Mar 30 2026
Authentic European dairy is increasing in popularity and is forecasted to continue doing so over the next five years. According to figures recently released by Mordor Intelligence, the European dairy market is projected to grow by 4.11% between 2026 and 2031, from $214.15 billion to $222.44 billion. It is felt that a combination of modern lifestyles and a better awareness of the health benefits of dairy have led to a shift in buying and consuming patterns, and this has resulted in a more expanded dairy market, not just in terms of revenue, but also in terms of products and product ranges.
At Sodiaal, we agree with these findings and can speak with experience. Our range of dairy products has grown considerably in recent years, and we see a much bigger market demand for dairy products linked to health and wellbeing, though we also still see a firm commitment to quality and consistency, with many of our dairy products, such as milk, butter and cream, used in premium quality cooking and baking.
The 4.11% projected increase in the European dairy market is based on a number of factors, according to the report findings:
It is felt that these developments are steering the market towards higher-margin categories, essentially meaning people are prepared to pay more for what is becoming a luxury market. Such products include functional yoghurts, lactose-free milk and protein-enriched drinks. A lot of this change is driven by dairy cooperatives who are reacting positively to the challenging economics of farming, which see volatile raw milk prices and livestock carbon taxes heavily impacting on some dairy producers. At the same time, the dairy sector is also breaking into new markets, using standards such as the Protected Designation of Origin status of French cheeses, for example, to provide a competitive advantage in moving into North American and Asian markets.
All the following are expected to be key drivers in the European dairy market expanding in the next five years, and are reported as having a contributory impact in different geographical locations:
This signifies a desire for consumers to have more choice and more convenient products, but also suggests a better awareness of the nutritional and wellness benefits of dairy, such as supporting muscle development and improving immune function, gut health and bone strength.
Cheese remains a major driver in increasing the European dairy market, with the European Union producing over 10 million tonnes of cheese a year, according to the USDA. Cheese is considered a resilient market force as it has a central role in creating value in the dairy market. This is mainly down to the variety in how it can position itself in the market, ie. via mass-market cheeses, speciality cheeses, geographical and regional cheeses and quality label cheeses. The USDA report also claimed there were 1.39 million tonnes of cheese exported to global markets from the EU in 2025, illustrating that the diversity in which cheese can be marketed is a major asset in responding to the changing demands of the dairy market both in Europe and external to Europe.
So over the next five years we should see more emphasis on personalised nutrition and innovative dairy solutions tailored to individual dietary needs. These will blend taste, convenience and nutritional benefits to appeal to a wider sector of consumers. This is reflected in producers responding to these trends by diversifying their product range, and introducing dairy products which consider proteins, vitamins and probiotic benefits, and which can become important elements of a balanced diet and lifestyle. At Sodiaal our range of butters, milks and creams is responding to these trends as we play our part in creating a bigger dairy product sector over the next five years.
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