Riding on elevated dairy prices and a strong grass season, Ireland’s dairy exports rallied to record-setting levels in 2025. Exports reached €7.3bn (+14% YoY) in the period, with butter (€2bn, +24%), whey (€360m, +20%) and cheese (€1.7bn, +19%) benefiting from favourable demand and production dynamics.
Further upside is unlikely, however, as high milk supply volumes from mid-to-late 2025 are set to put pressure on commodity prices this year. With margins likely to come under pressure from a high base, Irish players are doubling down on premium dairy to boost competitiveness.
This isn’t a new strategy per se – Irish dairy has always bet on premium, grass-fed credentials – but the way brands are playing across formats and categories suggests an ambition to meet consumers through new occasions and value-added products.
Modern trends are also playing in the hands of Irish dairy brands. Snacking, gut health, and healthy indulgence are all major trends that have supported the fortunes of cheese, butter and yogurt. And opportunities await across formats and distribution channels.
“What suppliers are looking at is where they can add value, and I think having that diversification away from the commodity is really important for all Irish dairy, especially in the UK market,” said Bord Bia’s Estelle Alley. “It’s a very mature market, very strategically partner‑led, but it’s becoming more about innovation.
“That innovation is tapping into all of those areas – what can you add in terms of bringing new consumers in, both in retail and at a foodservice level as well.”
In terms of categories, snacking is where the game is at – with out-of-home emerging as a valuable channel for Irish suppliers. So where are the growth niches?
Irish dairy exports in numbers (2025)
Total dairy export value: €7.3bn, up 14% YoY
Number of export markets: ~140 markets served
Total volume shipped: >1.6m tonnes of dairy products
Top dairy export categories (by value)
Butter: €2bn, +24% YoY
Cheese: €1.7bn, +19% YoY
Whey: €360m, +20% YoY
Fat‑filled milk powder (FFMP): €975m, +16% YoY
Specialised nutritional powders: €630m, –25% YoY
Yogurt: >€50m, +5% YoY
Market mix
EU, UK and North America: 72% of total dairy exports by value
EU exports: €3.1bn, +20% YoY
UK exports: €1.3bn, +18% YoY
North America: €1bn, +11% YoY
Production backdrop
Milk collections: ~8.8bn litres in 2025 (record year)
Milk supply (Jan through Sept): +6% vs 2024
Source: Bord Bia
Snacking, yogurt and food‑to‑go formats
“We’re snacking so much more than we ever have been on the go, and dairy falls naturally into that as a healthier snack,” Alley said. “So in cheese snacking – across both adult and children’s formats – there’s a real opportunity. Cream cheese is probably another avenue, across both retail and foodservice, especially through natural products.”
On-the-go yogurt SKUs to target convenience occasions with healthy, protein-rich offerings are also in demand, she added. “There’s a real opportunity in yogurts from a pouch perspective,” said Alley. “Ireland pouches are quite prominent right through the journey from childhood to adulthood.”
In terms of markets, Irish dairy is ripe for expansion into the UK yogurt space, she added. “There are opportunities for Irish yogurts to look again at the UK market, whether that’s brand or own label, especially in that protein space.” Brands should also consider extensions into adjacent categories such as overnight oats to tap into breakfast, convenience and snacking occasions.
Out of home, the margins lie less in traditional foodservice outlets and more in food-to-go. But ultimately, what suppliers are looking at is where they can add value: whether that’s retail or foodservice.
“There’s so much opportunity in the out‑of‑home and retail space for brands to really start talking to the consumer,” said Alley. “Protein, fibre, salt content – these are the things that are now really important for consumers to be educated on.”
What’s certain is that protein is shaping up as a resilient trend – and likely to define product innovation in the short- and medium-term. “Protein is absolutely here to stay,” said Alley. “It’s going to be inherent in everything that people are looking at.”
Ingredients and whey move into focus
And in the ingredients space, Irish players are also strengthening their ingredient portfolios, particularly by increasing whey protein processing capacity.
“There’s been a lot of development and a lot of investment from Irish suppliers in the whole protein space, including nutritional ingredients,” said Alley.
Indeed, whey protein ingredients such as WPC80 and WPI continue to trade at mouth-watering premiums as supply and demand dynamics squeeze availability and maintain a stable premium for processors. And with expansion progressing slowly – as new facilities come online over two to three years – whey processing has become a reliable, high-margin income stream.
Margin pressure looms
A strong export year brings excitement but also realism. In 2026, global instability and inflation continue to put pressure on affordability and input costs, but dairy is overall well-placed to stay resilient despite market headwinds, Alley suggested.
“The mood is optimistic, but we know it’s still a fragile and volatile environment. Innovation is a real opportunity driver, and dairy is well placed to capitalise on that, particularly through naturalness and premiumisation.”
