Australia’s milk consumption resumes downward trend
Per capita intake falls despite population growth boost
20 June 2025
1 minute read
By: Australia’s fluid milk consumption is expected to decline by 0.4% in 2025, marking a return to its long-term downward trend after a slight uptick in 2024, according to FAS/Canberra. The modest drop brings total consumption to an estimated 2.435 million metric tons.
While overall demand is slowing, Australia’s recent population growth—fueled by high immigration rates—is helping cushion the decline. After peaking at 2.6% in late 2022, annual population growth dropped to 1.8% by late 2024, still above historical norms. This growth is expected to moderate the pace of consumption decline, which has averaged one percent annually in recent years.
However, per capita milk consumption continues to fall at a faster rate—around two percent per year—reflecting shifting consumer preferences. Early figures from Dairy Australia show fluid milk intake was 5.3% lower in January and February 2025 compared to the same period in 2024, although those figures may be revised.
Analysts suggest that even as population increases, it will not be enough to offset the steady decline in individual milk consumption.
