Thailand’s dairy market has grown into one of Southeast Asia’s most dynamic food sectors, shaped by both rising domestic consumption and increasing investment in production. 

Demand for milk, yoghurt, cheese, and other dairy products has expanded steadily as urbanisation, higher incomes, and changing dietary preferences drive consumers toward protein-rich and value-added foods. 

At the same time, the market reflects a mix of domestic producers and international brands competing for a share of this evolving landscape.

Despite limited natural advantages for large-scale dairy farming, Thailand has built a relatively strong production base through government support and private sector initiatives. 

Policies promoting dairy development, combined with partnerships with foreign firms, have allowed Thailand to reduce reliance on imports while expanding local capacity. 

Yet, imports of specialised products, particularly premium cheeses and milk powders, remain significant as domestic supply cannot meet all demand segments.

As Thailand positions itself as both a consumer and processing hub, its dairy industry is increasingly linked to regional trade flows. 

Growing exports to neighbouring ASEAN countries, coupled with rising domestic demand, highlight the dual role of the sector. 

The coming years will likely see more competition, product innovation, and consolidation as both local and multinational players aim to capture growth opportunities in a market that balances traditional consumption with modern lifestyle trends.

Dairy in Thailand in numbers

These data points provide a broad overview of the size of Thailand’s dairy market and its trajectory.

Milk market in Thailand

Thailand’s milk market is valued at US$2.94 billion in 2025, with projected annual growth of 7.39 percent through 2030, according to data collated by Statista. 

Per capita revenue is estimated at US$41.01, with average consumption of 23.1 kilograms per person. 

Market volume is expected to reach 2.14 billion kilograms by 2030, with 5.5 percent growth in 2026, Statista’s data says.

Dairy and egg market in Thailand

Thailand’s dairy products and eggs market is valued at US$8.56 billion in 2025, with annual growth projected at 5.55 percent through 2030, according to data collated by Statista. 

Per capita revenue is US$119.48, with average consumption of 47.6 kilograms per person. 

Market volume is forecast to reach 4.11 billion kilograms by 2030, with 4 percent growth in 2026, Statista’s data says.

Thailand dairy production, tonnes

Source: FAO Stat, accessed August 30, 2024

Thailand dairy imports

Source: Trade Map, accessed August 30, 2025

Thailand dairy exports

Source: Trade Map, accessed August 30, 2025

Dairy prices in Thailand

Challenges facing Thailand’s dairy market

There are a number of challenges facing Thailand’s dairy market. These include:

Structural and demographic pressures

The sector is dominated by ageing farmers, with few successors entering the industry. 

Labour shortages add pressure as it becomes harder to attract younger workers. 

Oversupply of raw milk and limited use of farm-level data hinder efficient management and long-term sustainability.

Cost, supply chain and climate vulnerabilities

High production and logistics costs erode farm margins, especially for small-scale producers. 

The cold chain remains under-developed, raising risks of quality loss in Thailand’s hot, humid climate. 

Climate extremes, including heat stress and drought, further strain herds and reduce productivity.

Market competition and demand limitations

Imports benefit from free-trade agreements, intensifying competition. 

Domestic consumption growth is modest due to high levels of lactose intolerance and the fact that dairy is not central to Thai cuisine. 

Broader economic challenges such as household debt and inflation also constrain consumer spending on dairy products.

Opportunities in Thailand’s dairy market

Despite the challenges there are a number of opportunities in Thailand’s dairy market. These include:

ASEAN and regional export expansion

Thailand has become a leading dairy exporter within ASEAN, with growth in neighbouring markets. 

Duty-free access through trade agreements provides competitive advantages, and negotiations with new partners could further expand export opportunities.

Innovation in value-added and health-oriented products

Consumer preferences are shifting toward cheese, yoghurt, lactose-free, and plant-based alternatives. 

There is also growing interest in fortified, ready-to-drink, and functional dairy products aimed at health-conscious and ageing consumers.

Rising domestic output and strategic production shift

Thailand is positioning itself as a regional hub for dairy processing, especially in UHT and flavoured milk products. 

Removal of tariffs on certain inputs supports local processors and encourages investment in capacity expansion.

Market growth supported by demographics and lifestyle shifts

Urbanisation, higher incomes, and changing dietary habits are increasing demand for convenient and health-oriented foods. 

Dairy is benefiting from this trend, with the market expected to continue expanding steadily.

Key dairy businesses in Thailand

There are a number of key players in Thailand’s dairy market.

These include:

Here are the key dairy businesses in Thailand, organised by company:

Dairy Farming Promotion Organization of Thailand (DPO)

A state enterprise best known for the Thai-Denmark brand. It collects raw milk from cooperatives and is a leader in UHT milk production.

The Thai Dairy Industry Co., Ltd.

One of the oldest private processors in the country, managing large-scale processing capacity and distribution.

Dutch Mill Co., Ltd.

A major domestic manufacturer producing yogurt drinks, fresh milk, and Dutchie yoghurt. Strong presence in ASEAN export markets.

FrieslandCampina Thailand (Foremost)

The local arm of the global cooperative, producing UHT milk, pasteurised milk, condensed milk, and yogurt under the Foremost brand.

Charoen Pokphand Group (CP-Meiji)

Part of Thailand’s largest agro-industrial conglomerate, CP-Meiji is a major player in dairy processing and distribution.

Betagro PCL, Tipco Foods, Thailand President Foods PCL

Diversified food-sector companies with growing involvement in dairy production and product lines.

The Mali Group

Thailand’s leading producer of sweetened condensed milk with a strong export footprint.

Farm Chokchai

Asia’s largest dairy farm, combining large-scale milk production with agritourism and value-added dairy products such as ice cream.

Laemthong Corporation Group (Country Fresh Dairies)

Producer of pasteurised and UHT milk under the Country Fresh brand, with strong links to dairy cooperatives and school milk programmes.

Popular dairy products in Thailand

There are a range of popular dairy products available in Thailand.

These include:

Fresh and UHT milk

Fresh milk remains a staple, supported by the national school milk programme. 

UHT milk is especially popular due to its convenience, long shelf life, and wide availability across Thailand. 

Flavoured UHT milk such as chocolate, strawberry, and malt is highly favoured by children and younger consumers.

Yoghurt and yoghurt drinks

Yoghurt products have grown rapidly, with both cup yoghurt and ready-to-drink formats enjoying strong demand. 

Probiotic and fruit-flavoured yoghurt drinks are among the most consumed items, with brands like Dutch Mill and CP-Meiji leading the category.

Cheese

Cheese consumption is rising, particularly mozzarella and processed cheese. 

This growth reflects the spread of Western dining, fast food outlets, and bakery culture across urban centres in Thailand.

Condensed milk

Sweetened condensed milk is a traditional favourite and a key ingredient in Thai-style iced coffee, tea, and desserts. 

It remains one of the most widely used dairy products in households and food service.

Ice cream and dairy desserts

Ice cream is popular nationwide, supplied by domestic farms like Farm Chokchai as well as global brands. Dairy-based desserts are also gaining traction with younger, urban consumers.

Functional and fortified dairy

Collagen-infused, fortified, lactose-free, and plant-based alternatives are emerging strongly. 

These products target health-conscious consumers, ageing populations, and those with dietary restrictions.

Dairy in Thailand regional comparison

Dairy markets around Southeast Asia vary significantly. 

Here is a brief overview of dairy markets among Thailand’s regional peers.

Vietnam

The dairy sector is expanding, but demand continues to outpace local supply. Imports remain a key source of milk and related products. 

Consumption is rising as incomes grow and dietary habits shift toward greater inclusion of dairy.

Indonesia

Domestic supply is limited, and most demand is met through imports. 

Policy initiatives such as school meal programmes are expected to accelerate dairy uptake. 

Consumption remains relatively low compared to other Asian markets.

Philippines

Domestic production is minimal, and the market relies heavily on imports to meet demand.

Consumption is growing steadily, supported by a young population and increasing preference for packaged and value-added dairy products.

Malaysia

Local production is not sufficient to meet demand, with imports making up a large share. 

Consumption has grown steadily, with packaged milk and flavoured products popular among younger consumers.

Cambodia

The market is still emerging, with limited local production and reliance on imported products. 

Consumption is concentrated in urban centres where international brands have stronger presence.

Laos

The market is underdeveloped with little domestic production. 

Most products are imported, and dairy consumption remains limited outside major cities.

FAQ: Dairy in Thailand

These are some of the most common questions about dairy in Thailand.

How big is dairy in Thailand?

Thailand’s dairy sector is one of the largest in Southeast Asia, with steady growth in both domestic consumption and exports, supported by government programmes such as the school milk scheme.

Who are the major players in Thailand’s dairy industry?

Major players include the Dairy Farming Promotion Organization of Thailand (Thai-Denmark), Dutch Mill, CP-Meiji, FrieslandCampina (Foremost), the Thai Dairy Industry Co., Ltd., and the Mali Group.

Where does Thailand import its dairy from?

Thailand imports dairy mainly from Australia, New Zealand, and the EU, focusing on milk powder, cheese, and specialised products.

What dairy products are most popular in Thailand?

Popular dairy products include UHT milk, flavoured milk, yoghurt drinks, condensed milk, cheese, and ice cream.

What are the challenges and opportunities in Thailand’s dairy market?

The industry faces challenges from high costs, limited farm efficiency, climate pressures, and strong import competition, while opportunities lie in regional exports, value-added products, and growing health-conscious demand.

Outlook for Thailand’s dairy market

Thailand’s dairy sector is expected to expand steadily, driven by urbanisation, rising incomes, and health-focused consumption. 

Export growth within ASEAN and new trade agreements will support market opportunities, while demand for value-added products like yoghurt, cheese, and lactose-free milk continues to rise. 

Challenges remain with production costs, climate risks, and import competition, but the outlook points to moderate long-term growth and increasing regional integration.

That said, Thailand’s business environment and food and beverage industry is dynamic and can change quickly. 

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