Sheep Milk Market Size, Share, Growth, and Industry Analysis, By Type (Liquid Milk, Cheese, Yogurt, Powdered Milk, Infant Formula), By Application (Dairy Industry, Food & Beverage, Nutraceuticals, Retail, Specialty Diets), Regional Insights and Forecast to 2033

Sheep Milk Market Overview

The Sheep Milk Market size was valued at USD 1.22 million in 2024 and is expected to reach USD 12.24 million by 2033, growing at a CAGR of 33.41% from 2025 to 2033.

Sheep milk production continues to expand worldwide as demand for nutrient-rich dairy alternatives grows. In 2024, over 1.5 million metric tons of sheep milk were produced globally, with Europe contributing more than 62% of the total supply.

Spain and Greece alone produce over 450,000 metric tons annually, driven by traditional cheese varieties like Manchego and Feta. Sheep milk is richer in fat and protein compared to cow’s milk, containing around 5.4 grams of protein and 6.5 grams of fat per 100 ml. This nutrient profile is driving demand in premium cheese production. In New Zealand, sheep milk output crossed 14 million liters in 2023, supplying specialized markets like infant formula and probiotic yogurts.

The high digestibility of sheep milk, with lower levels of A1 beta-casein, supports its use among lactose-intolerant consumers. With over 1,000 licensed sheep dairies operating in the EU in 2024, the market is steadily transitioning toward organic and grass-fed certifications, with organic sheep milk accounting for more than 10% of total EU production.

Key Findings

DRIVER: Rising consumer preference for high-protein, easy-to-digest dairy options continues to boost sheep milk demand, with protein levels averaging 5.4 grams per 100 ml.

COUNTRY/REGION: Europe remains the dominant producer and consumer, delivering over 62% of total global sheep milk volume in 2024.

SEGMENT: Cheese production uses nearly 70% of global sheep milk output, with Europe processing over 700,000 metric tons annually for traditional PDO cheeses.

Sheep Milk Market Trends

The sheep milk market is experiencing consistent growth fueled by changing dietary habits and rising awareness of nutritional benefits. In 2024, consumer interest in alternative dairy grew by 22% in Western Europe, where sheep milk is increasingly positioned as a premium functional food. Artisanal cheese production is a major driver, with over 60% of sheep milk processed into products like Roquefort, Pecorino Romano, and Manchego. Greece, producing more than 300,000 metric tons yearly, exports 70% of its sheep milk cheese output within the EU. New Zealand’s Spring Sheep Milk Co saw a 15% increase in its export volumes to Asian markets in 2023, responding to demand for infant nutrition products rich in natural calcium and bioavailable protein. Research shows sheep milk has about 50% more calcium than cow’s milk, reaching approximately 170 mg per 100 ml. The trend toward specialty yogurts is also expanding, with Australia reporting a 12% rise in sheep milk yogurt sales in 2024. Online grocery platforms are expanding the reach of sheep milk products, with direct-to-consumer sales accounting for over 20% of specialty dairy purchases in the UK in 2023. Functional foods featuring sheep milk ingredients for gut health, including probiotic yogurt and kefir, are gaining popularity among consumers aged 30–55. Sustainability also shapes market trends; over 18% of EU sheep milk farms are now certified organic, and New Zealand is expanding carbon-neutral certification for sheep dairy herds. These trends indicate strong growth potential as consumers worldwide seek nutrient-rich, digestible dairy alternatives.

Sheep Milk Market Dynamics

The dynamics of the sheep milk market highlight the main forces shaping supply, demand, innovation, and strategic growth across regions. With rising demand for digestible, high-protein dairy alternatives, evolving supply chain structures, premium positioning, and sustainability pressures, the market faces both strong opportunities and challenges. Understanding these key drivers, restraints, opportunities, and challenges helps stakeholders navigate this growing industry with confidence.

DRIVER

Rising demand for protein-rich, easily digestible dairy alternatives

Sheep milk’s naturally high protein and fat levels, combined with its lower allergenic profile, make it a preferred choice among health-conscious consumers. In 2024, studies confirmed sheep milk’s protein levels at an average of 5.4 grams per 100 ml, compared to 3.2 grams for cow’s milk. This nutritional advantage supports demand for premium cheeses, yogurts, and nutritional beverages. The growing interest in A2 protein and reduced-lactose dairy is encouraging producers to expand flocks, with over 12 million dairy sheep globally supplying the market.

RESTRAINT

Limited large-scale processing infrastructure

Despite rising demand, the lack of industrial-scale sheep milk processing facilities restricts supply chain scalability. In 2024, more than 70% of EU sheep milk dairies were small-scale farms with under 500 ewes each. This fragmentation limits export capacity and consistency in large export deals. Small herds in New Zealand and Australia face similar challenges, with production volumes below 20 million liters per year, restricting their ability to serve high-volume export contracts in Asia and North America.

OPPORTUNITY

Growth in specialty nutrition and infant formula

Sheep milk’s digestibility and nutrient density create strong opportunities in infant nutrition and specialty formulas. Research in 2023 found sheep milk has about 50% more calcium and double the short-chain fatty acids of cow’s milk, boosting its appeal for high-value nutritional applications. New Zealand’s Spring Sheep Milk Co and Sheep Milk Company launched dedicated infant formula lines, with exports to China rising 18% in 2023. By 2025, more than 5% of global specialty formula volumes are expected to contain sheep milk.

CHALLENGE

Price volatility and production costs

Sheep milk production costs are relatively high due to smaller herd sizes and seasonal yield fluctuations. In 2024, the average yield per dairy sheep ranged from 350 to 600 liters annually, compared to over 6,000 liters per dairy cow. This supply limitation drives raw milk prices up by 40–60% over cow’s milk equivalents. Climatic conditions in Mediterranean regions impact milk yields, causing output variations of up to 15% year-on-year, posing challenges for processors and exporters trying to ensure consistent supply volumes.

Sheep Milk Market Segmentation

The sheep milk market is segmented by type and application, with liquid milk, cheese, yogurt, powdered milk, and infant formula leading product categories. In 2024, liquid sheep milk accounted for about 18% of total output, while cheese production consumed nearly 70% of global supply. By application, the dairy industry remains the largest segment, processing over 900,000 metric tons annually into cheese and yogurt. Specialty diets, functional food, and nutraceutical segments are expanding, with demand for high-protein, allergen-friendly products driving growth.

By Type

• Liquid Milk: Liquid sheep milk is consumed fresh or pasteurized, mainly in Europe and parts of Asia. In 2024, Spain and Greece processed over 250 million liters for local markets. Sheep milk’s high solids content, at around 18%, makes it ideal for direct consumption and small-scale farm sales.
• Cheese: Cheese remains the top product, with Europe producing over 700,000 metric tons of sheep milk cheese annually. Roquefort Société processes over 17,000 metric tons of milk each year to make Roquefort PDO cheese, while Italy’s Pecorino Romano sector uses more than 120 million liters of milk per season.
• Yogurt: Sheep milk yogurt is expanding in premium health food retail, with Australia’s sales volume increasing by 12% in 2024 to over 5 million liters. Rich in CLA and probiotics, sheep yogurt offers double the protein content of standard yogurt brands.
• Powdered Milk: Sheep milk powder is niche but growing, with more than 15,000 metric tons produced globally in 2024, mainly for export to Asia. New Zealand exports powdered sheep milk for use in health supplements and specialty beverage mixes.
• Infant Formula: The infant formula segment saw 18% export growth in 2023, driven by rising demand in China and Southeast Asia. Spring Sheep Milk Co and Sheep Milk Company are expanding capacity to supply this premium segment, with average protein levels of 5 grams per 100 ml making it attractive for premium blends.

By Application

• Dairy Industry: Over 900,000 metric tons of sheep milk are used annually for dairy processing, mainly into cheese and yogurt. Traditional PDO cheeses account for more than 60% of European sheep milk use.
• Food & Beverage: Sheep milk is used in ice creams and health drinks, with niche brands reporting sales growth of 15% in 2023. Restaurants and gourmet retailers are expanding sheep milk dessert menus.
• Nutraceuticals: The high nutrient density supports functional food applications, with more than 5% of new dairy supplement launches in 2024 including sheep milk ingredients.
• Retail: Direct farm-to-consumer sales reached over 100 million liters in 2024, with organic labels capturing 20% of premium retail shelf space in France and Spain.
• Specialty Diets: Sheep milk is increasingly used in ketogenic and A2 dairy diets, with US specialty retailers reporting a 25% rise in sheep milk product sales from 2023 to 2024.

Regional Outlook for the Sheep Milk Market

The regional outlook provides an overview of where sheep milk production, consumption, and export growth are strongest. This section covers leading production regions like Europe, growing supply hubs like Asia-Pacific, and emerging niche markets in North America and the Middle East & Africa. Regional differences in production volumes, processing capacity, and export trends reveal how the global sheep milk industry is evolving.

• North America

North America is expanding niche production, with US states like New York and Vermont producing over 5 million liters in 2024. Brands like Old Chatham Creamery and Haverton Hill Creamery supply regional cheese markets. Local production rose by 10% in 2023 as consumer demand for alternative dairy options increased.

• Europe

Europe accounts for 62% of global sheep milk supply, with Spain, Greece, France, and Italy leading production. Over 450,000 metric tons of sheep milk cheese are produced annually, with PDO cheeses generating strong export demand. France’s Roquefort Société processes more than 17,000 metric tons of milk each year for Roquefort cheese alone.

• Asia-Pacific

New Zealand and Australia dominate Asia-Pacific output. New Zealand’s sheep milk exports rose by 15% in 2023 to over 14 million liters, mainly for infant formula and probiotic yogurt. Australia’s sheep milk production supports local specialty yogurt brands, which recorded double-digit sales growth in 2024.

• Middle East & Africa

The Middle East is expanding boutique production. In 2024, Turkey produced over 30,000 metric tons of sheep milk for domestic cheese. North African countries like Morocco also contribute, with sheep milk cheeses accounting for 5% of total artisanal cheese production. Emerging interest in premium dairy is expected to boost local processing.

List of Top Sheep Milk Companies

• Granarolo (Italy)
• Lactalis (France)
• Fonterra (New Zealand)
• Savencia (France)
• Eurial (France)
• Sheep Milk Company (New Zealand)
• Haverton Hill Creamery (USA)
• Old Chatham Creamery (USA)
• Roquefort Société (France)
• Spring Sheep Milk Co (New Zealand)

Lactalis: Lactalis processes over 500 million liters of sheep milk annually through brands like Président and Société, with cheese exports reaching more than 70 countries in 2024.

Granarolo: Granarolo operates across Italy with over 150 million liters of sheep milk sourced from 2,500 cooperative farms, focusing on PDO cheeses and organic yogurt lines that grew by 12% in 2023.

Investment Analysis and Opportunities

Investment in the sheep milk market is growing steadily as producers scale up to meet rising demand for premium dairy. In 2023, over USD 50 million was invested in New Zealand’s sheep milk sector to expand herd sizes and build new processing plants. Europe’s PDO cheese producers are modernizing facilities, with Italy alone upgrading more than 20 processing plants in Sardinia and Lazio. Funding for organic certification increased by 15% in Spain and Greece in 2024, supporting the transition of small farms to meet export standards. Specialty dairy cooperatives in the US are attracting venture capital, with two new sheep milk creameries planned for New York and Oregon by 2025. Export opportunities to China and Southeast Asia are driving investment in infant formula capacity, with New Zealand targeting a 20% rise in sheep milk-based formula production by 2026. Private equity interest is increasing in boutique brands that produce premium yogurt and kefir for urban retail chains. Automation and sustainable farming technologies are key investment areas; in 2024, over 35% of EU sheep dairies began trials for automated milking systems to boost productivity by up to 25%. Digital marketing and e-commerce platforms are helping small brands expand direct-to-consumer sales, which reached 100 million liters in 2024. With sustainability certifications and organic labeling capturing 18% of European retail sales, investors see strong growth prospects in eco-friendly branding. These trends point to continued capital inflows and modernization in traditional sheep dairy regions and emerging export markets.

New Product Development

New product development in the sheep milk market is driving premium positioning and functional benefits. In 2024, over 120 new sheep milk yogurt and kefir SKUs were launched in Europe alone. Brands like Spring Sheep Milk Co introduced new probiotic yogurt lines containing up to 1 billion CFU per serving, targeting gut health segments. Lactalis expanded its organic sheep cheese portfolio with aged PDO varieties for high-end retail. New Zealand’s Sheep Milk Company developed a fortified infant formula with added Omega-3 DHA, marketed to China’s premium baby nutrition sector. Artisanal brands in the US are experimenting with flavored sheep milk ice creams, with more than 15 new variants launched in 2023. Functional powder blends mixing sheep milk with collagen and probiotics are trending in Asia-Pacific, with exports to Japan increasing by 12% in 2024. In Europe, over 30% of new product launches in sheep cheese feature organic certification, tapping into sustainability-conscious consumers. Granarolo launched lactose-free sheep milk yogurt in 2024, expanding its reach to health-focused demographics. New packaging solutions such as resealable pouches and biodegradable containers are helping brands meet eco-friendly packaging targets. Small-scale producers in Greece and Spain are launching limited-batch raw sheep milk cheeses for gourmet buyers, with exports to the Middle East growing by 20% in 2023. Online retailers are also promoting new subscription boxes featuring artisan sheep milk cheeses and yogurts, with sales up by 18% in the UK in 2024. This innovation cycle keeps the sheep milk market fresh and responsive to consumer trends.

Five Recent Developments

• In 2023, Spring Sheep Milk Co increased its export supply to Southeast Asia by 18%, focusing on infant nutrition.
• Granarolo launched its new organic sheep yogurt line across Italy in mid-2024, adding 15 new SKUs.
• Lactalis expanded its PDO Roquefort production by 5,000 metric tons in 2023 to meet EU demand.
• Old Chatham Creamery opened a new aging cave in New York in 2024, boosting artisan cheese capacity by 30%.
• Sheep Milk Company secured funding in 2023 to build a new drying facility, raising annual powdered milk output by 2,500 metric tons.

Report Coverage of Sheep Milk Market

The sheep milk market report provides comprehensive analysis covering global production, regional trends, product innovations, key players, and supply chain developments. The report analyzes more than 20 country markets, tracking output volumes, herd expansion, and certification trends. It includes segmentation by product type—liquid milk, cheese, yogurt, powdered milk, and infant formula—highlighting volumes exceeding 1.5 million metric tons globally in 2024. Regional breakdowns show Europe leading with 62% of global supply, while Asia-Pacific is the fastest-growing export hub for infant nutrition. The report profiles major companies like Lactalis and Granarolo, which handle over 500 million liters of sheep milk combined each year. Investment trends highlight modernization of traditional dairies and new processing plants, with over 35% of EU farms trialing automation in 2024. The report tracks how e-commerce and direct-to-consumer models now account for over 20% of specialty sheep dairy sales in top markets. It also explores sustainability drivers, noting that 18% of Europe’s production now carries organic certification. Recent product innovations, including probiotic yogurts, functional powders, and lactose-free sheep milk, are detailed alongside export trends to Asia and the Middle East. The report offers supply chain insights into raw milk collection, seasonal yield fluctuations, and certification impacts. Five recent developments confirm how leading brands are scaling capacity, adding new products, and expanding global reach. This detailed coverage supports stakeholders with real data to plan investments, product launches, and regional expansions across a thriving global sheep milk industry.

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