Dairy brands compete for growth and shelf space
Dairy companies are developing products around taste, nutrition, convenience and value as the category competes with plant-based alternatives and other sources of protein. Circana data show that dairy products carrying protein claims formed a $10.4 billion segment of the US dairy market, valued at $104 billion, as of July.
The protein-claim segment increased in value by 13.7% and in volume by 7.5% over the previous year. Across the broader dairy market, value growth was 2% and volume growth was 0.3%. Demand has also strained supplies of ingredients such as whey, contributing to higher costs and shortages and prompting manufacturers to examine plant-based ingredients and other formulations.
Plant-based cream and creamers are among the products entering traditional dairy territory. Circana recorded 4.8% growth in dollar sales and 6.4% growth in unit sales for both categories between mid-2024 and mid-2025. Innovation in these products has included simpler ingredient lists and organic offerings, alongside products aimed at consumers seeking less processed options.
Dairy companies are responding with new flavours, functions and formats in creamers. Coffeehouse culture, cold coffee and viral beverage trends have supported demand for creamers designed to provide more than a conventional addition to coffee, including cold-foam and café-style experiences.
Fluid milk has also recorded renewed progress after years of decline. New packaging and varieties, including ultra-processed and lactose-free products, have been part of that development. MilkPEP, the dairy sector’s Checkoff programme, has introduced Milkscape, a free AI-powered market-intelligence platform. The service gives processors and retailers access to consumer trends, sales data and related insights intended to support product development, shelf placement, marketing and milk sales.
Changes in how consumers, nutritionists and policymakers assess dairy fat have coincided with greater interest in whole milk and other full-fat dairy products. Protein, satiety and whole-food nutrition are among the factors cited in the renewed attention to full-fat dairy.
Other developments include hybrid formulations that combine dairy and plant proteins as suppliers respond to demand for protein and tight whey availability. ADM and other suppliers are developing plant-based ingredients intended to help manufacturers balance nutrition, functionality and texture. Precision-fermentation company Better Dairy has self-affirmed the GRAS status of lactopontin, with US nutrition and supplement launches in view while it follows a separate regulatory route for infant formula. Danone is using artificial intelligence in its commerce strategy, with executive Arthur Sylvestre describing internal alignment, digital consistency and consumer needs as priorities rather than technology alone.
