Dairy-based Beverages

Global Dairy-based Beverages Market to Reach US$201.4 Billion by 2030

The global market for Dairy-based Beverages estimated at US$157.5 Billion in the year 2024, is expected to reach US$201.4 Billion by 2030, growing at a CAGR of 4.2% over the analysis period 2024-2030. Milk-based Beverages, one of the segments analyzed in the report, is expected to record a 3.6% CAGR and reach US$90.4 Billion by the end of the analysis period. Growth in the Yogurt-based Beverages segment is estimated at 3.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$42.9 Billion While China is Forecast to Grow at 6.6% CAGR

The Dairy-based Beverages market in the U.S. is estimated at US$42.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$38.8 Billion by the year 2030 trailing a CAGR of 6.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.0% and 4.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.6% CAGR.

Global Dairy-Based Beverages Market – Key Trends & Drivers Summarized

Why Are Dairy-Based Beverages Maintaining Relevance Amid Shifting Consumer Preferences?
Dairy-based beverages remain a dynamic segment in the global beverage industry, supported by their nutritional value, versatility, and deep cultural roots in both traditional and modern diets. From milkshakes, lassis, and yogurt drinks to fortified milk, kefir, and flavored dairy drinks, these beverages offer a combination of hydration, protein, probiotics, and indulgence. As functional nutrition becomes a top consumer priority, dairy-based drinks are being positioned as convenient carriers of calcium, vitamins, and gut-friendly cultures.

Despite the rise of plant-based alternatives, dairy-based beverages continue to hold strong consumer trust, especially in markets where dairy is embedded in daily dietary practices. These beverages appeal across all age groups—from children’s nutrition to adult wellness drinks and senior health supplements—due to their richness in natural proteins and essential micronutrients. Their format flexibility—from ready-to-drink bottles to single-serve cartons—also supports their integration into fast-paced, on-the-go lifestyles.

How Are Innovation and Functional Trends Reshaping the Dairy Beverage Category?
Product innovation in dairy-based beverages is being driven by functional health trends, clean-label demands, and indulgence-seeking behavior. Manufacturers are introducing fortified variants enriched with protein, fiber, omega-3s, and vitamins to target specific health needs such as immunity, digestion, muscle recovery, or bone strength. Probiotic drinks, especially those based on fermented dairy such as kefir and yogurt smoothies, are gaining widespread popularity for their digestive health benefits.

Flavored dairy drinks—ranging from fruit-infused options to dessert-inspired creations like vanilla custard or chocolate fudge—are being used to attract younger consumers and expand consumption occasions. Clean-label innovation is also influencing formulations, with brands focusing on natural ingredients, minimal processing, reduced sugar, and no artificial additives. In parallel, lactose-free and A2 milk-based drinks are emerging to serve consumers with dietary sensitivities while preserving dairy’s functional value.

Which Segments and Markets Are Fueling the Demand for Dairy-Based Beverages?
The demand for dairy-based beverages spans multiple consumer demographics and product segments. Children’s nutrition is a key category, with growing demand for fortified milk drinks and flavored milk products that appeal to taste while delivering essential nutrients. Adult health and wellness is another fast-expanding segment, particularly for high-protein shakes, probiotic yogurts, and ready-to-drink meal replacements targeted at fitness enthusiasts and busy professionals.

Regionally, Asia-Pacific is a leading growth market—especially in India and China—where traditional fermented drinks like lassi and buttermilk are widely consumed and now being modernized into packaged formats. Europe maintains high per capita consumption of yogurt and kefir-based drinks, while North America is witnessing growing interest in functional dairy drinks, particularly among health-conscious and active lifestyle consumers. The Middle East and Latin America are also seeing expansion in flavored and shelf-stable milk drinks through retail and foodservice channels.

What Are the Key Growth Drivers for the Dairy-Based Beverages Market?
The growth in the dairy-based beverages market is driven by a combination of nutritional demand, product innovation, and evolving consumer lifestyles. Rising awareness about protein intake, digestive wellness, and immune health is increasing the consumption of functional dairy drinks enriched with probiotics, vitamins, and minerals. The convenience of ready-to-drink formats supports rising demand in urban areas, where time-constrained consumers seek portable, nourishing beverages.

Innovation in packaging—such as resealable bottles, eco-friendly cartons, and aseptic technologies—is enhancing product accessibility and shelf stability.The inclusion of indulgent flavors, clean-label positioning, and targeted functional claims is helping dairy brands attract broader consumer bases. Lastly, the modernization of traditional beverages and the integration of dairy with global flavor trends are enabling dairy-based drinks to remain relevant in a crowded and fast-evolving beverage landscape. These drivers together ensure sustained growth and diversification in the global dairy-based beverages market.

SCOPE OF STUDY:

The report analyzes the Dairy-based Beverages market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product Type (Milk-based Beverages, Yogurt-based Beverages, Kefir-based Beverages, Other Product Types); Distribution Channel (Supermarkets / Hypermarkets, Convenience Stores, Online Distribution Channel, Other Distribution Channels)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 41 Featured) -

• Almarai
• Amul (GCMMF)
• Arla Foods
• Britannia Industries
• China Mengniu Dairy
• Chobani
• Danone
• Dutch Mill Co., Ltd.
• Emmi Group
• Fonterra Co-operative
• FrieslandCampina
• Lactalis Group
• Land O’Lakes
• Marigold HL Milk
• Meiji Holdings Co.
• Müller Group
• Nestlé S.A.
• Parmalat (Lactalis)
• Saputo Inc.
• Yili Group

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