Global Dairy Market Trends in 2025: Sustainability, Efficiency, and Innovation

According to recent projections, global per capita consumption of dairy products is expected to grow by approximately 1% annually over the next decade. This growth is largely attributed to rising per capita income worldwide. However, consumption patterns vary significantly, with Europe favoring cheese while other markets lean towards milk powder.

The global dairy market faces several challenges, including volatile commodity markets, rising production costs, and energy expenses. Farm-related issues such as labor shortages, disease, and health management (e.g., avian influenza in U.S. herds), and water scarcity are also impacting production.

Consumer and government demands for sustainability, regulations, and alternative proteins are increasingly driving the industry. As sustainability becomes a focal point, dairy producers are adopting practices to balance production efficiency with environmental responsibility. Efforts are underway to enhance precision nutrition to optimize nutrient availability and reduce waste, including innovations like insect oil additives.

Technological advancements are crucial in navigating industry challenges such as labor shortages and food security. Embracing digital tools, artificial intelligence, and data management is supporting better decision-making on farms.