Portugal Dairy Market and the Rise of Organic and Plant-Based Alternatives 2025-2033

Market Overview

The Portugal dairy market size reached USD 3.97 Million in 2024 and is projected to grow to USD 6.41 Million by 2033, exhibiting a CAGR of 4.92% during the forecast period of 2025-2033. Growth is driven by rising demand for organic and sustainably sourced dairy products aligned with Portuguese consumers' health and environmental preferences, the expansion of modern retail and e-commerce platforms, and strategic consolidation in the industry boosting product offerings and delivery capabilities. 

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Portugal Dairy Market Key Takeaways

• The market size stood at USD 3.97 Million in 2024.
• The market is expected to grow at a CAGR of 4.92% from 2025 to 2033.
• Forecast size of the market is USD 6.41 Million by 2033.
• Increasing consumer preference for organic and sustainably produced products is a major growth driver.
• Expansion of digital retail channels and e-commerce platforms is transforming dairy distribution.
• Strategic mergers and acquisitions are reshaping the competitive landscape in 2024.
• Lactogal's acquisition of Queijos Santiago in March 2024 highlights consolidation trends.

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Market Growth Factors

The Portugal dairy market growth is significantly fueled by a marked shift toward organic and sustainable dairy production, driven by growing consumer awareness concerning health, environmental impact, and food quality. Portuguese consumers increasingly select products that emphasize sustainability, animal welfare, and minimal chemical usage. This trend is bolstered by the European Union’s Common Agricultural Policy, which provides subsidies and advisory support for organic farming. Portugal has seen rapid organic farming interest and conversions, especially as traditional farming methods in northern and central regions already approximate organic standards. This shift reshapes industry production standards and enhances Portugal’s standing as a leader in sustainable dairy farming in the Iberian Peninsula.

Digital transformation and e-commerce expansion have revolutionized dairy product distribution in Portugal. In 2024, e-commerce gained significant market share as consumers embraced the convenience, variety, and competitive pricing available online. The COVID-19 pandemic accelerated adoption, normalizing online grocery shopping. Major retailers heavily invested in digital platforms and logistics, while small artisanal producers use e-commerce to access broader markets domestically and internationally. Digital platforms also enable producers to present sustainability credentials and build direct consumer relationships, democratizing market access and enhancing consumer choice, convenience, and transparency.

Strategic consolidation through mergers and acquisitions is reshaping the competitive landscape. In 2024, notable market consolidation occurred, exemplified by Lactogal’s acquisition of Queijos Santiago, which added three production facilities and expanded its cheese category product portfolio for domestic and Iberian markets. This trend reflects pressures from increasing production and raw material costs, a need for economies of scale, and the imperative to enhance distribution networks. Consolidation allows firms to enhance supply chain efficiencies, rationalize capacities, and invest in innovation and sustainability that may be difficult for smaller operators, thus strengthening overall market competitiveness.

Market Segmentation

Product Type Insights:

• Liquid Milk
• Flavored Milk
• Cream
• Butter
• Cheese
• Yoghurt
• Ice Cream
• Anhydrous Milk Fat (AMF)
• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Whey Protein
• Lactose Powder
• Curd
• Paneer

The report provides a detailed breakup and analysis of the Portugal dairy market by these product types, encompassing perishable and processed dairy products.

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Regional Insights

The report segments the market regionally into Norte, Centro, A. M. Lisboa, Alentejo, and Others. Although exact dominant region data or specific statistics are not directly quantified, these major regional markets are comprehensively analyzed for trends and forecasts from 2025 to 2033.

Recent Developments & News

In May 2025, Nestlé Portugal inaugurated its first public retail store named "The Good Store" at its Linda-a-Velha headquarters in Oeiras. The 165-square-meter facility offers around 90 Nestlé brands, including Portuguese staples, and a wide range of products in dairy, coffee, and vegetarian categories, reflecting ongoing expansion and brand presence enhancement strategies within the Portugal dairy market.

Key Players

• Lactogal
• Nestlé Portugal

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