Africa’s dairy market set for steady growth over next decade

AFRICA – Africa’s dairy market is set for steady growth over the next decade, driven by rising global demand. 

A report by IndexBox, forecasts that the market will grow at a compound annual growth rate (CAGR) of 1.7% from 2024 to 2035. 

This growth is expected to increase the market volume to 83 million tons and its value to US$74.2 billion by the end of 2035, reflecting a positive trend in both consumption and production.

According to the report, dairy consumption in Africa reached 69 million tons in 2024, a figure that mirrors the previous year’s levels. 

Over the past decade, consumption has risen at an average annual rate of 1.5%, with a notable spike in 2019 when it jumped by 4.7%.

Revenue for the dairy market also saw a modest increase, reaching US$61.7 billion in 2024, up 1.7% from the previous year. 

Egypt, Kenya, and Tanzania led the way, consuming a combined 30% of the total volume, with Egypt alone accounting for 8.4 million tons. 

Other key players like South Africa, Ethiopia, and Algeria followed, making up an additional 45% of the market.

Production figures tell a similar story. In 2024, Africa produced 67 million tons of dairy, maintaining a steady rise of 1.5% annually since 2013. 

Whole fresh milk dominated the market, making up 79% of production, while skim milk and yoghurt trailed behind. 

“The demand for dairy is growing, and production is keeping pace,” the report noted. 

Egypt and Kenya again topped the list of producers, alongside South Africa, which collectively contributed 31% of the total output.

Imports also played a significant role, rising to 2.3 million tons in 2024 after a three-year decline. Algeria emerged as the largest importer, bringing in 761,000 tons, followed by Libya and Egypt.

Meanwhile, exports dipped slightly to 505,000 tons, with South Africa and Uganda leading the charge. 

“We’re seeing more countries rely on imports to meet demand, especially for powdered milk,” noted an industry analyst.

The report highlights Uganda as a standout, with its dairy consumption and production growing at an impressive 5.7% and 5.9% annually, respectively. 

This reflects a broader trend of increasing dairy popularity across Africa, fueled by population growth and rising awareness of dairy’s nutritional benefits. 

Despite challenges like fluctuating import prices, which dropped 17% to US$2,313 per ton in 2024, the market’s outlook remains optimistic, promising sustained growth through 2035.

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