The global dairy snacks market is likely to be valued at USD 226 billion in 2023. Furthermore, with the rising consumption of dairy products globally, the overall sales of dairy snacks are projected to surge at nearly 6.1% CAGR between 2023 and 2033, reaching a valuation of USD 397 billion by 2033.
The dairy snacks market accounted for 20% of the total dairy market globally in 2023, and this number is expected to rise further due to increased snacking habits and consumer emphasis on including essential minerals and vitamins in everyday diet.
Over the years, rising demand for healthy food products has prompted manufacturers to introduce new innovative items, such as dairy snacks that offer various nutritional benefits.
Dairy snacks are small meals composed primarily of milk products such as cheese, yogurt, and ice cream. They offer multiple benefits, including high nutrition and good taste. They have become ideal healthy alternatives to baked or fried snacks and confectioneries.
Growing demand for ready-to-eat food products with a high nutritional profile is anticipated to provide a strong thrust to the growth of the dairy snacks market during the forecast period.
Dairy products can be innovatively added to different cuisines to enhance flavors. Health-conscious consumers prefer clean labels and products that contain whey proteins. They are increasing the intake of nutritious bars, new cookies, and dips coated with protein-rich ingredients.
| Attribute | Key Statistics |
|---|---|
| Dairy Snacks Market Estimated Size (2023E) | USD 226 billion |
| Projected Market Size (2033F) | USD 397 billion |
| Value-based CAGR (2023 to 2033) | 6.1% CAGR |
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The dairy snacks market grew at a CAGR of 5.5% between 2018 and 2022. However, with the growing popularity of dairy snack products among people, the overall market is anticipated to expand at 5.9% CAGR between 2023 and 2033.
In recent years, sales of dairy snacks have seen a sudden surge due to the availability of creative, innovative, healthier products. Traditionally consumers used to buy snacks impulsively primarily due to their unique taste and flavor.
But as the emphasis on healthy ingredients increases, consumers prefer nutritious eatables. They analyze the ingredients of products and their benefits to health before making any purchase. This is expected to push the sales of healthy dairy snacks like yogurt bites, cheese slices, and nutritional smoothies during the forecast period.
Similarly, the accessibility of products containing proteins and probiotics is expected to increase revenue generation. Yogurt with essential proteins and different flavors has functional properties that strengthen the gut and build the immune system. Thus, it is expected to account for 35% of the dairy snacks market.
Consumers across the globe are snacking at least twice a day. This has opened many opportunities for snacking brands. Key players focus on developing products that eliminate the guilt of consuming unhealthy products by offering organic and nutritious snacks to help complete consumer health goals.
They also aim to offer nutritious, flavorful products in good quality packaging to extend shelf life. Different packaging variations are also available in the market that are convenient to carry and consume, like drinkable yogurt cartons, cheese trays, and yogurt pots.
Label-conscious consumers are reading labels and making smarter decisions based on the product's nutritional content. Low-calorie and sugar-free products packed in innovative packaging are expected to gain traction.
Growing Popularity of Ready-Eat-Dairy Products Propelling Market Growth
A rise in consumption of ready-to-eat dairy products due increase in spending capacity is expected to push the demand for dairy snacks in the market during the forecast period.
Today, consumers emphasize maintaining good health by consuming a balanced diet containing all the essential vitamins and minerals. As a result, demand for healthy, nutritious products, including dairy snacks, is expected to surge rapidly during the forecast period.
To fulfill consumer-specific requirements, key players are focusing on developing dairy products that are low-calorie, low-fat, and lactose-free. Thus, the availability of ready-to-eat healthy dairy products is expected to boost the growth of the global dairy snacks market in the coming years.
Rising Demand for Organic Dairy Food Products Fueling Market Growth in the United States
As per FMI, the United States dairy snacks market is expected to reach a valuation of USD 58.2 billion in 2023, which is approximately 24% of the global meat snack market.
Growth in the market is driven by rising consumer preference for organic nutritional dairy products and the strong presence of key dairy product suppliers like General Mills, Danone SA, and Unilever Plc., who are collaborating and developing new product variants to sustain a competitive market.
Similarly, changes in consumer lifestyles and consumer willingness to spend on healthy food products that are low-fat, no-sugar are expected to boost the demand for organic dairy products during the assessment years.
Increasing Consumer Spending Boosting Sales of Dairy Snacks in China
China is expected to be a promising market for dairy snacks due to its rapidly growing population, rising popularity of snacking, and increasing consumer spending on Western dairy products like organic sacks and flavored yogurt.
Similarly, rising demand for clean-label products and an increase in transparency by key players to guarantee the quality of products are expected to boost the demand for dairy snacks across the country during the forecast period.
To this, the presence of many manufacturing facilities and the export of dairy products on a large scale is likely to boost sales in the coming years
Based on the factors above, the Chinese dairy snacks market is expected to reach around USD 16.05 billion in 2023, approximately 18% of the global meat snacks market.
Availability of No Sugar and Lactose-Free Variants Pushing Demand in the United Kingdom Market
As per FMI, the United Kingdom dairy snacks market is poised to exhibit strong growth during the forecast period owing to the availability of different flavors in dairy products like milk, cheese, and yogurt, high levels of health awareness among people, and a growing shift towards healthy dairy products.
Similarly, increasing consumption of ice cream due to the availability of no-sugar and lactose-free variants supports market growth in the country.
The introduction of new products and innovation in packaging and labeling is expected to push the demand for dairy products even further during the forthcoming years.
Cheese Will Continue to Remain the Highly Sought-After Product Type in Dairy Snacks Market
Based on product type, currently, the cheese category accounts for around 45% of the total dairy snacks market. This can be attributed to the rising consumption of cheese-based snacks by consumers.
Over the years, cheese has become the most consumed dairy product globally. It benefits human health by containing calcium, protein, and other nutrients. Cheese can be added to many cuisines and snacks to add a peculiar flavor and texture.
Different types of cheese are easily available in the market. Due to its functional ingredients, it is marketed as healthy snacking food by many players in the market. Many brands focus on developing cheese and butter varieties with lower fat content but similar taste and texture.
Dairy Snacks Market to Witness Fastest Growth Through Online Sales Channel in 2022 & Beyond
As per FMI, the online sales channel is expected to grow at a 6.7% annual rate from 2023 to 2033 and account for over 50% of all sales. This is due to the rising consumer preference for purchasing dairy snacks through company websites and e-commerce platforms.
Brands partner with online marketplaces like Amazon and Big Basket to promote product visibility and boost sales. They use machine learning and artificial intelligence capabilities to provide enhanced customer experience and easy navigation through the website.
New products are featured on numerous internet portals and company websites to increase consumer awareness. Consumers can now choose from a range of multiple brands and price ranges of dairy snacks. This is expected to positively affect the demand for dairy snacks in the coming years.
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Dairy snack manufacturers are exploring new technologies and launching different snacks that fulfill consumer requirements for healthy food. For instance,
Nestlé, Unilever, and HEINZ - Unlocking the Power of Food to Enhance Quality of Life
Since its establishment, Nestle has become one of the leading dairy snack brands in the world. The company continuously focuses on expanding its product offerings to provide consumers with better nutritional items.
For instance, in 2021, Nestlé launched new plant-based versions of some of its most-loved brands, including Milo, the world's leading chocolate malt beverage enjoyed in many Asian countries.
In 2022, Nestlé constructed a new Nescafé coffee facility in Veracruz, Mexico. With a USD 340 million investment, the new plant in Mexico becomes Nestlé's largest coffee producer globally.
Nestlé's investment increases its market position and enhances its manufacturing capacity to fulfill rising customer demand for its goods as the current market leader in creamer and flavored milk.
For instance, in September 2020, Nestle launched a Research and Development Accelerator to drive dairy product innovation. The Research and Development Accelerator, based in Konolfingen, Switzerland, offers a platform for startups, students, and scientists to use Nestle's unique dairy and plant protein expertise to quickly develop ideas from concept to commercialization.
The company recently launched a new youth entrepreneurship program to provide young innovators access to The Nestlé Entrepreneurship Academy and specific programs to help them expand their knowledge, develop new skills, and get experience.
Nestlé is working toward a deforestation-free cocoa supply chain commitment by 2025. This demonstrates the company's ambition to pursue its forest-friendly mission and sustainably source 100% of its chocolate.
Unilever is one of the world's largest companies that offer a variety of consumer goods and plant-based meat and dairy alternatives. It is adopting various strategies to increase its revenue share in the market.
For instance, in 2022, Unilever announced that it is launching two pilots to test warmer ice cream freezer cabinets, which are expected to reduce energy use and greenhouse gas emissions by approx. 20 to 30% per freezer* while retaining the same taste and quality as regular freezers.
In February 2019, Unilever acquired the holding company of Graze, the United Kingdom's leading healthy snacking brand. Graze is an online snack retailer delivering natural food, flapjacks, cakes, and popcorn to residential homes or workplaces daily via post.
Headquartered in Pittsburgh, Pennsylvania, Heinz, an American food processing company, is another leading provider of dairy snacks. It is the first sauce brand to explore the possibilities of Pulpex's sustainable paper bottle packaging for its line of world-famous condiments by innovating its classic ketchup container.
In 2022, The Kraft Heinz Company and TheNotCompany, Inc., a leading food tech startup, established a collaborative venture to reinvent global food production and move toward a more sustainable future.
The Kraft Heinz Company delivers excellent quality, outstanding flavor, and nutrition. The company recently launched snack Trios cheese snack packs that feature creamy cheese, rich dark chocolate, and sweet fruit.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value and Million. Sq. M. for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | United States, Brazil, Mexico, Germany, United Kingdom, China, India, Japan, Australia, and GCC Countries |
| Key Segments Covered | Product Type, Sales Channel, Region |
| Key Companies Profiled | The Kraft Heinz Co.; Danone SA; Gujarat Cooperative Milk Marketing Federation Ltd (Amul); Nestle SA; Sancor Cooperativas Unidas Limited; Arla Foods amba; Dairy Farmers of America Inc.; Unilever; Fonterra Group Cooperative Limited |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is estimated to secure a valuation of USD 226 billion in 2023.
The growth potential of the market is 6.1% CAGR through 2033.
The global market size to reach USD 397 billion by 2033.
Danone SA, Nestle SA, and Unilever are the key market players.
Increasing consumer spending boosts sales of dairy snacks in China.
| Market Size (2023) | USD 88.11 billion |
|---|---|
| Market Size (2033) | USD 131.0 billion |
| Market CAGR (2023 to 2033) | 4.0% |
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