Romania's Dairy Industry in 2025: Real Challenges and Strategic Opportunities

Romania's dairy industry enters 2025 facing a combination of challenges and opportunities that will shape processors’ strategies for the coming years. After a period of raw material price volatility, European trends now point to relatively stable demand—but with lower profit margins.

According to Eurostat data, Romania produces approximately 1.15 million tonnes of drinking milk and over 300,000 tonnes of cheese and butter annually. However, imports still account for 18–20% of the domestic market. The average profit margin in dairy processing is estimated between 3% and 5%, below the EU average, meaning any cost increase has an immediate impact.

Major challenges stem from rising production costs—energy, fuel, packaging—as well as from the pressure of EU regulations on animal welfare and sustainability. Moreover, regional competition remains strong, and imports of processed dairy products are gaining market share in Romanian retail.

On the opportunity side, local processors can leverage their proximity to raw material sources and develop premium, organic, or high value-added products (such as aged cheeses or functional yogurts). The clean label product segment is growing in popularity and can deliver better margins.

Exports remain a viable option for processors with capacity and international standards, particularly in the Middle Eastern and Asian markets, where demand for European dairy products is on the rise.

For 2025, the key to success lies in balancing cost control with a diversified product portfolio, tailored to demand in both retail and HoReCa.

(Photo: Freepik)