Growing Together: Australia's Dairy Market Rebounds on Volume and Value
Fresh data from NielsenIQ, commissioned by Dairy Australia, shows that between February 2024 and February 2025, retail milk volumes rose 0.7% to exceed 1.4 million litres, while total value edged up 0.8% to $2.92 billion. Though modest, these gains mark a symbolic shift after years of recession-linked malaise and budget-conscious consumer habits.
Cheese consumption also saw a notable lift, rising 4.2% to 154 kilotonnes over the same period. However, value growth lagged slightly behind, increasing just 1.9% to $2.68 billion. Butter and butter blends experienced a 3.3% increase in volume, reaching 62 kilotonnes, while spending rose 4.1% to $838 million. But it was yoghurt that led the charge: an 8.4% surge in volume and a striking 10.2% increase in value brought annual yoghurt sales to 198 kilotonnes and $1.56 billion, respectively.
Speaking at Dairy Australia’s annual Situation and Outlook breakfast, Juliane Westaway, executive director at NielsenIQ, attributed the upswing to improving household confidence. “We’re seeing a return to volume growth, and that’s coming with a notable improvement in consumer sentiment,” she said. “More than half of households now report they are living comfortably and spending accordingly, a marked turnaround from last year.”
This return to form is not merely about economic recovery. Westaway also pointed to a growing consumer focus on sustainability. “Australian shoppers are still value-conscious, but they’re increasingly willing to pay a premium for locally-sourced, sustainably-produced milk, cheese, and butter,” she said. “This is a crucial differentiator for domestic dairy in a globalised market.”
Mark Billing, president of Dairy Farmers Victoria, welcomed the data, arguing that it debunks the narrative of weakening local demand. “These figures show that Australians are still deeply connected to dairy,” he said. “But now we need to ensure that profitability flows fairly along the entire supply chain—from the farmgate to the fridge.”
As climate uncertainty and global trade pressures mount, Australia’s dairy sector will need to invest in resilience and innovation. But for now, the figures offer a rare moment of synchronised strength in a sector long buffeted by volatility.
Australia's dairy industry, it seems, is not only surviving—it is once again growing together.
