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Dairy Product Production in Europe - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

ISIC 105 August 2024 Spotlight Report

Revenue

€259.4bn

2019-2024 1.7 %
2024-2029 X.X %

Employees

720k

2019-2024 2.6 %
2024-2029 X.X %

Businesses

24,435

2019-2024 3.0 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

Dairy Product Production in Europe industry analysis

Over the past five years, dairy production in Europe has shrunk amid soaring inflation and shifting consumer habits. Dairy processors have continued to enjoy strong consumer demand despite the rising popularity of plant-based alternatives. Rather than being contenders, these vegan-friendly options have complemented traditional dairy consumption. Consumers have diversified their diets to incorporate both dairy and dairy-free products, keeping dairy processors’ sales afloat. Economic challenges have shaped dairy production trends, with French consumers leaning toward factory-produced, lower-margin dairy. Meanwhile, profit has risen as processors have taken cost-cutting measures. Revenue is projected to fall at a compound annual rate of 1.7% over the five years through 2024 to reach an estimated €259.4 billion. In 2024 alone, revenue will shrink by an estimated 1.9% as the effects of inflation take hold.

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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.

Technological advancements will shape the future of dairy farming.

 

With the help of AI, robotics and IoT, the dairy industry would become more efficient, cost-effective and ultimately, more future-proof.

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Dairy Product Production in Europe

Industry Revenue

Total value and annual change from 2011-2029. Includes 5-year outlook.

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Dairy Product Production in Europe market size (2019-2024)

Industry revenue has declined at a CAGR of 1.7 % over the past five years, to reach an estimated €259.4bn in 2024.

Trends and Insights

Strong dairy demand staves off plant-based alternatives

  • Despite an overall hike in per capita dairy consumption in Europe, interest in plant-based dairy alternatives continues to swell. Still, vegan-friendly options have swelled alongside dairy demand rather than replacing traditional dairy consumption.

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Dairy Product Production in Europe outlook (2024-2029)

Market size is projected to grow over the next five years.

Plant-based alternatives will soar amid cultural shifts

  • The popularity of plant-based alternatives like oat, almond and soy milk is set to continue swelling over the coming years. These alternatives appeal to a growing demographic concerned with health, environmental sustainability and animal welfare.

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Revenue

€259.4bn

2019-2024 1.7 %
2024-2029 X.X %

Employees

720k

2019-2024 2.6 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 2.6 % *
  • Job Growth

Top 5 Countries

  1. Romania +14.2%
  2. Bulgaria +10.8%
  3. Hungary +10.5%
  4. Latvia +9.4%
  5. Estonia +8.7%

Bottom 5 Countries

  1. Malta -13.5%
  2. Netherlands -1.3%
  3. Poland -0.3%
  4. Portugal -0.3%
  5. Italy -0.2%

* CAGR values are for the years 2019-2024.

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Biggest companies in the Dairy Product Production in Europe

Company
Market Share (%)
2024
Revenue (€m)
2024
Profit (€m)
2024
Profit Margin (%)
2024
Groupe Lactalis SA
30,205.5
419.5
1.4
Arla Foods AmbA
14,721.7
579.0
3.9
Sodiaal
5,899.1
8.2
0.1

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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 2024?

The market size of the Dairy Product Production industry in Europe is €259.4bn in 2024.

How many businesses are there in the Dairy Product Production in Europe industry in 2024?

There are 24,435 businesses in the Dairy Product Production industry in Europe, which has grown at a CAGR of 3.0 % between 2019 and 2024.

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 declining at a CAGR of 1.7 % between 2019 and 2024.

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 in Europe include?

Yoghurt and Milk are part of the Dairy Product Production industry.

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

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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

PasteurisationHomogenisationWhey

What's included in this industry?

YoghurtMilkWheyButterCheeseCurd

Companies

Groupe Lactalis SAArla Foods AmbASodiaal

Industry Code

ISIC 2006

105 - Manufacture of dairy products in Europe

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Performance

Key Takeaways

Strong dairy demand staves off plant-based alternatives

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Revenue Highlights

Trends
  • Revenue
  • 2024 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 (2011 -2029)
  • Employees in the Dairy Product Production in Europe industry (2011 -2029)
  • Business in the Dairy Product Production in Europe industry (2011 -2029)
  • Profit in the Dairy Product Production in Europe industry (2011 -2029)
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

Yoghurt's popularity has surged alongside flavoured and functional options. Whether it's a classic Greek yoghurt or a gut-friendly probiotic, this dairy product is a versatile go-to.

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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 (2024)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2024)
  • Share of Total Industry Enterprises by Region (2024)
  • Share of Total Industry Employment by Region (2024)
  • Share of Total Industry Wages by Region (2024)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2024)
  • IVA (2024)
  • Enterprises (2024)
  • Employment (2024)
  • Exports (2024)
  • Imports (2024)

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.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2019-2024)

Companies

Data Tables

Top 10 companies by market share:

  • Market share (2024)
  • Revenue (2024)
  • Profit (2024)
  • Profit Margin (2024)

Data Tables
  • Countries of operation for Groupe Lactalis SA
  • Countries of operation for Arla Foods AmbA
  • Countries of operation for Sodiaal
  • Countries of operation for Royal FrieslandCampina NV
  • Countries of operation for Nestlé SA
  • Countries of operation for Savencia
  • 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.

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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.

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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 (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and boottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

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 (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

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. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.