Industry Statistics and Trends
Dairy Product Production in Europe key trends
Demand for dairy has yet to be squashed by plant-based alternatives.
Even with the rising popularity of dairy-free options, consumers are simply expanding their choices instead of ditching traditional dairy entirely.
Organic and sustainable dairy production is becoming a profit centre.
Processors across the EU are investing in eco-friendly practices and organic product ranges to capture growth as consumer demand and regulatory requirements intensify. Higher retail prices for organic dairy offer margin expansion despite elevated production costs.
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Dairy Product Production in Europe
Industry Revenue
Total value and annual change from 2012-2030. Includes 5-year outlook.
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Dairy Product Production in Europe market size (2020-2025)
Industry revenue has grown at a CAGR of 1.5 % over the past five years, to reach an estimated €289.8bn in 2025.
Trends and Insights
Despite some regulatory protections, plant-based alternatives threaten dairy consumption
- Food technology has improved and as a result, more plant-based milk and plant-based dairy products have reached supermarket shelves and competed directly with dairy products. In six major European markets (Germany, UK, France, Italy, Spain and the Netherlands), plant-based meat and dairy sales grew 5.5% over the year through 2023, with milk alternatives leading (41% share of plant-based food sales) according to the Good Food Institute (GFI) Europe.
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Dairy Product Production in Europe outlook (2025-2030)
Market size is projected to grow over the next five years.
Plant-based alternatives will keep growing, challenging traditional dairy producers and tightening revenue and profit
- The popularity of plant-based alternatives like oat, almond and soy milk is set to continue to swell. These alternatives appeal to a growing demographic concerned with health, environmental sustainability and animal welfare. According to a report from MarkNtel, the European plant-based dairy product market is projected to climb at a compound annual rate of 10% over the six years through 2030. With a projected hike in substitutes, traditional dairy products will take a sales hit, weighing on revenue and tightening margins for dairy producers.
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Revenue
€289.8bn
Employees
1m
Wages
€XX.Xbn
European Leaders & Laggards
Top 5 Countries
- Romania +8.2%
- Luxembourg +7.4%
- Turkey +5.9%
- Serbia +5.9%
- Switzerland +5.0%
* CAGR values are for the years 2020-2025.
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Biggest companies in the Dairy Product Production in Europe
| Company | Market Share (%)
2025 | Revenue (€m)
2025 | Profit (€m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Groupe Lactalis SA | 30,431.3 | 515.2 | 1.7 | |
Arla Foods AmbA | 13,869.0 | 602.0 | 4.3 | |
Nestlé SA | 97,069.3 | 1,340.1 | 1.4 |
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Dairy Product Production in Europe
Products & Services Segmentation
Industry revenue broken down by key product and services lines.
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Top Questions Answered in this Report
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What is the market size of the Dairy Product Production industry in Europe in 2025?
The market size of the Dairy Product Production industry in Europe is €289.8bn in 2025.
How many businesses are there in the Dairy Product Production industry in Europe in 2025?
There are 22,791 businesses in the Dairy Product Production industry in Europe, which has grown at a CAGR of 1.8 % between 2020 and 2025.
Has the Dairy Product Production industry in Europe grown or declined over the past 5 years?
The market size of the Dairy Product Production industry in Europe has been growing at a CAGR of 1.5 % between 2020 and 2025.
What is the forecast growth of the Dairy Product Production industry in Europe over the next 5 years?
Over the next five years, the Dairy Product Production industry in Europe is expected to grow.
What does the Dairy Product Production industry in Europe include?
Yoghurt and Milk are part of the Dairy Product Production industry in Europe.
Which countries have the most businesses in the Dairy Product Production industry in Europe?
The European country with the most businesses in the Dairy Product Production industry is Turkey.
How competitive is the Dairy Product Production industry in Europe?
The level of competition is high and steady in the Dairy Product Production industry in Europe.
Related Industries
This industry is covered in 37 countries
- Dairy Product Production in Greece
- Dairy Product Production in Romania
- Dairy Product Production in Norway
- Dairy Product Production in the UK
- Dairy Product Production in Germany
- Dairy Product Production in Estonia
- Dairy Product Production in Bosnia & Herzegovina
- Dairy Product Production in Iceland
- Dairy Product Production in Europe
- Milk & Cream Production in the UK
- Butter & Cheese Production in the UK
- Yoghurt & Other Dairy Product Processing in the UK
- Ice Cream Production in the UK
- Ice Cream Production in Germany
- Dairy Product Processing in Germany
- Dairy Product Production in Ireland
- Dairy Product Production in Austria
- Dairy Product Production in France
- Dairy Product Production in Lithuania
- Dairy Product Production in the Netherlands
- Dairy Product Production in Belgium
- Dairy Product Production in Cyprus
- Dairy Product Production in Finland
- Dairy Product Production in Bulgaria
- Dairy Product Production in Luxembourg
- Dairy Product Production in Russia
- Dairy Product Production in Slovakia
- Dairy Product Production in Italy
- Dairy Product Production in Sweden
- Dairy Product Production in Poland
- Dairy Product Production in Latvia
- Dairy Product Production in Croatia
- Dairy Product Production in Slovenia
- Dairy Product Production in Spain
- Dairy Product Production in Portugal
- Dairy Product Production in Serbia
- Dairy Product Production in Hungary
- Dairy Product Production in Switzerland
- Dairy Product Production in Czechia
- Dairy Product Production in Denmark
- Dairy Product Production in Turkey
- Dairy Product Production in Ireland
- Dairy Product Production in Malta
Table of Contents
About this industry
Industry definition
This industry covers the production of dairy products like pasteurised milk, cream, butter, yoghurt, cheese and dry, condensed and evaporated milk. Milk-based soft drinks, yoghurt drinks, powdered milk, whey, casein, rennet and lactose are also included. This industry does not include the production of raw milk.
Related Terms
PasteurisationHomogenisationWheyWhat's included in this industry?
YoghurtMilkWheyButterCheeseCurdCompanies
Groupe Lactalis SAArla Foods AmbANestlé SAIndustry Code
105 - Manufacture of dairy products in Europe
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Performance
Key Takeaways
Despite some regulatory protections, plant-based alternatives threaten dairy consumption
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Revenue Highlights
Trends
- Revenue
- 2025 Revenue Growth
- Revenue Volatility
Employment Highlights
Trends
- Employees
- Employees per Business
- Revenue per Employee
Business Highlights
Trends
- Businesses
- Employees per Business
- Revenue per Business
Profit Highlights
Trends
- Total Profit
- Profit Margin
- Profit per Business
Current Performance
Charts
- Revenue in the Dairy Product Production in Europe industry (2012 -2030)
- Employees in the Dairy Product Production in Europe industry (2012 -2030)
- Business in the Dairy Product Production in Europe industry (2012 -2030)
- Profit in the Dairy Product Production in Europe industry (2012 -2030)
Analysis
What's driving current industry performance in the Dairy Product Production in Europe industry?
Outlook
Analysis
What's driving the Dairy Product Production in Europe industry outlook?
Volatility
Analysis
What influences volatility in the Dairy Product Production in Europe industry?
Charts
- Industry Volatility vs. Revenue Growth Matrix
Life Cycle
Analysis
What determines the industry life cycle stage in the Dairy Product Production in Europe industry?
Charts
- Industry Life Cycle Matrix
Products and Markets
Highlights
Trends
- Largest Market
- Product Innovation
Key Takeaways
Specialty cheeses stand to be one of the biggest losers. Tariffs are impacting major exports to the US like cheese. According to the European Dairy Association, EU dairy exports, especially cheeses, only account for 2% of US consumption, serving niche markets rather than competing with US produce. Products like roquefort and camembert stand to lose out.
Products and Services
Charts
- Products and Services Segmentation
Analysis
How are the Dairy Product Production in Europe industry's products and services performing?
Analysis
What are innovations in the Dairy Product Production in Europe industry's products and services?
Major Markets
Charts
- Major Market Segmentation
Analysis
What influences demand in the Dairy Product Production in Europe industry?
International Trade
Highlights
- Largest Importer
- Smallest Importer
- Total Imports into Europe
- Largest Exporter
- Smallest Exporter
- Total Exports into Europe
Heat maps
- Industry Concentration of Imports by Country
- Industry Concentration of Exports by Country
Data Tables
Value and annual change (%) included
- Number of Imports and Exports by European Country (2025)
Geographic Breakdown
Business Locations
Heat maps
- Share of Total Industry Revenue by Region (2025)
- Share of Total Industry Enterprises by Region (2025)
- Share of Total Industry Employment by Region (2025)
- Share of Total Industry Wages by Region (2025)
Industry Geographic Breakdown
Data Tables
Values and annual change provided for 37 European countries:
- Revenue (2025)
- IVA (2025)
- Enterprises (2025)
- Employment (2025)
- Exports (2025)
- Imports (2025)
Competitive Forces
Highlights
Trends
- Concentration
- Competition
- Barriers to Entry
- Substitutes
- Buyer Power
- Supplier Power
Key Takeaways
Market share concentration in the Dairy Product Production industry is low. This means that the market is dispersed among many players, with no single company dominating, leading to intense competition and diverse product offerings.
Supply Chain
Charts
Buyer and supply industries
Companies
Market Share
Charts
- Industry Market Share by Company (2020-2025)
Companies
Data Tables
Top 10 companies by market share:
- Market share (2025)
- Revenue (2025)
- Profit (2025)
- Profit Margin (2025)
Data Tables
- Countries of operation for Groupe Lactalis SA
- Countries of operation for Arla Foods AmbA
- Countries of operation for Nestlé SA
- Countries of operation for Royal FrieslandCampina NV
- Countries of operation for Savencia
- Countries of operation for Sodiaal
- Countries of operation for Danone SA
- Countries of operation for Unternehmensgruppe Theo Muller
- Countries of operation for DMK Deutsches Milchkontor GmbH
- Countries of operation for Unilever plc
External Environment
Highlights
Trends
- Regulation & Policy
- Assistance
Key Takeaways
Strict EU standards and national laws govern Europe’s dairy production. These regulations focus on food safety, quality control, environmental impact and animal welfare, ensuring high standards and consumer trust in dairy products.
External Drivers
Analysis
What demographic and macroeconomic factors impact the Dairy Product Production in Europe industry?
Financial Benchmarks
Highlights
Trends
- Profit Margin
- Average Wage
- Largest Cost
Key Takeaways
Organic dairy is driving profit despite inflation. Fuelled by consumer demands for healthier, sustainable products, dairy companies are investing in eco-friendly practices to meet these needs and offset rising production costs.
Cost Structure
Charts
- Share of Economy vs. Investment Matrix
-
Industry Cost Structure Benchmarks:
- Marketing
- Depreciation
- Profit
- Purchases
- Wages
- Rent
- Utilities
- Other
Analysis
What trends impact cost in the Dairy Product Production in Europe industry?
Key Ratios
Data tables
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
- Revenue per Employee (2015-2030)
- Wages/Revenue (2015-2030)
- Employees per Establishment (2015-2030)
- Average Wage (2015-2030)
Country Benchmarks
European Leaders & Laggards
Data Tables
Top and bottom five countries listed for each:
- Revenue Growth (2025)
- Business Growth (2025)
- Job Growth (2025)
European Country Performance
Data Tables
Rankings available for 37 countries. Statistics ranked include:
- IVA/Revenue (2025)
- Imports/Demand (2025)
- Exports/Revenue (2025)
- Revenue per Employee (2025)
- Wages/Revenue (2025)
- Employees per Establishment (2025)
- Average Wage (2025)
Structural Comparison
Data Tables
Trends in 37 countries benchmarked against trends in Europe
- Concentration
- Competition
- Barriers to Entry
- Buyer Power
- Supplier Power
- Volatility
- Capital Intensity
- Innovation
- Life Cycle
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Methodology
Where does IBISWorld source its data?
IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
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