Global dairy industry set to grow to US$796.8B by 2030

GLOBAL – The global dairy industry is experiencing significant growth, with projections indicating that the market will increase from US$585,554.8 million in 2020 to US$ 796,817.6 million by 2030, representing a compound annual growth rate (CAGR) of 3.48%.

This growth is primarily attributed to the rising demand for lactose-free products and other health-focused dairy items.

Emerging markets, particularly in Asia-Pacific and Africa, are contributing to this upward trend, while traditional dairy markets in North America and Europe continue to innovate with premium and functional products.

According to a report by Market Research Future, the increasing population, expanding middle classes, and heightened awareness of the nutritional benefits of dairy are driving this demand.

In particular, countries like India and China, with their large populations, are becoming significant consumers. 

The shift towards health-conscious choices is further evidenced by the growing popularity of functional dairy products, such as high-protein milk, probiotic-rich yogurt, and lactose-free options. 

“Consumers are more focused on preventive healthcare, which is why dairy products fortified with additional vitamins and minerals are gaining traction,” the report noted.

In addition to health-focused products, the dairy industry is witnessing a rise in plant-based alternatives. 

Products such as almond, oat, and soy milk have become mainstream, attracting vegan, lactose-intolerant, and environmentally conscious consumers. 

This has led traditional dairy companies to diversify their portfolios by either launching plant-based options or acquiring startups in the alternative dairy space.

Sustainability has also emerged as a crucial factor influencing consumer behavior. With growing concerns about environmental issues, such as greenhouse gas emissions and water pollution from dairy farming, there is increasing demand for sustainably produced dairy. 

Companies are responding by adopting eco-friendly practices and ethical sourcing, including using grass-fed or organic milk. 

“Sustainability is no longer a trend but a necessity,” stated a leading dairy industry expert.

Despite its growth, the dairy industry faces several challenges, including the volatility of milk prices and the environmental impact of dairy farming. 

Fluctuating prices, influenced by factors such as feed costs and weather conditions, create uncertainty for both dairy farmers and processors. 

Furthermore, plant-based alternatives continue to pose a competitive threat to traditional dairy products, particularly in certain market segments.

However, opportunities for growth remain abundant. Value-added products, such as probiotic-rich yogurt and protein-packed shakes, continue to attract health-conscious consumers. 

Expansion into emerging markets, where urbanization and income levels are on the rise, presents another significant opportunity. 

Additionally, adopting sustainable practices and technological innovations, such as AI and blockchain, could enhance operational efficiency and product quality, thus offering further growth potential.

Looking ahead, the dairy industry will need to balance tradition with innovation to remain relevant. 

While traditional dairy products will continue to play a vital role in global nutrition, companies must adapt to the changing preferences of consumers and the pressing need for sustainability.

The industry’s ability to innovate and collaborate across the supply chain will be key to its continued success in the years to come.