Cream of the crop: M&A and investment in SE Asia’s dairy sector

Demand across Southeast Asia is moving rapidly up the value chain—from basic liquid milk toward yogurt, cheese, and functional dairy—driven by urbanization, a rising middle class, and growing preference for premium and health-oriented products.

The region’s dairy market is valued at approximately US$34bn in 2025 and is projected to reach US$46bn by 2030, growing at ~6% CAGR. Consumption remains relatively low—20–30 liters per capita in markets such as Indonesia and Vietnam versus 100+ liters in more mature economies—leaving significant room for growth.

The industry continues to move up the value curve as consumers shift beyond liquid milk into yogurt, cheese, and functional dairy. Investors are backing brands with strong local relevance, integrated supply chains, and clear premiumization potential. Since 2023, both strategic players and private equity funds have accelerated investment—supporting domestic champions, upgrading processing technology, and building regional platforms. Value-added categories are expanding the fastest and delivering stronger margins, setting the stage for sustained deal momentum.

Looking ahead, investors should monitor opportunities that balance growth with supply-chain resilience. Emerging local leaders are scaling quickly—and are becoming increasingly attractive acquisition targets.

Please read our full report here.

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About BDA

BDA Partners is the global investment banking advisor. We are a premium provider of Asia-related advice to sophisticated clients globally, with 30 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services, Sustainability and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes. BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.

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