Select Country Report
2026 Developments
Dairy products and alternatives in Australia is expected to deliver current value growth of 3% in 2026 to reach AUD13,419 million, sustaining momentum despite mounting cost-of-living pressures and ongoing input inflation, positioning the industry as an attractive opportunity relative to other developed markets with mature demand. The combination of high-protein, lactose-free, reduced sugar, and premium options continues to drive both consumer appeal and competitive differentiation, while supermarkets and price-driven private label products remain central to shopper loyalty and resilience. Success increasingly depends on the ability to blend nutritional functionality with indulgence, credible claims, and accessible pricing, with value creation shifting away from volume expansion toward targeted innovation, cross-category collaboration, and digital and omnichannel engagement. Forward-looking brands will need to address intensifying rivalry through investments in protein science, sustainability, and new hybrid and plant-based formulations, as well as agile channel strategies that match evolving purchasing habits and the rise of convenience and e-commerce.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Australia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Australia?
- Which are the leading brands in Dairy Products and Alternatives in Australia?
- How are products distributed in Dairy Products and Alternatives in Australia?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Australia?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Australia
2026 Developments
Key Data Insights
Chart 1 Key Industry Trends for Dairy Products and Alternatives
Moderate Value Growth Amid Budget Pressures
Dairy Dominance and Plant-Based Dynamism
Chart 2 Raw C and Weis Turn an Iconic Treat into Healthier Coconut Yoghurt
The Convergence of Wellness and Indulgence
Chart 3 Value Sales 2021-2031
Chart 4 Value Sales by Category 2026
Supermarkets and Private Label Will Continue to Respond to Value-Driven Shifts in Demand
Functional Innovation and Hybrid Formats to Redefine Consumer Expectations
Chart 5 Analyst Insight for Dairy Products and Alternatives
Chart 6 Forecast Value Sales 2021-2031
Chart 7 Forecast Value Sales by Category 2026-2031
Bega Maintains Leadership through Its Broad Portfolio
Lactalis Emerges Due to Fonterra Ownership Change, with More Moves in the Pipeline
Tahini Neri Leverages Cultural Innovation for Retail Expansion
Chart 8 Company Shares 2026
Chart 9 Brand Shares 2026
Coles and Woolworths Reinforce Dominance of Supermarkets, While Retail E-Commerce Surges
Retail E-Commerce Accelerates as Supermarket Omnichannel Platforms Lead Online Dairy Sales
Tahini Neri and Raw C X Weis Drive Retail Discovery through Partnership Launches
Chart 10 Retail Channels 2021-2026
Fortification and Format Innovation Lead the Agenda
Standout Launches Translate Trends into Products
Chart 11 Pauls Plus+ Makes High-Protein Dairy an Easy Part of Everyday Routines
Competitive Pressure and Emerging White Spaces
Chart 12 Economic Context for Dairy Products and Alternatives
Chart 13 Real Gdp Growth 2021-2031
Chart 14 Inflation 2021-2031
Chart 15 Consumer Context for Dairy Products and Alternatives
Chart 16 Population 2021-2031
Chart 17 Population by Generation 2026
Chart 18 Consumer Expenditure 2021-2031
Baby Food in Australia
Key Data Insights
Baby Food Summary
Chart 19 Key Industry Trends for Baby Food
Littleoak Expands Life-Stage Nutrition to Retain Families for Longer
Chart 20 Littleoak Extends Goat Milk Nutrition across the Toddler Years
Fsanz Consultation Prompts Brands to Strengthen Compliance and Trust
Chart 21 Regulatory Scrutiny Raises Compliance and Positioning Pressure in Milk Formula
Chart 22 Value Sales 2021-2031
Chart 23 Value Sales by Category 2026
Goat Milk and Plant-Based Innovation Set to Drive Premiumisation as Brands Target Life-Stage Retention
Supermarkets and Pharmacies to Expand Value with Premium and Specialist Baby Food as Digital Channels Fuel Retention
Chart 24 Forecast Value Sales 2021-2031
Chart 25 Forecast Value Sales by Category 2026-2031
Nutricia Expands Trusted Milk Formula Lines to Reinforce Leadership
Notable Acquisition Highlights the Growth Opportunities in Baby Food
Chart 26 Company Shares 2026
Chart 27 Brand Shares 2026
Supermarkets Maintains Dominance as E-Commerce Surges for Repeat Milk Formula Purchases
Littleoak Leverages Direct-To-Consumer Bundles to Capture Premium Online Demand
Chart 28 Retail Channels 2021-2026
Plant-Based and Allergen-Friendly Nutrition Opens a New Innovation Frontier
Acquisition Activity and Format Diversification Deepen the Innovation Pipeline
Innovation Reshapes Competitive Dynamics and Portfolio Strategy
Chart 29 Economic Context for Baby Food
Chart 30 Real Gdp Growth 2021-2031
Chart 31 Inflation 2021-2031
Chart 32 Consumer Context for Baby Food
Chart 33 Population 2021-2031
Chart 34 Population by Generation 2026
Chart 35 Consumer Expenditure 2021-2031
Butter and Spreads in Australia
Key Data Insights
Butter and Spreads Summary
Minor Value Growth, but Significant Move From Margarine and Spreads to Butter
Peerless Elevates Health with Functional Innovation
Pepe Saya Expands Premium Appeal through Flavour Innovation
Chart 36 Pepe Saya Turns Butter into a Premium, Flavour-Led Experience
Chart 37 Value Sales 2021-2031
Chart 38 Value Sales by Category 2026
Coles and Woolworths Intensify Private Label Innovation, Which Is Set to Capture Health-Focused Shoppers
Peerless Foods and Challenger Brands to Tap Wellness and Provenance to Drive Premiumisation
Chart 39 Forecast Value Sales 2021-2031
Chart 40 Forecast Value Sales by Category 2026-2031
Lactalis Secures Leadership with Acquisition of Fonterra
Aldi, Coles and Woolworths Gain Share with Private Label Value
Chart 41 Company Shares 2026
Chart 42 Brand Shares 2026
Supermarkets Consolidates Its Dominance Due to a Broad Product Range and Convenience
Online Grocery Retailers Leverage Premiumisation and Convenience to Attract New Shoppers
Chart 43 Retail Channels 2021-2026
Chart 44 Economic Context for Butter and Spreads
Chart 45 Real Gdp Growth 2021-2031
Chart 46 Inflation 2021-2031
Chart 47 Consumer Context for Butter and Spreads
Chart 48 Population 2021-2031
Chart 49 Population by Generation 2026
Chart 50 Consumer Expenditure 2021-2031
Cheese in Australia
Key Data Insights
Cheese Summary
Chart 51 Key Industry Trends for Cheese
Bega and Perfect Italiano Drive Functional Innovation and Broaden Appeal
Mozzarella and Parmesan Benefit as Social Trends Elevate Usage
Chart 52 Bega Combines High-Protein Nutrition with Flavour-Led Cheese Snacking
Liddells Brings Lactose-Free Cheese to Everyday Occasions
Chart 53 Liddells Brings Lactose-Free Functionality to Familiar Burger Cheese
Chart 54 Value Sales 2021-2031
Chart 55 Value Sales by Category 2026
Coles and Woolworths to Expand Private Label, While Imports Will Intensify the Competition
Brands Expected to Leverage Functional Innovation to Shift Consumer Expectations
Premium Specialities to Outpace Traditional Formats through Culinary Experimentation
Chart 56 Forecast Value Sales 2021-2031
Chart 57 Forecast Value Sales by Category 2026-2031
Lactalis Acquisition Reshapes the Leadership
Chart 58 Company Shares 2026
Chart 59 Brand Shares 2026
Coles and Woolworths Expand Their Assortments, Reinforcing the Dominance of Supermarkets
Price-Tiered Launches, Curated Clubs and Subscriptions Expand Access to Different Cheeses
Chart 60 Retail Channels 2021-2026
Functional Wellness Reshapes Cheese Development
Brands Extend Wellness into Familiar Formats
Innovation Widens the Competitive Frontier of Cheese
Chart 61 Economic Context for Cheese
Chart 62 Real Gdp Growth 2021-2031
Chart 63 Inflation 2021-2031
Chart 64 Consumer Context for Cheese
Chart 65 Population 2021-2031
Chart 66 Population by Generation 2026
Chart 67 Consumer Expenditure 2021-2031
Drinking Milk Products in Australia
Key Data Insights
Drinking Milk Products Summary
Chart 68 Key Industry Trends for Drinking Milk Products
Dairy Farmers Expands Its Protein Smoothies Range to Capture Functional Indulgence Demand
Chart 69 Dairy Farmers Expands Protein Smoothies with Mango and Vanilla Flavours
Pauls Plus+ Protein Appeals to Active Consumers with 30G of Protein per Bottle
Private Label Pressure Limits Value Gains Despite Premiumisation
Chart 70 Value Sales 2021-2031
Chart 71 Value Sales by Category 2026
Expansion of Health-Led Launches Set to Drive Strongest Growth for Flavoured Milk Drinks
Private Label Players to Target Wellness Trends with Fortified and Lactose-Free Lines
Chart 72 Forecast Value Sales 2021-2031
Chart 73 Forecast Value Sales by Category 2026-2031
Bega Extends Its Lead as Product Innovation Fuels Gains
Potential for Changes with Acquisition of Fonterra's Global Business by Lactalis
Chart 74 Company Shares 2026
Chart 75 Brand Shares 2026
Supermarkets Drive Loyalty with Fresh Milk Convenience, While Forecourt Retailers Sees Dynamism
Retail E-Commerce Boosts Replenishment and Digital Discovery for Milk
Chart 76 Retail Channels 2021-2026
Formulation Moves beyond Basic Nutrition Claims
Sensory-Led Launches Set a New Standard for Taste
Chart 77 Pauls Plus+ Protein Makes High-Protein Dairy an Easy Part of Everyday Routines
Innovation Reshapes Portfolios and Competitive Positioning
Chart 78 Economic Context for Drinking Milk Products
Chart 79 Real Gdp Growth 2021-2031
Chart 80 Inflation 2021-2031
Chart 81 Consumer Context for Drinking Milk Products
Chart 82 Population 2021-2031
Chart 83 Population by Generation 2026
Chart 84 Consumer Expenditure 2021-2031
Yoghurt and Sour Milk Products in Australia
Key Data Insights
Yoghurt and Sour Milk Products Summary
Chart 85 Key Industry Trends for Yoghurt and Sour Milk Products
Dynamic Value Growth Continues, Although Moderates From the Previous Few Years
Yoghurt Dominates, with Functional and Targeted Product Development Key
Vaalia Leverages Functional Claims to Drive Brand Loyalty
Chart 86 Vaalia Combines Probiotics and Protein for Everyday Wellness
Chart 87 Value Sales 2021-2031
Chart 88 Value Sales by Category 2026
Coles and Woolworths Set to Reshape Pricing through Private Label Expansion
Greek-Style and Functional Claims to Drive New Consumption Occasions and Growth
Chart 89 Forecast Value Sales 2021-2031
Chart 90 Forecast Value Sales by Category 2026-2031
Bega Maintains Its Leadership as Emerging Brands Target Niche Demand
Danone Accelerates Innovation and Competition through Strategic Acquisitions
Chart 91 Company Shares 2026
Chart 92 Brand Shares 2026
Supermarkets Defends Dominance, While Small Local Grocers Fades Away
Online Grocery Accelerates Discovery of Premium and Functional Yoghurt
Chobani and Woolworths Boost Shopper Engagement through New Experiences
Chart 93 Retail Channels 2021-2026
Trends Steer Innovation Towards Functional and Indulgent Directions
Recent Launches Showcase Multi-Benefit and Experiential Innovation
Acquisitions and Private Label Expansion Reshape Competitive Dynamics
Chart 94 Economic Context for Yoghurt and Sour Milk Products
Chart 95 Real Gdp Growth 2021-2031
Chart 96 Inflation 2021-2031
Chart 97 Consumer Context for Yoghurt and Sour Milk Products
Chart 98 Population 2021-2031
Chart 99 Population by Generation 2026
Chart 100 Consumer Expenditure 2021-2031
Other Dairy in Australia
Key Data Insights
Other Dairy Summary
Pricing Pressures Limit Volume and Value Growth, with Growth for Private Label and Promotions
Wicked Sister Leverages Partnerships to Sustain Value Growth
Chart 101 Wicked Sister Uses Entertainment Licensing to Elevate Affordable Indulgence
Rokeby Expands Snacking Occasions through Protein Innovation
Chart 102 Value Sales 2021-2031
Chart 103 Value Sales by Category 2026
Premium Innovation and Price Competition Expected From Private Label
Cream to Extend Its Lead as Health Claims Fuel Premium Growth
Chart 104 Forecast Value Sales 2021-2031
Chart 105 Forecast Value Sales by Category 2026-2031
Woolworths Expands in Cream as Bulla and Bega Defend Lead
Chart 106 Company Shares 2026
Chart 107 Brand Shares 2026
Supermarkets Such as Woolworths and Coles Strengthen Lead with Chilled Ranges and Promotions
Retail E-Commerce Attracts Repeat Shoppers with Premium and Dietary Options
Chart 108 Retail Channels 2021-2026
Chart 109 Economic Context for Other Dairy
Chart 110 Real Gdp Growth 2021-2031
Chart 111 Inflation 2021-2031
Chart 112 Consumer Context for Other Dairy
Chart 113 Population 2021-2031
Chart 114 Population by Generation 2026
Chart 115 Consumer Expenditure 2021-2031
Plant-Based Dairy in Australia
Key Data Insights
Plant-Based Dairy Summary
Chart 116 Key Industry Trends for Plant-Based Dairy
Solid but Slowing Growth Due to Economic Headwinds
So Good Redefines Nutrition to Defend Premium Pricing
Strengthening Functional Indulgence through Innovation
Chart 117 Raw C and Weis Turn an Iconic Treat into Healthier Coconut Yoghurt
Chart 118 Value Sales 2021-2031
Chart 119 Value Sales by Category 2026
Coles and Woolworths Likely to Favour Proven Brands as Value Drives Shelf Space
Barista-Style Oat Milk and Fortified Claims Set to Redefine Everyday Choices
Chart 120 Forecast Value Sales 2021-2031
Chart 121 Forecast Value Sales by Category 2026-2031
Noumi Extends Its Lead as It Follows Changing Consumer Preferences
Danone Moves to Acquire Made Group, While Launches Invigorate Sales
Chart 122 Company Shares 2026
Chart 123 Brand Shares 2026
Supermarkets Maintains Its Lead as Retail E-Commerce Reshapes Routine Shopping
Café-Led Brands and Rapid Delivery Boost Product Trials and Discovery
Chart 124 Retail Channels 2021-2026
Flavour and Texture Move the Category beyond Substitution
Flagship Launches Redefine Plant-Based
Chart 125 So Good Reframes Plant Milk as Convenient High-Protein Nutrition
Stronger Players Profit as the Bar for Entry Rises
Chart 126 Economic Context for Plant-Based Dairy
Chart 127 Real Gdp Growth 2021-2031
Chart 128 Inflation 2021-2031
Chart 129 Consumer Context for Plant-Based Dairy
Chart 130 Population 2021-2031
Chart 131 Population by Generation 2026
Chart 132 Consumer Expenditure 2021-2031
Country Reports Disclaimer
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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