The global dairy consumption landscape has experienced massive shifts in recent years, creating a fascinating split between nations that embrace dairy products and those that naturally avoid them due to biological and cultural factors. Global milk production reached around 950 million tons in 2024, an increase of 1.1% compared to the previous year, while the global dairy market was valued at USD 991.5 Billion in 2024. Research reveals a strong correlation between milk consumption and national per capita income, with wealthier countries consuming about 5.8 ounces of milk daily versus 2.4 ounces in low-income countries, though some nations face near-complete lactose intolerance rates.
What makes this topic particularly intriguing is how genetics, economics, and cultural traditions collide to create dramatically different dairy consumption patterns worldwide. Let’s dive into the data that reveals which nations lead the world in dairy consumption and which ones naturally avoid it.
European Union: The Dairy Consumption Powerhouse
The European Union remains the world’s largest milk-consuming region, with domestic consumption recorded at an impressive 140,400,000 metric tons in 2024. This sustained demand highlights Europe’s enduring dairy traditions and strong agricultural foundation. In 2025, the dairy industry continues to stand as the EU’s second-largest agricultural sector, playing a vital role in the region’s economy. Moreover, relatively low rates of lactose intolerance across much of Northern and Central Europe help maintain consistently high levels of dairy consumption.
In 2025, while overall per capita demand for fresh dairy products in Europe remains steady, consumption patterns continue to evolve. There has been a gradual shift away from dairy fat products such as full-fat drinking milk and cream, while cheese maintains its dominance – with Europe holding the largest share of global cheese consumption and per capita intake still on the rise. The European dairy market demonstrates resilience despite persistent climate challenges, environmental regulations, and herd reductions. The EU produces around 150 million tons of milk annually, though growth has plateaued in several member states, with exports having declined by roughly 1% in 2024.
India: The Production Giant with Domestic Focus
India stands as a dominant force in global milk consumption, reaching 121,495,000 metric tons in 2024. Milk holds a central place in Indian cuisine and cultural traditions, reinforcing its daily significance across the country. India also remains the world’s largest milk producer, with output totaling approximately 227 million tons in 2024. However, nearly all production is consumed domestically, with minimal exports – positioning India as a production powerhouse rather than a major player in international dairy trade.
India’s dairy industry spans wide-ranging products including ghee butter, lassi, and paneer, with curd and yogurt being the most valuable segments, while milk production increased over the past decade to over 221 million metric tons in 2022. The growth trajectory remains impressive for this dairy powerhouse. The most significant growth is expected in India where consumption is expected to increase to 25 kg per capita, driven by income and population growth.
United States: Steady Consumption Despite Changing Trends
The United States continues to hold a leading position among the world’s top milk-consuming nations, with domestic consumption reaching 88,768,000 metric tonnes in 2024 – cementing milk’s role as a dietary staple in American households. In early 2025, the U.S. increased cheese exports by roughly 7%, expanding its market share in Asia and Latin America. Exporters have particularly gained traction in cheese and butter, driven by strong production efficiency and the ability to adapt swiftly to global market fluctuations.
Milk consumption in the United States experienced a slight uptick beginning in 2020 continuing into 2022, as supply chain disruptions from 2020 Pandemic increased demand for locally sourced dairy, though milk production showed no growth with milk cow numbers decreasing by 47,000 since 2020. While consumers demand lactose-free alternatives, companies counter this trend by marketing milk’s health advantages, particularly its high protein value.
China: The Reluctant Dairy Consumer
China produces around 40–42 million tons of milk but continues to face oversupply challenges. The Ministry of Agriculture noted weaker demand for premium dairy products in 2024, though imports of milk powder and butter remain high as domestic output does not always align with processing needs. China’s milk consumption remains among the lowest globally, at just 37 kilograms per capita annually, reflecting the reality that over 90% of the population is lactose intolerant.
This biological reality creates a fascinating paradox in China’s dairy market. The average fresh dairy consumption per capita remains far lower than in the European Union and North America. Yet, China’s expanding milk production and shifting demographics are continuing to reshape import patterns. Imports of fluid milk, whey, butter, and milk powder declined in 2024 amid growing self-sufficiency efforts and a slowing birth rate – trends that are likely to persist through 2025.
New Zealand: The Export Champion
New Zealand remains the global “export champion” with moderate production growth, playing a strategic role in supplying milk powders and butter to Asia and the Middle East, where exports rather than domestic demand drive industry development. New Zealand’s dairy sector faces headwinds with milk production forecast to drop to 21.3 million metric tons in 2025, with domestic consumption remaining minimal as over 98% of milk output is destined for export.
Producers have continued shifting their focus from milk powder to higher-value products such as cheese, butter, and infant formula, with whole milk powder exports having fallen to 41% of total dairy exports in 2024. In 2025, rising demand from emerging markets like the UAE and Bangladesh continues to offset earlier declines in China and Algeria. This sustained strategic shift underscores how even smaller nations are asserting dominance in the global dairy trade through specialization, innovation, and a strong emphasis on quality.
Australia: Balanced Production and Consumption
Australia’s dairy production is expected to grow modestly by 1.1% in 2025, reaching 8.8 million metric tons. Cheese production is projected to remain steady at around 395,000 metric tons, while exports are forecast to decline to 150,000 metric tons from 165,000 in 2024. The sector continues to prioritize cheese production over other dairy products amid consistent domestic demand, with cheese consumption anticipated to reach a record 350,000 metric tons this year.
Australia represents a balanced approach to dairy, maintaining strong domestic consumption while participating actively in international markets. Australia cheese exports are forecast 5 percent higher in 2025 to 175,000 tons, showing the nation’s dual focus on meeting internal needs while capturing export opportunities.
South Korea: Nearly Complete Dairy Avoidance
In some countries, lactose intolerance can be as high as 100% of the population, such as in Yemen and South Korea, which greatly affects milk consumption and dairy consumption patterns. In certain regions like South Korea, lactose intolerance affects up to 100% of the population, drastically impacting milk and dairy consumption patterns on a national scale.
This near-universal lactose intolerance creates a natural barrier to dairy consumption in South Korea. Meanwhile, Sweden’s population of lactose intolerant individuals is right around 4%, showing the dramatic contrast between populations. The biological reality in South Korea means that traditional dairy products remain largely outside mainstream dietary patterns, though the country has developed alternative products to meet nutritional needs.
Yemen: Traditional Dairy Avoidance
Yemen represents another nation where lactose intolerance affects nearly 100% of the population, creating natural avoidance of dairy products. This biological characteristic has shaped food culture and dietary traditions for generations, leading to minimal dairy integration in traditional cuisine and eating patterns.
The combination of genetic factors and cultural adaptation means Yemen’s population has developed alternative sources for nutrition typically derived from dairy products in other nations. This pattern reflects the preferential development of lactase persistence over the last 5,000-10,000 years, particularly in areas where domesticated cattle became historically important.
