Global Dairy Based Beverages Market is segmented By Product Type (Non- Fermented, Fermented) By Category (Flavored, Unflavored) By Packaging (Can, Pouch, Bottle, Tetra Pack, Others) By Distribution Channel (Supermarkets/hypermarkets, Convenience stores, Specialty Stores, Online Channels, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) ā Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Dairy Based Beverages Market Size
Global Dairy Based Beverages Market reached US$ 45.60 billion in 2022 and is expected to reach US$ 76.04 billion by 2031, growing with a CAGR of 6.6% during the forecast period 2024-2031.
Consumers are increasingly seeking functional beverages that offer additional health benefits beyond basic nutrition. As a result, there is a growing market for dairy-based beverages fortified with vitamins, minerals, protein, probiotics, and other bioactive ingredients. These functional dairy drinks target specific health concerns such as immune support, digestive health, bone health, and weight management, appealing to health-conscious consumers looking for convenient and nutritious beverage options.
In February 2022, Chobani LLC expanded its presence in the refrigerated aisle by launching two new dairy platforms: Chobani half & half and Chobani ultra-filtered milk, a lactose-free, protein-rich ultrafiltered milk. The new goods are manufactured using milk that is sourced locally, and they are packaged in paper that is widely recyclable in the US, like many of the company's other new products.
Flavored dairy-based beverages account for over half of the market share due to their diverse range of appealing taste profiles. Similarly, Asia-Pacific dominates the dairy-based beverages market, capturing the largest market share due to its growing dairy industry. According to the Agricultural & Processed Food Products Export Development Authority (APEDA), in 2022ā2023 India exported 67,572.99 MT of dairy products to the world, valued at 284.65 million USD.
Market Scope
| Metrics | Details |
| CAGR | 6.6% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Product Type, Category, Packaging, Distribution Channel and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | North America |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porterās Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Health Awareness Among Consumers Globally
Rising health awareness among consumers globally is a significant driver for the growth of the dairy-based beverages market. As people become more health-conscious, they seek out dairy products that offer nutritional benefits and align with their wellness goals. According to OECD-FAO Agricultural Outlook 2020-2029, over the next ten years, it is anticipated that the global per capita consumption of fresh dairy products will rise by a 1.0% annual rate.
Dairy-based beverages, such as milkshakes, smoothies, yogurt drinks, and fortified dairy beverages, are perceived as nutritious options due to their high protein, calcium, and other essential nutrient content. Dairy-based beverages are recognized for their high protein content, which is essential for muscle building, bone health, and overall wellness. Additionally, they provide essential nutrients like calcium, vitamins, and minerals, contributing to a balanced diet and supporting overall health.
Innovation and Product Development
Innovation in dairy-based beverages aligns with prevailing health and wellness trends, focusing on natural ingredients, reduced sugar content, clean labels, and organic and sustainable sourcing. Products positioned as nutritious, wholesome, and environmentally friendly resonate with health-conscious consumers, driving market growth. Continuous innovation in dairy-based beverages, such as the introduction of flavored and fortified options is expanding the market and attracting new consumers.
Manufacturers are continuously innovating and introducing new flavors, formulations, and varieties of dairy-based beverages to cater to changing consumer preferences, driving market expansion. In October 2020, Amul. Coop launched a new healthy drink āAmul TRU Seltzerā. Amul TRU Seltzer is the best dairy, fruit, and fizz combination. The items are made with natural fruit juice, dairy deliciousness, and fun fizz.
Competition from Plant-Based Alternatives
The rising popularity of plant-based dairy alternatives, such as almond milk, soy milk, and oat milk, poses a significant challenge to the dairy-based beverages market. Consumers seeking dairy-free options due to lactose intolerance, allergies, ethical concerns, or environmental sustainability may choose plant-based alternatives over traditional dairy beverages, limiting market growth.
Dairy-based beverages contain allergenic components such as lactose, casein, and whey, which can trigger allergic reactions in sensitive individuals. According to the National Institutes of Health (NIH), 70ā100% of adults have lactose intolerance; these individuals are typically of East Asian ancestry. The prevalence of lactose intolerance and dairy allergies among consumers necessitates the development of alternative formulations potentially limiting market reach.
Market Segment Analysis
The global dairy-based beverages market is segmented based on product type, category, packaging, distribution channel and region.
Consumer Preference for Flavored Dairy-based Beverage
Flavored dairy beverages offer a wide range of appealing flavors such as chocolate, strawberry, vanilla, coffee, and fruit blends, catering to diverse taste preferences. Consumers often seek indulgent and flavorful options that provide a satisfying sensory experience, driving demand for flavored dairy-based beverages. Creative flavor profiles and product innovations, such as exotic fruit blends, and innovative ingredient combinations, attract consumers seeking novel and exciting beverage options
Manufacturers continually introduce new and innovative flavor combinations and formulations to capture consumer interest and differentiate their products in a competitive market. In February 2023, Parle Agro, expanded their dairy portfolio to launch SMOODH Fruit Smoothies, a pioneering product from their dairy brand, SMOODH. The latest offering is a daily treat that combines the delectable taste of fruits with the health benefits of yogurt in an array of delightful flavors.
Market Geographical Share
Asia-Pacificās Growing Dairy Industry
According to the Agricultural & Processed Food Products Export Development Authority (APEDA), Government of India, India currently boasts the largest dairy industry in the world when it comes to milk production; in 2021ā2021, the country produced almost 221.1 million tonnes of milk, which is nearly 50% more than the US and more than three times more than China. This growing dairy industry, ensures a consistent and reliable supply chain, enabling manufacturers to meet the growing demand for dairy beverages in Asia-Pacific.
Economic growth and rising disposable incomes in countries across Asia-Pacific have led to increased purchasing power among consumers. As disposable incomes rise, consumers have more discretionary spending capacity, enabling them to afford and purchase dairy-based beverages as part of their regular consumption habits. Additionally, with a large and growing population, there is a substantial consumer base for dairy-based beverages in the region, driving demand and consumption.
COVID-19 Impact Analysis
The COVID-19 pandemic had a significant impact on the global dairy-based beverages market, influencing various aspects of production, distribution, and consumption. The pandemic disrupted global supply chains, leading to challenges in the sourcing of raw materials, dairy ingredients, and packaging materials. Lockdowns, travel restrictions, and border closures hampered logistics and transportation, affecting the movement of goods and causing delays in production and distribution.
COVID-19 prompted shifts in consumer behavior and preferences, including changes in shopping habits, consumption patterns, and dietary choices. Concerns about health and immunity led some consumers to prioritize functional and nutritious beverages, including dairy-based products perceived as offering health benefits. However, economic uncertainties and financial constraints resulted in some consumers opting for lower-priced or private-label brands.
Russia-Ukraine War Impact Analysis
The geopolitical tensions and economic sanctions imposed on Russia and Ukraine created market uncertainty and volatility in the dairy industry. Uncertainty regarding trade relations, export-import regulations, and currency fluctuations impacted investment decisions, pricing strategies, and market dynamics for dairy-based beverages.
Key Developments
- In February 2021, GoodSport Nutrition, a Chikago-based start-up, launched a dairy-based sports drink GoodSport, which contains 97% dairy.
- In March 2023, Heritage Foods Ltd., an Indian dairy manufacturer, unveiled a new line of buttermilk products under the 'A-One' trademark as well as a variety of milkshakes packaged in easy-to-serve carton boxes. Heritage Foods' new 'A-One' product line consists of spiced buttermilk with fewer calories that are naturally refreshing.
- In May 2023, Kerry Dairy Ireland launched a new dairy beverage for the Chinese market, that will encourage senior citizens to age healthily. To satisfy the local demand for high-quality, sustainably produced, and grass-fed dairy products, Original includes a blend of milk powder that supports immunological, muscular, bone, and cognitive health.
Market Major Players
The major global players in the market include Nestle, Danone, GCMMF, MORINAGA MILK INDUSTRY CO., LTD, Chobani, LLC, Saputo, TURM-Sahne GmbH, CavinKare Group, Meiji Holdings Co., Ltd., Yili Group.
Why Purchase the Report?
- To visualize the global dairy-based beverages market segmentation based on product type, category, packaging, distribution channel, and region as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of dairy-based beverages market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global dairy-based beverages market report would provide approximately 70 tables, 64 figures and 186 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
