What’s driving change in dairy market through 2025

Still, private label products are gaining traction.

The global dairy products and alternatives market is set to see low growth in 2024 due to inflation and declining GDP growth rates, Euromonitor reported.

Despite this, the report said private label products are gaining traction as consumers seek affordability, whilst dairy is increasingly featured in convenient snacking options. The plant-based dairy segment also continues to grow, driven by health and sustainability concerns.

About 54% of global consumers prioritise healthy ingredients in their food, as per Euromonitor’s Voice of the Consumer: Lifestyles Survey. This trend is reflected in the dairy sector, with products like probiotic yogurt gaining popularity for their digestive and immune health benefits. Manufacturers are expanding kefir offerings with new textures, packaging, and flavours to meet growing consumer demand for health-focused options.

Dairy products designed for convenience, such as yogurt sticks, drinkable dairy, and cheese, are also thriving. Two-thirds of consumers are seeking ways to simplify their lives, and nearly 50% are willing to pay more for time-saving solutions.

Additonally, on-the-go dairy options are becoming increasingly popular, especially amongst consumers with active, on-the-go lifestyles.

Meanwhile, plant-based dairy is expected to grow at a 4.1% CAGR between 2024 and 2029, driven by health, environmental, and animal welfare concerns. 

The report said products with higher protein content are becoming more competitive with traditional dairy, especially amongst vegan and vegetarian consumers. However, challenges remain in reducing preservatives and artificial ingredients to appeal to those seeking natural, functional foods.

In 2024, the global value share of private label dairy and alternatives is expected to reach 14.9%, up from 12.8% in 2019. Consumers are increasingly turning to private label for affordability, with these products expanding into more categories and offering higher-quality, premium options.

Moreover, nearly two-thirds of consumers are also prioritising sustainability in their purchases. As concerns over climate change and animal welfare rise, demand for locally sourced, natural, and sustainably produced dairy products is increasing. In response, dairy producers are adopting eco-friendly practices, such as reducing emissions, minimizing waste, and using sustainable packaging.