Dairy Products and Alternatives: Half-Year Update H1 2024

April 2024

This half-year review of Euromonitor International’s Dairy Products and Alternatives data provides analysis of the biannual update to Euromonitor’s Forecast Model (FM), alongside the quarterly update to the Macro Model, offering insights into the most important developments since August 2023’s annual update. As inflation eases and milk price growth slows down, demand is slowly recovering, while plant-based categories continue to suffer from high prices.

USD 1,325
Request More Information


This report comes in PPT.

Key findings

The decline in unit prices in China offsets the impact of hyperinflation in Argentina

The retail value of dairy products and alternatives remained relatively stable compared to the August 2023 edition. The upgrades observed in Argentina were primarily attributed to the strength of the US dollar against the local currency, while several European countries saw mitigations. These were offset by the downgrade of the Chinese market, which experienced negative unit price adjustments reflecting the declining milk prices in that market.

Demand for butter is increasing as the price growth is slowing down

As butter prices have been stabilising, consumers are returning to purchasing it after switching to margarine during peak prices as a more affordable option. Consequently, the butter market size has been upgraded, following decreased unit prices. To maintain demand for margarine, producers are positioning it as a plant-based alternative to butter.

Sales of plant-based dairy are hindered by the continuously rising prices

As prices for plant-based products remain high, they have become even more expensive compared to dairy products. Consequently, flexitarians have reduced their purchases of plant-based dairy, leading to downgrades in these categories. Producers are addressing this issue through rebranding efforts, such as Alpro emphasising ingredients and flavours to avoid the use of the term “alternative”.

UK dairy market performance reflects the decline in production

The slowdown in dairy production in the UK, attributed to yields and a reduction in stock, has led to a downgrade of the dairy market. Additionally, prices of milk formula have been adjusted due to Aptamil’s price cuts in major retailers. Meanwhile, drinking yoghurt underwent a negative adjustment to reflect the poor performance of Actimel and Yakult in 2023 in this category.

About this briefing
Key findings
The market value is influenced by inflationary pressures
Mitigating effects of inflation and exchange rates
The many layers of global inflation
Industry impact: Declining milk prices across the world
Stabilisation of the milk prices in 2023 results in the downgrade of retail unit prices
Retail price decrease of milk in China results in strengthening demand
Dairy alternatives US sales decline as Danone discontinues two plant-based milk options
After the rebranding, Alpro is shifting its focus from health to ingredients and flavours
Slowdown in UK dairy production
Consumers switch back from margarine to butter as pricing normalises
Market players foresee continued inflationary influence over the next five years
Key takeaways from half-year update
Global baseline outlook: Growth expected to slow in 2024 before reaccelerating in 2025
Global inflation expected to moderate further in 2024 – though at a slowing pace
Real GDP annual growth forecasts and revisions from last quarter – AE
Real GDP annual growth forecasts and revisions from last quarter – EMDE
About Euromonitor International’s Forecast Model (1)
About Euromonitor International’s Forecast Model (2)
About Euromonitor International’s Macro Model
Data and reporting timeline: Dairy Products and Alternatives


If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!