Asian Markets Dominate Global Milk Consumption

Asian Consumption Soars

The Asian market has firmly established itself as a formidable force in the global dairy industry, with China and India at the forefront. The two countries collectively account for a staggering 50% of the world's milk consumption, significantly impacting global dairy dynamics, according to the World Dairy Situation 2024 report by the International Dairy Federation (IDF).

Impressive Growth in Production

The IDF report highlights a 2.1% increase in annual milk production, reaching a remarkable 964 million tons. This surge is predominantly driven by China and India, which have bolstered their positions as two of the top five producers of cow's milk globally, buoyed by robust domestic demand.

Challenges for Traditional Dairy Regions

Traditional dairy regions such as South America, North America, Europe, and Oceania have reported production growth below the decade average, as Asia and, to a lesser extent, Africa, experience significant growth. Chile, in particular, faced a 2.5% decline in production, contributing only 0.09% to the global total.

Dynamic Asian Dairy Sector

China and India continue to drive the dynamic growth of the Asian dairy sector. Their internal demand and diversification into innovative dairy products are propelling this growth. The World Dairy Summit 2025, set to be hosted in Chile, will further explore these shifts in the global dairy landscape.

Global Dairy Trends

A global consumption increase of 2.0% was noted, with individual consumption reaching 119.1 liters per person annually. Asia remains the largest consumer region, with consumption metrics outstripping other continents.

Trade and Economic Dynamics

While the global price of milk adjusted downward in 2023, affecting skim milk powder and butter significantly, global dairy trade saw a modest uptick. The European Union remains a leading exporter, while New Zealand dominates in powdered milk and butter exports.