Dairy Cream Market
By Product Type;
Fresh Cream, Thickened Cream Or Heavy Cream, Whipping Cream, Sour Cream and OthersBy Packaging;
Cartons, Plastic Tubs, Glass Jars and OthersBy Distribution;
On-Trade and Off-Trade [Supermarkets Or Hypermarkets, Convenience Stores, Online Retail Stores and Others]By Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Dairy Cream Market Overview
Dairy Cream Market (USD Million)
Dairy Cream Market was valued at USD 17,829.06 million in the year 2024. The size of this market is expected to increase to USD 24,754.69 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.8%.
Dairy Cream Market
*Market size in USD million
CAGR 4.8 %
| Study Period | 2025 - 2031 | 
|---|---|
| Base Year | 2024 | 
| CAGR (%) | 4.8 % | 
| Market Size (2024) | USD 17,829.06 Million | 
| Market Size (2031) | USD 24,754.69 Million | 
| Market Concentration | High | 
| Report Pages | 381 | 
Major Players
- Land OLakes, Inc.
 - Fonterra Co-operative Group
 - Dean Foods
 - Lactalis
 - Arla Food
 - Nestl S.A.
 - Graham's Family Dairy
 - Gujarat Co-operative Milk Marketing Federation Ltd. (Amul)
 
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Dairy Cream Market
Fragmented - Highly competitive market without dominant players
The dairy cream market is experiencing consistent growth, driven by the rising preference for value-added dairy products. Over 55% of consumers rely on cream-based offerings in everyday cooking and packaged foods, highlighting its indispensable role in both household and industrial applications. The product’s versatility continues to boost its acceptance across a wide range of food categories.
Increasing Role in Culinary Applications
The growing integration of cream in bakery, desserts, and beverages is strengthening its market share. Industry data shows that around 48% of baked goods include dairy cream to enhance flavor, richness, and texture. Likewise, the premiumization of beverages and confectionery is fueling demand for cream-based formulations, reflecting consumer preference for indulgent experiences.
Shift Toward Health and Premium Choices
A notable trend in the market is the demand for low-fat, organic, and fortified cream options. Nearly 36% of consumers are opting for healthier alternatives that provide both nutrition and indulgence. This shift indicates the evolving mindset of buyers who seek high-quality dairy products without compromising on health benefits.
Innovations Enhancing Quality
Advancements in processing and preservation technologies are improving product efficiency and availability. Approximately 40% of newly developed cream products emphasize enhanced freshness, improved consistency, and longer shelf life. These technological improvements are making cream products more dependable and appealing for both retail and industrial segments.
Future Market Outlook
With its growing role in everyday consumption and diverse food applications, the dairy cream market holds significant growth potential. More than 50% of new culinary innovations are incorporating cream as a key component, showcasing its importance in the evolving food landscape. Strategic developments and consumer-driven innovations are expected to sustain this positive momentum.
Dairy Cream Market Key Takeaways
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The market is being driven by rising consumer demand for premium, indulgent dairy products—cream is increasingly used in gourmet desserts, specialty coffee applications, and premium sauces.
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There is a clear shift toward clean‑label, organic, and natural formulations, as health‑conscious buyers look for minimal additives, hormone‑free milk sources, and transparent ingredient profiles.
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Regional dynamics are evolving: while Europe currently leads in market share, the Asia‑Pacific region is emerging as the fastest‑growing geography thanks to growing foodservice infrastructure and western‑style dessert adoption.
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Innovation in packaging and shelf‑life extension is becoming a key competitive lever with UHT treatments, aseptic packaging, and convenient formats enabling broader reach and less waste.
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Alternative consumer preferences such as plant‑based and hybrid dairy/plant cream products are creating new competitive pressures, prompting traditional cream producers to broaden portfolios.
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Key operational challenges persist: fluctuations in raw‑milk costs, supply‑chain complexity (especially cold chain requirements), and regulatory pressures around fat content and labeling are affecting profitability.
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For market players, winning strategies centre on offering value‑added service models such as premium variants, foodservice‑tailored formats, regionalisation of production, and leveraging bakery/confectionery partnerships.
 
Dairy Cream Market Recent Developments
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In July 2024, Fonterra announced strategic plans to divest its non-core businesses, including select consumer dairy product lines, as part of its efforts to streamline operations. The move aims to strengthen Fonterra’s focus on its core dairy cream portfolio and other high-value offerings, enhancing efficiency and long-term growth potential.
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In November 2023, Arla Foods, a leading European dairy cooperative, introduced a premium cream product crafted for culinary professionals. The launch emphasizes the use of high-quality, sustainably sourced cream, reinforcing Arla’s commitment to excellence and responsible production in the dairy industry.
 
Dairy Cream Market Segment Analysis
In this report, the Dairy Cream Market has been segmented by Product Type, Packaging, Distribution and Geography.
Dairy Cream Market, Segmentation by Product Type
The Product Type segmentation outlines where demand concentrates across distinct cream formats, shaping pricing, positioning, and channel strategies for suppliers. Producers align fat content, texture, and stability attributes to match bakery, foodservice, and household use-cases while navigating labeling standards and cold-chain considerations. Over the forecast horizon, product innovation will emphasize clean-label stabilizers and packaging formats that preserve freshness and reduce waste, supporting market expansion across developed and emerging regions.
Fresh Cream
Fresh cream serves daily culinary needs, supporting sauces, desserts, and beverages with a focus on taste and natural ingredients. Growth strategies revolve around enhancing shelf life through ultra-pasteurization and efficient refrigerated logistics to minimize returns. Brand owners emphasize origin stories and dairy sourcing transparency, using regional campaigns to strengthen loyalty in retail and foodservice alike.
Thickened Cream Or Heavy Cream
Heavy cream targets applications requiring higher fat content and thermal stability, making it essential for baking and premium desserts. Manufacturers differentiate via microfiltration and controlled viscosity for consistent performance across hot kitchens. Partnerships with patisserie chains and HORECA distributors help anchor demand, while premiumization encourages margin resilience despite input-cost volatility.
Whipping Cream
Whipping cream competes on aeration, overrun, and hold time, aligning with professional bakery and at-home celebration use-cases. Technology roadmaps center on emulsifier systems and aseptic processing to ensure reliable peaks and decorative finishes. Co-marketing with dessert brands and investments in cold-chain capacity reinforce availability during seasonal spikes and festive periods.
Sour Cream
Sour cream addresses savory and snacking occasions, integrating into cuisines that value tangy flavor profiles and dips. Producers focus on cultures management and consistency to meet regional taste preferences, while exploring portion-controlled SKUs to reduce waste. Expansion into convenience and quick-service formats, supported by culinary partnerships, underpins future growth in both retail and foodservice channels.
Others
The Others category captures niche and emerging variants, including flavored or fortified options tailored to functional and seasonal demand. Companies pilot limited editions with rapid test-and-learn cycles, leveraging digital feedback to refine formulations. As consumer experimentation rises, timely launches and omnichannel availability will shape incremental share gains.
Dairy Cream Market, Segmentation by Packaging
Packaging determines shelf life, handling, and merchandising flexibility, directly influencing velocity across on-trade and off-trade channels. Suppliers balance sustainability with barrier performance, evaluating material choices against recyclability mandates and brand aesthetics. Investments in line-speed upgrades and aseptic capabilities support product integrity while enabling differentiated formats for household and professional users.
Cartons
Cartons offer strong light and oxygen barriers suited to extended chilled life and efficient stackability on shelf. Brands deploy bold graphic panels to communicate fat grade and usage tips, improving shopper navigation. Collaboration with carton suppliers on fiber sourcing and recyclability messaging enhances ESG credentials without sacrificing operational efficiency.
Plastic Tubs
Plastic tubs prioritize convenience and resealability, well-suited for dips and spreads where repeated access matters. Manufacturers optimize wall thickness and lidding films for integrity while reducing resin use to meet sustainability targets. Visibility of product and ergonomic designs aid differentiation in chilled sets and foodservice prep areas.
Glass Jars
Glass jars confer a premium, heritage aesthetic with excellent inertness, appealing to clean-label shoppers sensitive to material interactions. While heavier and costlier to transport, selective use in premium lines strengthens brand equity and gifting appeal. Deposit-return systems and localized filling can offset logistics intensity while supporting circularity narratives.
Others
Other formats—such as pouches or specialty closures—target differentiated portioning and on-the-go needs. These solutions enable SKU proliferation for event-led consumption and recipe kits while optimizing cost-to-serve. Pilot programs with retailers and QSRs validate performance, de-risking scale-up decisions across markets with diverse regulatory expectations.
Dairy Cream Market, Segmentation by Distribution
Distribution dynamics shape brand reach and price realization across on-trade and off-trade ecosystems. Suppliers build HORECA alliances for consistent kitchen-grade supply while optimizing retail assortments to capture household missions. Data-led category management, shopper marketing, and last-mile cold logistics work together to ensure freshness, availability, and repeat purchase across regions.
On-Trade
The on-trade segment encompasses restaurants, hotels, bakeries, and institutional kitchens that demand quality consistency and bulk formats. Vendors prioritize service levels, reliable deliveries, and chef-focused training to demonstrate application performance. Joint menu development, seasonal launches, and loyalty programs deepen partnerships and stabilize volumes throughout the year.
Off-Trade
Off-trade channels emphasize packaged retail where assortment breadth, pricing ladders, and promotional cadence drive volume. Manufacturers coordinate with retailers on planograms, secondary placements, and digital coupons to steer trial and trade-up. Robust demand forecasting and temperature-controlled distribution are critical to minimize shrink while meeting peak-period surges.
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Supermarkets Or Hypermarkets
Large-format stores anchor visibility with expansive chilled sets and cross-category adjacencies for desserts, bakery, and fresh produce. Suppliers leverage private-label coexistence, targeted promotions, and prominent shelf signage to enhance conversion. Collaborative planning with retailers on seasonal events and in-aisle education sustains momentum and supports premium tiering.
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Convenience Stores
Convenience outlets prioritize immediacy and grab-and-go missions, requiring compact SKUs and fast replenishment. Smaller facings demand clear pack communication and high rotation to justify space. Partnerships with regional distributors and micro-fulfillment solutions maintain availability where delivery frequencies are constrained.
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Online Retail Stores
E-commerce extends reach with portfolio breadth, recipe-led discovery, and scheduled cold-chain delivery windows. Brands employ D2C trials, subscription bundles, and rating prompts to accelerate repeat rates. Packaging robustness and data-driven fulfillment practices reduce leakage risk and improve customer satisfaction in last-mile conditions.
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Others
Other outlets include specialty gourmet shops, institutional procurement platforms, and regional wholesalers serving niche needs. Suppliers tailor case sizes, credit terms, and merchandising assets to align with localized buying cycles. These channels often catalyze premium launches and limited editions, informing broader rollouts across mainstream retail.
 
Dairy Cream Market, Segmentation by Geography
In this report, the Dairy Cream Market has been segmented by Geography into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
North America
North America features mature retail and foodservice infrastructure, emphasizing premiumization, clean-label cues, and seasonal baking peaks. Producers expand with value-added formats and multi-pack offerings aligned to club channels while optimizing cold-chain efficiency. Collaboration with bakery chains and QSRs sustains steady volumes, complemented by strong private-label competition that shapes pricing discipline.
Europe
Europe’s deep culinary heritage supports diverse cream styles, with strict standards of identity guiding formulation and claims. Sustainability leadership drives recyclable materials adoption and energy-efficient processing, influencing retailer requirements. Cross-border brand portfolios and origin positioning help balance regional taste variations and regulatory nuances across key markets.
Asia Pacific
Asia Pacific delivers rapid category expansion fueled by urbanization, café culture, and modern retail penetration. Suppliers invest in localized flavor profiles, chef training, and route-to-market partnerships to overcome distribution complexity. Capacity additions and strategic cold storage near metros enhance freshness, supporting growth across bakery, dessert, and beverage applications.
Middle East & Africa
Middle East & Africa growth rests on rising foodservice investment, tourism recovery, and expanding modern trade in select corridors. Companies align with distributors for temperature-controlled delivery and adapt pack sizes to affordability tiers. Marketing that emphasizes quality assurance and menu versatility helps translate trial into repeat purchase.
Latin America
Latin America balances strong traditional dessert consumption with evolving modern retail formats. Manufacturers focus on cost optimization, localized sourcing, and promotional bundles to widen household penetration. Partnerships with regional bakery chains and investments in refrigerated logistics strengthen availability and sustain category development.
Dairy Cream Market Force
This report provides an in depth analysis of various factors that impact the dynamics of Dairy Cream Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
| Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential | 
|---|---|---|---|---|---|
| Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development | 
| Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance | 
| Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances | 
Drivers, Restraints and Opportunity Analysis
Drivers:
- Increasing Consumer Demand
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Rising Foodservice Sector-The rising foodservice sector is a significant driver for the growth of the dairy cream market. With the expansion of restaurants, cafes, bakeries, and catering services globally, the demand for dairy cream has increased considerably. This sector relies heavily on cream as a key ingredient for a wide range of menu items, including soups, sauces, desserts, coffee-based beverages, and specialty dishes. The versatility of dairy cream allows it to cater to both savory and sweet culinary applications, making it indispensable in the foodservice industry.
The growing trend of dining out and ordering takeout has further fueled the foodservice sector's growth. As urbanization increases and lifestyles become busier, consumers are seeking convenience without compromising on taste and quality. Foodservice establishments are leveraging dairy cream to create rich, indulgent flavors that enhance the dining experience, thereby driving its usage in their kitchens.
Additionally, the rise of premium and artisanal food offerings in the foodservice sector has contributed to higher demand for dairy cream. Many restaurants and cafes are incorporating high-quality cream into their recipes to differentiate themselves and meet consumer expectations for gourmet experiences. This trend is particularly strong in regions where the foodservice industry is rapidly evolving, positioning it as a major growth driver for the dairy cream market.
 
Restraints:
- Health and Dietary Concerns
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Supply Chain Challenges-Supply chain challenges present a significant restraint to the growth of the dairy cream market. The production and distribution of dairy cream are heavily reliant on a stable supply chain for raw materials such as milk. Any disruptions in milk production due to factors like climate change, feed shortages, or diseases affecting livestock can directly impact the availability and cost of dairy cream, causing fluctuations in supply.
Transportation and storage issues further exacerbate supply chain challenges. Dairy cream is a perishable product that requires proper refrigeration throughout its journey from production facilities to end-users. Inadequate cold chain infrastructure, especially in developing regions, can lead to spoilage and product loss, limiting market growth. Additionally, rising fuel costs and logistical inefficiencies increase transportation expenses, making it challenging to maintain competitive pricing.
Global trade dynamics also play a role in supply chain constraints. Regulatory barriers, tariffs, and geopolitical tensions can hinder the smooth flow of dairy products across borders. These challenges are compounded by increasing consumer demand for high-quality and sustainably sourced dairy cream, putting additional pressure on supply chains to adapt and maintain consistent product quality while minimizing costs.
 
Opportunities
- Product Innovation
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Market Expansion in Emerging Economies- Market expansion in emerging economies represents a significant opportunity for the dairy cream market. As disposable incomes rise and urbanization accelerates in regions such as Asia-Pacific, Latin America, and Africa, there is a growing demand for premium food products, including dairy-based offerings. Consumers in these markets are increasingly adopting Westernized dietary habits, driving the consumption of bakery products, confectionery, and dairy desserts, all of which prominently feature dairy cream as a key ingredient.
The rapid growth of the foodservice sector in emerging economies further fuels this opportunity. Expanding chains of cafes, bakeries, and quick-service restaurants are incorporating dairy cream into their menus to cater to evolving consumer preferences. In addition, local foodservice establishments are exploring new ways to integrate cream into traditional dishes, creating fusion cuisines that appeal to both domestic and international audiences.
Another factor contributing to market expansion is the increasing penetration of modern retail channels in these regions. Supermarkets, hypermarkets, and online grocery platforms are making dairy cream more accessible to consumers. Coupled with targeted marketing efforts and the introduction of affordable, smaller packaging options, companies have an opportunity to tap into previously underserved segments of the population, driving growth in the dairy cream market.
 
Dairy Cream Market Competitive Landscape Analysis
Dairy Cream Market is characterized by robust competition as producers focus on premiumization, flavor innovation, and sustainable sourcing. Around 48% of key players emphasize collaboration and partnerships to strengthen their product portfolio and supply chain resilience. Continuous innovation in dairy processing and plant-integrated production supports consistent growth in diverse consumer segments.
Market Structure and Concentration
The market shows a moderately consolidated structure, with about 52% of the share dominated by major global brands. Leading companies employ strategic alliances and targeted merger activities to enhance capacity utilization and cost efficiency. This structure supports competitive stability while enabling sustained expansion across retail and foodservice sectors.
Brand and Channel Strategies
Brands are increasingly focusing on multi-channel distribution strategies that include e-commerce, supermarkets, and direct-to-consumer models. Nearly 45% of brands invest in regional marketing campaigns and eco-friendly packaging to enhance visibility. Strategic partnerships with culinary professionals and food manufacturers strengthen brand identity and consumer engagement across markets.
Innovation Drivers and Technological Advancements
Advances in technology and product formulation are transforming the Dairy Cream Market, with over 50% of producers investing in high-efficiency processing equipment. Development of low-fat and plant-based variants reflects evolving dietary preferences. Continuous innovation in flavor stabilization and cold-chain logistics ensures longer shelf life and superior texture consistency.
Regional Momentum and Expansion
Europe and Asia-Pacific contribute nearly 58% of the overall market share, driven by rising demand in bakery, confectionery, and beverage applications. Regional expansion through localized manufacturing and strategic partnerships with dairy cooperatives is boosting product reach. Enhanced cold-chain infrastructure supports wider market accessibility and sustainable growth.
Future Outlook
The future outlook of the Dairy Cream Market remains optimistic, backed by strong consumer interest in premium dairy and healthy indulgence. Increasing investment in technological advancements and flavor development will continue to shape market evolution. Strategic collaboration and brand innovation are expected to drive long-term competitiveness and stable market growth.
Key players in Dairy Cream Market include:
- Lactalis Group
 - Arla Foods
 - Royal FrieslandCampina
 - Gujarat Cooperative Milk Marketing Federation (Amul)
 - Fonterra Co-operative Group
 - Dairy Farmers of America
 - Saputo Inc.
 - Agropur
 - Land O’Lakes
 - Organic Valley
 - Danone
 - Schreiber Foods
 - Valio
 - Bulla Dairy Foods
 - Clover Industries
 
In this report, the profile of each market player provides following information
- Market Share Analysis
 - ompany Overview and Product Portfolio
 - Key Developments
 - Financial Overview
 - Strategies
 - Company SWOT Analysis
 
- Introduction 
- Research Objectives and Assumptions
 - Research Methodology
 - Abbreviations
 
 - Market Definition & Study Scope
 - Executive Summary 
- Market Snapshot, By Product Type
 - Market Snapshot, By Packaging
 - Market Snapshot, By Distribution
 - Market Snapshot, By Region
 
 - Dairy Cream Market Dynamics 
- Drivers, Restraints and Opportunities 
- Drivers 
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Increasing Consumer Demand
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Rising Foodservice Sector
 
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 - Restraints 
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Health and Dietary Concerns
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Supply Chain Challenges
 
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 - Opportunities 
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Product Innovation
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Market Expansion in Emerging Economies
 
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 - Drivers 
 - PEST Analysis 
- Political Analysis
 - Economic Analysis
 - Social Analysis
 - Technological Analysis
 
 - Porter's Analysis 
- Bargaining Power of Suppliers
 - Bargaining Power of Buyers
 - Threat of Substitutes
 - Threat of New Entrants
 - Competitive Rivalry
 
 
 - Drivers, Restraints and Opportunities 
 - Market Segmentation 
- Dairy Cream Market, By Product Type, 2021 - 2031 (USD Million) 
- Fresh Cream
 - Thickened Cream Or Heavy Cream
 - Whipping Cream
 - Sour Cream
 - Others
 
 - Dairy Cream Market, By Packaging, 2021 - 2031 (USD Million) 
- Cartons
 - Plastic Tubs
 - Glass Jars
 - Others
 
 - Dairy Cream Market, By Distribution, 2021 - 2031 (USD Million) 
- On-Trade
 - Off-Trade 
- Supermarkets Or Hypermarkets
 - Convenience Stores
 - Online Retail Stores
 - Others
 
 
 - Dairy Cream Market, By Geography, 2021 - 2031 (USD Million) 
- North America 
- United States
 - Canada
 
 - Europe 
- Germany
 - United Kingdom
 - France
 - Italy
 - Spain
 - Nordic
 - Benelux
 - Rest of Europe
 
 - Asia Pacific 
- Japan
 - China
 - India
 - Australia & New Zealand
 - South Korea
 - ASEAN (Association of South East Asian Countries)
 - Rest of Asia Pacific
 
 - Middle East & Africa 
- GCC
 - Israel
 - South Africa
 - Rest of Middle East & Africa
 
 - Latin America 
- Brazil
 - Mexico
 - Argentina
 - Rest of Latin America
 
 
 - North America 
 
 - Dairy Cream Market, By Product Type, 2021 - 2031 (USD Million) 
 - Competitive Landscape 
- Company Profiles 
- Lactalis Group
 - Arla Foods
 - Royal FrieslandCampina
 - Gujarat Cooperative Milk Marketing Federation (Amul)
 - Fonterra Co-operative Group
 - Dairy Farmers of America
 - Saputo Inc.
 - Agropur
 - Land O’Lakes
 - Organic Valley
 - Danone
 - Schreiber Foods
 - Valio
 - Bulla Dairy Foods
 - Clover Industries
 
 
 - Company Profiles 
 - Analyst Views
 - Future Outlook of the Market
 

