Emerging Markets Drive Global Dairy Industry Growth by 2025
New York, Tuesday, 14 October 2025.
Emerging markets are set to propel the global dairy industry, with increased demand for cheese, coffee whiteners, and fermented products. Mature regions focus on premium and wellness trends.
Growth Opportunities in Emerging Markets
The global dairy industry is witnessing robust growth prospects, particularly in emerging markets such as the Middle East, Africa, and Latin America. These regions are poised to be the most dynamic, contributing significantly to the industry’s expansion. This growth is driven by an increasing middle-class population and a rising appetite for dairy products like cheese, coffee whiteners, and fermented dairy products. The compounded annual growth rate (CAGR) for the global dairy industry is projected at 2.1% from 2025 to 2030, adding an estimated USD 77 billion in value [1].
Premiumisation and Wellness in Mature Markets
In contrast, mature markets such as North America and Western Europe are experiencing a shift towards premiumisation and wellness trends. Consumers in these regions are increasingly seeking high-quality, health-oriented dairy alternatives. This shift is driven by a growing awareness of health benefits associated with functional dairy products and the clean-label movement, which emphasizes transparency and natural ingredients [1]. The focus on premium products not only caters to health-conscious consumers but also helps brands differentiate themselves in a competitive market landscape [1].
Strategic Shifts and Challenges
Global leaders like Danone and Nestlé are currently dominating the market; however, they face challenges from private labels and regional players. These competitors are gaining traction by offering affordable and locally relevant products, which appeal to price-sensitive consumers. As a result, established brands are prompted to innovate continuously and adapt to evolving consumer preferences. The rise of e-commerce, which remains the fastest-growing distribution channel despite accounting for just 8% of global retail penetration, further underscores the need for agility in market strategy [1].
Future Outlook and Industry Dynamics
Looking ahead, the dairy industry is expected to navigate a landscape characterized by pricing-led value growth and modest volume performance. Key growth drivers will continue to be cheese, coffee whiteners, and fermented dairy products, which benefit from trends such as high protein content and the burgeoning coffee culture. Meanwhile, the industry’s focus on functionality, packaging strategies, and local relevance will be essential for brand differentiation and securing future success [1].