Rising Dairy Sales Defy Declining Milk Consumption Trends in the U.S.
Source: The DairyNews
Despite a consistent decline in milk consumption, the U.S. dairy industry is experiencing a significant surge in overall sales, driven primarily by increased demand for cheese, butter, and yogurt.
This growth is further propelled by the introduction of innovative dairy-based products that align with current consumer preferences for convenience, health, and snacking.
According to data from the market research firm Circana, the refrigerated dairy aisle emerged as the largest category in retail grocery over the past year, with sales reaching $76 billion. Over the last three years, dairy sales have experienced a robust growth of 15.4%, amounting to an additional $10.1 billion.
A report from CoBank’s Knowledge Exchange has highlighted a positive outlook for the dairy sector, noting substantial potential for further expansion as consumer habits continue to evolve. Corey Geiger, lead dairy economist at CoBank, emphasized the strategic positioning of dairy products within the growing healthy snacking megatrend. He pointed out that low-fat cheeses, specialty yogurts, and functional dairy drinks are becoming increasingly popular among health-conscious consumers.
Cheese remains a stalwart of the dairy category, with U.S. per capita consumption doubling over the past 20 years to 40 pounds in 2022. However, this figure still trails behind many European countries, indicating significant potential for growth. The U.S. market has seen particular success with Hispanic-style cheeses, which have become the fastest-growing segment in recent years.
Butter has also seen a revival in popularity. Over the past 25 years, per capita butter consumption in the U.S. has increased by 43%. American consumers have shown a growing preference for European-style butter, which contains 83% butterfat, compared to the traditional 80% found in American butter. This trend has prompted domestic manufacturers to adapt their production lines to accommodate the shift in consumer preferences.
Yogurt has transitioned from being primarily a breakfast food to a versatile snack suitable for any time of the day. Its per capita consumption has skyrocketed by 142% over the last 25 years, with Greek yogurt leading the charge. The increased use of weight-loss medications has also contributed to rising yogurt sales, with companies like Danone reporting higher demand for their high-protein, low-calorie yogurt products.
The trend towards private label products is another factor buoying dairy sales, with store brands outperforming premium brands in 10 of the 15 dairy categories tracked by Circana. Notably, store brand yogurts, cream cheeses, and creams are making significant market inroads, benefiting from consumer perceptions of value and quality.
According to data from the market research firm Circana, the refrigerated dairy aisle emerged as the largest category in retail grocery over the past year, with sales reaching $76 billion. Over the last three years, dairy sales have experienced a robust growth of 15.4%, amounting to an additional $10.1 billion.
A report from CoBank’s Knowledge Exchange has highlighted a positive outlook for the dairy sector, noting substantial potential for further expansion as consumer habits continue to evolve. Corey Geiger, lead dairy economist at CoBank, emphasized the strategic positioning of dairy products within the growing healthy snacking megatrend. He pointed out that low-fat cheeses, specialty yogurts, and functional dairy drinks are becoming increasingly popular among health-conscious consumers.
Cheese remains a stalwart of the dairy category, with U.S. per capita consumption doubling over the past 20 years to 40 pounds in 2022. However, this figure still trails behind many European countries, indicating significant potential for growth. The U.S. market has seen particular success with Hispanic-style cheeses, which have become the fastest-growing segment in recent years.
Butter has also seen a revival in popularity. Over the past 25 years, per capita butter consumption in the U.S. has increased by 43%. American consumers have shown a growing preference for European-style butter, which contains 83% butterfat, compared to the traditional 80% found in American butter. This trend has prompted domestic manufacturers to adapt their production lines to accommodate the shift in consumer preferences.
Yogurt has transitioned from being primarily a breakfast food to a versatile snack suitable for any time of the day. Its per capita consumption has skyrocketed by 142% over the last 25 years, with Greek yogurt leading the charge. The increased use of weight-loss medications has also contributed to rising yogurt sales, with companies like Danone reporting higher demand for their high-protein, low-calorie yogurt products.
The trend towards private label products is another factor buoying dairy sales, with store brands outperforming premium brands in 10 of the 15 dairy categories tracked by Circana. Notably, store brand yogurts, cream cheeses, and creams are making significant market inroads, benefiting from consumer perceptions of value and quality.
