Dairy Packaging Market Size

Dairy Packaging Market size was valued at USD 35.6 billion in 2023 and is poised to grow from USD 37.13 billion in 2024 to USD 52.0 billion by 2032, growing at a CAGR of 4.3% during the forecast period (2025-2032).

Surging dairy product consumption around the world, imposition of stringent packaging regulations, demand for sustainable packaging, advancements in packaging technologies, and high preference for minimalist packaging solutions are driving the demand for dairy packaging industry on a global level.

Rapidly increasing global population and growing disposable income of people are expected to boost the consumption of dairy products such as milk, yogurt, cheese, and butter. Need for efficient packaging solutions for these dairy products is expected to primarily drive the adoption of dairy packaging in the future. Imposition of strict regulations by regulatory bodies and governments regarding food safety, hygiene, and packaging materials to prevent contamination of dairy products is also creating new business scope for market players.

The highly perishable nature of most dairy products is expected to boost the demand for packaging solutions such as aseptic packaging, modified atmosphere packaging (MAP), and active packaging, which help in extending their shelf life. Rising emphasis on sustainability and eco-consciousness among consumers is also slated to boost the demand for sustainable and biodegradable dairy packaging in the long run.

Advancements in packaging technologies and materials coupled with rising popularity of minimalist packaging are also anticipated to favor the dairy packaging market growth. However, high costs of sustainable packaging materials, challenges in recycling of multi-layer flexible packaging, supply chain disruptions, raw material shortages, consumer backlash against plastic packaging, and susceptibility to spoilage are some key restraints predicted to trouble dairy packaging companies across the study period and beyond.

Key Market Attributes

In February 2025, SIG, a leading Swiss manufacturer of packaging solutions announced the launch of its new aseptic carton production plant in India. The plant is developed with an investment of USD 94 million and has the potential to create 300 jobs initially. Located in Ahmedabad, India, the plant is claimed to environmentally friendly and is focused on unlocking the full potential of the dairy industry in India. Growing preference for carton dairy packaging among Indian consumers is also a key factor that is expected to help SIG enhance its business potential through this new facility in the country. The plant will also offer packaging solutions for non-carbonated soft drink producers to further boost revenue generation for SIG in the long run.

In January 2025, Tetra Pak, a renowned packaging company headquartered in Switzerland partnered with Lactalis, a leading French multinational dairy company to announce the launch of a new sustainable packaging solution. The new aseptic carton pack is made from recycled polymer material that is ISCC-PLUS certified. Used cartons recycled in Spain were used in the production of this new packaging. Lactalis is using this novel packaging to offer its Puleva range of calcium skimmed, semi-skimmed, whole, and lactose-free milk. Chemical recycling was used to create this novel packaging as part of both companies’ efforts to opt for circular economy practices.

In January 2024, the Coop Group, a British consumer co-operative with a group of retail businesses and Emmi, a Swiss dairy company switched to sustainable polyethylene terephthalate (PET) bottles for their select dairy products. Coop’s organic Naturaplan brand also adopted this novel packaging for its different ultra-high-temperature milk products. The move is part of both companies effort to reduce packaging waste and establish closed loop cycles for their products as they transition towards circular economy business models. This transition to PET bottles is estimated to help these companies achieve a 25% reduction in carbon dioxide (CO₂) emissions.