Australia’s milk consumption resumes downward trend

Per capita intake falls despite population growth boost
calendar icon 20 June 2025
clock icon 1 minute read

Australians are drinking less milk, and that trend doesn’t appear to be slowing, according to FAS/Canberra. New figures from FAS/Canberra suggest fluid milk consumption will fall by another 0.4% in 2025, settling at roughly 2.435 million metric tons.

That dip follows a brief rebound last year, which now looks more like a blip than a shift in direction. Per person, milk consumption is dropping at a faster pace—about 2% a year—as shoppers continue turning to alternatives.

What’s helping hold up the national numbers is population growth. Driven mostly by immigration, Australia’s population rose sharply through 2022 and remains above average. Even so, more people aren’t enough to counter how much less milk each person is buying.

According to Dairy Australia, sales of fresh milk in January and February were down 5.3% compared to the same period in 2024. Those figures could still be revised, but the broader picture is clear.

Analysts don’t expect population gains alone to reverse the decline. Consumer tastes are changing, and milk isn’t the staple it once was.

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