Report Overview

The Australia milk market was valued at AUD 9.84 billion in 2024, driven by high-quality milk production that benefits from strict regulations and advanced farming methods. The market is projected to grow at a CAGR of 7.20% from 2025 to 2034, reaching AUD 19.72 billion by 2034. Ongoing innovations are enhancing productivity and sustainability in the dairy industry.

2024

Base Year

2018-2024

Historical Year

2025-2034

Forecast Year

Australia Milk Market Growth

Compound Annual Growth Rate

Value in AUD billion

7.2%

2025-2034


Australia Milk Market Outlook

*this image is indicative*

Australia Milk Market Trends

The Australia milk market benefits from stringent regulatory standards that ensure high-quality production, alongside a diverse array of dairy products that meet various consumer preferences. Its strong export capabilities, particularly to expanding Asian markets, and a commitment to sustainable farming practices that prioritise environmental sustainability and animal welfare further impacts the growth of the Australia milk industry. In March 2022, the Australian Milk Price Initiative was introduced to create a milk hedging market aimed at reducing financial risk in the volatile dairy sector. This initiative will be managed jointly by the Australian Dairy Farmers group and will operate on the Mercari platform.

The Australia milk market prospers due to cutting-edge farming technologies, strong logistics, and well-developed processing infrastructure. Continuous research and development improve productivity, and the industry significantly contributes to the economy, creating numerous job opportunities across various sectors, which bolsters overall Australia milk market revenue. In August 2024, CleanMilk launched a new sanitation technology for dairy processing facilities, employing UV light and advanced filtration systems to maintain the highest standards of cleanliness and safety in milk production.

Australia Milk Market Overview

Australia Milk Market Growth

The Australia milk market benefits from stringent safety standards that foster consumer trust, supportive government policies that offer funding, and a solid global reputation for quality. Diverse climate is one of the key trends of the Australia milk market. They allow for various farming practices, with many farms adopting grass-fed systems to improve milk quality, supported by a strong domestic market for local producers. In March 2024, AussieFarmers launched a premium grass-fed milk line, showcasing its commitment to animal welfare and environmental sustainability. This initiative caters to consumers seeking high-quality dairy while promoting local agriculture and delivering a delicious, natural flavour profile.

The Australia milk market aligns with emerging health trends, demonstrating a rising consumer interest in dairy products due to their nutritional benefits. Farmers actively engage with local communities, strengthening social connections, while robust traceability systems improve supply chain transparency. Furthermore, the adaptability enables it to respond effectively to shifting consumer preferences and needs. In August 2024, DairyFusion introduced a unique blend of cow's and goat's milk, promoted as a nutritious alternative for those looking to diversify their dairy consumption. This product aims to accommodate various dietary preferences and highlight the benefits of both types of milk.

Australia Milk Market Insights

  • Forecasts from the USDA suggest that Australian milk production is anticipated to increase by 0.6 per cent in 2024, reaching 8.50 million metric tons (MMT), after stabilising at around 8.45 MMT in 2023.
  • The Department of Agriculture, Fisheries, and Forestry indicates that the export value of dairy products is expected to remain steady at $3.0 billion for 2024-25.
  • As reported by Australian Dairy, the dairy sector in Australia is valued at USD 3 billion and employs 42,000 Australians, fulfilling the daily requirements of millions.
  • Supermarkets and hypermarkets are expected to grow at a CAGR of 8.2% during the forecast period.
  • The milk market in New South Wales and Western Australia is expected to grow at a CAGR of 8.2% and 6.8% respectively during the forecast period.
  • The milk market share in Victoria, Australia, is projected to increase by 24.6% over the forecast period.

Industry News

May 2024

Ashgrove Eco-Milk, the world's first low-emission milk, was produced by Tasmanian dairy producer Ashgrove in partnership with Sea Forest. It became available in Woolworths, Coles, and IGA supermarkets across Tasmania. The milk originated from dairy cows fed SeaFeed™, an additive made from the native Asparagopsis seaweed.

April 2024

The a2 Milk Company launched a new brand platform, “Only a2 Will Do,” highlighting the benefits of a2 Milk, which lacks A1 protein. They introduced the first campaign, “Tough Tummies,” celebrating a2 Milk’s natural absence of A1 protein found in most conventional milk.

Australia Milk Market Drivers

Premium and Specialty Milk Products

The Australia milk market has seen a significant rise in demand for premium and speciality products, notably a2 Milk and organic options. Consumers are increasingly focused on health benefits, opting for milk perceived as healthier or easier to digest. This trend stems from a heightened awareness of dietary sensitivities and the advantages of avoiding A1 protein. Opportunities in the Australia milk market are expanding as brands innovate to meet these demands, creating distinctive products tailored for health-conscious consumers. This shift has transformed market dynamics, prompting both established brands and newcomers to emphasise quality and nutritional value. In January 2024, GreenPastures launched a new organic whole milk brand that highlights sustainable farming practices and hormone-free dairy, targeting health-conscious consumers with a creamy, rich taste while supporting local farmers in the expanding organic market.

Rise of Plant-Based Alternatives

The Australia milk market is experiencing a surge in popularity for plant-based milk alternatives, such as almond, soy, oat, and coconut milk. The Australia milk market dynamics and trends are influenced by changing consumer preferences for veganism, lactose intolerance, and worries about the environmental effects of dairy farming. As a result, many consumers are opting for these alternatives due to their perceived health benefits, such as lower calories and enhanced nutrients. In response, traditional dairy brands are expanding their product offerings to include plant-based options, fostering a competitive environment where both dairy and non-dairy products cater to diverse dietary needs and lifestyles. In May 2024, EcoDairy launched a plant-based milk alternative made from a blend of oats and almonds, appealing to the growing vegan and lactose-free markets while prioritising sustainability and health.

Opportunities in the Australia Milk Market

Convenience and Ready-to-Drink Options

The Australia milk market is experiencing a significant rise in demand for convenience-focused milk products, especially ready-to-drink varieties. With busy lifestyles, consumers are looking for quick and easy options, prompting innovations in packaging and formats. Single-serve containers, fortified milk drinks, and flavoured varieties are gaining popularity among on-the-go consumers and families. This trend encourages dairy brands to broaden their product ranges and improve distribution channels, including online sales, thus impacting the Australia milk industry revenue. The emphasis on convenience is transforming consumer interactions with dairy products, fostering greater experimentation and adoption of various milk options. In April 2024, PureJoy launched a new range of flavoured milk products, including banana and salted caramel, which are now available in Australian supermarkets. This inventive selection is designed to appeal to younger consumers and families seeking enjoyable, tasty options while maintaining high nutritional standards.

Market Restraints

The Australia milk market faces several key challenges. Price volatility, driven by global dairy prices, feed costs, and climate conditions, strains farmer profitability and complicates long-term planning. Additionally, the rise of plant-based milk alternatives intensifies competition, forcing traditional dairy brands to adapt. Stringent regulations on food safety, animal welfare, and environmental practices impose operational burdens, especially on small-scale farmers.

Changing consumer preferences toward health and sustainability threaten traditional dairy sales, as brands must innovate to retain customers. Finally, increasing awareness of the environmental impact of dairy farming necessitates a commitment to sustainable practices, or producers risk losing Australia milk market share and facing consumer backlash.

Australia Milk Industry Segmentation

“Australia Milk Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

  • Dairy
  • Non-Dairy
    • Soy Milk
    • Coconut Milk
    • Almond Milk
    • Oat Milk
    • Cashew Milk
    • Others

Market Breakup by Product

  • Skimmed Milk Powder
  • Liquid Milk
  • Whey Protein
  • Butter
  • Infant Nutrition
  • Others

Market Breakup by Distribution Channel

  • Supermarkets and Hypermarkets
  • Convenience Stores
  • Online
  • Others

Market Breakup by Region

  • New South Wales
  • Victoria
  • Queensland
  • Australian Capital Territory
  • Western Australia
  • Others

Australia Milk Market Share

By Type Analysis

The Australia milk market flourishes as dairy products supply essential nutrients like calcium, vitamin D, and protein, which are crucial for bone health and overall nutrition. This sector offers a diverse range of products, including milk, cheese, yoghurt, and butter, supported by a robust supply chain. Additionally, dairy is culturally significant in Australian cuisine and aids local economies by creating jobs and generating income for rural communities, thereby boosting the development of the Australia milk market. Dairy is expected to grow at a CAGR of 7.9% during the forecast period. According to DAFF, the dairy sector ranks as the third-largest rural industry in Australia, with a farm gate value of $6.1 billion in 2022-23, primarily concentrated in the southeast coastal regions of Victoria, New South Wales, and Tasmania.

The Australia milk market is thriving as non-dairy alternatives like almond, soy, and oat milk offer a range of options to meet varied tastes and dietary needs, enhancing market appeal. Continuous innovation keeps the market lively and attuned to emerging trends. These alternatives are particularly advantageous for lactose-intolerant individuals, providing convenient substitutes for traditional dairy. Frequently marketed as healthier options with lower calories and fat, they also have a smaller environmental impact, attracting consumers who prioritise sustainability. In November 2023, Vitasoy Australia expects to achieve a peak annual production of 70 million litres of soy, almond, oat, rice, and coconut milk, alongside a new range of soy and oat-based yoghurts.

By Product Insights

The Australia milk market is thriving, driven by whey protein, which is a high-quality source of protein packed with essential amino acids that support muscle growth and overall health. It assists in weight management and boosts immune function, appealing to health-conscious consumers. Its versatility allows for incorporation into various products, while the increasing demand presents opportunities for dairy producers. Moreover, it fosters sustainability by making use of by-products from cheese production, thereby enhancing the milk demand growth. According to the Department of Health and Age Care, sports significantly contribute to the economy, generating approximately $32 billion in annual sales and supporting around 128,000 jobs.

The Australia milk market is flourishing as butter is renowned for its rich flavour and versatility in cooking, making it an essential kitchen item. It offers vital fat-soluble vitamins and healthy fats, appealing to health-conscious consumers. The growing trend towards natural foods has increased butter's popularity compared to margarine, while innovative products support local producers and cater to changing consumer preferences, positively influencing the Australia milk industry revenue. In March 2023, DairyDelight introduced a premium butter in Australia, highlighting its rich taste and the use of locally sourced cream. This product targets health-conscious consumers who seek natural ingredients and high-quality dairy.

By Distribution Channel Analysis

The Australia milk market is thriving as convenience stores offer easy access to milk, often located in busy areas, making on-the-go purchases simple. Their extended hours, with some operating 24/7, accommodate diverse consumer schedules. Convenience stores are expected to grow at a CAGR of 7.6% during the forecast period. By providing a quick shopping experience and a range of milk options, these stores enhance customer satisfaction through promotions and bundled deals, creating several opportunities in the Australia milk market. In February 2024, FreshMilk Co. introduced a new line of ready-to-drink flavoured milk in Australian convenience stores, featuring popular flavours like chocolate and strawberry, targeting consumers looking for quick and tasty options. This launch aims to meet the rising demand for convenient dairy products.

The Australia milk market is flourishing as online shopping enables consumers to conveniently buy milk from home, saving time for busy families. E-commerce platforms provide a broader range of options, including speciality products. Subscription services offer regular deliveries, while price comparison tools help customers find the best deals. Delivery choices improve convenience, particularly for those with mobility issues, contributing to the Australia milk market growth. In April 2024, DairyDirect launched a subscription service for fresh milk delivery in Australia, emphasising organic and locally sourced products. Customers can customise their orders and receive regular deliveries, making it easier for health-conscious consumers to ensure a consistent supply of quality milk while supporting local producers.

Australia Milk Market Regional Insights

New South Wales Milk Market Regional Insights

As per Australia milk market analysis, New South Wales offers a diverse range of dairy products, such as fresh milk, cheese, and yoghurt, meeting various consumer preferences. The substantial urban population, particularly in Sydney, ensures consistent demand, benefiting local producers significantly. According to NSW government data, in 2022/23, there were 466 dairy farms in NSW, each producing an average of 2.1 million litres annually, resulting in a total production of 990 million litres.

Queensland Milk Market Trends

Numerous dairy farms in Queensland adopt environmentally sustainable practices, appealing to health-conscious consumers while supporting local agriculture. The market is marked by continuous innovation, with new offerings such as lactose-free and organic products to cater to changing consumer demands. According to the Queensland Farmers Federation, the dairy sector produces over 280 million litres of milk each year, valued at USD 250 million, and remains a vital part of many regional communities in Queensland.

Western Australia Milk Market Dynamics

Innovative dairy technologies enhance production efficiency and product quality, aligning with consumer demands. Additionally, the industry supports regional economies by providing significant employment opportunities, contributing to the economic vitality of rural communities across Western Australia. In March 2024, Brownes Dairy from Western Australia launched its latest offering, Club Cheddar, available in four flavours: Vintage, Pickled Onion, Green Peppercorn, and Smokey Red. This introduction reinforces Brownes Dairy's commitment to utilising fresh Western Australian milk in its production.

Competitive Landscape

The Australia milk market key players are celebrated for providing high-quality, fresh products sourced from local farms. These firms prioritise sustainability and support regional agriculture while offering a diverse range of items, including milk, cream, and yoghurt. By minimising processing, they preserve the natural goodness of their dairy. Their commitment to quality and environmental responsibility has fostered a loyal customer base and a strong reputation, highlighting the importance of community engagement and sustainable practices in dairy production.

Key Industry Players

The Little Big Dairy Co.: Founded in 2014 and headquartered in Victoria, The Little Big Dairy Co. specializes in high-quality dairy products, including milk and cream. The company focuses on sustainable practices and local sourcing, ensuring freshness while supporting regional farmers.

Bannister Downs Dairy: Established in 2004, Bannister Downs Dairy is based in Western Australia. This family-owned company produces premium dairy products, such as milk and yoghurt, with a commitment to quality, sustainability, and local sourcing, emphasizing its connection to the community and the environment.

Saputo Dairy Australia Pty Ltd.: Headquartered in Melbourne, Saputo Dairy Australia Pty Ltd. was established in 2018. As part of the global Saputo Inc., it offers a wide range of dairy products, including cheese, milk, and yoghurt, with a focus on quality, innovation, and sustainable practices in production.

Lactalis Australia Pty Ltd.: Founded in 2013 and based in Melbourne, Lactalis Australia Pty Ltd. is a subsidiary of the global Lactalis Group. The company produces a variety of dairy products, including cheese, milk, and butter, prioritising quality, innovation, and sustainability in its operations.

Other key players in the Australia milk market report are Australian Fresh Milk Holdings, Fleurieu Milk Company, Riverina Fresh Pty Ltd., Harvey Fresh Ltd., Brownes Foods Operations Pty Ltd., and The Camel Milk Co. Australia Pty Ltd. among others.

Recent Development

September 2024

Fonterra Oceania launched a new range of dairy products in Australia, including chilli and garlic brie, Anchor ghee, and a cheese snacking range. These products cater to growing consumer demand for convenient, flavourful options, aiming to add a touch of luxury to supermarket dairy shelves.

April 2024

DairyDirect has introduced a subscription service for fresh milk delivery, offering organic and locally sourced choices. Customers can personalise their orders for regular home deliveries, appealing to health-conscious consumers and supporting local farmers while guaranteeing a consistent supply of high-quality milk.

*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.*

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Key Questions Answered in the Report

In 2024, the market reached an approximate value of AUD 9.84 billion.

The Australia milk market is assessed to grow at a CAGR of 7.20% between 2025 and 2034.

The market is estimated to witness healthy growth in the forecast period of 2025-2034 to reach a value of around AUD 19.72 billion by 2034.

The regional markets include New South Wales, Victoria, Queensland, Australian Capital Territory, and Western Australia, among others.

The different types in the market include dairy and non-dairy.

The key players in the market are The Little Big Dairy Co., Bannister Downs Dairy, Saputo Dairy Australia Pty Ltd., Lactalis Australia Pty Ltd., Australian Fresh Milk Holdings, Fleurieu Milk Company, Riverina Fresh Pty Ltd., Harvey Fresh Ltd., Brownes Foods Operations Pty Ltd., and The Camel Milk Co. Australia Pty Ltd. among others.

Based on the distribution channel, the market is divided into supermarkets and hypermarkets, convenience stores, online, and others.

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.

Key Highlights of the Report

Please note that the figures mentioned in the description serve as estimates and may vary from the actual figures presented in the final report.

Report Features Details
Base Year 2024
Historical Period 2018-2024
Forecast Period 2025-2034
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Type
  • Product
  • Distribution Channel
  • Region
Breakup by Type
  • Dairy
  • Non-Dairy
Breakup by Product
  • Skimmed Milk Powder
  • Liquid Milk
  • Whey Protein
  • Butter
  • Infant Nutrition
  • Others
Breakup by Distribution Channel
  • Supermarkets and Hypermarkets
  • Convenience Stores
  • Online
  • Others
Breakup by Region
  • New South Wales
  • Victoria
  • Queensland
  • Australia Capital Territory
  • Western Australia
  • Others
Market Dynamics
  • SWOT
  • Porter's Five Forces
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • The Little Big Dairy Co.
  • Bannister Downs Dairy
  • Saputo Dairy Australia Pty Ltd.
  • Lactalis Australia Pty Ltd.
  • Australian Fresh Milk Holdings
  • Fleurieu Milk Company
  • Riverina Fresh Pty Ltd.
  • Harvey Fresh Ltd.
  • Brownes Foods Operations Pty Ltd.
  • The Camel Milk Co. Australia Pty Ltd.
  • Others

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