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Report Overview
The Australia dairy market, valued at AUD 9.83 billion in 2025, has seen significant growth, driven by the provision of essential nutrients such as calcium, protein, and vitamins, which contribute to balanced diets. The market is expected to grow at a compound annual growth rate (CAGR) of 3.40% from 2026 to 2035, potentially reaching AUD 13.73 billion by 2035, as ongoing innovation in dairy alternatives (such as lactose-free and plant-based options) continues to broaden the market's reach.
- According to the Australian Bureau of Statistics, the per capita consumption of dairy milk is 187.1 grams per day in 2020-2021.
- As per Dairy Australia, in 2022, Victoria and New South Wales had a major milk production share of 64.4% and 12.1% respectively.
- According to the Department of Agriculture, Fisheries and Forestry, about 8.8 billion litres of milk were produced in 2022-23.
Compound Annual Growth Rate
3.4%
Value in AUD billion
2026-2035
Supermarkets and hypermarkets are widely used by consumers for the purchase of dairy products or items as they offer convenience in their grocery shopping routine thus driving the Australia dairy market
The Australia dairy market revenue is being driven by the growth of supermarkets and hypermarkets, which provide a diverse range of dairy items such as milk, cheese, yoghurt, butter, and other items to meet the preferences and dietary needs of consumers. They also maintain freshness and quality by implementing strict quality control measures and proper storage facilities.
The Australia dairy market developments are driven by new technologies and advancements for manual herd milking systems in farms in Australia. Automatic milking systems in the form of a fully robotic rotary parlour are being developed to milk cows twice a day as the earlier milking process is time-consuming and labour-intensive.
| Australia Dairy Market Report Summary | Description | Value |
| Base Year | AUD billion | 2025 |
| Historical Period | AUD billion | 2019-2025 |
| Forecast Period | AUD billion | 2026-2035 |
| Market Size 2025 | AUD billion | 9.83 |
| Market Size 2035 | AUD billion | 13.73 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 3.40% |
| CAGR 2026-2035 - Market by Region | New South Wales | 3.8% |
| CAGR 2026-2035 - Market by Region | Western Australia | 3.2% |
| CAGR 2026-2035 - Market by Product Type | Milk | 3.8% |
| CAGR 2026-2035 - Market by Distribution Channels | Supermarkets and Hypermarkets | 3.7% |
| Market Share by Region | Queensland | 18.6% |
According to the Australian Bureau of Statistics, in 2020-21 the per capita consumption of Milk, yoghurt, cheese and alternatives was 277 grams per day.
"Australia Dairy Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:
Market Breakup by Product Type
- Milk
- Laban
- Cheese
- Butter
- Yoghurt and Curd
- Others
Market Breakup by Application
- Bakery and Confectionery
- Clinical Nutrition
- Frozen Food
- Others
Market Breakup by Distribution Channel
- Supermarkets and Hypermarkets
- Speciality Stores
- Online Channels
- Others
Market Breakup by Region
- New South Wales
- Victoria
- Queensland
- Australian Capital Territory
- Western Australia
- Others
Australia Dairy Market Share
Dairy products are widely used in the bakery and confectionery sector. They serve as key ingredients in baking goods like cakes, pastries, and cookies, providing richness, moisture, and flavour. Dairy products such as milk, butter, cream, and cheese are also integral to the production of confectionery items like chocolates, ice creams, and desserts.
| CAGR 2026-2035 - Market by | Region |
| New South Wales | 3.8% |
| Western Australia | 3.2% |
| Others | 2.7% |
| Victoria | XX% |
| Queensland | XX% |
| Australian Capital Territory | XX% |
Leading Companies in the Australia Dairy Market
The growth of the dairy market is fueled by the development of reduced-sugar products catering to the diverse needs of health-conscious individuals.
- Bega Dairy and Drinks Pty Ltd
- The a2 Milk Company (Australia) Pty Ltd
- Regal Cream Products Pty Ltd
- Parmalat Australia Pty Ltd
- Saputo Dairy Australia Pty Ltd
- Chobani Pty Ltd
- Ballantyne
- Procal Dairies Pty Ltd.
- Others
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Key Questions Answered in the Report
The market is projected to grow at a CAGR of 3.40% between 2026 and 2035.
Based on the product type, the dairy market is bifurcated into milk, laban, cheese, butter, yoghurt, and curd.
Key players in the industry are Bega Dairy and Drinks Pty Ltd, The a2 Milk Company (Australia) Pty Ltd, Regal Cream Products Pty Ltd, Parmalat Australia Pty Ltd, Saputo Dairy Australia Pty Ltd, Chobani Pty Ltd, Ballantyne and Procal Dairies Pty Ltd among others.
Based on the applications, the dairy market is divided into bakery and confectionery, clinical nutrition, and frozen food.
The different distribution channels in the dairy market include supermarkets and hypermarkets, speciality stores, and online channels.
The market is broken down into New South Wales, Victoria, Queensland, Australian Capital Territory, Western Australia, and others.
In 2025, the Australia dairy market reached an approximate value of AUD 9.83 billion.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around AUD 13.73 billion by 2035.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| Report Features | Details |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Product Type |
|
| Breakup by Application |
|
| Breakup by Distribution Channel |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Trade Data Analysis |
|
| Competitive Landscape |
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| Companies Covered |
|
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