In a world where dairy remains a colossal global passion, the staggering scale of the industry was made clear in 2022 when over 881 million metric tons of milk flowed from farms worldwide, driven by astonishing growth from India, which alone contributed nearly a quarter of all production.
Key Takeaways
- In 2022, global raw milk production totaled 881 million metric tons, a 1.8% increase from 2021, led by India at 210 million metric tons (23.8% share)
- India's milk production grew by 4.2% in 2022 to 210 million metric tons, accounting for nearly a quarter of global output
- The European Union produced 156 million metric tons of raw milk in 2022, representing 17.7% of global production
- In 2023, global per capita milk availability reached 122 kg, up from 119 kg in 2020
- India consumed 80% of its milk production domestically in 2022, averaging 450 ml per capita daily
- China's per capita dairy consumption grew to 14.5 kg in 2022, from 12 kg in 2018
- In 2022, world dairy exports totaled 83 million metric tons milk equivalent, up 2.5%
- New Zealand exported 3.4 million metric tons of milk powder in 2022/23, 50% of global trade
- EU dairy exports reached 15.2 million metric tons milk equivalent in 2022, China top destination
- Global dairy market size reached 837 billion USD in 2022, projected to grow at 4.2% CAGR to 2028
- Fluid milk segment held 40% of global dairy market revenue in 2022 at 335 billion USD
- Cheese market valued at 180 billion USD in 2022, Europe 35% share
- Global greenhouse gas emissions from dairy were 4% of total anthropogenic in 2022
- Dairy sector water usage averaged 1,000 liters per liter of milk produced globally in 2022
- 30% reduction in dairy carbon footprint achieved by EU farms from 2010-2022 via efficiency
Global raw milk production grew in 2022, with India leading as the top producer worldwide.
Consumption
- In 2023, global per capita milk availability reached 122 kg, up from 119 kg in 2020
- India consumed 80% of its milk production domestically in 2022, averaging 450 ml per capita daily
- China's per capita dairy consumption grew to 14.5 kg in 2022, from 12 kg in 2018
- USA per capita fluid milk consumption fell to 56.4 kg in 2022, down 2% YoY due to plant-based alternatives
- EU average per capita dairy intake was 280 kg in 2022, highest in Finland at 420 kg
- Brazil's per capita milk consumption reached 175 liters in 2022, up 3%
- Global cheese consumption totaled 19.8 million metric tons in 2022, growing 2.5% annually
- Yogurt global consumption hit 12.5 million metric tons in 2022, with 7% CAGR in emerging markets
- Butter consumption worldwide was 5.2 million metric tons in 2022, Europe at 40% share
- Asia-Pacific dairy consumption grew 5.2% in 2022 to 250 million metric tons equivalent
- Plant-based milk alternatives captured 15% of total milk consumption market in 2022 globally
- In Africa, per capita milk consumption averaged 45 kg in 2022, lowest globally
- Russia's domestic dairy consumption reached 260 kg per capita in 2022, up 1.5%
- Middle East dairy consumption per capita was 180 kg in 2022, driven by Gulf countries
- Global fresh cheese consumption was 8.5 million metric tons in 2022, Latin America leading growth
- Ice cream global consumption reached 15 million metric tons in 2022, Asia up 4%
- Condensed milk consumption in Asia was 25 million metric tons in 2022, 70% of global total
- Elderly population (65+) drove 20% increase in fermented dairy consumption globally in 2022
- Urban consumers accounted for 65% of global dairy demand in 2022
- Low-fat dairy products made up 35% of total dairy consumption in OECD countries in 2022
- Lactose-free dairy sales grew 12% globally to 1.2 billion USD in 2022
- Probiotic dairy consumption reached 8 million metric tons in 2022, Europe at 45%
- Global milk consumption in coffee/tea beverages was 50 billion liters in 2022
Consumption Interpretation
The world's dairy dance is a study in contrasts: while India and China happily pour more milk into their cups, the US is flirting with oat milk, Europe is in a committed cheese-filled relationship, and the globe collectively agrees that the only thing better than milk is milk with a side of cheese, yogurt, butter, or ice cream.
Economics
- Global dairy market size reached 837 billion USD in 2022, projected to grow at 4.2% CAGR to 2028
- Fluid milk segment held 40% of global dairy market revenue in 2022 at 335 billion USD
- Cheese market valued at 180 billion USD in 2022, Europe 35% share
- Yogurt and fermented dairy market hit 120 billion USD in 2022, APAC fastest growing
- Butter and spreads market was 85 billion USD globally in 2022, up 3.5%
- Milk powder market size reached 65 billion USD in 2022, infant formula 25% segment
- Dairy processing equipment market valued at 12 billion USD in 2022, CAGR 5.1%
- Organic dairy products market grew to 25 billion USD in 2022, 10% CAGR
- Plant-based dairy alternatives market hit 29 billion USD in 2022, projected 12% CAGR
- Global dairy farm revenue averaged 1.2 million USD per large farm in 2022
- Dairy industry employed 600 million people globally in 2022, mostly smallholders
- Average farmgate milk price was 45 USD/100kg globally in 2022, varying from 30-60 USD
- Retail dairy prices rose 8-12% in 2022 due to inflation and feed costs
- Top 5 dairy companies (Nestle, Danone, Lactalis, Dairy Farmers of America, Fonterra) held 25% market share in 2022
- Mergers and acquisitions in dairy sector totaled 15 billion USD in 2022
- E-commerce dairy sales grew 20% to 50 billion USD globally in 2022
- Dairy input costs rose 15% in 2022, squeezing margins to 5-7%
- Global dairy subsidies averaged 20 billion USD annually pre-2022, EU largest contributor
- Dairy export revenue for New Zealand was 19 billion NZD in 2022/23
- Value-added dairy products contributed 60% to industry revenue in 2022
Economics Interpretation
The dairy industry is a colossal, 837-billion-dollar cow being milked for all it's worth, where every sector from humble fluid milk to artisanal cheese is a battleground of razor-thin margins, massive employment, and a relentless race between sprawling corporate consolidation and the insurgent rise of plant-based alternatives.
Production
- In 2022, global raw milk production totaled 881 million metric tons, a 1.8% increase from 2021, led by India at 210 million metric tons (23.8% share)
- India's milk production grew by 4.2% in 2022 to 210 million metric tons, accounting for nearly a quarter of global output
- The European Union produced 156 million metric tons of raw milk in 2022, representing 17.7% of global production
- United States raw milk production reached 102 million metric tons in 2022, up 1.1% from prior year
- China produced 35.8 million metric tons of raw milk in 2022, with a CAGR of 3.5% over the past decade
- New Zealand's milk production for the 2022/23 season was 21.6 billion liters, down 1% due to weather impacts
- Brazil's milk production hit 34.5 billion liters in 2022, growing 3.8% annually
- Pakistan produced 30.8 million metric tons of milk in 2022, second highest in Asia after India
- Global cow milk production was 84% of total milk output in 2022 at 736 million metric tons
- Buffalo milk production globally reached 127 million metric tons in 2022, primarily from South Asia
- Turkey's milk production increased to 23.2 million metric tons in 2022, up 2.5%
- Argentina produced 11.2 billion liters of milk in 2022 despite economic challenges
- Australia's dairy herd produced 8.8 billion liters in 2022/23, stable from previous year
- Russia generated 32.1 million metric tons of milk in 2022, focusing on domestic self-sufficiency
- Egypt's milk production was 10.5 million metric tons in 2022, driven by buffalo milk
- Global goat milk production stood at 20.3 million metric tons in 2022, led by South Asia
- Sheep milk output worldwide was 10.4 million metric tons in 2022, mainly in Mediterranean countries
- In 2022, the top 10 milk producing countries accounted for 72% of global output
- Dairy farming in Africa produced 49 million metric tons of milk in 2022, with 5% growth rate
- Latin America's milk production totaled 82 million metric tons in 2022, up 2.1%
- Southeast Asia's milk output reached 15.2 million metric tons in 2022, driven by Vietnam and Indonesia
- Organic milk production globally grew to 4.5 million metric tons in 2022, Europe leading with 60%
- A2 milk production worldwide increased 15% in 2022 to over 2 million metric tons
- Concentrated milk production hit 120 million metric tons in 2022, Asia consuming 55%
- Fresh milk output globally was 450 million metric tons in 2022, 51% of total dairy
- In 2022, robotic milking systems were used on 15% of global dairy farms, boosting output by 10-20%
- Global milk yield per cow averaged 2,500 kg in 2022, with USA at 10,200 kg leading
- Dairy cow population worldwide was 270 million heads in 2022, down 0.5% YoY
- Feed costs represented 60% of total dairy production costs globally in 2022
- Precision dairy farming tech adoption reached 25% of farms in 2022, improving yields by 5-15%
- Global cheese production reached 21.56 million metric tons in 2022, up 2.2% from 2021
- World butter production totaled 5.6 million metric tons in 2022, with EU leading at 1.9 million MT
- Global milk powder production was 3.8 million metric tons in 2022/23, New Zealand at 1.5 million MT
- Yogurt production worldwide hit 15 million metric tons in 2022, Asia-Pacific growing fastest at 6%
Production Interpretation
While India continues to milk its status as the world's dairy darling, holding nearly a quarter of global production, the overall industry's modest growth hinges on a precarious balance of robotic precision, volatile feed costs, and the stubborn whims of weather.
Sustainability
- Global greenhouse gas emissions from dairy were 4% of total anthropogenic in 2022
- Dairy sector water usage averaged 1,000 liters per liter of milk produced globally in 2022
- 30% reduction in dairy carbon footprint achieved by EU farms from 2010-2022 via efficiency
- Global dairy methane emissions totaled 1.8 gigatons CO2eq in 2022, 27% from enteric fermentation
- 72% of dairy farms worldwide adopted sustainable feed practices by 2022, reducing soy imports
- Dairy industry recycled 90% of packaging waste in Europe in 2022
- Antibiotic use in global dairy herds fell 20% from 2015-2022
- Regenerative agriculture on 15% of dairy lands by 2022 improved soil carbon by 0.5%
- Dairy wastewater treatment covered 85% of large processors globally in 2022
- Biodiversity initiatives on dairy farms protected 10 million hectares by 2022
- Global dairy energy use efficiency improved 25% since 2000, reaching 2022 benchmarks
- Zero-waste dairy plants increased to 20% globally by 2022
- Dairy manure biogas production generated 50 TWh energy equivalent in 2022
- Sustainable sourcing certifications covered 40% of global milk supply in 2022
- Dairy deforestation footprint reduced 50% in supply chains from 2010-2022
- Animal welfare standards adopted by 60% of large dairies globally in 2022
- Precision feeding cut dairy nutrient waste by 15% average in 2022
- Global dairy Scope 3 emissions reporting standardized for 30% of companies by 2022
- Water recycling in dairy processing reached 40% globally in 2022
- Low-emission feed additives reduced methane 20-30% on pilot dairy farms in 2022
- Sustainable dairy finance investments hit 10 billion USD in 2022
- Extended milk shelf-life tech reduced food waste by 25% in supply chains 2022
- Dairy herd health monitoring via AI covered 10% of farms, cutting antibiotics 15% in 2022
- Carbon farming credits from dairy reached 500 million USD value in 2022
- Global dairy R&D investment was 5 billion USD in 2022, 20% on sustainability
- Plant-based dairy transition supported by 15% of dairy firms diversifying in 2022
Sustainability Interpretation
While celebrating progress like the dairy sector's significant strides in sustainability—from slashing emissions and embracing regenerative farming to pioneering methane-reducing feed—it's a sobering reminder that the industry still churns through immense resources, demanding that this momentum become the new standard rather than a mere milestone.
Trade
- In 2022, world dairy exports totaled 83 million metric tons milk equivalent, up 2.5%
- New Zealand exported 3.4 million metric tons of milk powder in 2022/23, 50% of global trade
- EU dairy exports reached 15.2 million metric tons milk equivalent in 2022, China top destination
- USA exported 6.8 million metric tons dairy products in 2022, record high up 8%
- Ireland's dairy exports hit 4.5 billion euros in 2022, milk powder leading at 40%
- Netherlands exported 3.2 million metric tons milk equivalent in 2022, 25% to Germany
- Australia's dairy exports were 2.8 million metric tons in 2022/23, Asia 60% share
- Global SMP trade volume was 1.6 million metric tons in 2022, Oceania supplying 55%
- WMP exports totaled 1.3 million metric tons in 2022, New Zealand 45% market share
- Cheese international trade reached 1.1 million metric tons in 2022, EU exporting 800,000 MT
- Butter trade volume was 350,000 metric tons in 2022, New Zealand dominant exporter
- China imported 4.2 million metric tons milk equivalent in 2022, 30% from Oceania
- Algeria was top cheese importer with 120,000 MT in 2022, mostly from EU
- Southeast Asia dairy imports grew 6% to 5 million MT milk eq. in 2022
- Africa imported 4.5 million MT milk products in 2022, powder dominant at 70%
- Latin America dairy trade surplus reached 1.2 million MT in 2022, Uruguay leading exporter
- Russia banned Western dairy imports in 2022, boosting domestic but imports from Belarus up 20%
- Global dairy trade value hit 75 billion USD in 2022, up 10% from 2021
- Skim milk powder prices averaged 3,500 USD/MT in 2022 GDT auctions
- Whole milk powder export prices peaked at 4,200 USD/MT in late 2022
- Dairy trade disruptions from Ukraine war added 5-10% to global freight costs in 2022
Trade Interpretation
While New Zealand maintains its reign as the powdered milk monarch, the global dairy trade, now a $75 billion affair, reveals a world both connecting—with China and Southeast Asia driving demand—and fracturing, as geopolitics stirs the cream and raises costs for everyone at the table.
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