Europe Dairy Market Size, Share, Growth, and Analysis Report to 2026

Market Overview

The Europe dairy market size was valued at USD 260,481.45 Million in 2025 and is projected to reach USD 377,056.31 Million by 2034, growing at a compound annual growth rate (CAGR) of 4.20% from 2026 to 2034. This market is driven by high demand for healthy and diverse dairy products including fortified and functional items, supported by advanced milk production infrastructure and food traditions that promote consistent cheese consumption. The market is characterized by strong consumer health consciousness and evolving preferences.

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

Europe Dairy Market Key Takeaways

• The Europe dairy market size was valued at USD 260,481.45 Million in 2025.
• The market is expected to grow at a CAGR of 4.20% from 2026 to 2034.
• The forecast period is 2026–2034.
• By Product Type: Liquid milk dominates the market with a share of 26% in 2025, driven by its essential role in European diets and broad usage in household, foodservice, and industrial sectors.
• By Country: Germany leads with an 18% market share in 2025, underpinned by advanced dairy processing infrastructure and its status as Europe’s largest milk producer.
• The market features a fragmented competitive structure with multinational corporations and regional dairy cooperatives competing across segments.
• The European dairy market is supported by stringent quality standards and significant investment in sustainable farming and product innovation.

Market Growth Factors

Rising Health Consciousness and Demand for Nutritious Dairy Products

Healthy and nutritious foods are an increasing focus of consumer interest in Europe. Naturally high-protein, calcium and vitamin dairy products are being particularly noted as a good protein source that helps maintain muscle and bone mass. Probiotic fermented dairy products such as probiotic yogurts and kefir are popular for gut health. In September 2025, John Deere and DeLaval extended the Milk Sustainability Center into Europe. The center seeks to help farmers optimize milk production and reduce agriculture's environmental impact through integrated data solutions. Manufacturers fortify dairy products through adding calcium to milk, protein to yogurt, and vitamins to other dairy products as shoppers seek health, wellness, and immunity.

Strong Dairy Heritage and Culinary Integration Across European Cuisines

Cheese, butter, and cream dairy items are key to European food. Dairy is especially important within Italian, French, German, and British food. There are hundreds of cheeses from Europe, whose quality is protected by geographical indications for domestic and international markets. PMF Distribution has launched its new line of flavored milk called MILKORA. The vanilla, strawberry, banana and chocolate flavored milks are made from 100% fresh milk conforming to EU standards. Consumer trends of cultural adaptation and premiumization result in growth for customary dairy in the form of artisanal and specialty products, with France among the examples.

Expansion of E-commerce and Modern Retail Distribution Channels

Many potential business models arise from digitalizing grocery retailing and distributing dairy products online. In Europe, the retail e-commerce market is expected to grow from USD 3.96 Trillion in 2024 toward USD 8.46 Trillion in 2033, marking a substantial long-term market opportunity within online grocery and dairy sales. New milk and yogurt subscriptions foster repeated purchases. Retail sales include branded and private label products from supermarkets; direct-to-consumer models include specialty brands catering to the health-conscious. Likewise, convenience stores expand dairy sales due to longer hours and close locations. Most major processors invest in digital traceability to promote supply chain transparency among consumers.

Market Segmentation

Product Type:

• Liquid Milk: Dominates with a 26% share in 2025, fundamental as a nutritional source for households and crucial input for foodservice and industrial applications. Established distribution networks deliver fresh and UHT milk via supermarkets, convenience stores, and direct delivery. German and French processors lead production, supported by major agricultural regions supplying large volumes year-round. Consumer preferences are shifting towards premium products including organic, fortified, and lactose-free milk. Advanced technologies extend shelf life and preserve nutritional quality. In 2025, Indian cooperative Amul entered the European liquid milk market through a partnership with Spain’s Cooperativa Ganadera del Valle de los Pedroches (COVAP).
• Flavored Milk
• Cream
• Butter
• Cheese
• Yoghurt
• Ice Cream
• Anhydrous Milk Fat (AMF)
• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Whey Protein
• Lactose Powder
• Curd
• Paneer

Country:

• Germany: Holds an 18% market share in 2025 and is the leading European dairy-producing country thanks to advanced dairy farming infrastructure and quality standards consistent with EU norms. It benefits from extensive processing capacity and established supply chains to other EU countries. Demand for functional dairy products like high-protein yogurt and low-lactose variants fosters innovation among manufacturers. The market is known for significant investments in sustainability and technical upgrades in farming and processing. Organic dairy farming has grown substantially, driven by consumer demand for sustainable production. Major cooperatives focus on high-margin cheese and foodservice segments, expanding aging warehouse and production capabilities.
• United Kingdom
• France
• Italy
• Russia
• Spain
• Netherlands
• Switzerland
• Poland
• Others

Regional Insights

Germany dominates the Europe dairy market with an 18% share in 2025. It leads due to its advanced dairy processing infrastructure, largest milk production position, and stringent quality adherence to EU standards. German dairy manufacturers innovate with health-driven product variants such as high-protein and low-lactose options. The country is also a leader in sustainability initiatives and organic dairy production, catering to expanding consumer demand for premium and functional products.

Recent Developments & News

In December 2025, Belgium-based precision fermentation startup Those Vegan Cowboys secured €6.25 million to scale production of cow-free casein and prepare for crowdfunding aimed at wider commercialization. This funding accelerates development of animal-free cheese ingredients, showcasing Europe’s growth in alternative dairy innovation. In September 2025, AB Akola Group announced a €4.8 million investment to expand its Sidabravo and Žibartonių dairy farms by installing advanced milking equipment and upgrading infrastructure to increase herd size and milk output by about one-third, enhancing dairy production capacity.

Key Players

• Lactalis
• Danone
• Arla Foods
• DMK Group
• Emmi
• Amul

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