Dairy products (or milk products) are nutrient-dense foods that provide a variety of vital micronutrients, along with energy and high-quality protein.
Millions of people worldwide, who are part of the dairy industry’s value chains, rely on it for their livelihoods.
The Organization for Economic Co-operation and Development projects that global milk production – 81% from cows, 15% from buffaloes, and 4% from goats, sheep, and camels – will increase at a rate of 1.8% per year by 2034 and reach 1,146 million tons.
Global milk production statistics
Global yields are predicted to increase gradually, with Southeast Asia and several African nations likely to see the highest growth.
- In 2024, 982 million tons of milk were produced worldwide, an increase of 1.4% from 2023.
- The dairy market was valued at US$991.5 billion in 2024, with liquid milk having the lion’s share.
- With a projected compound annual growth rate (CAGR) of 4.75% from 2025 to 2033, experts project that the market will reach US$1,505.8 billion.
- The EU produced 148.9 million tons of milk in 2024, a decrease from 149.3 MMT in 2023, according to the USDA Foreign Agricultural Service. The reasons for this are a decline in the number of cows and the reduced profitability of milk production.
- Compared to 2023, production levels increased by 1.4% and are expected to grow further, according to the Food and Agriculture Organization.
- Asia’s milk production increased 2.4% from 2023 and reached 460 million tons.
Milk production by region
Source: FAO. 2025. Dairy Market Review: Overview of global market developments in 2024
The role of dairy products in international development
The dairy industry boosts rural economies in both developed and developing nations. It gives smallholder farmers a stable source of income that can be invested in their children’s education, family support, healthcare, and their farms.
- According to experts, the value of the global dairy market in 2024 was US$991.5 billion, and this is expected to grow, exceeding US$1,505 billion by 2033.
- The industry’s CAGR stands at 4.75%
- The value of exports of dairy products was estimated to be US$107.20 billion, while the figure for imports reached US$108.97 billion.
Leading milk-producing countries
Milk production is a vital component of global agriculture, as it is a key source of nutrition for people worldwide and the foundation of the dairy industry.
The largest producers of milk and milk products have a massive impact on supply chains and can influence dietary changes within the dairy industry.
Milk and milk products statistics (in thousand tons – milk equivalent)
*If counted as a single country
Source: FAO. 2025. Dairy Market Review: Overview of global market developments in 2024
Let’s dive deeper into the three major milk-producing nations.
India
India tops the list of nations with the most milk produced within one marketing year. The country accounted for 22% of global milk production with an output of 220 MMT in 2021/22. The following year, output increased to 239 MMT.
According to the latest data from FAO, in 2023/24 the country’s milk production reached 245 MMT, a rise of around 2.5% from 2021/2022, mostly due to an increase in dairy herd numbers.
The Indian states that boast the largest milk production are Uttar Pradesh, Rajasthan, and Gujarat.
India’s commitment to traditional and modern dairy farming practices is driving the sector’s ongoing growth.
The United States
In 2022/2023, the country registered an output of over 102 MMT, making it the second-largest milk producer.
Although there are large-scale dairy farms in several states, these are primarily located in just three – California, Wisconsin, and New York.
The versatility of the American dairy industry is demonstrated by the production of a broad range of dairy products, including fluid and powdered milk, cheese, and butter.
Pakistan
In 2024, Pakistan produced 66.3 MMT of milk, an increase of around 3% from the previous year (64.4MMT), with growing dairy herd numbers contributing to this.
Pakistan’s dairy industry is a major player in the global market, contributing significantly to domestic and worldwide milk supply.
Although the nation’s industry involves a variety of dairy animals, cows and buffaloes account for a significant amount of the total output.
The prosperity of the dairy business can be seen through the production of a wide range of dairy products, including liquid milk and ghee (clarified butter).
Final word
The earliest evidence of dairy product consumption goes back more than 6,000 years. Nowadays, dairy products are widely consumed around the globe and play a crucial role in international development, especially in view of the increasing population and urbanization.
