Dairy Packaging Market Size - By Product Type, By Material, By Application Analysis, Share, Growth Forecast, 2025 - 2034

Dairy Packaging Market Size

The global dairy packaging market was valued at USD 24.9 billion in 2024 and is estimated to grow at a CAGR of 4.2% from 2025 to 2034. A significant growth driver in the market is the increasing demand for sustainable and eco-friendly packaging solutions.
 

As environmental concerns rise, the dairy industry is prioritizing recyclable and reusable materials to reduce its carbon footprint. Innovations such as biodegradable films, recyclable plastics, and advanced sorting technologies contribute to the reduction of waste. For instance, in August 2024, CCL Label introduced EcoFloat WHITE, a new low-density polyolefin sleeve material designed to enhance recyclability in dairy packaging. This innovation addresses challenges in recycling white HDPE bottles, commonly used for yogurt and probiotic drinks, by ensuring better detection and separation during recycling processes.
 

Dairy Packaging Market Trends

A growing trend in the dairy packaging industry is the focus on innovative packaging designs and manufacturing processes aimed at sustainability. This includes the use of lightweight, recyclable materials, and processes like 2D printing to reduce waste and improve efficiency. Companies are increasingly adopting packaging solutions that not only minimize environmental impact but also streamline logistics, reducing transportation costs and carbon footprints.
 

Innovations like portionable packaging, which allows consumers to customize their milk servings, further align with the demand for convenience and sustainability in packaging. These advances contribute to a broader shift towards eco-friendly, circular packaging systems that prioritize both reduced waste and recyclability. For instance, in August 2024, milkadamia unveiled its innovative Flat Pack Organic Oat Milk at Newtopia Now, Denver. This pioneering product uses a 2D-printing process to create oat milk sheets, cutting packaging waste by 94% and weight by 85%. The eco-friendly solution allows consumers to prepare oat milk from scratch, significantly reducing carbon emissions and transportation bulk, aligning with the brand’s sustainability goals. The product will roll out in January 2025.
 

Dairy Packaging Market Analysis

A significant challenge for the dairy packaging industry is the high cost of sustainable packaging materials. While consumer demand for eco-friendly solutions grows, the materials required to produce sustainable packaging such as biodegradable plastics, recycled content, or plant-based alternatives often come with a much higher price tag than traditional packaging materials like polyethylene or PVC. These costs can pose financial strain on dairy manufacturers, particularly smaller businesses, who must balance sustainability efforts with profit margins.
 

Based on material, the market is divided into plastic, glass, metal, paper & paperboard, and others. The plastic segment is expected to reach a value of over USD 10 billion by 2034.
 

• The plastic segment in the dairy packaging market is expected to reach a significant value due to its versatility, cost-effectiveness, and ease of manufacturing. Plastic, especially in forms like polyethylene (PE) and polypropylene (PP), is lightweight, durable, and resistant to moisture, which makes it ideal for dairy products that require long shelf life and protection from contamination. Additionally, plastic is relatively inexpensive to produce and can be easily molded into a variety of shapes, such as bottles, containers, and caps, making it a go-to option for dairy manufacturers. The scalability of plastic production further adds to its widespread adoption in the market.
   
• Moreover, plastic offers excellent opportunities for innovation, particularly with developments in recyclable and biodegradable plastic materials. The increasing consumer demand for sustainability and environmentally friendly options has prompted the dairy packaging industry to invest in sustainable plastic packaging solutions, such as recycled PET (rPET) or plant-based plastics. These innovations allow manufacturers to reduce environmental impact while retaining the benefits of plastic, such as product preservation and convenience. As such, the plastic segment is expected to maintain a dominant position in the market, driven by its practicality, cost efficiency, and ongoing efforts toward sustainability.
   

The pouches and sachets segment in dairy packaging is experiencing rapid growth due to their convenience, cost-effectiveness, and increasing consumer preference for portable, single-serving options. Pouches and sachets offer an efficient and lightweight alternative to traditional packaging methods like bottles or cartons. The flexibility of these packaging formats allows them to be used for a wide variety of dairy products such as milk, yogurt, and cream, while offering easy storage and handling. The growing demand for on-the-go products, driven by busy lifestyles, is fueling the popularity of pouches and sachets, particularly in emerging markets where affordability and convenience are key drivers.
 

Furthermore, advancements in packaging technologies, including innovations in barrier films and improved sealing techniques, are enhancing the shelf life and protection of dairy products in pouches and sachets. These innovations enable dairy products to remain fresh for longer periods, while also catering to sustainability trends. As consumers increasingly prioritize eco-friendly options, many manufacturers are exploring recyclable and biodegradable materials for pouches and sachets.

North America held the share of over 30% in 2024. The dairy packaging market in the U.S. is growing due to several factors, including the increasing demand for convenience, sustainability, and innovation. Consumers are seeking more portable, single-serve options, which are driving the popularity of pouches, sachets, and other flexible packaging formats. Additionally, there is a growing preference for sustainable packaging solutions, with many manufacturers adopting eco-friendly materials to meet consumer demand for environmentally responsible products.
 

In China, the dairy packaging industry is growing rapidly due to increasing urbanization, rising disposable incomes, and shifting consumer preferences towards more convenient dairy products like yogurt. The demand for smaller packaging sizes and premium dairy offerings is pushing manufacturers to innovate with diverse packaging solutions. Additionally, the health-conscious trend among Chinese consumers is driving the consumption of dairy products, further boosting packaging requirements.
 

India's dairy packaging market is seeing significant growth driven by the expanding middle class, higher disposable incomes, and increased awareness of healthy eating habits. As a major producer and consumer of dairy products, India is witnessing a surge in demand for packaging that caters to small-sized, value-added dairy products. Innovations in sustainable and cost-effective packaging are also gaining traction, as manufacturers focus on addressing environmental concerns while improving product shelf life.
 

South Korea’s market is being propelled by the country's advanced retail networks, technological innovations in packaging, and the growing demand for dairy products such as milk and yogurt. The increasing popularity of high-quality dairy products, particularly among younger, health-conscious consumers, is driving demand for more sophisticated packaging options. Additionally, convenience is a significant factor, with many consumers preferring smaller, single serve packages?.
 

In Japan, the dairy packaging market is benefitting from a combination of high-quality product offerings and a mature consumer base. The country's aging population has led to a rise in demand for easy-to-consume, health-oriented dairy products, driving the need for innovative packaging solutions. Japan is also focused on environmentally friendly packaging options, with a strong preference for sustainable materials. The market is expected to grow as consumer demand for convenience and premium dairy products continues to rise?.
 

Dairy Packaging Market Share

The competition in the dairy packaging industry is driven by several key factors, including price, product differentiation, and distribution capabilities. Companies are trying to offer more innovative, sustainable packaging solutions to meet the increasing demand for eco-friendly products. Additionally, differentiation in terms of convenience, size, and functionality is crucial as consumers seek packaging that offers better usability and longer shelf life. Distribution networks are also critical, as companies aim to reach a broader audience through retail chains, e-commerce, and international markets. Competitive pricing remains important, particularly as more affordable, yet sustainable options are in demand?.
 

Dairy Packaging Market Companies

Major players operating in the dairy packaging industry are:

• Ahlstrom
• Airlite Plastics
• Alfipa
• Amcor
• Berry Global
• CDF Corporation
• CKS Packaging
• Elopak
• Huhtamaki
• International Paper
• Mondi
• Point Five Packaging
• SABIC
• Sealed Air
• SIG
• Smurfit Kappa
• Stanpac
• Stora Enso
• WestRock
• Winpak
   

Dairy Packaging Industry News

• In August 2024, Khyber Agro Pvt Ltd launched a new eco-friendly 1 kg curd packaging in Kashmir, marking a significant step towards sustainability in the dairy industry. The curd is packed in a biodegradable "IML Bucket," aligning with the Eat Right India movement.
   
• In March 2024, Amcor unveiled AmPrima recycle-ready packaging for mozzarella, developed in partnership with PFM. The new packaging, made from a mono-PE material, offers durability and barrier properties to extend shelf life while reducing the environmental impact. It aligns with European sustainability regulations, aiming to cut carbon emissions by up to 63%?.
   
• In November 2023, Sidel introduced a new ultra-light PET bottle designed for liquid dairy products like drinking and probiotic yoghurts. With capacities ranging from 65ml to 150ml, this bottle reduces greenhouse gas emissions and costs, while offering improved sustainability and marketing opportunities for manufacturers.
   

This dairy packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Product Type

• Liquid cartons
• Bottles and jars
• Pouches
• Cans
• Cups and tubes
• Others

Market, By Material

• Plastic
• Glass
• Metal
• Paper & paperboard
• Others

Market, By Application

• Milk
• Cheese
• Cream
• Butter and ghee
• Yogurt
• Ice-cream
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa