Australia Dairy Products Market Size, Share Analysis and Forecast Report (2025-2034)
Description
Australia Dairy Products Market Overview
consumption and its status as a staple in household diets. Its geographical proximity to major Asian markets further enhances export opportunities, reinforcing the sector’s value as a contributor to rural economies and national GDP. This economic impact is reflected in the Australia dairy products market revenue, which benefits from stable production and a well-developed processing and distribution network that ensures consistent supply and operational efficiency.
In response to market volatility, the Australian Milk Price Initiative was launched in March 2022, introducing a hedging mechanism via the Mercari platform. Co-managed by Australian Dairy Farmers, the initiative promotes price transparency and reduces financial uncertainty, enabling more stable income for dairy producers.
The Australia dairy products market shows resilience through its wide range of offerings, from traditional milk and yoghurt to lactose-free, fortified, and high-protein options. These innovations are increasingly aligned with health and wellness trends, appealing to a more nutrition-conscious consumer base. Backed by Australia’s reputation for quality, safety, and provenance, the industry benefits from strong international demand. Continued support through government-funded R&D, favourable trade agreements, and forward-thinking policy frameworks strengthens the sector’s global competitiveness and adaptability to evolving dietary preferences.
Australia Dairy Products Market Growth
The Australia dairy products market growth is underpinned by strong consumer demand for functional, fortified, and health-focused products. The sector is rapidly diversifying into value-added offerings such as high-protein dairy, lactose-free lines, probiotics, and personalised nutrition solutions. Notably, Dairy Australia reports that 20% of Australian milk production now comes from intensive or housed systems—a figure expected to double in the next 20 years. This shift supports higher yields, improved animal welfare, and greater climate adaptability.
Government-backed R&D, sustainability initiatives, and digital transformation are further catalysing innovation. These efforts not only enhance production efficiency but also respond to evolving ESG requirements and environmental regulations, helping to meet the rising demand of the Australia dairy products revenue.
Key Trends and Developments
The Australia dairy products market growth is boosted by the rise of functional and fortified dairy products, growth in plant-based and lactose-free alternatives, digitisation and direct-to-consumer channels, and strong government support and regulatory frameworks.
April 2025
Asembl orchestrated a strategic brand collaboration between Unilever’s Weis and Queensland-based dairy company Breaka, resulting in the release of a Weis Mango & Cream flavoured milk. Inspired by the iconic Weis ice cream bars, this unique product brought a novel flavour profile to the dairy shelf in Queensland supermarkets. It exemplifies the growing consumer appetite for innovation in taste and highlights the role of creative partnerships in expanding product diversity within the Australia dairy products market.
January 2025
Perfect Italiano introduced a new line of grated Parmesan canisters in both Traditional and Garlic Herb flavours. Designed with convenience in mind, the resealable and recyclable packaging maintains freshness and caters to busy, on-the-go consumers. Fonterra Oceania, which distributes the brand, underscored the launch as part of its broader sustainability strategy, aligning with APCO standards. The product rollout across Woolworths and Coles reflects growing retail demand for functional, eco-conscious packaging solutions.
December 2024
In a unique collaboration targeting younger demographics, Norco Co-operative launched four Minecraft-branded flavoured milks in Australian supermarkets. These lactose-free, no-added-sugar drinks feature a four-star health rating and appeal to the gaming community. The partnership, facilitated by FMCG branding specialists, merges digital culture with nutrition, expanding Norco’s presence in the flavoured milk segment and contributing to the dynamic growth of the Australia dairy beverage market.
February 2023
Chobani Australia expanded its health-focused offerings with the launch of a no-sugar-added Greek yoghurt range. Made with natural ingredients, real fruit, and one billion probiotics, the range addresses consumer demand for digestive health support without compromising on flavour. Available in a variety of flavours, the launch enhanced Chobani’s wellness-driven portfolio and reinforced its commitment to innovation in functional dairy products—an increasingly influential driver in the Australia dairy products market.
Rise of Functional and Fortified Dairy Products is Boosting the Growth of the Australia Dairy Products Market
Consumer preference in Australia is shifting toward dairy offerings with added nutritional benefits, including high-protein yoghurts, probiotic beverages, and fortified milk. This surge in health-conscious consumption is boosting the growth of the Australia dairy products market, as producers tailor products to support gut health, immune function, and muscle recovery. The ability to command premium pricing in this segment also enhances Australia dairy products market revenue across both retail and foodservice.
Growth in Plant-Based and Lactose-Free Alternatives is Influecing the Australia Dairy Products Market Dynamics and Trends
Although traditional dairy remains central, demand for lactose-free and plant-based dairy has risen sharply. Factors such as food intolerances, ethical choices, and sustainability concerns are driving this transition. Producers are diversifying into oat, almond, and soy-based products, enabling them to capture flexitarian and vegan consumer segments.
Digitisation and Direct-to-Consumer Channels is Impacting the Australia Dairy Products Industry Revenue
Digital platforms and e-commerce models are revolutionising the dairy supply chain. Subscription-based deliveries, click-and-collect services, and farm-to-door models are offering new ways for brands to connect with consumers. This digital evolution enhances traceability, supports brand storytelling, and unlocks higher margins—positively impacting the Australia dairy products industry revenue and offering a competitive edge in a saturated market.
Government Support and Regulatory Frameworks is Boosting Australia Dairy Products Market Expansion
Strategic government involvement is a foundational pillar supporting the long-term sustainability and expansion of the dairy sector. R&D grants, favourable trade agreements, and initiatives like the Australian Milk Price Initiative offer stability in pricing and production. Clear regulatory standards around safety, labelling, and environmental compliance increase consumer confidence and attract investment, accelerating market expansion both locally and globally.
Australia Dairy Products Market Trends
Innovation in flavour and product format continues to shape the trend in the Australia dairy products market, driven by consumer demand for variety, indulgence, and novelty. Manufacturers are incorporating exotic fruits, global flavour influences, and dessert-inspired profiles into products like yoghurts, cheeses, and flavoured milks to cater to evolving tastes and encourage repeat purchases.
Producers such as Australian Dairy Nutritionals, based near Victoria’s Great Ocean Road, are adding value through vertical integration—leveraging chemical-free milk inputs and on-site manufacturing to produce premium offerings including infant formulas and nutritional powders. This positioning not only strengthens domestic market presence but also enhances export competitiveness across Asia-Pacific. Additionally, innovations in texture and creative packaging design contribute to improved shelf visibility, supporting brand differentiation in an increasingly saturated retail environment.
Opportunities in the Australia Dairy Products Market
Technological innovation stands out as a major Australia dairy products market driver. Precision agriculture, automation, and data analytics are transforming dairy farm operations, improving cost efficiency, and enabling real-time monitoring of animal health and milk yield. These technologies enhance traceability and food safety while reducing operational risk—factors that are increasingly valued by both consumers and regulators.
Investor interest is also rising. In March 2025, Warakirri Asset Management launched a new AUD 500 million dairy fund, following its separation from PSP Investments. The fund targets 10% annual returns by investing in a diversified portfolio of dairy assets across Australia and New Zealand, aiming to capitalise on strong domestic demand and expanding export opportunities, particularly in the
Market Restraints
Despite these opportunities, several structural challenges continue to constrain the Australia dairy products market. Escalating costs related to feed, energy, and labour are squeezing profit margins—particularly for small and mid-sized producers. Additionally, extreme weather events such as droughts and floods disrupt supply chains and reduce herd productivity, undermining consistency in milk output.
Compliance with environmental and animal welfare regulations is becoming more stringent, increasing the cost of doing business. At the same time, the growing popularity of plant-based dairy alternatives—driven by ethical, health, and sustainability concerns—is intensifying competition, diverting some consumer demand away from traditional dairy.
To remain competitive, industry stakeholders must continue to invest in innovation, sustainability, and risk mitigation strategies to ensure long-term viability and maintain their edge in the global marketplace.
“Australia Dairy Products Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product Type
Market Analysis by Product Type
Butter remains a foundational product in the Australia dairy products market, driven by growing consumer preference for traditional, minimally processed fats. Its appeal spans both household cooking and the foodservice sector, supported by its natural composition and clean-label image—offering an advantage over margarine and oil-based alternatives. Usage of butter in gourmet and artisan foods continues to rise. According to the Department of Agriculture, Water and the Environment, 60% of organic food sales in 2022 occurred through retailers, with 58% sold directly—highlighting rising demand for organic, natural dairy ingredients.
Milk continues to serve as a core category within the Australian dairy landscape, maintaining broad household penetration and consistent per-capita consumption. Its role as a key source of calcium and protein supports its inclusion across age groups and dietary needs. Consumer interest has expanded beyond traditional offerings to include flavoured, lactose-free, UHT, and high-protein formulations. In December 2024, Dairy Australia reported annual milk consumption at 90 litres per capita, with 98% of households regularly purchasing it. Experts also projected that improved dairy consumption habits could reduce national healthcare spending by approximately AUD 2 billion - emphasising milk's public health relevance
Market Insights by Distribution Channel
Convenience stores play an increasingly strategic role in driving growth across the Australia dairy products market growth, particularly in urban areas. Their accessibility, longer operating hours, and small-format inventory make them ideal for selling grab-and-go items like dairy snacks, flavoured milks, and single-serve yoghurts. These retail outlets are also instrumental in promoting product trial for new entrants and niche dairy or plant-based brands. In March 2022, Bickford’s tapped into the dairy-alternative trend by launching Australia’s first pistachio and macadamia-based plant milks, available through Woolworths in NSW and Victoria. Priced at AUD 5, the vegan, GMO-free products received strong interest nationwide.
Online retail channels are becoming increasingly influential in shaping the Australia dairy products market. E-commerce platforms and direct-to-consumer (D2C) models offer producers greater control over branding, margins, and customer engagement. This shift supports premiumisation, with products like organic milk, high-end cheeses, and infant formula gaining traction online. Nature One Dairy® exemplifies this trend with its range of grass-fed, pharmaceutical-grade milk and infant nutrition products available via Big W, Amazon, and other digital platforms. With a strong focus on animal welfare and organic standards, the brand has established a robust multi-channel strategy with growing export appeal.
Australia Dairy Products Market Regional Insights
New South Wales (NSW)
NSW plays a key role in the national dairy industry, supported by its strong infrastructure and proximity to major consumer hubs. Continued investment in processing facilities and rising demand for value-added, health-oriented dairy offerings are propelling regional market growth. NSW contributes significantly to national production, yielding over 1,040 million litres of milk annually and employing around 5,600 individuals in farming and processing. This underscores the sector’s importance to both the state economy and national food supply resilience.
Queensland
Queensland’s dairy sector is characterised by urban growth, rising health awareness, and steady consumption of chilled dairy products, especially yoghurts and functional drinks. The state produces over 280 million litres of milk annually, generating approximately AUD 250 million in value. Local producers are exploring niche export markets across the Asia-Pacific and South Pacific, leveraging Queensland's reputation for clean, safe food production and its proximity to regional markets.
Western Australia (WA)
Although geographically remote, WA has carved out a space in the premium and artisanal dairy segments. Consumer interest in organic and small-batch production is growing, and new investments in branding and processing are helping local producers overcome logistical challenges. In March 2024, Brownes Dairy launched its Club Cheddar range in four flavours—Vintage, Pickled Onion, Green Peppercorn, and Smokey Red—emphasising use of fresh WA milk and reinforcing its artisanal positioning in the national dairy market.
Victoria
As the country’s largest dairy-producing state, Victoria benefits from fertile land, efficient infrastructure, and advanced dairy farming systems. The state’s strong export profile is bolstered by demand from Asia for high-quality dairy products, particularly infant formula and nutritional powders. Continued government support for sustainable agriculture and technology adoption ensures Victoria remains a competitive force within the Australia dairy industry.
Australian Capital Territory (ACT)
While smaller in scale, the ACT presents high-value opportunities in health-driven and organic dairy products. Elevated household incomes and consumer interest in ethical, locally sourced food support niche expansion. Artisanal and small-batch producers benefit from farmers’ markets and D2C models, allowing them to build loyal consumer bases and grow brand presence without relying solely on large retail chains.
Competitive Landscape
The Australia dairy products market is shaped by a mix of multinational corporations and farmer-owned co-operatives, driving innovation, scale, and export competitiveness. Key players focus on value-added segments such as high-protein milk, infant formula, and premium cheese, supported by advanced processing capabilities and strong retail networks. Ongoing strategic investments in sustainability, automation, and health-oriented product lines are enhancing market positioning and aligning with shifting consumer demands both within Australia and across key Asia-Pacific export markets.
Key Industry Players
Fonterra Co-operative Group Limited
Established in 2001 and headquartered in Auckland, New Zealand, Fonterra is a global dairy co-operative owned by approximately 9,000 farmers. The company maintains a significant operational presence in Australia, delivering a wide range of dairy products including milk, cheese, and nutritional solutions. Fonterra emphasises innovation, sustainability, and international trade, catering to both domestic and global markets.
Lactalis Australia Pty Ltd.
Founded in 1933 and based in South Brisbane, Queensland, Lactalis Australia is a subsidiary of the France-based Lactalis Group. The company owns several prominent Australian dairy brands, including Pauls, Vaalia, and Ice Break. With a focus on fresh dairy production, Lactalis prioritises local sourcing, continuous innovation, and strong partnerships with Australian dairy farmers.
Norco Co-operative Limited
Established in 1895 and headquartered in Lismore, New South Wales, Norco is a 100% Australian farmer-owned dairy co-operative. It manufactures a variety of dairy products such as fresh milk, cream, and ice cream for both domestic consumption and export markets. Norco is committed to sustainability and regional employment, maintaining a strong footprint throughout eastern Australia.
Saputo Dairy Australia Pty Ltd.
Formed in 2018 following the acquisition of Murray Goulburn, Saputo Dairy Australia is a subsidiary of Canadian multinational Saputo Inc. Headquartered in Melbourne, Victoria, the company is a leading force in the Australian dairy industry. It produces a broad portfolio of products, including milk, cheese, and nutritional powders, serving retail, foodservice, and international export markets.
Other key players in the Australia dairy products market report are Dairy Australia Limited, Little Big Dairy Co., Mother Cow Dairy, and Milawa Cheese Company, among others.
consumption and its status as a staple in household diets. Its geographical proximity to major Asian markets further enhances export opportunities, reinforcing the sector’s value as a contributor to rural economies and national GDP. This economic impact is reflected in the Australia dairy products market revenue, which benefits from stable production and a well-developed processing and distribution network that ensures consistent supply and operational efficiency.
In response to market volatility, the Australian Milk Price Initiative was launched in March 2022, introducing a hedging mechanism via the Mercari platform. Co-managed by Australian Dairy Farmers, the initiative promotes price transparency and reduces financial uncertainty, enabling more stable income for dairy producers.
The Australia dairy products market shows resilience through its wide range of offerings, from traditional milk and yoghurt to lactose-free, fortified, and high-protein options. These innovations are increasingly aligned with health and wellness trends, appealing to a more nutrition-conscious consumer base. Backed by Australia’s reputation for quality, safety, and provenance, the industry benefits from strong international demand. Continued support through government-funded R&D, favourable trade agreements, and forward-thinking policy frameworks strengthens the sector’s global competitiveness and adaptability to evolving dietary preferences.
Australia Dairy Products Market Growth
The Australia dairy products market growth is underpinned by strong consumer demand for functional, fortified, and health-focused products. The sector is rapidly diversifying into value-added offerings such as high-protein dairy, lactose-free lines, probiotics, and personalised nutrition solutions. Notably, Dairy Australia reports that 20% of Australian milk production now comes from intensive or housed systems—a figure expected to double in the next 20 years. This shift supports higher yields, improved animal welfare, and greater climate adaptability.
Government-backed R&D, sustainability initiatives, and digital transformation are further catalysing innovation. These efforts not only enhance production efficiency but also respond to evolving ESG requirements and environmental regulations, helping to meet the rising demand of the Australia dairy products revenue.
Key Trends and Developments
The Australia dairy products market growth is boosted by the rise of functional and fortified dairy products, growth in plant-based and lactose-free alternatives, digitisation and direct-to-consumer channels, and strong government support and regulatory frameworks.
April 2025
Asembl orchestrated a strategic brand collaboration between Unilever’s Weis and Queensland-based dairy company Breaka, resulting in the release of a Weis Mango & Cream flavoured milk. Inspired by the iconic Weis ice cream bars, this unique product brought a novel flavour profile to the dairy shelf in Queensland supermarkets. It exemplifies the growing consumer appetite for innovation in taste and highlights the role of creative partnerships in expanding product diversity within the Australia dairy products market.
January 2025
Perfect Italiano introduced a new line of grated Parmesan canisters in both Traditional and Garlic Herb flavours. Designed with convenience in mind, the resealable and recyclable packaging maintains freshness and caters to busy, on-the-go consumers. Fonterra Oceania, which distributes the brand, underscored the launch as part of its broader sustainability strategy, aligning with APCO standards. The product rollout across Woolworths and Coles reflects growing retail demand for functional, eco-conscious packaging solutions.
December 2024
In a unique collaboration targeting younger demographics, Norco Co-operative launched four Minecraft-branded flavoured milks in Australian supermarkets. These lactose-free, no-added-sugar drinks feature a four-star health rating and appeal to the gaming community. The partnership, facilitated by FMCG branding specialists, merges digital culture with nutrition, expanding Norco’s presence in the flavoured milk segment and contributing to the dynamic growth of the Australia dairy beverage market.
February 2023
Chobani Australia expanded its health-focused offerings with the launch of a no-sugar-added Greek yoghurt range. Made with natural ingredients, real fruit, and one billion probiotics, the range addresses consumer demand for digestive health support without compromising on flavour. Available in a variety of flavours, the launch enhanced Chobani’s wellness-driven portfolio and reinforced its commitment to innovation in functional dairy products—an increasingly influential driver in the Australia dairy products market.
Rise of Functional and Fortified Dairy Products is Boosting the Growth of the Australia Dairy Products Market
Consumer preference in Australia is shifting toward dairy offerings with added nutritional benefits, including high-protein yoghurts, probiotic beverages, and fortified milk. This surge in health-conscious consumption is boosting the growth of the Australia dairy products market, as producers tailor products to support gut health, immune function, and muscle recovery. The ability to command premium pricing in this segment also enhances Australia dairy products market revenue across both retail and foodservice.
Growth in Plant-Based and Lactose-Free Alternatives is Influecing the Australia Dairy Products Market Dynamics and Trends
Although traditional dairy remains central, demand for lactose-free and plant-based dairy has risen sharply. Factors such as food intolerances, ethical choices, and sustainability concerns are driving this transition. Producers are diversifying into oat, almond, and soy-based products, enabling them to capture flexitarian and vegan consumer segments.
Digitisation and Direct-to-Consumer Channels is Impacting the Australia Dairy Products Industry Revenue
Digital platforms and e-commerce models are revolutionising the dairy supply chain. Subscription-based deliveries, click-and-collect services, and farm-to-door models are offering new ways for brands to connect with consumers. This digital evolution enhances traceability, supports brand storytelling, and unlocks higher margins—positively impacting the Australia dairy products industry revenue and offering a competitive edge in a saturated market.
Government Support and Regulatory Frameworks is Boosting Australia Dairy Products Market Expansion
Strategic government involvement is a foundational pillar supporting the long-term sustainability and expansion of the dairy sector. R&D grants, favourable trade agreements, and initiatives like the Australian Milk Price Initiative offer stability in pricing and production. Clear regulatory standards around safety, labelling, and environmental compliance increase consumer confidence and attract investment, accelerating market expansion both locally and globally.
Australia Dairy Products Market Trends
Innovation in flavour and product format continues to shape the trend in the Australia dairy products market, driven by consumer demand for variety, indulgence, and novelty. Manufacturers are incorporating exotic fruits, global flavour influences, and dessert-inspired profiles into products like yoghurts, cheeses, and flavoured milks to cater to evolving tastes and encourage repeat purchases.
Producers such as Australian Dairy Nutritionals, based near Victoria’s Great Ocean Road, are adding value through vertical integration—leveraging chemical-free milk inputs and on-site manufacturing to produce premium offerings including infant formulas and nutritional powders. This positioning not only strengthens domestic market presence but also enhances export competitiveness across Asia-Pacific. Additionally, innovations in texture and creative packaging design contribute to improved shelf visibility, supporting brand differentiation in an increasingly saturated retail environment.
Opportunities in the Australia Dairy Products Market
Technological innovation stands out as a major Australia dairy products market driver. Precision agriculture, automation, and data analytics are transforming dairy farm operations, improving cost efficiency, and enabling real-time monitoring of animal health and milk yield. These technologies enhance traceability and food safety while reducing operational risk—factors that are increasingly valued by both consumers and regulators.
Investor interest is also rising. In March 2025, Warakirri Asset Management launched a new AUD 500 million dairy fund, following its separation from PSP Investments. The fund targets 10% annual returns by investing in a diversified portfolio of dairy assets across Australia and New Zealand, aiming to capitalise on strong domestic demand and expanding export opportunities, particularly in the
Market Restraints
Despite these opportunities, several structural challenges continue to constrain the Australia dairy products market. Escalating costs related to feed, energy, and labour are squeezing profit margins—particularly for small and mid-sized producers. Additionally, extreme weather events such as droughts and floods disrupt supply chains and reduce herd productivity, undermining consistency in milk output.
Compliance with environmental and animal welfare regulations is becoming more stringent, increasing the cost of doing business. At the same time, the growing popularity of plant-based dairy alternatives—driven by ethical, health, and sustainability concerns—is intensifying competition, diverting some consumer demand away from traditional dairy.
To remain competitive, industry stakeholders must continue to invest in innovation, sustainability, and risk mitigation strategies to ensure long-term viability and maintain their edge in the global marketplace.
“Australia Dairy Products Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product Type
- Butter
- Milk
- Dairy Desserts
- Yoghurt
- Cheese
- Cream
- Others
- Hypermarkets and Supermarkets
- Convenience Stores
- Online Channels
- Others
- New South Wales
- Victoria
- Queensland
- Australian Capital Territory
- Western Australia
- Others
Market Analysis by Product Type
Butter remains a foundational product in the Australia dairy products market, driven by growing consumer preference for traditional, minimally processed fats. Its appeal spans both household cooking and the foodservice sector, supported by its natural composition and clean-label image—offering an advantage over margarine and oil-based alternatives. Usage of butter in gourmet and artisan foods continues to rise. According to the Department of Agriculture, Water and the Environment, 60% of organic food sales in 2022 occurred through retailers, with 58% sold directly—highlighting rising demand for organic, natural dairy ingredients.
Milk continues to serve as a core category within the Australian dairy landscape, maintaining broad household penetration and consistent per-capita consumption. Its role as a key source of calcium and protein supports its inclusion across age groups and dietary needs. Consumer interest has expanded beyond traditional offerings to include flavoured, lactose-free, UHT, and high-protein formulations. In December 2024, Dairy Australia reported annual milk consumption at 90 litres per capita, with 98% of households regularly purchasing it. Experts also projected that improved dairy consumption habits could reduce national healthcare spending by approximately AUD 2 billion - emphasising milk's public health relevance
Market Insights by Distribution Channel
Convenience stores play an increasingly strategic role in driving growth across the Australia dairy products market growth, particularly in urban areas. Their accessibility, longer operating hours, and small-format inventory make them ideal for selling grab-and-go items like dairy snacks, flavoured milks, and single-serve yoghurts. These retail outlets are also instrumental in promoting product trial for new entrants and niche dairy or plant-based brands. In March 2022, Bickford’s tapped into the dairy-alternative trend by launching Australia’s first pistachio and macadamia-based plant milks, available through Woolworths in NSW and Victoria. Priced at AUD 5, the vegan, GMO-free products received strong interest nationwide.
Online retail channels are becoming increasingly influential in shaping the Australia dairy products market. E-commerce platforms and direct-to-consumer (D2C) models offer producers greater control over branding, margins, and customer engagement. This shift supports premiumisation, with products like organic milk, high-end cheeses, and infant formula gaining traction online. Nature One Dairy® exemplifies this trend with its range of grass-fed, pharmaceutical-grade milk and infant nutrition products available via Big W, Amazon, and other digital platforms. With a strong focus on animal welfare and organic standards, the brand has established a robust multi-channel strategy with growing export appeal.
Australia Dairy Products Market Regional Insights
New South Wales (NSW)
NSW plays a key role in the national dairy industry, supported by its strong infrastructure and proximity to major consumer hubs. Continued investment in processing facilities and rising demand for value-added, health-oriented dairy offerings are propelling regional market growth. NSW contributes significantly to national production, yielding over 1,040 million litres of milk annually and employing around 5,600 individuals in farming and processing. This underscores the sector’s importance to both the state economy and national food supply resilience.
Queensland
Queensland’s dairy sector is characterised by urban growth, rising health awareness, and steady consumption of chilled dairy products, especially yoghurts and functional drinks. The state produces over 280 million litres of milk annually, generating approximately AUD 250 million in value. Local producers are exploring niche export markets across the Asia-Pacific and South Pacific, leveraging Queensland's reputation for clean, safe food production and its proximity to regional markets.
Western Australia (WA)
Although geographically remote, WA has carved out a space in the premium and artisanal dairy segments. Consumer interest in organic and small-batch production is growing, and new investments in branding and processing are helping local producers overcome logistical challenges. In March 2024, Brownes Dairy launched its Club Cheddar range in four flavours—Vintage, Pickled Onion, Green Peppercorn, and Smokey Red—emphasising use of fresh WA milk and reinforcing its artisanal positioning in the national dairy market.
Victoria
As the country’s largest dairy-producing state, Victoria benefits from fertile land, efficient infrastructure, and advanced dairy farming systems. The state’s strong export profile is bolstered by demand from Asia for high-quality dairy products, particularly infant formula and nutritional powders. Continued government support for sustainable agriculture and technology adoption ensures Victoria remains a competitive force within the Australia dairy industry.
Australian Capital Territory (ACT)
While smaller in scale, the ACT presents high-value opportunities in health-driven and organic dairy products. Elevated household incomes and consumer interest in ethical, locally sourced food support niche expansion. Artisanal and small-batch producers benefit from farmers’ markets and D2C models, allowing them to build loyal consumer bases and grow brand presence without relying solely on large retail chains.
Competitive Landscape
The Australia dairy products market is shaped by a mix of multinational corporations and farmer-owned co-operatives, driving innovation, scale, and export competitiveness. Key players focus on value-added segments such as high-protein milk, infant formula, and premium cheese, supported by advanced processing capabilities and strong retail networks. Ongoing strategic investments in sustainability, automation, and health-oriented product lines are enhancing market positioning and aligning with shifting consumer demands both within Australia and across key Asia-Pacific export markets.
Key Industry Players
Fonterra Co-operative Group Limited
Established in 2001 and headquartered in Auckland, New Zealand, Fonterra is a global dairy co-operative owned by approximately 9,000 farmers. The company maintains a significant operational presence in Australia, delivering a wide range of dairy products including milk, cheese, and nutritional solutions. Fonterra emphasises innovation, sustainability, and international trade, catering to both domestic and global markets.
Lactalis Australia Pty Ltd.
Founded in 1933 and based in South Brisbane, Queensland, Lactalis Australia is a subsidiary of the France-based Lactalis Group. The company owns several prominent Australian dairy brands, including Pauls, Vaalia, and Ice Break. With a focus on fresh dairy production, Lactalis prioritises local sourcing, continuous innovation, and strong partnerships with Australian dairy farmers.
Norco Co-operative Limited
Established in 1895 and headquartered in Lismore, New South Wales, Norco is a 100% Australian farmer-owned dairy co-operative. It manufactures a variety of dairy products such as fresh milk, cream, and ice cream for both domestic consumption and export markets. Norco is committed to sustainability and regional employment, maintaining a strong footprint throughout eastern Australia.
Saputo Dairy Australia Pty Ltd.
Formed in 2018 following the acquisition of Murray Goulburn, Saputo Dairy Australia is a subsidiary of Canadian multinational Saputo Inc. Headquartered in Melbourne, Victoria, the company is a leading force in the Australian dairy industry. It produces a broad portfolio of products, including milk, cheese, and nutritional powders, serving retail, foodservice, and international export markets.
Other key players in the Australia dairy products market report are Dairy Australia Limited, Little Big Dairy Co., Mother Cow Dairy, and Milawa Cheese Company, among others.
Table of Contents
118 Pages
- 1 Preface
- 2 Report Coverage – Key Segmentation and Scope
- 3 Report Description
- 3.1 Market Definition and Outlook
- 3.2 Properties and Applications
- 3.3 Market Analysis
- 3.4 Key Players
- 4 Key Assumptions
- 5 Executive Summary
- 5.1 Overview
- 5.2 Key Drivers
- 5.3 Key Developments
- 5.4 Competitive Structure
- 5.5 Key Industrial Trends
- 6 Market Snapshot
- 7 Opportunities and Challenges in the Market
- 8 Asia Pacific Dairy Products Market Overview
- 8.1 Key Industry Highlights
- 8.2 Asia Pacific Dairy Products Historical Market (2018-2024)
- 8.3 Asia Pacific Dairy Products Market Forecast (2025-2034)
- 9 Australia Dairy Products Market Overview
- 9.1 Key Industry Highlights
- 9.2 Australia Dairy Products Historical Market (2018-2024)
- 9.3 Australia Dairy Products Market Forecast (2025-2034)
- 10 Australia Dairy Products Market by Product Type
- 10.1 Butter
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 Milk
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 10.3 Dairy Desserts
- 10.3.1 Historical Trend (2018-2024)
- 10.3.2 Forecast Trend (2025-2034)
- 10.4 Yoghurt
- 10.4.1 Historical Trend (2018-2024)
- 10.4.2 Forecast Trend (2025-2034)
- 10.5 Cheese
- 10.5.1 Historical Trend (2018-2024)
- 10.5.2 Forecast Trend (2025-2034)
- 10.6 Cream
- 10.6.1 Historical Trend (2018-2024)
- 10.6.2 Forecast Trend (2025-2034)
- 10.7 Others
- 11 Australia Dairy Products Market by Distribution Channel
- 11.1 Hypermarkets and Supermarkets
- 11.1.1 Historical Trend (2018-2024)
- 11.1.2 Forecast Trend (2025-2034)
- 11.2 Convenience Stores
- 11.2.1 Historical Trend (2018-2024)
- 11.2.2 Forecast Trend (2025-2034)
- 11.3 Online Channels
- 11.3.1 Historical Trend (2018-2024)
- 11.3.2 Forecast Trend (2025-2034)
- 11.4 Others
- 12 Australia Dairy Products Market by Region
- 12.1 New South Wales
- 12.1.1 Historical Trend (2018-2024)
- 12.1.2 Forecast Trend (2025-2034)
- 12.2 Victoria
- 12.2.1 Historical Trend (2018-2024)
- 12.2.2 Forecast Trend (2025-2034)
- 12.3 Queensland
- 12.3.1 Historical Trend (2018-2024)
- 12.3.2 Forecast Trend (2025-2034)
- 12.4 Australian Capital Territory
- 12.4.1 Historical Trend (2018-2024)
- 12.4.2 Forecast Trend (2025-2034)
- 12.5 Western Australia
- 12.5.1 Historical Trend (2018-2024)
- 12.5.2 Forecast Trend (2025-2034)
- 12.6 Others
- 13 Market Dynamics
- 13.1 SWOT Analysis
- 13.1.1 Strengths
- 13.1.2 Weaknesses
- 13.1.3 Opportunities
- 13.1.4 Threats
- 13.2 Porter’s Five Forces Analysis
- 13.2.1 Supplier’s Power
- 13.2.2 Buyer’s Power
- 13.2.3 Threat of New Entrants
- 13.2.4 Degree of Rivalry
- 13.2.5 Threat of Substitutes
- 13.3 Key Indicators for Demand
- 13.4 Key Indicators for Price
- 14 Competitive Landscape
- 14.1 Market Structure
- 14.2 Company Profiles
- 14.2.1 Fonterra Co-operative Group Limited
- 14.2.1.1 Company Overview
- 14.2.1.2 Product Portfolio
- 14.2.1.3 Demographic Reach and Achievements
- 14.2.1.4 Certifications
- 14.2.2 Lactalis Australia Pty Ltd.
- 14.2.2.1 Company Overview
- 14.2.2.2 Product Portfolio
- 14.2.2.3 Demographic Reach and Achievements
- 14.2.2.4 Certifications
- 14.2.3 Norco Co-operative Limited
- 14.2.3.1 Company Overview
- 14.2.3.2 Product Portfolio
- 14.2.3.3 Demographic Reach and Achievements
- 14.2.3.4 Certifications
- 14.2.4 Saputo Dairy Australia Pty Ltd.
- 14.2.4.1 Company Overview
- 14.2.4.2 Product Portfolio
- 14.2.4.3 Demographic Reach and Achievements
- 14.2.4.4 Certifications
- 14.2.5 Dairy Australia Limited
- 14.2.5.1 Company Overview
- 14.2.5.2 Product Portfolio
- 14.2.5.3 Demographic Reach and Achievements
- 14.2.5.4 Certifications
- 14.2.6 Little Big Dairy Co.
- 14.2.6.1 Company Overview
- 14.2.6.2 Product Portfolio
- 14.2.6.3 Demographic Reach and Achievements
- 14.2.6.4 Certifications
- 14.2.7 Mother Cow Dairy
- 14.2.7.1 Company Overview
- 14.2.7.2 Product Portfolio
- 14.2.7.3 Demographic Reach and Achievements
- 14.2.7.4 Certifications
- 14.2.8 Milawa Cheese Company
- 14.2.8.1 Company Overview
- 14.2.8.2 Product Portfolio
- 14.2.8.3 Demographic Reach and Achievements
- 14.2.8.4 Certifications
- 14.2.9 Others
- 15 Key Trends and Developments in the Market
Pricing
Currency Rates
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