Shifting dairy market opens doors for cheese and whey

The global dairy market continues to expand, but the underlying dynamics are changing. While Europe grapples with stricter regulations, supply is growing in other parts of the world. For the European dairy sector, this shift brings both new challenges and opportunities.

Cheese drives global growth

International dairy trade is growing by about two percent annually. Within this market, cheese stands out as the primary growth engine. Demand for whey is rising due to the need for protein-based applications. Butter saw strong export growth from the United States in 2025. Milk powders, on the other hand, show much more modest growth.

Trade flows shifting away from China

China remains the largest importer of dairy products. However, falling Chinese purchases are forcing exporters to shift their focus to other regions. The Middle East, Southeast Asia, and Brazil are now stepping into this role. This shift is forcing exporters to redirect their trade flows toward new markets.

Europe loses ground to competitors

The European Union currently remains the world's largest exporter. Even so, Europe's share of the global market is gradually declining. Indeed, increasing regulation is significantly slowing down milk production within Europe. The United States and Argentina are capitalizing directly on this and strengthening their positions. They are driving the future growth of the global supply.

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