Dairy Based Beverages Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, India, UK, Germany, Canada - Size and Forecast 2024-2028

Dairy Based Beverages Market Size 2024-2028

The dairy based beverages market size is valued to increase USD 52.3 billion, at a CAGR of 6.57% from 2023 to 2028. Rising adoption of healthy food habits will drive the dairy based beverages market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 40% growth during the forecast period.
• By Type - Milk segment was valued at USD 62.40 billion in 2022
• By Distribution Channel - Supermarkets or Hypermarkets segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 72.95 billion
• Market Future Opportunities: USD 52.30 billion
• CAGR : 6.57%
• APAC: Largest market in 2022

Market Summary

• The market is a dynamic and evolving industry, characterized by the continuous adoption of innovative technologies and shifting consumer preferences. Core technologies, such as aseptic filling and high-pressure processing, are revolutionizing the production and preservation of these beverages, ensuring longer shelf life and maintaining the natural taste and nutritional value. Meanwhile, applications ranging from fortified milk drinks to plant-based dairy alternatives continue to expand, catering to diverse consumer needs and dietary requirements. Regulations play a crucial role in shaping the market landscape, with stringent food safety standards and increasing focus on labeling requirements driving manufacturers to prioritize organic and natural ingredients.
• For instance, the organic dairy segment is expected to account for over 10% of the global market share by 2027, reflecting the rising importance of organic products. Despite these opportunities, the market faces challenges, including the availability of alternatives, such as plant-based beverages, and the increasing competition from the food and beverage industry. Nevertheless, the rising adoption of healthy food habits and the growing awareness of the nutritional benefits of dairy-based beverages present significant growth opportunities for market participants.

What will be the Size of the Dairy Based Beverages Market during the forecast period?

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How is the Dairy Based Beverages Market Segmented and what are the key trends of market segmentation?

The dairy based beverages industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Milk
  • Yogurt
  • Kefir
  • Others
• Distribution Channel
  • Supermarkets or Hypermarkets
  • Convenience stores
  • Online retail
  • Others
• Geography
  • North America
    • US
    • Canada
  • Europe
    • Germany
    • UK
  • APAC
    • India
  • Rest of World (ROW)

By Type Insights

The milk segment is estimated to witness significant growth during the forecast period.

Dairy-based beverages, including milk, cheese, butter, and yogurt, continue to dominate the global nutritional landscape due to their rich nutrient content. Milk, in particular, is a valuable source of essential minerals such as calcium, vitamin B12 (riboflavin), iodine, potassium, and phosphorus, as well as vitamins B2 and D. Calcium fortification and vitamin D enrichment are common practices in the industry to cater to the growing consumer demand for bone health support. Cheese ripening processes and butterfat content analysis are crucial aspects of cheese production, ensuring optimal flavor development and consumer satisfaction. In the realm of milk processing, whey processing optimization and calcium fortification levels are essential to maximize product functionality and nutritional value.

Yogurt culture selection and pasteurization methods play a significant role in determining product taste, texture, and shelf life. Milk powder production and functional dairy ingredients, such as protein hydrolysates and homogenization techniques, contribute to the versatility and convenience of dairy-based beverages. Dairy fermentation processes, including microbial stability assays and texture profile analysis, are essential for maintaining product quality and consistency. Shelf life extension and microbial contamination control are ongoing priorities to ensure the safety and freshness of dairy products. Ultrafiltration membrane technology, cream separation techniques, and aqueous extraction methods are employed to enhance product functionality and create value-added offerings.

The dairy industry's ongoing focus on innovation and sustainability is driving the adoption of advanced technologies and practices, such as protein denaturation, lactose crystallization, and rheological properties analysis. The market for dairy-based beverages is expected to grow significantly, with an increasing number of consumers seeking healthier, more functional food and beverage options. According to recent industry reports, the market is projected to expand by 18.3% in the next three years, driven by the rising demand for calcium-fortified dairy products and the growing popularity of plant-based alternatives. Additionally, the market is expected to witness a 15.6% increase in demand for dairy ingredients, such as milk protein concentrate and whey protein isolate, due to their functional benefits and versatility.

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The Milk segment was valued at USD 62.40 billion in 2018 and showed a gradual increase during the forecast period.

In the realm of supply chain management, companies are focusing on optimizing production processes, reducing waste, and improving logistics to meet the growing demand for dairy-based beverages. Quality control metrics, such as sensory evaluation testing and product viscosity measurement, are essential for maintaining product consistency and ensuring customer satisfaction. In conclusion, the dairy-based beverages market is a dynamic and evolving industry, driven by consumer demand for nutritious, functional, and convenient food and beverage options. Companies are investing in innovation, sustainability, and advanced technologies to meet these demands and stay competitive in the market.

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Regional Analysis

APAC is estimated to contribute 40% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European market is experiencing significant growth due to various factors. These include the increasing urbanization leading to changing consumer preferences, the rising awareness of the importance of maintaining bone health, the growing demand for organic dairy products, and the convenience of online shopping for dairy items. With approximately 51% of the population being female in Germany, France, Italy, Denmark, and the UK, the high percentage of women, who are more susceptible to osteoporosis, is driving the consumption of dairy products for adequate calcium intake. This demographic trend is contributing to the expansion of the dairy based beverages industry in Europe. 

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is a dynamic and innovative industry, characterized by continuous research and development to enhance product quality, stability, and nutritional value. Homogenization plays a crucial role in maintaining beverage stability by reducing fat globule size, thereby preventing creaming and sedimentation. However, the process can impact protein denaturation and affect sensory attributes, necessitating optimization of whey protein isolate and other dairy ingredients. Storage temperature is another critical factor influencing dairy product shelf life. Prolonged exposure to elevated temperatures can lead to lactose crystallization, protein denaturation, and microbial growth, necessitating careful evaluation of microbial stability in ultra-high temperature milk and implementation of quality assurance programs.

Innovation is a key driver in the market, with researchers exploring techniques for controlling lactose crystallization, enhancing nutritional value through enzyme treatment, and developing probiotic cultures for improved product functionality. The role of packaging materials in maintaining beverage quality is also a significant focus, as is assessing rheological properties and reducing microbial contamination during production. The market is witnessing a notable trend towards the development of innovative dairy-based beverage formulations, with a growing number of players focusing on understanding the influence of processing parameters on dairy texture and investigating flavor compound interactions in fermented dairy products. Moreover, the market is seeing a shift towards prebiotic fiber-fortified dairy products, with evidence suggesting potential benefits for gut microbiota in dairy consumers.

Compared to traditional dairy beverages, the high-end segment of the market, which focuses on functional and fortified offerings, accounts for a significantly larger share. This is due to increasing consumer demand for healthier and more nutritious options, as well as the growing popularity of plant-based alternatives. However, a minority of players, less than 15%, dominate this high-end market, underscoring the need for strategic differentiation and innovation. In conclusion, the market is a dynamic and innovative industry, driven by ongoing research and development to enhance product quality, stability, and nutritional value. Homogenization, ingredient optimization, storage temperature, and microbial stability are key challenges, while innovation, functional. The dairy based beverages market is advancing through innovations in formulation, processing, and packaging. A key focus is the impact of homogenization on dairy beverage stability, which directly affects texture and shelf life. Manufacturers are working on the optimization of whey protein isolate in beverages to improve nutritional value and mouthfeel. The effect of storage temperature on dairy product shelf life remains critical, as does analyzing protein denaturation during heat treatment to preserve functionality. Measuring viscosity changes during dairy processing and assessing the rheological properties of dairy-based drinks help in maintaining product consistency. Techniques for controlling lactose crystallization in milk are also essential for product stability. Improving sensory attributes through dairy ingredient selection and methods for enhancing the nutritional value of dairy products are driving consumer acceptance. Additionally, the role of packaging material in maintaining dairy beverage quality and strategies for reducing microbial contamination during production are key to ensuring safety and freshness.offerings, and consumer health trends are major growth drivers.

The dairy based beverages market is advancing through innovations in formulation, processing, and packaging. A key focus is the impact of homogenization on dairy beverage stability, which directly affects texture and shelf life. Manufacturers are working on the optimization of whey protein isolate in beverages to improve nutritional value and mouthfeel. The effect of storage temperature on dairy product shelf life remains critical, as does analyzing protein denaturation during heat treatment to preserve functionality. Measuring viscosity changes during dairy processing and assessing the rheological properties of dairy-based drinks help in maintaining product consistency. Techniques for controlling lactose crystallization in milk are also essential for product stability. Improving sensory attributes through dairy ingredient selection and methods for enhancing the nutritional value of dairy products are driving consumer acceptance. Additionally, the role of packaging material in maintaining dairy beverage quality and strategies for reducing microbial contamination during production are key to ensuring safety and freshness.

What are the key market drivers leading to the rise in the adoption of Dairy Based Beverages Industry?

• The rising adoption of healthy food habits is the primary factor fueling market growth. 

• The global prevalence of various bone diseases, including osteoporosis, arthritis, hypocalcemia, Pagets disease, and osteogenesis imperfecta, is experiencing a notable increase. Osteoporosis, characterized by weak and brittle bones, results in an estimated 9 million fractures annually, according to data published by the National Institutes of Health (NIH) in June 2020. This condition disproportionately affects women, who accounted for 49.6% of the global population in 2020, as per The World Bank Group.
• This demographic trend will fuel the demand for dairy-based beverage products, which are essential for calcium intake to prevent bone diseases. The increasing incidence of bone diseases and the growing female population necessitate innovative solutions to address this global health concern.

What are the market trends shaping the Dairy Based Beverages Industry?

• The rising importance of organic dairy-based beverages represents a significant market trend. Organic dairy beverages are gaining popularity due to increasing consumer awareness and preference for healthier and more sustainable food options.

• Organic dairy beverages have gained significant traction in the global market due to growing concerns over the potential health risks associated with consuming non-organic dairy products. Cattle, like in the dairy industry, are frequently given synthetic growth hormones and antibiotics for milk production and illness treatment, respectively. These substances can find their way into milk, leading to economic losses for manufacturers of fermented milk products. Long-term consumption of such milk may result in various health issues, including alterations in endocrine functions and the transmission of antibiotic-resistant infections from cattle to humans.
• Consequently, the demand for organic dairy beverages, produced without synthetic additives or antibiotics, has been on the rise. This trend is a response to consumers' increasing awareness of the potential health risks and their preference for more natural, healthier alternatives.

What challenges does the Dairy Based Beverages Industry face during its growth?

• The growth of the industry is significantly influenced by the limited availability of viable alternatives. 

• The plant-based beverage market encompasses alternatives to dairy-based beverages, such as soy milk, almond milk, rice milk, oat milk, coconut milk, tofu, and peanut butter. The global demand for these alternatives is escalating due to several factors. Firstly, the nutritional benefits offered by plant-based beverages are increasingly recognized. These beverages provide essential nutrients and are often fortified with calcium, vitamin D, and other essential vitamins and minerals. Secondly, the prevalence of lactose intolerance and other dairy sensitivities is on the rise, necessitating alternatives.
• Lastly, the vegan diet's popularity contributes to the market's expansion. The health benefits of specific plant-based beverages, like soy milk, almond milk, and peanut butter, further fuel their consumption. These alternatives offer a balanced nutritional profile, low fat, and reduced calories, making them a popular choice among health-conscious consumers.

Exclusive Technavio Analysis on Customer Landscape

The dairy based beverages market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the dairy based beverages market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Dairy Based Beverages Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, dairy based beverages market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Agri Mark Inc. - This company specializes in the production and distribution of dairy beverages, including buttermilk, buttermilk powder, and cabot creamer. 

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Agri Mark Inc.
• Agropur Dairy Cooperative
• Arla Foods amba
• Calidad Pascual SAU
• Chobani Global Holdings LLC
• Chr Hansen Holding AS
• Dairy Farmers of America Inc.
• Danone SA
• Fonterra Cooperative Group Ltd.
• General Mills Inc.
• Interfood Corp.
• Kerry Group Plc
• KKR and Co. Inc.
• Morinaga Milk Industry
• Nestle SA
• Organic Valley
• Schreiber Foods Inc.
• The Kraft Heinz Co.
• The Wadia Group
• Uelzena Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Dairy Based Beverages Market

• In January 2024, Danone, a leading dairy company, launched a new line of plant-based dairy beverages under its Silk brand in the United States. The new product line, Silk Dairy-Free Creamers, aims to cater to the growing demand for plant-based alternatives to traditional dairy products (Danone Press Release, 2024).
• In March 2024, Lactalis, the world's largest dairy cooperative, announced a strategic partnership with Perfect Day, a California-based food tech company. The collaboration focuses on the production of animal-free dairy proteins using microflora technology, marking a significant step towards sustainable and ethical dairy production (Lactalis Press Release, 2024).
• In April 2025, Amul, India's largest dairy cooperative, completed the acquisition of a majority stake in Milk Mantra, a leading player in the Indian organic dairy sector. The acquisition is expected to strengthen Amul's presence in the organic dairy beverages market and expand its reach in the Eastern and southern regions of India (Amul Press Release, 2025).
• In May 2025, the European Commission approved the merger of Arla Foods and Lactalis' dairy activities in the European Union. The merger is expected to create the third-largest dairy company in Europe, with an estimated combined market share of 15% (European Commission Press Release, 2025).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Dairy Based Beverages Market insights. See full methodology.

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Research Analyst Overview

• The dynamic dairy beverages market is characterized by continuous innovation and evolution, driven by advancements in various areas. Cheese ripening processes are optimized through the application of cutting-edge technology, ensuring optimal flavor development and consumer satisfaction. Butterfat content analysis is a critical aspect of product development, with manufacturers striving for optimal levels to cater to diverse consumer preferences. In the realm of whey processing, optimization is a key focus, with calcium fortification and vitamin D enrichment gaining traction to meet nutritional demands. Yogurt culture selection is another critical factor, with manufacturers continually exploring new strains to cater to evolving consumer tastes and preferences.
• Pasteurization methods are undergoing transformation, with ultrafiltration membrane technology and homogenization techniques being adopted to enhance product quality and shelf life. Milk powder production and functional dairy ingredients are also areas of significant investment, with a focus on optimizing texture, viscosity, and sensory attributes. Packaging material selection is a critical consideration, with a shift towards sustainable and eco-friendly options. Sensory evaluation testing and product viscosity measurement are essential quality control metrics, ensuring consistent product quality and consumer satisfaction. Supply chain management is a key challenge, with a focus on microbial contamination control and milk protein concentrate and whey protein isolate production.
• Microbial stability assays, chilling and storage, and protein denaturation are all critical aspects of ensuring product safety and quality. Functional dairy ingredients, such as protein hydrolysates and rheological properties, are gaining popularity due to their potential health benefits and role in enhancing product functionality. Dairy fermentation processes, acreous extraction methods, and cream separation techniques are also areas of ongoing research and development. The dairy beverages market is a dynamic and evolving landscape, with manufacturers continually exploring new ways to meet consumer demands and stay ahead of the competition. From cheese ripening processes to functional dairy ingredients, innovation is the driving force behind this vibrant and diverse market.

What are the Key Data Covered in this Dairy Based Beverages Market Research and Growth Report?

• What is the expected growth of the Dairy Based Beverages Market between 2024 and 2028?

  • USD 52.3 billion, at a CAGR of 6.57%

• What segmentation does the market report cover?

  • The report segmented by Type (Milk, Yogurt, Kefir, and Others), Distribution Channel (Supermarkets or Hypermarkets, Convenience stores, Online retail, and Others), and Geography (Europe, North America, APAC, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

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

• What are the key growth drivers and market challenges?

  • Rising adoption of healthy food habits, Availability of alternatives

• Who are the major players in the Dairy Based Beverages Market?

  • Key Companies Agri Mark Inc., Agropur Dairy Cooperative, Arla Foods amba, Calidad Pascual SAU, Chobani Global Holdings LLC, Chr Hansen Holding AS, Dairy Farmers of America Inc., Danone SA, Fonterra Cooperative Group Ltd., General Mills Inc., Interfood Corp., Kerry Group Plc, KKR and Co. Inc., Morinaga Milk Industry, Nestle SA, Organic Valley, Schreiber Foods Inc., The Kraft Heinz Co., The Wadia Group, and Uelzena Group

Market Research Insights

• The dairy beverages market encompasses a diverse range of products, including milk, yogurt drinks, and fermented beverages. According to industry data, global sales of dairy-based beverages reached USD 150 billion in 2020, representing a 3% annual growth rate. This expansion is driven by increasing consumer demand for nutrient-rich, convenient, and sustainable beverage options. In contrast, the non-dairy beverage market, which includes plant-based alternatives, experienced a 13% growth rate during the same period, capturing a market share of USD 120 billion. The nutritional composition, color stability, and consumer preference for dairy-based beverages, however, remain key differentiators. For instance, milk standardization methods, such as enzyme treatment and protein solubility tests, ensure consistent product quality.
• Additionally, food safety regulations, bacterial growth kinetics, and filtration efficiency are critical considerations for maintaining product safety and shelf life. Cost-effective production through process optimization strategies, such as thermal processing effects and microfiltration techniques, and packaging innovations, like aseptic packaging and extended shelf life, are essential for dairy beverage manufacturers to remain competitive. The market continues to evolve, with ongoing research focusing on probiotic cultures, prebiotic fiber addition, and flavor enhancement techniques to cater to diverse consumer preferences.

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