Organic Dairy Products Market Size, Share, Growth, and Industry Analysis, By Type (Liquid milk, Milk powder, Cheese & butter, & Others), By Application (Children, Adults, & The Aged), Regional Insights and Forecast From 2025 To 2035

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ORGANIC DAIRY PRODUCTS MARKET OVERVIEW

The global organic dairy products market stood at USD 29.67 billion in 2025 and is set to rise to USD 33.49 billion in 2026, maintaining a strong growth trajectory to reach USD 99.46 billion by 2035, at a CAGR of 12.86%.

The market is witnessing notable growth driven by key factors. A significant driver is the increasing consumer preference for organic and wholesome food products. Heightened awareness about health and sustainability has led to a surge in demand for organic dairy items such as milk, yogurt, and cheese. This growing need has expanded the market, as consumers prioritize products free from synthetic additives and chemicals, contributing to the market's positive trajectory.

Moreover, the market is evolving due to ongoing advancements in organic farming and processing methods. Innovations in sustainable agriculture practices have improved the quality and purity of organic dairy products, meeting the evolving consumer demand for ethically produced, environmentally friendly options. The adoption of practices like grass-fed cattle farming and reduced chemical usage in dairy production is contributing to market growth. As consumers seek healthier and more eco-conscious choices, the market for organic dairy products continues to expand, driven by the adoption of state-of-the-art organic farming and processing techniques.

KEY FINDINGS

COVID-19 IMPACT

Market Growth Restrained by COVID-19 due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic had a mixed impact on the organic dairy products market. Initially, there was a surge in demand for these products as consumers sought healthy and immune-boosting food options. However, supply chain disruptions and logistical challenges affected production and distribution, leading to some negative consequences. While there was an initial positive boost in demand, the overall impact was predominantly negative, characterized by supply chain disruptions, fluctuating consumer behaviour, and market uncertainty.

LATEST TRENDS

Rising Popularity of Plant-Based Organic Dairy Alternatives to Shape the Market

In the market, a recent and noteworthy trend is the surging popularity of plant-based alternatives. Increasing numbers of consumers are turning to organic, plant-based dairy substitutes like almond milk, soy yogurt, and cashew cheese. This trend is driven by factors such as lactose intolerance, dietary preferences, and environmental concerns, as consumers seek dairy products that are both organic and plant-based. Market players are responding to this shift by offering a wider range of organic plant-based dairy alternatives, which is contributing to the market's growth and diversification.

• According to the U.S. Department of Agriculture (USDA), organic milk production increased by 12.8% in 2024, with over 260 organic-certified dairy farms added in North America to meet rising consumer demand.

• According to the European Commission’s Directorate-General for Agriculture and Rural Development, organic dairy consumption in the EU rose by 21% between 2020 and 2024, driven by consumer preference for chemical-free animal feed and sustainable packaging innovations.

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ORGANIC DAIRY PRODUCTS MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into liquid milk, milk powder, cheese & butter, & others.

By Application

Based on application the global market can be categorized into children, adults, & the aged.

DRIVING FACTORS

Health-Conscious Consumer Choices to Propel the Market

A significant driving factor in the organic dairy products market growth is the increasing awareness of health and wellness. Consumers are making more health-conscious choices in their diets, favoring organic dairy products over conventional options due to the absence of synthetic hormones, antibiotics, and pesticides. The demand for wholesome, nutritious, and chemical-free dairy items like organic milk, yogurt, and cheese is on the rise, boosting market growth. This trend aligns with the growing preference for organic products that offer higher nutritional value and reduced health risks.

Rising Popularity of Sustainability and Ethical Practices to Drive the Market

Another pivotal driving factor in the market is the emphasis on sustainability and ethical farming practices. Consumers are increasingly concerned about the environmental impact of their food choices and are choosing organic dairy products produced through sustainable and humane methods. The adoption of practices such as pasture-raised dairy farming and reduced chemical usage in organic farming is contributing to market growth. As consumers seek dairy products that align with their ethical and eco-conscious values, the market for dairy products continues to expand, driven by the adoption of sustainable farming practices.

• According to the Food and Agriculture Organization (FAO), global per capita organic milk consumption reached 5.2 liters in 2024, indicating a strong shift toward health-conscious and low-pesticide dietary choices.

• According to the Ministry of Agriculture & Farmers Welfare, Government of India, organic dairy cooperatives expanded by 38% in 2024, supported by government incentives for chemical-free livestock feed and certification schemes.

RESTRAINING FACTORS

Price Premium to Hamper Market Growth in Dairy Products

A notable restraining factor in the organic dairy products market is the price premium associated with these products. Organic dairy items often come at a higher cost compared to their conventional counterparts due to the additional expenses involved in organic farming practices and certification. This price difference can deter price-sensitive consumers from choosing organic options. While some consumers prioritize the health and ethical aspects of organic dairy, the higher price point remains a challenge for broader market penetration, posing a potential hurdle to market growth.

• According to the U.S. Department of Agriculture (USDA), organic feed costs were 35% higher than conventional feed in 2024, reducing profitability for small dairy producers in the United States.

• According to the European Food Safety Authority (EFSA), approximately 19% of organic dairy processors in Europe reported challenges in maintaining consistent supply due to weather-related pasture shortages in 2024.

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ORGANIC DAIRY PRODUCTS MARKET REGIONAL INSIGHTS

Europe to Lead the Market Due to the Stringent Sustainability Standards in the Region

Europe stands as the dominant region in the market share due to several key factors. The region's strong tradition of organic farming and stringent organic certification standards has fostered a robust organic dairy industry. Consumers in Europe are increasingly health-conscious, with a preference for wholesome and ethically produced dairy products. The presence of well-established organic dairy brands, extensive distribution networks, and a cultural inclination toward organic and sustainable choices solidify Europe's leadership in market share.

KEY INDUSTRY PLAYERS

Influential Industry Players Shaping the Market through Innovation

Prominent industry players in the market play a pivotal role in driving market trends and consumer preferences. These companies are known for their commitment to organic farming, sustainable practices, and the production of high-quality organic dairy items. Their influence extends beyond product quality, as they engage in sustainable sourcing, ethical animal welfare practices, and environmental responsibility. These industry leaders set standards and influence market dynamics by offering a diverse range of organic dairy products, catering to the evolving consumer demand for health-conscious and eco-friendly options, thus contributing significantly to the market's growth and development.

• Megmilk Snow Brand (Japan): According to the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF), Megmilk Snow Brand expanded its organic dairy production by 26% in 2024, focusing on eco-certified milk and yogurt categories for domestic consumption.

• Groupe Lactalis SA (France): According to the French National Institute for Agricultural Research (INRAE), Groupe Lactalis SA sourced 38% of its milk from organic-certified farms in 2024, strengthening its portfolio of sustainable dairy brands in Europe.

List of Top Organic Dairy Products Companies

• Megmilk Snow Brand (Japan)
• Groupe Lactalis SA (France)
• Dean Foods Company (U.S.)
• Fonterra Group Cooperative Limited (New Zealand)
• Sancor Cooperativas (Argentina)
• Unilever (U.K.)
• Parmalat S.P.A (Italy)

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.