a CAGR of 6.39% during the 2021-2028 forecast period. The global impact of COVID-19 has been unprecedented and staggering, with dairy-based products witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 2.54% in 2020. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The global market is witnessing progressive growth owing to the rising demand for a wide range of dairy products and milk in the application of various food products. Emerging trends such as healthy snacking, healthy hydration, and protein-rich diets have contributed to the growing demand for healthy dairy products such as yogurt, cheese, and whey proteins. The rapidly evolving food and foodservice industry with novel preparations is expected to further increase the demand for milk and other products such as ice creams, desserts, and flavored dairy beverages.


Demand & Supply Disruptions Caused by COVID-19 Pandemic Influenced Market.


COVID-19 pandemic was spread across the globe in 2020 and with panic buying there were disruptions in the supply chain. Many countries imposed lockdowns which affected the overall food & beverages industry. With the food & beverages industry affected, demand scenarios for these products in various countries were different. In some countries where lockdowns were very strict, lessened demand was recorded while in other countries while partial markets were open dairy industry did not affect majorly. As the demand for high valued products was less, it slightly affected the prices of cheese and butter. Resumption of hoteling, foodservice, and dairy industry and innovative dairy processing capabilities in coming months can help this market amid coronavirus.


LATEST TRENDS


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Emerging Trend towards Clean-label Dairy Products to Benefit Industry


Clean label or organic food products is one of the attractive new trends in the new food & beverages industry. Organic cheese and yogurt are being used in various applications such as dips, soups, and snacks. The growing popularity of keto diet for weight management purposes has also increased the demand for dairy products such as grass-fed butter. With availability of clean label and organic products in tier 2 and tier 3 cities this trend is expected to prevail and expand in newer markets during the forecast time period.


DRIVING FACTORS


Increasing Demand for Value Added Dairy Products to Propel Market Growth


The dairy industry is flourishing across the globe with developments and innovations bringing novel dairy products on the retail platform. Constantly evolving consumer lifestyles with their rising flexible incomes have increased the demand for value-added products such as cheese, butter, creams, and yogurts among consumers. The rising awareness regarding gut health will fuel demand for yogurt, kefir, and other fermented products. The rapid expansion of the foodservice industry has urged leading dairy processors to develop innovative products such as cheese powder and dairy creamers to cater to the needs of the customers.


Rising Emphasis on Dairy Proteins to Aid Business Development


The emerging trend of various protein-enriched diets for weight management and overall maintenance of health fuels the demand for dairy-based products. Dairy products are associated with complete and wholesome amino acid profiles, improving overall health and immunity. According to USDA, 100 gm of any dairy product comprises 1.6 gm of dairy protein such as casein. The increasing population following a vegetarian diet also fuels the demand for dairy proteins to compensate for the requirement of proteins in the diet. The increasing promotional activities of whey and casein protein-based products in fitness centers further drive the growth of the dairy protein processing industry.


Developments of innovative products such as protein-rich dairy beverages that cater to the growing demand for on-the-go nutrition are expected to propel the market growth in the foreseeable future. A significant demand for flavorful ice-creams among children will offer impetus to the market. In June 2020, Food Union launched 100 varieties of ice creams targeting audiences across Europe. These ice creams claimed to have nutritional benefits, unlike the other dessert brands.


RESTRAINING FACTORS


Rising Popularity of Plant-based Dairy Alternatives to Impede Market Growth


The growing awareness regarding animal welfare has increased the demand for plant-based foods among consumers. Plant-based dairy alternatives are rapidly moving into the mainstream retail market. The growing perception that plant-based products are healthier and safer drives the demand for these dairy alternatives such as soy milk and almond milk-based products. The increasing prevalence of lactose intolerance also increases the demand for dairy alternatives. The rapidly developing dairy alternatives industry with new product innovations such as non-dairy ice-creams, cheese analogs, and whipped creams is expected to hamper the global dairy foods market growth.


SEGMENTATION


By Source Analysis


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Cattle Milk Holds Major Dairy Foods Market Share Attributed to its Wider Availability


Based on the source, the segment includes cattle, sheep, goat, and camel.  The ample availability of cattle milk as compared to other sources primarily drives the segmental growth. The better acceptance of the organoleptic properties of cattle milk by consumers also contributes to market growth. Furthermore, the quantity of milk produced by cattle is higher as compared to sheep, goat & camel, which fuels the growth of the cattle milk segment.


The rising trend of consuming healthier milk products drives the demand for sheep & goat milk owing to their higher vitamin content and lower fat content.


By Type Analysis


Lactose Containing Milk & Dairy Products to Exhibit Robust Growth owing to Easier Processing


Based on the type, the segment includes lactose and lactose-free. Lactose has a wide range of benefits in the food industries. Lactose is considered less sweet than sucrose. Hence lactose helps maintain the sugar content of a product without making it too sweet. Considering these benefits, consumer demand for lactose containing milk is growing steadily. On the other hand, some consumers are lactose intolerant.  Lactose intolerant consumers cannot consume lactose hence lactose should be removed from milk to use it as functional beverages that are made for lactose intolerant consumers. Considering the number of increasing lactose free consumers, demand for dairy products labeled as lactose intolerant is also expected to grow steadily over the forecast period.


By Product Type Analysis


Milk Exhibits Promising Growth Owing to Extensive Application in a Range of Products


Over the past few years growing consumption of milk through functional beverages is offering vital nutritional benefits to a large array of consumers from developed as well as developing countries. Rapid growth in production as well as consumption of milk also presents promising growth opportunities for dairy industries. Milk is considered very nutritious and beneficial for the consumers of all the age groups. It contains a wide number of nutrients and hence contribute largely to providing ample amounts of magnesium, riboflavin, selenium, calcium, pantothenic acid (vitamin B5) and vitamin B12. Considering these benefits many market players are launching special functional products made from milk. This trend is expected to prevail during the forecast period and hence it will prove beneficial for the dairy food market growth.


By Distribution Channel Analysis


Wider Options & Freedom to Purchase to Promote Product Sales across Supermarket/ Hypermarket Segment


The retail store industry is changing and evolving rapidly with investors capitalizing on buyers’ comforts to offer an easy shopping experience. Consumers all over the world are shifting towards premium brands and are ready to pay more for better value and quality service.  Factors such as rise in disposable income, young demographic composition, changing preference towards shopping habits, and increase in the middle income group population are increasing the need for supermarkets in developing countries. With increasing need for supermarkets/hypermarkets, this distribution channel is expected to retain its dominance in the dairy food market over the forecast time period.


REGIONAL INSIGHTS


North America Dairy Foods Market Size, 2020 (USD Billion)

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The Asia Pacific market holds the largest share of the global dairy market.  This is mainly attributed to the highest number of population residing in the region and changing consumer behavior.  With the majority of the population living in this region, the number of millennials in the region is also high. Millennials are spending more and have greater spending power than other age groups. Millennials are empowered by digitization and are more diverse as well as more demanding. With an increasing number of market players entering Asia Pacific, the number of new product launches in this region is high, and with more product launches and increasing population, this market is expected to retain its dominance in global market share over the forecast time period.


North America is expected to showcase a dramatic shift in the per capita consumption of dairy products. This is owing to the change in consumer diet preferences such as shifting towards plant-based food products. Manufacturers are creating necessary awareness among the consumers about the benefits of animal-based dairy products, which are essentially not present in the plant-derived products. In the upcoming years, the consumption of infant formula and whey powder are expected to grow are a significant CAGR. This possibly aids in the growth of the market.


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The European region is expected to grow at a significant CAGR due to the presence of the major dairy products producing countries such as the U.K., and Germany in the region. The rising income levels of consumers and growth in spend capacity in the region has contributed to the growing demand for these products such as cheese, milk powders, ice creams, and flavored yogurts. The leading dairy brands are using strategic promotional activities to increase the sale of milk products such as flavored milk and yogurts. The market growth in the region is also attributed to newly entering small players. The growing awareness of the health benefits of dairy proteins among consumers has necessitated key players to strengthen their processing capabilities and fulfill the growing demand.


KEY INDUSTRY PLAYERS


Mother Dairy Expanding Through Retail Expansion in India.


Dairy products being major contributors to the food industry market players are trying to enter new markets with new developments and are trying to strengthen their market position in the new as well as established markets. In one such attempt, Indian popular brand Mother Dairy unveiled its desire to increase its market share in the ghee product line by expanding retail distribution five times in coming years. Mother Dairy is planning to expand its presence in over 200 towns through 50,000 retail outlets. Such large scale expansion will offer the company to strengthen their position in one of the major dairy markets in India.


LIST OF KEY COMPANIES PROFILED:



  • Fonterra Co-operative Group Limited (Auckland, New Zealand)

  • Royal Friesland Campina N.V. (Amersfoort, Netherlands)

  • Danone S.A. (Paris, France)

  • Nestle S.A. (Vevey, Switzerland)

  • Dairy Farmers of America, Inc. (Kansas, U.S.)

  • Lactalis International (Laval, France)

  • Arla Foods Group (Viby, Denmark)

  • DuPont de Nemours, Inc. (Delaware, U.S.)

  • Unilever Plc (London, U.K.)

  • The Kraft Heinz Company (Illinois, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • May 2021 – Arla food invested USD 8.2 million in expansion of their factory to meet the increased demand of cheese from Japan. Arla mainly exports its products to countries such as Japan, Australia, the U.K., and Nordic countries.

  • August 2019 Fonterra Co-operative Group Limited partnered with Future Consumer Limited, India. As a part of this partnership, the company launched four new products under the brand name Dreamery.


REPORT COVERAGE


An Infographic Representation of Dairy Foods Market

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The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading distribution channels of the product. Besides this, the report offers insights into the dairy foods market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth rate of the market in recent years.


Report Scope & Segmentation:


















































  ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Estimated Year



 2021



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Value (USD Billion)



Segmentation



By Source



  • Cattle

  • Sheep

  • Goat

  • Camel



By Type



  • Lactose

  • Lactose-Free



By Product Type



  • Milk

  • Cheese

  • Butter

  • Dessert

  • Yogurt

  • Others



By Distribution Channel



  • Supermarket/Hypermarkets

  • Convenience Stores

  • Specialty Stores

  • Online Retail



By Geography



  • North America (By Source, Type, Product Type, Distribution Channel and Country)

    • U.S. (By Type)

    • Canada (By Type)

    • Mexico (By Type)



  • Europe (By Source, Type, Product Type, Distribution Channel and Country)

    • France (By Type)

    • Spain (By Type)

    • U.K. (By Type)

    • Italy (By Type)

    • Germany (By Type)

    • Rest of Europe (By Type)



  • Asia Pacific (By Source, Type, Product Type, Distribution Channel and Country)

    • China (By Type)

    • India (By Type)

    • Japan (By Type)

    • Australia (By Type)

    • Rest of Asia Pacific (By Type)



  • South America (By Source, Type, Product Type, Distribution Channel and Country)

    • Argentina (By Type)

    • Brazil (By Type)

    • Rest of South America (By Type)



  • Middle East and Africa (By Source, Type, Product Type, Distribution Channel and Country)

    • UAE (By Type)

    • South Africa (By Type)

    • Rest of the Middle East & Africa (By Type)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 708.70 billion in 2020 and is projected to reach USD 1,190.39 billion by 2028.

In 2020, the North America market value stood at USD 118.3 billion.

Growing at a CAGR of 6.39%, the market will exhibit steady growth in the forecast period (2021-2028).

The milk segment is expected to be the leading segment in this market during the forecast period.

Increased per capita consumption of dairy products is a key driver of the market

Danone S.A., Nestle S.A., and DuPont de Nemours, Inc. are the major players in the market.

Asia-pacific dominated the market share in 2020.

High consumption of flavored milk is expected to aid the market growth

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Dairy Foods Market Size, Share and Global Industry Trend Forecast till 2026
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