The Philippines’ Dairy Market 2025: Overview

The Philippines’ dairy market continues to be shaped by strong consumer demand, low domestic production, and a growing reliance on imports. With increasing income levels and changing dietary preferences, consumption of dairy products such as milk, cheese, and yoghurt has risen steadily across both urban and rural areas. This growth is particularly evident among younger consumers and health-conscious households, who are driving demand for value-added and fortified dairy products.

Despite rising consumption, the Philippines produces only a small portion of the dairy it consumes, with local output meeting less than five percent of total demand. Most dairy imports, including milk powders and processed dairy products, come from countries such as New Zealand, the United States, and Australia. This heavy dependence on imports makes the sector highly sensitive to global supply chain disruptions and international price fluctuations.

To address this gap, the Philippine government and private sector stakeholders have launched initiatives aimed at developing the local dairy industry, including investments in breeding programmes, cold chain logistics, and farmer training. While progress remains gradual, these efforts are essential to improving domestic supply, supporting rural livelihoods, and building a more resilient and competitive dairy market in the years ahead.

Philippines’ dairy industry in numbers

The Philippines’ dairy industry remains heavily import-dependent, with local production meeting only a small fraction of national demand. Despite modest growth in domestic output, consumption continues to rise, driven by population growth, changing diets, and increasing income levels. The following figures provide a snapshot of the industry’s performance, covering production volumes, trade flows, consumption patterns, and structural challenges.

Philippines’ dairy market

The dairy market in the Philippines is projected to grow steadily over the next decade, increasing from US$1.45 billion in 2024 to US$2.20 billion by 2034, according to Expert Market Research. This reflects a compound annual growth rate (CAGR) of 4.30 percent between 2025 and 2034.

Philippines dairy consumption

Demand for dairy products in the Philippines is forecast to increase by 3 percent in 2024, reaching 3.5 million metric tons (MT) in liquid milk equivalent (LME), according to a 2023 report from the US Food and Agricultural Services Manila. 

Philippines milk market

The milk market in the Philippines is projected to generate revenue of US$3.67 billion in 2025, with expectations of sustained growth at a compound annual growth rate (CAGR) of 10.21 percent from 2025 to 2030, according to Statista. This growth reflects both rising demand for dairy and an expanding consumer base increasingly incorporating milk into daily diets.

In terms of volume, the market is anticipated to reach 1.88 billion kilograms by 2030, with a volume growth rate of 5.2 percent expected in 2026. On a per capita basis, average milk consumption is forecast at 12.6 kilograms in 2025, with revenue per person estimated at US$31.47.

The Philippines’ dairy imports

The Philippines relies heavily on dairy imports to meet domestic demand, sourcing approximately 99 percent of its dairy supply from international markets. With limited local production capacity and a rapidly growing consumer base, the country has become one of Southeast Asia’s largest dairy importers.

The Philippines’ dairy imports, 2024 vs 2023, US$

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Dairy businesses in the Philippines: key players

Domestic dairy companies

As of 2025, there are no pure-play dairy companies listed on the Philippine Stock Exchange (PSE). However, several publicly traded firms operate significant dairy businesses as part of their broader food portfolios.

San Miguel Food and Beverage, Inc. (PSE: FB) 

San Miguel Food and Beverage is one of the most prominent players in the market through its well-established Magnolia brand. The company produces a wide range of dairy products, including fresh milk, powdered milk, cheese, butter, yoghurt, and ice cream. As a subsidiary of the San Miguel Corporation, it represents the country’s largest integrated food and beverage business, with dairy forming a major component of its consumer offerings.

Century Pacific Food, Inc. (PSE: CNPF) 

Century Pacific Food is another key listed company involved in dairy. It owns and markets Birch Tree—a household name in the Philippines for powdered milk. The company also controls Snow Mountain Dairy Corporation, further expanding its presence in the sector. While dairy is not its primary revenue stream, it remains an important product line within Century Pacific’s growing portfolio of shelf-stable consumer goods.

Monde Nissin Corporation (PSE: MONDE)

Monde Nissin Corporation, although primarily known for its instant noodles and meat alternatives, also offers dairy-adjacent products such as creamy beverages and snack items that contain milk-based ingredients. Its expansion into ready-to-drink categories reflects shifting consumer preferences and positions the company within the broader dairy value chain.

Foreign dairy companies in the Philippines

Several foreign dairy companies have a strong presence in the Philippines, supplying both imported dairy products and locally manufactured goods through partnerships, joint ventures, or subsidiaries. These firms play a vital role in meeting domestic demand, given the country’s low self-sufficiency in milk production.

Nestlé Philippines 

Nestlé Philippines is one of the most dominant foreign players in the market. A subsidiary of Switzerland-based Nestlé S.A., it manufactures and distributes a wide range of dairy products including powdered milk, UHT milk, yoghurt drinks, and creamers under popular brands such as Bear Brand, Nido, and Nestlé Fresh Milk. Nestlé operates production facilities in the Philippines and has an extensive distribution network across retail channels.

See also: Manufacturing in the Philippines: Industry Overview

Fonterra Brands Philippines

Fonterra Brands Philippines, a subsidiary of New Zealand’s Fonterra Co-operative Group, is another major player. It is best known for its Anchor and Anlene dairy products, offering both nutritional milk and powdered milk products aimed at various age groups. Fonterra also supplies dairy ingredients to local food processors and bakeries.

FrieslandCampina

FrieslandCampina, based in the Netherlands, is represented through brands such as Friso and Alaska. It previously had a joint venture with Alaska Milk Corporation, a legacy Filipino brand, which was fully acquired in 2012. Although Alaska Milk is now managed locally, it operates under the strategic guidance of FrieslandCampina, bringing global standards to the Philippine dairy market.

Arla Foods

Arla Foods, a Danish multinational cooperative, has expanded its presence in the Philippines in recent years, offering products like organic milk, cheese, and butter through retail and foodservice channels. Its focus on premium and specialty dairy appeals to higher-income segments and health-conscious consumers.

See also: How to Start a Business in the Philippines for Foreign Firms

Popular dairy products in the Philippines

The Philippine dairy market is dominated by a variety of popular products that cater to diverse consumer needs across age groups and income levels. While fresh milk has a growing presence in urban centres, the market continues to be led by long-shelf-life and value-added dairy items due to limited cold chain infrastructure and high import dependency.

Powdered milk 

Powdered milk remains the most widely consumed dairy product in the Philippines. Brands like Bear Brand, Nido, and Birch Tree are household staples, offering options for children, adults, and the elderly. Powdered milk is preferred for its affordability, long shelf life, and versatility in both direct consumption and food preparation.

Condensed and evaporated milk

Condensed and evaporated milk are also extremely popular, used extensively in Filipino cooking and desserts. Products like Alaska and Carnation are found in many homes and small eateries, often used in traditional sweets such as leche flan, halo-halo, and baked goods.

UHT milk,reconstituted milk drinks

UHT (ultra-heat-treated) milk and reconstituted milk drinks are increasingly found in supermarkets and convenience stores, offering ready-to-drink options with flavours targeted at younger consumers. Brands such as Magnolia, Anchor, and Selecta offer plain, flavoured, and fortified milk variants.

Cheese

Cheese is another fast-growing category, particularly processed cheese used for cooking and snacks. Eden, Cheez Whiz, and Magnolia are among the most well-known brands, often used in dishes like spaghetti, ensaymada, and sandwiches.

Yoghurt and yoghurt drinks

Yoghurt and yoghurt drinks are gaining traction among health-conscious consumers. While still a niche market compared to powdered milk, products from Nestlé, Dutch Mill, and Yoplait are becoming more common, especially in urban areas and among younger demographics.

These products reflect both traditional consumption habits and emerging trends, with convenience, price, and nutritional value continuing to shape consumer preferences in the country’s dairy sector.

Dairy farming regions in the Philippines

Dairy farming in the Philippines is concentrated in a few key regions where climate, infrastructure, and support programmes favour livestock production. These areas serve as the backbone of the country’s limited domestic milk supply, contributing to fresh milk, carabao milk, and dairy development initiatives.

Calabarzon (Region IV-A)

Calabarzon is the top dairy-producing region in the Philippines. The provinces of Batangas, Cavite, and Laguna have long-standing livestock industries supported by strong agricultural cooperatives and access to Metro Manila’s large consumer market. This region benefits from favourable climate conditions, government breeding centres, and private dairy farms producing both cow and carabao milk.

Central Luzon (Region III)

Central Luzon, particularly the provinces of Nueva Ecija and Bulacan, is another major dairy farming area. Known for its flat lands and abundant feed resources, the region supports both smallholder dairy farmers and commercial operations. It also hosts facilities run by the National Dairy Authority (NDA) and the Philippine Carabao Center (PCC), which are involved in breeding and milk collection.

Northern Mindanao (Region X)

Northern Mindanao is a key dairy region, especially in Bukidnon and Misamis Oriental. The cooler climate and higher elevation are well-suited for dairy cattle, and the region is home to several integrated dairy farms and cooperatives. Bukidnon Dairy Cooperative is one of the more active players, producing milk for both regional consumption and national distribution.

Western Visayas (Region VI)

Iloilo and Negros Occidental in Western Visayas are emerging hubs for dairy farming, particularly for carabao milk production. These areas have seen increasing involvement from community-based dairy enterprises supported by local government units and rural development programmes.

Davao Region (Region XI)

In southern Mindanao, the Davao Region is a growing player in dairy farming, particularly in Davao del Sur and Davao City. The region’s development is tied to farm-to-market initiatives and public-private partnerships aimed at strengthening local milk supply chains.

These regions are the focus of ongoing efforts to expand the country’s dairy herd, improve breeding practices, and promote smallholder dairy enterprises. Despite limited output at the national level, these areas represent the core of the Philippines’ domestic dairy production and development potential.

The Philippines’ dairy market vs Vietnam, Indonesia

The dairy markets of the Philippines, Vietnam, and Indonesia share some structural similarities—such as low self-sufficiency, strong demand growth, and high import dependency—but they differ significantly in terms of scale, local production capacity, and development strategies.

All three countries are experiencing rising dairy consumption due to urbanisation, growing middle classes, and dietary shifts. However, consumption patterns differ. 

In the Philippines, powdered milk and condensed milk dominate, driven by price sensitivity and limited cold-chain infrastructure. Cheese, yoghurt, and flavoured milk are growing segments but remain niche.

Vietnam shows strong demand for fresh milk and value-added dairy products like yoghurt and dairy snacks. Its retail market has evolved rapidly with improved cold-chain logistics and strong domestic brands.

See also: Vietnam’s Dairy Market: Overview 

Indonesia, similar to the Philippines, has widespread consumption of powdered and sweetened condensed milk, but fresh milk and yoghurt are gaining popularity in urban centres.

See also: Indonesia’s Dairy Market: Imports, Production, Trends

What’s next?

The Philippines’ dairy market is characterised by strong consumer demand but extremely low self-sufficiency, with local production meeting less than 1 percent of national needs. Most dairy products, particularly powdered milk, are imported from countries like New Zealand and the United States.

Consumption is rising steadily, driven by a growing middle class and changing dietary preferences. Popular products include powdered milk, evaporated milk, UHT milk, and processed cheese. Despite government efforts to expand local production through breeding programmes and support for smallholders, the industry remains underdeveloped, heavily fragmented, and dependent on imports to fill the supply gap.

That said, the best way to keep up with the latest developments in the Philippines’ dairy market is to make sure to subscribe to the-shiv.

First published April 25, 2025.