Asia Pacific Dairy Market Size, Share, Trends and Forecast | 2034

Asia Pacific Dairy Market Size, Share, Trends and Forecast | 2034

Asia Pacific Dairy Market Outlook

According to the report by Expert Market Research (EMR), the Asia Pacific dairy market size reached a value of USD 343.87 Billion in 2024. Driven by the growing consumption of dairy products, increasing health consciousness, and the rising demand for both traditional and alternative dairy-based products, the market is expected to continue its expansion at a CAGR of 2.60% between 2025 and 2034, ultimately reaching a value of USD 444.50 Billion by 2034.

The Asia Pacific region, home to a large and diverse population, has seen an evolving dairy consumption pattern in recent years. The dairy market in this region is witnessing significant changes, fueled by rising urbanization, disposable income, and changing dietary preferences. Dairy products, which have traditionally been an essential part of the diet in countries like India, China, and Southeast Asian nations, are increasingly gaining acceptance in countries that were not historically large consumers, such as Japan and South Korea. The growth of the dairy market is further amplified by the increasing popularity of plant-based dairy alternatives, creating a complex yet dynamic market landscape.

Key Market Drivers

Several key factors are driving the expansion of the Asia Pacific dairy market, from the region’s changing demographics and growing disposable incomes to shifts in consumer preferences and the increasing demand for dairy substitutes.

  • Rising Disposable Incomes and Urbanization: The growing disposable income across emerging markets in Asia Pacific is playing a crucial role in driving the demand for premium dairy products. The expanding middle class, particularly in countries such as China and India, is adopting western dietary habits, which include an increased intake of dairy. Urbanization is also contributing to this trend, as city dwellers have easier access to modern retail outlets and diverse dairy product offerings. The purchasing power of consumers in the region is on the rise, leading to increased consumption of dairy, including milk, cheese, and yogurt, particularly in urban centers.

  • Changing Dietary Habits and Increased Health Consciousness: There is a marked shift towards health-conscious eating patterns across the Asia Pacific region, particularly in younger generations. Consumers are increasingly aware of the health benefits associated with dairy consumption, including calcium for bone health and protein for muscle development. The increasing acceptance of dairy as a functional food that supports overall health, particularly among the middle-aged and elderly populations, is boosting the demand for milk and yogurt products. Furthermore, probiotics and functional dairy products are gaining traction in the market, driven by the growing consumer interest in gut health and immunity.

  • Popularity of Dairy Alternatives: The growing trend of plant-based diets, particularly among younger consumers and the urban population, is creating new opportunities in the dairy market. Veganism and lactose intolerance are driving the demand for dairy alternatives, such as plant-based milk (almond, soy, oat, and rice milk), plant-based cheeses, and yogurts. This shift is reshaping the dairy industry, encouraging dairy producers to innovate and diversify their offerings to cater to the increasing demand for plant-based alternatives. Notably, plant-based dairy alternatives are perceived as healthier, more sustainable, and ethical by a growing segment of consumers.

  • Growing Demand for Processed Dairy Products: The increasing demand for processed and value-added dairy products such as cheese, butter, ice cream, and milk powder is contributing significantly to the growth of the Asia Pacific dairy market. These products are widely consumed in various food and beverage applications, and their convenience, longer shelf life, and availability in diverse flavors and formulations are key drivers behind their growing popularity. As more consumers demand ready-to-eat and ready-to-drink dairy options, producers are increasingly focusing on providing innovative dairy products that meet changing tastes and preferences.

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Key Trends in the Asia Pacific Dairy Market

  • Sustainability and Ethical Production: Environmental concerns surrounding dairy production, such as greenhouse gas emissions, water usage, and animal welfare, are prompting many producers to adopt more sustainable practices. The demand for sustainably sourced dairy products, as well as plant-based alternatives that align with consumers' ethical values, is rising across the region. Brands that prioritize eco-friendly production methods are likely to gain a competitive advantage in the market.

  • Innovation in Product Offerings: Dairy producers are increasingly introducing innovative products to cater to changing consumer preferences. For example, the incorporation of functional ingredients, such as probiotics, omega-3 fatty acids, and vitamins, in dairy products is growing. Additionally, dairy-free and lactose-free variants are being developed to cater to consumers with dietary restrictions or those who prefer plant-based alternatives.

  • Growth of the Dairy Export Market: The Asia Pacific region is not only a significant consumer of dairy products but also an important exporter of dairy, particularly to other developing regions. Countries such as New Zealand and Australia are major exporters of dairy products, and the demand for dairy in countries like China, Southeast Asia, and the Middle East is driving the expansion of the regional dairy export market.

Asia Pacific Dairy Market Segmentation

The market can be divided based on product and region.

Market Breakup by Product

  • Bulk Raw Milk
  • Butter
  • Non-Fat Dry Milk
  • Skim Milk Powder
  • Dry Whole Milk
  • Dry Buttermilk
  • Natural Cheeses and Other Than Cottage Cheese
  • American Cheese
  • Italian Cheese
  • Swiss Cheese
  • Other (Speciality) Cheeses
  • Cottage Cheese
  • Sour Cream
  • Packaged Fluid Milk Products
  • Yoghurt
  • Dry Whey Products
  • Whey Protein Concentrates and Isolates
  • Lactose

Market Breakup by Region

  • China
  • India
  • South-East Asia
  • Japan
  • Australasia
  • Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Asia Pacific dairy market. Some of the major players explored in the report by Expert Market Research are as follows:

  • Nestlé S.A.
  • Dairy Farmers of America, Inc.
  • Danone S.A.
  • Land O’Lakes, Inc.
  • The Kraft Heinz Company
  • Amul (GCMMF)
  • Yili Group
  • Others

Challenges and Restraints

While the Asia Pacific dairy market is growing, there are several challenges that could impede its growth. The dairy industry faces significant challenges related to the cost and availability of raw materials, including feed for dairy cattle, water resources, and the environmental impact of dairy farming. Additionally, dairy farmers in the region are often small-scale operators, making it difficult for them to access the resources and technologies needed to scale up production and improve efficiency.

Furthermore, the rise in demand for plant-based dairy alternatives presents both an opportunity and a challenge for traditional dairy producers. The growing popularity of veganism and dairy-free diets is forcing traditional dairy brands to innovate and diversify their product offerings to cater to evolving consumer preferences.

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