Dairy Product Production in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Dairy Product Production in the UK industry analysis

Following a long history of stability and slow innovation, the dairy producers have been compelled to adapt rapidly as non-traditional dairy products, especially plant-based milks, make significant inroads among consumers not just for health and ethical reasons, but increasingly for taste. While some protection remains, like EU law reserves names like “milk” and “cheese” for animal-derived products, demand for classic dairy items is no longer unchallenged, pressuring processors to step up their marketing game, diversify product portfolios and invest heavily in both sustainability and product innovation. Revenue is projected to hike at a compound annual rate of 1.5% over the five years through 2025, including a shrink of 1.3% in 2025 to reach €289.8 billion. The industry has benefitted from export growth, which has mainly been fuelled by trade agreements and global market expansions, opening doors to lucrative export opportunities. Notably, those specialising in unique dairy products, like speciality cheeses, are reaping the benefits.

Trends and Insights

• Demand for dairy has yet to be squashed by plant-based alternatives. Even with the rising popularity of dairy-free options, consumers are simply expanding their choices instead of ditching traditional dairy entirely.
• Specialty cheeses stand to be one of the biggest losers. Tariffs are impacting major exports to the US like cheese. According to the European Dairy Association, EU dairy exports, especially cheeses, only account for 2% of US consumption, serving niche markets rather than competing with US produce. Products like roquefort and camembert stand to lose out.
• Market share concentration in the Dairy Product Production industry is low. This means that the market is dispersed among many players, with no single company dominating, leading to intense competition and diverse product offerings.