Asia Pacific Dairy Market Outlook

According to the latest report by Expert Market Research (EMR), the Asia Pacific dairy market reached a value of USD 343.87 billion in 2024. Supported by rising household incomes, expanding consumption of dairy-based products, and increasing urbanisation across emerging economies, the Asia Pacific dairy market size is projected to grow at a CAGR of 2.60% between 2025 and 2034, reaching approximately USD 444.50 billion by 2034.

The Asia Pacific region represents one of the most dynamic dairy markets globally, driven by its large population base, evolving dietary patterns, and growing preference for high-quality, nutritious food products. Dairy plays a critical role in the everyday diet of millions in the region, with products such as liquid milk, yoghurt, cheese, ghee, butter, and infant formula witnessing robust demand. Moreover, the region's expanding middle class and changing lifestyle patterns have further supported steady consumption growth across diverse dairy categories.

Asia Pacific Dairy Market Size and Share

The Asia Pacific dairy market is dominated by major economies such as China, India, Japan, Australia, and South Korea, with China and India together accounting for a significant portion of the regional market share due to their massive populations and extensive dairy consumption. India is one of the world’s largest producers of milk, while China remains a leading consumer of dairy products, especially infant formula, yoghurt, and cheese.

In terms of product segmentation, liquid milk continues to hold the largest share of the regional market, owing to its traditional relevance and wide availability. However, value-added dairy products—including flavoured milk, probiotic yoghurt, cheese, and nutrient-enriched dairy beverages—are rapidly increasing their share as consumers shift toward premium and functional offerings.

Multinational companies such as Nestlé, Fonterra, Danone, and FrieslandCampina, alongside strong regional players like Amul, Mengniu, and Yili, hold significant competitive advantages through extensive product portfolios, established distribution networks, and strong brand recognition.

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Asia Pacific Dairy Market Trends

Several notable trends are shaping the growth trajectory of the Asia Pacific dairy industry:

1. Rising Demand for Value-Added and Functional Dairy Products

Consumers across the region are increasingly gravitating towards functional dairy items such as probiotic yoghurt, fortified milk, protein shakes, and lactose-free products. This trend is driven by rising health consciousness, increasing awareness of digestive health, and higher disposable incomes.

2. Growth of Cheese and Western Dairy Products

While traditional dairy items continue to dominate in India and parts of Southeast Asia, Western-style dairy products—particularly cheese, butter, and cream—are experiencing rapid uptake driven by the expanding QSR (quick-service restaurant) industry, rising café culture, and the increasing influence of Western cuisines.

3. Expansion of E-Commerce Distribution Channels

The rise of digital retail platforms has significantly transformed dairy purchasing behaviour. Online grocery platforms, rapid delivery apps, and subscription-based milk services have become popular, particularly in urban centres across China, India, Japan, and South Korea.

4. Shift Toward Premiumisation

Consumers are increasingly opting for high-quality, organic, hormone-free, and sustainably sourced dairy products. Premium liquid milk, artisanal cheese, and probiotic beverages are gaining traction among affluent consumer segments.

5. Growth of Infant Formula Demand

China remains the world’s largest market for infant formula, driven by increasing nutritional awareness, rising working population, and demand for high-quality imported products. Markets like Vietnam, Thailand, and the Philippines are also witnessing steady growth in infant nutrition categories.

Drivers of Growth

1. Rising Population and Increasing Urbanisation

Asia Pacific is home to more than half of the global population, with a rapidly growing urban middle class. Urban lifestyles have increased demand for packaged, hygienic, and ready-to-consume dairy foods.

2. Growing Health and Nutrition Awareness

Consumers are increasingly incorporating dairy products into their diets owing to the rising awareness of their nutritional benefits, including high protein, calcium, and essential vitamins.

3. Expansion of the Foodservice Sector

The rapidly expanding foodservice industry—including cafés, bakeries, restaurants, and fast-food chains—has boosted demand for cheese, butter, cream, and dairy-based desserts across urban markets.

4. Technological Advancements in Dairy Farming

Improved dairy farming practices, modernised processing facilities, and innovations in cold supply chain systems have enhanced productivity and product quality across major dairy-producing nations, particularly India, Australia, and New Zealand.

5. Increasing Penetration of Packaged Dairy Products

The shift from loose, unregulated dairy supply toward packaged and branded products is further accelerating market growth, supported by rising hygiene awareness and government initiatives promoting food safety.

Asia Pacific Dairy Market Segmentation

Competitive Landscape