Dairy consumption in the European Union remained relatively stable in 2025; however, the structure of demand changed noticeably. Data from the European Commission and Eurostat indicate a more pronounced shift by consumers toward affordable products, to the detriment of premium segments, against the backdrop of persistent inflationary pressure.

From an economic perspective, this trend limits processors’ ability to pass increased costs on to final prices. In 2024–2025, the average farm-gate price of raw milk stood at EUR 50–52 per 100 kg, according to DG AGRI data—a level that supported farmers’ incomes but reduced processors’ room for manoeuvre.

Energy, packaging, and logistics costs remained above the average of the past decade, while more cautious end-demand led to margin compression, particularly for basic products. The standard product segment concentrates large volumes but generates low profitability.

From a legislative standpoint, requirements related to food safety, labelling, and traceability have not been relaxed, maintaining a high level of fixed costs. Looking ahead to 2026, dairy processors will be required to optimise their cost structures and adjust their commercial strategies to a more price-sensitive demand.

(Photo: Freepik)