Dairy Food Market to Grow by USD 88.1 Billion (2024-2028) as Healthy Food Habits Increase, with AI Redefining the Market Landscape- Technavio

Oct 15, 2024, 17:20 ET

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NEW YORK, Oct. 15, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The Global Dairy Food Market size is estimated to grow by USD 88.1 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 2.09% during the forecast period.Rising adoption of healthy food habits is driving market growth, with a trend towards rising demand for online retail. However, stringent regulatory compliance and standards poses a challenge - Key market players include Agropur Dairy Cooperative, Albertsons Companies Inc., Arla Foods amba, China Mengniu Dairy Co. Ltd., Dairy Farmers of America Inc., Danone SA, DMK Deutsches Milchkontor GmbH, Fonterra Cooperative Group Ltd., FrieslandCampina, Glanbia plc, Gujarat Cooperative Milk Marketing Federation Ltd., Inner Mongolia Yili Industrial Group Co. Ltd., Kerry Group Plc, Meiji Holdings Co. Ltd., Nestle SA, Saputo Inc., Schreiber Foods Inc., The Kraft Heinz Co., The Kroger Co., and Unilever PLC.

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Dairy Food Market Scope

Report Coverage

Details

Base year

2023

Historic period

2017 - 2021

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 2.09%

Market growth 2024-2028

USD 88.1 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

2.02

Regional analysis

APAC, Europe, North America, South America, and Middle East and Africa

Performing market contribution

APAC at 46%

Key countries

US, India, China, Germany, and France

Key companies profiled

Agropur Dairy Cooperative, Albertsons Companies Inc., Arla Foods amba, China Mengniu Dairy Co. Ltd., Dairy Farmers of America Inc., Danone SA, DMK Deutsches Milchkontor GmbH, Fonterra Cooperative Group Ltd., FrieslandCampina, Glanbia plc, Gujarat Cooperative Milk Marketing Federation Ltd., Inner Mongolia Yili Industrial Group Co. Ltd., Kerry Group Plc, Meiji Holdings Co. Ltd., Nestle SA, Saputo Inc., Schreiber Foods Inc., The Kraft Heinz Co., The Kroger Co., and Unilever PLC

The dairy food market is experiencing significant growth in the online retail sector. Factors such as expanding internet connectivity, increasing smartphone usage, and a large customer base are driving the demand for dairy food through e-commerce platforms. Vendors prioritize distributing a wide range of fresh dairy products online. Effective marketing activities and the convenience of purchasing dairy foods online have attracted consumers. Major e-commerce players like Amazon, BigBasket, and Natures Basket sell dairy foods at competitive prices, offering discounts and bulk purchase incentives. Additionally, the convenience of safe online payments and home delivery further boost sales. Amidst the COVID-19 pandemic, consumers' increasing awareness of social distancing has further fueled the trend of buying dairy foods online, presenting substantial opportunities for market expansion.

The dairy food industry is thriving with trends like milk, yogurt, cheese, spreads, and ice creams leading the way. Nutritional value is a key focus, with lactose-intolerant consumers driving demand for lactose-free dairy products. Premium offerings, such as Milkymist and Skyr yogurt, are popular. Sustainable production is important, addressing labor shortages and milk oversupply. Cattle, sheep, goat, and camel milk segments are in the spotlight. Starbucks Corporation's oat milk-based beverage is a hit. Fonterra, Danone, Arla Foods, Walki, Yum Brands, and others innovate with fermented dairy products, adding vitamins, bioactive peptides, specific proteins, conjugated linoleic acid, antioxidants, organic acids, and highly absorbable calcium. Probiotic bacteria are also in demand. The lactose segment offers lactose sugar as an alternative. Supermarkets/hypermarkets, convenience stores, and online retail dominate sales channels. Plant-based foods are gaining ground but dairy remains a significant player.

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• Retail stores, including supermarkets, discount, and convenience chains, have become significant distribution channels for dairy food and packaged food and beverage manufacturers. However, this partnership comes with challenges. Manufacturers face pressure to maintain prices and margins due to retailers' lower profit margins. Retailers demand frequent, smaller product deliveries to minimize warehousing costs. To prevent revenue decline due to insufficient inventory, retailers prioritize order fulfillment rates when forming relationships with manufacturers. Consumers' distribution channel shifts towards convenience stores necessitate a balance between price and volume for manufacturers. The COVID-19 pandemic disrupted the dairy food market's supply chain, causing temporary farm shutdowns, limited trade opportunities, and increased transportation costs. These factors restrained market growth and will likely continue to impact it during the forecast period.

• The dairy market faces significant challenges due to the growing lactose-intolerant population. To cater to this segment, companies are producing lactose-free dairy products. Gorgonzola cheese and other traditional dairy items may lose market share to plant-based alternatives. Starbucks Corporation, for instance, offers an oat milk-based beverage. The cattle segment dominates the dairy industry, but alternatives like sheep milk, goat milk, and camel milk are gaining traction. The lactose segment is also evolving, with companies exploring lactose sugar and other solutions. Supermarkets/hypermarkets, convenience stores, and online retail are key sales channels. Fonterra, Danone, Arla Foods, Walki, Yum Brands, and others lead the market. Fermented dairy products, fortified with vitamins, bioactive peptides, specific proteins, and minerals, are popular. Functional foods, including probiotic bacteria, prebiotic fibers, omega-3 fatty acids, phytosterols, and iron-fortified milk, are trending. Companies are also focusing on conjugated linoleic acid, antioxidants, organic acids, and highly absorbable calcium.

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This dairy food market report extensively covers market segmentation by

1.1 Milk- Milk is an essential food source rich in vitamins and minerals, including calcium, vitamin B12, iodine, potassium, phosphorus, and vitamin B2. Calcium plays a crucial role in bone health, and an inadequate supply over a lifetime can lead to osteoporosis and related bone diseases. Milk's calcium content strengthens bones, making it a recommended food for females, who are more susceptible to osteoporosis due to hormonal changes. The organic milk segment offers additional benefits with high nutrient content, omega-3 fatty acids, and absence of pesticides and antibiotics. Factors driving the dairy food market's growth include urbanization, increasing osteoporosis cases among females, health consciousness, organic milk availability, and global vendors' presence.

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The dairy food industry encompasses a wide range of products including Milk, Yogurt, Cheese, Spreads, and Ice Creams. These foods are not only delicious but also rich in essential Nutritional Value such as Vitamins, Calcium, and Proteins. The industry is currently facing challenges including a Labor Shortage, which is impacting production and supply. Online Retail is becoming increasingly popular, allowing consumers to purchase dairy products from the comfort of their homes. Fermented dairy products like Yogurt and Cheese contain Bioactive Peptides, Specific Proteins, and Probiotic Bacteria, which offer numerous health benefits. Other valuable components include Conjugated Linoleic Acid, Antioxidants, Organic Acids, and Highly Absorbable Calcium. Brands like Fonterra, Danone, Arla Foods, and Yum Brands are leading the way in innovation, producing dairy products fortified with these nutrients. Additionally, the industry is exploring the use of Nutraceuticals such as Vitamins, Minerals, and Oligosaccharides to enhance the nutritional value of dairy products. The National Dairy Program and other organizations are investing in research to further improve the health benefits of dairy foods. Overall, the dairy food industry continues to evolve, offering consumers a wide range of delicious and nutritious options.

The dairy food industry encompasses a wide range of products including Milk, Yogurt, Cheese, Spreads, and Ice creams. These foods are known for their high nutritional value, providing essential vitamins, minerals, and proteins. However, the industry faces challenges such as labor shortages and raw material oversupply, particularly in the Milk segment. To cater to various dietary needs, the market offers Lactose-free and Lactose-intolerant dairy products, as well as Plant-based alternatives like Oat milk-based beverages. Premium dairy products, such as Gorgonzola cheese, and Personalized dairy products like Milkymist and Skyr yogurt, continue to gain popularity. Sustainable dairy production is a growing trend, with companies focusing on reducing carbon footprint and improving animal welfare. The industry also includes Fermented dairy products, fortified with Vitamins, Bioactive peptides, Specific proteins, Conjugated linoleic acid, Antioxidants, Organic acids, and Highly absorbable calcium. Probiotic bacteria, Oligosaccharides, Prebiotic fibers, Omega-3 fatty acids, Phytosterols, and Minerals are added to functional foods for added health benefits. Retail outlets include Supermarkets/hypermarkets, Convenience stores, and Online retail. Key players include Fonterra, Danone, Arla Foods, Walki, Yum Brands, and others.

1 Executive Summary2 Market Landscape3 Market Sizing4 Historic Market Size5 Five Forces Analysis6 Market Segmentation

7 Customer Landscape8 Geographic Landscape9 Drivers, Challenges, and Trends10 Company Landscape11 Company Analysis12 Appendix

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SOURCE Technavio