Germany Dairy Market Size

The Germany Dairy Market is projected to experience significant growth over the forecast period, driven by the increasing demand for clean-label products such as cheese, yogurt, and milk. The market's expansion is largely facilitated through off-trade distribution channels, with convenience stores playing a crucial role due to their accessibility in urban areas. Additionally, the on-trade channel is expected to see growth as dining out becomes more prevalent in German culture. Cheese holds a substantial portion of the market share among dairy products, reflecting its popularity across retail channels.

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Market Size of germany dairy Industry

Germany Dairy Market Summary
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Icons Lable Value
svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 30.35 Billion
svg icon Market Size (2029) USD 38.64 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 4.94 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Key Players

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Germany Dairy Market Analysis

The Germany Dairy Market size is estimated at 30.35 billion USD in 2024, and is expected to reach 38.64 billion USD by 2029, growing at a CAGR of 4.94% during the forecast period (2024-2029).

30.35 Billion

Market Size in 2024 (USD)

38.64 Billion

Market Size in 2029 (USD)

2.89 %

CAGR (2017-2023)

4.94 %

CAGR (2024-2029)

Largest Market by Category

38.53 %

value share, Cheese, 2023

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The increased availability of cheese in the country is driving the increasing demand for various types of cheese used in local cuisines ultimately catering to the market growth.

Largest Market by Distribution Channel

89.94 %

value share, Off-Trade, 2023

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The wider range of dairy products provided by major off-trade channels like convenience stores with reliable shelf space and product assortment entices consumers with wider options.

Fastest-growing Market by Category

7.63 %

Projected CAGR, Cheese, 2024-2029

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The growing popularity of ready-to-eat foods with its major use driven by pizza, burgers, sandwiches, and others is anticipated to drive the market in the forecasted period.

Fastest-growing Market by Distribution Channel

5.20 %

Projected CAGR, Off-Trade, 2024-2029

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The growth of segment in the country is largely driven with the existence of an inviting place for customers to shop, as they are constantly drawn to make large purchases.

Leading Market Player

5.19 %

market share, Muller Group, 2022

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The active market activities such as product innovations, and strategic moves applied by Müller Holding GmbH & Co. KG along with the growing portfolio enabled the company to grow in the market.

Easy availability of dairy products through wide retail sector is boosting the growth.

  • In Germany, the sales of dairy products in the overall distribution channels increased by 9.2% in 2022 compared to 2021. The growth was attributed to the popularity and availability of clean-label products in dairy segments, such as cheese, yogurt, and milk. These clean-label dairy products are free from artificial ingredients, including artificial colors, flavors, and preservatives.
  • The off-trade distribution channel is the primary channel through which dairy products are mainly consumed in the country. Among the off-trade channels, convenience stores are the largest distribution channels in the German dairy market. The proximity factor of these channels, especially in large and developed cities, gives them an added advantage of influencing the consumer's decision to purchase among the large variety of products available in the market. In 2022, convenience stores accounted for more than 39.8% of the value share compared to other retail channels.
  • Dairy sales in the on-trade channel are anticipated to grow by USD 2,588.64 million in 2024, up from USD 2,164.86 million in 2021. The growth in the segment is attributed to consuming food at a restaurant or ordering takeout, which is a prevailing aspect of German dietary habits. Eating out is a popular pastime in Germany, with almost 52 million people doing so in 2022 and more than 10 million Germans stating they often did so.
  • Among all dairy products, cheese accounted for the majority share in the overall retail channels. In 2022, the sales value of cheese in the overall retail channels increased by 5.8% from 2021, accounting for 41.3% of the value share compared to other dairy products in the country.
Germany Dairy Market

Germany 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.

  • In Germany, the sales of dairy products in the overall distribution channels increased by 9.2% in 2022 compared to 2021. The growth was attributed to the popularity and availability of clean-label products in dairy segments, such as cheese, yogurt, and milk. These clean-label dairy products are free from artificial ingredients, including artificial colors, flavors, and preservatives.
  • The off-trade distribution channel is the primary channel through which dairy products are mainly consumed in the country. Among the off-trade channels, convenience stores are the largest distribution channels in the German dairy market. The proximity factor of these channels, especially in large and developed cities, gives them an added advantage of influencing the consumer's decision to purchase among the large variety of products available in the market. In 2022, convenience stores accounted for more than 39.8% of the value share compared to other retail channels.
  • Dairy sales in the on-trade channel are anticipated to grow by USD 2,588.64 million in 2024, up from USD 2,164.86 million in 2021. The growth in the segment is attributed to consuming food at a restaurant or ordering takeout, which is a prevailing aspect of German dietary habits. Eating out is a popular pastime in Germany, with almost 52 million people doing so in 2022 and more than 10 million Germans stating they often did so.
  • Among all dairy products, cheese accounted for the majority share in the overall retail channels. In 2022, the sales value of cheese in the overall retail channels increased by 5.8% from 2021, accounting for 41.3% of the value share compared to other dairy products in the country.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Sour Milk Drinks
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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Germany Dairy Market Size Summary

The Germany dairy market is experiencing a robust growth trajectory, driven by the increasing demand for clean-label products such as cheese, yogurt, and milk, which are free from artificial ingredients. The off-trade distribution channel, particularly convenience stores, plays a significant role in the market, offering consumers easy access to a wide variety of dairy products. The on-trade channel is also witnessing growth, fueled by the popularity of dining out and takeout options among the German population. Cheese holds a dominant position in the market, with its sales value rising significantly, reflecting its popularity and the rising demand for dairy-based desserts. The per capita consumption of dairy products is on the rise, supported by the nutritional benefits of milk and the growing preference for butter-based snacks.

The market is characterized by a fragmented landscape, with major players like Arla Foods amba, Danone SA, Groupe Lactalis, Muller Group, and Unilever PLC holding a modest share. Recent strategic moves, such as Lactalis Group's acquisition of Bayerische Milchindustrie eG's Fresh division, aim to strengthen partnerships with regional producers and enhance the market for regional products. Investments in expanding dairy plants, as seen with Hochland Holding GmbH & Co. KG, indicate a commitment to meeting the growing demand. Innovations like Siggi’s reduced-sugar yogurt line reflect the industry's focus on catering to evolving consumer preferences. Overall, the Germany dairy market is poised for continued expansion, driven by changing consumer habits and strategic industry developments.

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Germany Dairy Market Size - Table of Contents

  1. 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

Germany Dairy Market Size FAQs

The Germany Dairy Market size is expected to reach USD 30.35 billion in 2024 and grow at a CAGR of 4.94% to reach USD 38.64 billion by 2029.

In 2024, the Germany Dairy Market size is expected to reach USD 30.35 billion.

Germany Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029