Europe Dairy Based Beverages Market

The Europe Dairy Based Beverages Market size was valued at USD XX Billion in 2022 and is expected to surpass USD XX Billion by 2031, expanding at a CAGR of 4.85% during the forecast period, 2023 – 2031. The growth of the market is attributed to the growing consumer demand for convenient and healthy dairy products.

A beverage can be defined as a nourishing pleasant drink. The beverages can be either alcoholic or non-alcoholic. Most of the diary based beverages are non-alcoholic although some of the fermented beverages may contain minimal quantity of carbon dioxide or alcohol. Milk beverages are generally produced from milk byproducts such as skim milk and buttermilk. The byproducts of milk are rich in valuable milk solids due to which greater emphasis is being given to the economic utilization of dairy industry.

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The dairy based beverages broadly include flavored drinks and unflavored drinks. The popular flavored drinks include chocolate milk, coffee milk, horlicks, malted milk, milkshake, and nesquik. Milk beverage contains low cholesterol and saturated fats. Dairy based drinks are added with nutritive components such as calcium, omega 3, fiber, and protein. Fortification of milk beverages with vitamins and minerals enhance their nutritional value compared to other beverages. The increasing medical cost and rising health awareness is accelerating people to adopt preventive measures and maintain good health. Therefore, the growing trend of fitness and awareness regarding quality food products are accelerating the production and sales of dairy based beverages.

Market Trends, Drivers, Restraints and Opportunities

• Growing consumer interest for immunity-enhancing beverages, protein shakes, and energy drinks is the major factor propelling the market expansion during the projected period.

• Rising trend of healthy lifestyle, increasing the disposable income of the consumers, and growing health awareness are estimated to contribute to the market expansion during the forecast period.

• High nutritional value of dairy based products is estimated to positively influence the market growth in the coming years.

• Rising demand for non-dairy based drinks due to lactose intolerance and some other allergies is expected to hamper the market growth during the forecast period.

• Increasing industrial investments for manufacturing of vitamins and minerals enriched beverages is expected to create numerous opportunities for the market growth in the coming years.

Scope of the Report

The report on the Europe dairy based beverages market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Europe Dairy Based Beverages Market Segment Insights

Milk segment is projected to expand at a robust CAGR

Based on types, the market is segregated into kefir, yogurt, milk, and others. The milk segment is projected to expand at a robust CAGR during the forecast period owing to the increasing awareness about nutritional and functional properties of milk and rising demand for probiotic drinks by health-conscious consumers. Milk beverages contain reduced cholesterol and saturated fats. The increasing fortification of milk beverages with nutritive components such as omega 3, magnesium, calcium, antioxidants, fiber, and proteins is expected to encourage the growth of the market segment. However, the yoghurt segment is anticipated to hold a significant market share during the forecast period due to the increasing industrial investments for the production of low-fat yogurt drink.

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Flavored drink segment is expected to expand at a significant pace

On the basis of categories, the market is segmented into unflavored drink and flavored drink. The flavored drink segment is expected to expand at a significant pace during the projected period due to increasing technological advancements for flavor processing, the rising consumers demand for clean-label organic products, and growing demand for variety of flavored drinks. Moreover, the increasing fortification of products and availability of multiple flavors is expected to aid in the growth of the market segment in the coming years. On the other hand, the unflavored drink segment is anticipated to exhibit a substantial growth during the forecast period owing to increasing new product launches to meet the demand for unflavored beverages.

Supermarkets/Hypermarkets segment is projected to hold a major market share

Based on distribution channels, the market is divided into online channels, supermarkets/hypermarkets, specialty stores, convenience stores, and others. The supermarkets/hypermarkets segment is projected to hold a major market share during the forecast period owing to the rising middle-class population, increasing disposable income, and growing demand for processed foods. Furthermore, the customers are shifting from daily shopping to weekly or monthly shopping due to increased store capacity and consequent increasing sales of supermarkets/hypermarket is estimated to fuel the growth of the market in the coming years. However, the convenience stores segment is anticipated to exhibit a substantial growth during the projected period owing to added value services such as pre-paid electricity, in-house food brands, airtime, quick and healthy food on the run, and home delivery services for daily essentials.

Germany market is anticipated to constitute a key market share

In terms of geography, the market is classified as the UK, Germany, Italy, France, the Netherlands, Spain, and Rest of Europe. Germany market is anticipated to constitute a key share of the market during the projected period owing to the growing health awareness, increasing demand for health and wellness products. Moreover, the rising domestic demand for beverages made from milk and yoghurt is expected to boost the market growth in the coming years. However, the France market is anticipated to exhibit a robust CAGR during the forecast period due to growing demand for dairy products including organic yogurt, ice cream, cheese, probiotic dairy products, and flavored milk owing to its high nutritional values.

Segments

The Europe dairy based beverages market has been segmented on the basis of

Types

• Kefir
• Yogurt
• Milk
• Others

Categories

• Unflavored Drink
• Flavored Drink

Distribution Channels

• Online Channels
• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• Others

Geography

• The UK
• Germany
• Italy
• France
• Netherlands
• Spain
• Rest of Europe

Key Players

• Danone Groupe SA
• FrieslandCampina.
• Nestle SA
• SODIAAL

Competitive Landscape

Key players competing in the Europe dairy based beverages market are Danone Groupe SA; FrieslandCampina.; Nestle SA; and SODIAAL. Companies are focusing on marketing strategies, merger, acquisition, expansions, and long-term partnerships with other industry players for product launches with healthier ingredients and food supplements to expand their market share.