Who are the key players in Europe Dairy Market?

Arla Foods Amba, Danone SA, Groupe Lactalis, Nestlé SA and Unilever PLC are the major companies operating in the Europe Dairy Market. Read More

Which segment has the biggest share in the Europe Dairy Market?

In the Europe Dairy Market, the Off-Trade segment accounts for the largest share by distribution channel. Read More

Which country has the biggest share in the Europe Dairy Market?

In 2024, France accounts for the largest share by country in the Europe Dairy Market. Read More

What years does this Europe Dairy Market cover, and what was the market size in 2023?

In 2023, the Europe Dairy Market size was estimated at 204.62 billion. The report covers the Europe Dairy Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Dairy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

Europe Dairy Market Size

Market Size of europe dairy Industry

Icons	Lable	Value
	Study Period	2017 - 2029
	Market Size (2024)	USD 204.6 Billion
	Market Size (2029)	USD 250.5 Billion
	Largest Share by Distribution Channel	Off-Trade
	CAGR (2024 - 2029)	4.13 %
	Largest Share by Country	France
	Market Concentration	Low
Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Dairy Market Analysis

The Europe Dairy Market size is estimated at 204.6 billion USD in 2024, and is expected to reach 250.5 billion USD by 2029, growing at a CAGR of 4.13% during the forecast period (2024-2029).

204.6 Billion

Market Size in 2024 (USD)

250.5 Billion

Market Size in 2029 (USD)

2.75 %

CAGR (2017-2023)

4.13 %

CAGR (2024-2029)

Largest Market by Category

36.15 %

value share, Cheese, 2023

Product consistency, surge in regional production and increasing cheese use in different cuisines are some of the major factors influencing the higher cheese consumption.

Largest Market by Country

16.14 %

value share, France, 2023

France being the Europe's 2nd largest producer of milk after Germany with 54% run as farm companies is largely influencing the consumption of milk during the study period.

Fastest-growing Market by Category

4.56 %

Projected CAGR, Yogurt, 2024-2029

The demand for yogurt is fuelled by the availability of numerous flavors growing consumer indulgence in exotic flavors, and significant investments by manufacturers.

Fastest-growing Market by Country

5.32 %

Projected CAGR, Belgium, 2024-2029

Milk processing capacity has increased sharply in Belgium (38% more milk is processed in 2022 than in 2012) which is emerged to be one of the major factor driving the market.

Leading Market Player

4.95 %

market share, Groupe Lactalis, 2022

The strict quality inspection measures for the products of Lactalis and constant review of its supplies on a regular basis is largely making Groupe Lactalis outstand its' competitors.

Strong presence of supermarkets and convenience stores is boosting the dairy sales

The off-trade retail channel plays a major role in sales of Dairy products in Europe. Among the off-trade channels, supermarkets and hypermarkets accounted for the major market share as they provide them with the added advantage of influencing the consumer’s decision to make the purchase among the large variety of products available in the market. This channel is considered the primary sales channel for the sales of dairy products as it holds more than 58.45% of overall sales across Europe.
In Europe, convenience stores stand in second place in the sales of dairy products, behind Supermarkets and Hypermarkets. In 2022, the sales value of dairy products through convenience stores increased by 2.9% compared to 2021. Many convenience stores stay open for longer hours than traditional retail stores, resulting in more time in the day for the company’s products to be sold.
Online retail is the fastest-growing retail sales channel in the off-trade category. Online retailers, including Amazon, Sainsbury’s, Asda, and Tesco, represent the most dominant platforms in terms of the sales of overall groceries, including dairy products, across the country. Milk and cheese have the highest sales through online retail channels. In 2022, cheese accounted for 66.3% of the value share in online retail channels.
There is an increasing demand for dairy-based recipes from food service channels, further boosting market growth. The dairy sales in the on-trade channel are anticipated to grow by USD 36,245 million in 2024, compared to USD 33,579 million in 2022.

Understand The Key Trends Shaping This Market

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Well-established dairy farms with adequate milk processing capacity fuels the industry growth

Germany and Russia are identified as the major markets in the region, followed by the United Kingdom and France. Germany and Russia collectively accounted for 29.40% of the overall dairy products volume sales across the region in 2022. High production of raw milk, rising consumer preference for quality dairy products, and adequate industry regulation to facilitate the manufacturing of these products are identified as the key driving factors. Russia was the fifth-largest producer of raw milk globally in 2021. In 2020, industrialized dairy farms represented 41% of cow inventories, 42% of backyard farms, and small peasant farms accounted for 17% of cow inventories in Russia.
Belgium and France are identified as the fastest-growing dairy markets in Europe. The Belgium market is anticipated to expand at a CAGR of 4.36% during the forecast period in terms of volume. Milk and cheese are the leading categories in the Belgium market, collectively accounting for 73.27% market volume share in 2022. Milk and cheese are important components of the daily diet in Belgian households. In Belgium, households spent 3.13 billion on dairy products between 1 July 2020 and 30 June 2021. This represented an increase of 5 % compared to the previous year.
Demand for healthy dairy variants, such as no or reduced sugar, low-fat content, grass-fed, and organic, is anticipated to drive market growth in France during the forecast period. In 2022, Biolait, one of the leading suppliers of raw organic milk in France, represented 30% of organic milk collection in the country. In 2021, grass represented 97% of the feed for heifers and 73% of cow feed at the company's Belin farm.

Europe Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel. Belgium, France, Germany, Italy, Netherlands, Russia, Spain, Turkey, United Kingdom are covered as segments by Country.

The off-trade retail channel plays a major role in sales of Dairy products in Europe. Among the off-trade channels, supermarkets and hypermarkets accounted for the major market share as they provide them with the added advantage of influencing the consumer’s decision to make the purchase among the large variety of products available in the market. This channel is considered the primary sales channel for the sales of dairy products as it holds more than 58.45% of overall sales across Europe.
In Europe, convenience stores stand in second place in the sales of dairy products, behind Supermarkets and Hypermarkets. In 2022, the sales value of dairy products through convenience stores increased by 2.9% compared to 2021. Many convenience stores stay open for longer hours than traditional retail stores, resulting in more time in the day for the company’s products to be sold.
Online retail is the fastest-growing retail sales channel in the off-trade category. Online retailers, including Amazon, Sainsbury’s, Asda, and Tesco, represent the most dominant platforms in terms of the sales of overall groceries, including dairy products, across the country. Milk and cheese have the highest sales through online retail channels. In 2022, cheese accounted for 66.3% of the value share in online retail channels.
There is an increasing demand for dairy-based recipes from food service channels, further boosting market growth. The dairy sales in the on-trade channel are anticipated to grow by USD 36,245 million in 2024, compared to USD 33,579 million in 2022.

Europe Dairy Market Size Summary

The Europe Dairy Market is experiencing a steady expansion, driven by various retail channels and evolving consumer preferences. Supermarkets and hypermarkets dominate the off-trade retail sector, significantly influencing consumer purchasing decisions due to their extensive product offerings. Convenience stores also contribute to market growth, benefiting from extended operating hours. However, online retail emerges as the fastest-growing channel, with platforms like Amazon and Tesco leading in grocery sales, particularly for milk and cheese. The on-trade sector is witnessing increased demand for dairy-based recipes, further propelling market growth. Key markets such as Germany and Russia are pivotal, supported by high raw milk production and a preference for quality dairy products. Belgium and France are noted as rapidly growing markets, with Belgium's market expanding due to strong demand for milk and cheese, while France sees growth driven by healthy dairy variants.

The market landscape is characterized by fragmentation, with major players like Arla Foods, Danone, Groupe Lactalis, Nestl√©, and Unilever holding a significant share. The demand for butter-based snacks and baked foods is rising, influencing import trends, particularly from the United Kingdom and Switzerland. Despite challenges like rising manufacturing costs and Brexit-related import limitations, the market remains resilient. The per capita consumption of dairy is expected to rise, with a growing interest in organic and naturally produced dairy products. Investments in production facilities, such as Hochwald Milch's new plant in Germany, highlight ongoing efforts to meet increasing demand and enhance production capabilities. Strategic acquisitions, like Lactalis's partnership with Bayerische Milchindustrie, aim to strengthen regional product offerings and expand market reach.

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Europe Dairy Market Size - Table of Contents

1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)
1. 1.1 Category
  1. 1.1.1 Butter
    1. 1.1.1.1 By Product Type
      1. 1.1.1.1.1 Cultured Butter
      2. 1.1.1.1.2 Uncultured Butter
  2. 1.1.2 Cheese
    1. 1.1.2.1 By Product Type
      1. 1.1.2.1.1 Natural Cheese
      2. 1.1.2.1.2 Processed Cheese
  3. 1.1.3 Cream
    1. 1.1.3.1 By Product Type
      1. 1.1.3.1.1 Double Cream
      2. 1.1.3.1.2 Single Cream
      3. 1.1.3.1.3 Whipping Cream
      4. 1.1.3.1.4 Others
  4. 1.1.4 Dairy Desserts
    1. 1.1.4.1 By Product Type
      1. 1.1.4.1.1 Cheesecakes
      2. 1.1.4.1.2 Frozen Desserts
      3. 1.1.4.1.3 Ice Cream
      4. 1.1.4.1.4 Mousses
      5. 1.1.4.1.5 Others
  5. 1.1.5 Milk
    1. 1.1.5.1 By Product Type
      1. 1.1.5.1.1 Condensed milk
      2. 1.1.5.1.2 Flavored Milk
      3. 1.1.5.1.3 Fresh Milk
      4. 1.1.5.1.4 Powdered Milk
      5. 1.1.5.1.5 UHT Milk
  6. 1.1.6 Sour Milk Drinks
  7. 1.1.7 Yogurt
    1. 1.1.7.1 By Product Type
      1. 1.1.7.1.1 Flavored Yogurt
      2. 1.1.7.1.2 Unflavored Yogurt
2. 1.2 Distribution Channel
  1. 1.2.1 Off-Trade
    1. 1.2.1.1 Convenience Stores
    2. 1.2.1.2 Online Retail
    3. 1.2.1.3 Specialist Retailers
    4. 1.2.1.4 Supermarkets and Hypermarkets
    5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)
  2. 1.2.2 On-Trade
3. 1.3 Country
  1. 1.3.1 Belgium
  2. 1.3.2 France
  3. 1.3.3 Germany
  4. 1.3.4 Italy
  5. 1.3.5 Netherlands
  6. 1.3.6 Russia
  7. 1.3.7 Spain
  8. 1.3.8 Turkey
  9. 1.3.9 United Kingdom
  10. 1.3.10 Rest of Europe

Europe Dairy Market Size FAQs

How big is the Europe Dairy Market?

The Europe Dairy Market size is expected to reach USD 204.62 billion in 2024 and grow at a CAGR of 4.13% to reach USD 250.49 billion by 2029.

What is the current Europe Dairy Market size?

In 2024, the Europe Dairy Market size is expected to reach USD 204.62 billion.

Europe Dairy Market Size

Market Size of europe dairy Industry