United States Dairy Market

United States Dairy Market Size:

United States dairy market size reached US$ 109.98 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 153.52 Billion by 2032, exhibiting a growth rate (CAGR) of 3.30% during 2024-2032. The increasing consumer demand for high-protein diets, innovations in dairy products, the growing popularity of organic and non-GMO options, expanding export markets, rising health consciousness, and advancements in dairy farming and production technologies are some of the major factors propelling the market growth.

United States Dairy Market Analysis:

• Major Market Drivers: The rising consumer preference for high-protein diets, with dairy products such as milk, cheese, and yogurt being a key source represents the major driver of the market across the US. Health consciousness and awareness about the nutritional benefits of dairy are boosting the demand for dairy.
• Key Market Trends: The diversification of product offerings to meet evolving consumer preferences represents the key trend of the United States dairy market growth. There is a noticeable shift towards plant-based dairy alternatives, driven by vegan and lactose-intolerant consumers. Innovations including lactose-free, fortified, and probiotic-rich dairy products are gaining traction.
• Competitive Landscape: The report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
• Challenges and Opportunities: The market faces several challenges including fluctuating milk prices which impact profitability for farmers, and competition from plant-based alternatives appealing to health-conscious and lactose-intolerant consumers. However, the market also faces various opportunities such as the growing demand for high-protein, organic, and non-GMO dairy products.

United States Dairy Market Trends:

Increasing Health Consciousness

The growing consumer awareness regarding the health benefits of dairy products, which are rich in essential nutrients such as calcium, vitamins, and protein, is boosting the demand for dairy products. The growing emphasis on high-protein diets, particularly among health-conscious consumers and fitness enthusiasts is driving the consumption of dairy products including milk, cheese, and yogurt. For instance, programs such as MyPlate and Food and Nutrition Service (FNS), initiated by the USDA, highlights the nutritional value of dairy products and encourages consumer awareness of dairy products as part of a healthy lifestyle. Moreover, according to the data published by IBIS World, 2023 witnessed a significant incline in the dairy consumption in the USA, which is expected to continue in 2024. This is further shaping the United States dairy market overview.

Growing Product Diversification and Innovation

The rising development of new dairy products such as lactose-free options, probiotic-rich foods, and fortified items that cater to diverse consumer needs is fueling the market growth. Innovations including flavored and functional dairy products attract a wider audience and help retain consumer interest in traditional dairy. For instance, in April 2024, Prairie Farms Dairy announced the launch of four new lactose-free dairy options in what it believes to be an underserved category. The company’s 86-year reputation has been built on producing the highest quality dairy products in the marketplace, and the new lactose-free lineup is being introduced as the “Gold Standard” for lactose-free whole & 2% milk in gallons and cottage cheese & sour cream in 16-ounce tubs. This is expected to influence the United States dairy market forecast positively over the coming years.

Rising Organic and Non-GMO Trends

The increasing popularity of organic and non-GMO dairy products along with the increasing consumer preference for natural and sustainable food options is acting as a major growth-inducing factor. This trend supports higher demand for premium dairy products and encourages farmers and producers to adopt organic farming practices. For instance, in February 2024, Califia Farms launched Califia Farms Complete, a creamy plant milk with nine essential nutrients, eight grams of protein, all nine essential amino acids, and half the sugar of dairy milk. Made from a special blend of pea, chickpea, and fava bean protein, Califia Farms Complete is available now at Target, Walmart, and other retailers nationwide with a suggested retail price of $6.69. It is a Non-GMO Project Verified. This is further fueling the United States dairy market revenue significantly.

United States Dairy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on product, application, and distribution channel.

Breakup by Product:

• Liquid Milk
• Cheese
• Laban
• Yogurt and Curd
• Butter and Clarified Butter
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product. This includes liquid milk, cheese, laban, yogurt and curd, butter and clarified butter, and others.

The demand for liquid milk in the U.S. is driven by its status as a dietary staple, offering essential nutrients like calcium, vitamin D, and protein. Its versatility in cooking, baking, and direct consumption appeals to a broad range of consumers, including families, health-conscious individuals, and those seeking lactose-free options.

Cheese demand in the U.S. is fueled by its wide use in various cuisines, snacks, and culinary applications. Its rich flavor, diversity of types, and role in popular foods like pizza and sandwiches make it a favorite. Additionally, the growing popularity of artisanal and specialty cheeses attracts gourmet and health-conscious consumers.

The demand for laban, a fermented dairy drink, is growing in the U.S. due to its digestive health benefits, refreshing taste, and cultural influence from Middle Eastern cuisine. Health-conscious consumers appreciate its probiotic content, and its use in smoothies and cooking adds to its appeal. For instance, in February 2024, Yaza introduced its traditional Mediterranean labneh dairy product in the United States, opting for Greiner Packaging's K3 sustainable cardboard plastic cup. The K3 design offers functional benefits, ensuring ease of handling and portion control for consumers. This is expected to facilitate the United States dairy market recent developments during the forecast period.

Yogurt and curd demand is driven by their health benefits, including probiotics for gut health, high protein content, and versatility. Popular as breakfast items, snacks, or ingredients in recipes, their appeal is enhanced by the availability of various flavors, types, and options like Greek yogurt.

The demand for butter and clarified butter (ghee) is driven by their rich taste, essential role in cooking and baking, and perceived health benefits. Consumers appreciate butter for its natural ingredients, while ghee is favored for its high smoke point and use in traditional and health-focused recipes.

Breakup by Application:

• Bakery and Confectionary
• Clinical Nutrition
• Frozen Food
• Others
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes bakery and confectionary, clinical nutrition, frozen food, and others.

The bakery and confectionery industry's demand for dairy stems from its critical use in products like cakes, pastries, chocolates, and ice creams. Dairy ingredients such as butter, cream, and milk enhance texture, flavor, and quality, driving consistent demand from bakers and confectioners who rely on dairy for premium product offerings. This is further driving the United States dairy demand significantly.

In clinical nutrition, dairy is valued for its high protein, calcium, and essential nutrients, vital for patient recovery and health maintenance. Products like fortified milk, yogurt, and dairy-based supplements are in demand for specialized diets, catering to the nutritional needs of patients in hospitals, care facilities, and home healthcare settings.

The frozen food sector's demand for dairy is driven by its use in products like frozen desserts, ice cream, ready-to-eat meals, and pizzas. Dairy ingredients contribute to the taste, texture, and quality of frozen foods, making them appealing to consumers seeking convenience without compromising on flavor and nutritional value.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialist Retailers
• Online Stores
• Others
   

The United States dairy market report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets and hypermarkets, convenience stores, specialist retailers, online stores, and others.

In the market, supermarkets and hypermarkets drive demand through extensive product variety, competitive pricing, and the convenience of one-stop shopping. They offer fresh and packaged dairy products, regular promotions, and loyalty programs, making them popular among consumers seeking both staple and specialty dairy items in a single, accessible location. This is further creating a positive United States dairy market outlook.

Convenience stores cater to the U.S. dairy market by offering quick access to essential dairy products like milk, cheese, and yogurt. Their extended hours and strategic locations make them ideal for last-minute purchases and on-the-go consumers, meeting the demand for immediate and convenient dairy shopping needs.

Specialist retailers in the U.S. dairy market attract consumers seeking premium, organic, and artisanal dairy products. Their focus on quality, unique selections, and expert knowledge provides a tailored shopping experience, appealing to health-conscious and gourmet consumers looking for specialized dairy options that are often not available in general retail stores.

Online stores drive demand in the market by offering the convenience of home delivery, a wide selection of dairy products, and competitive pricing. The ease of digital shopping, subscription services, and contactless transactions appeals to tech-savvy consumers and those preferring to avoid physical stores, especially amid health and safety concerns.

Breakup by Region:

• Northeast
• Midwest
• South
• West
   

The report has also provided a comprehensive analysis of all the major markets in the region, which include Northeast, Midwest, South, and West.

In the Northeast, the market is driven by a strong tradition of dairy farming, supported by favorable climatic conditions and abundant pastureland. Proximity to major urban centers like New York City and Boston boosts demand for fresh dairy products. Additionally, a growing consumer preference for organic and locally sourced dairy supports regional dairy farms and cooperatives. Government subsidies and support programs also play a significant role in sustaining the dairy industry in this region.

In the Midwest, the market thrives due to the region's vast agricultural land and established dairy farming infrastructure. States like Wisconsin and Minnesota are major dairy producers, benefiting from advanced farming technologies and efficient supply chains. The presence of large dairy cooperatives and processors helps maintain market stability. The increasing demand for cheese and other dairy products, both domestically and for export, further drives growth in this region.

In the South, the market is driven by a rising population and growing urbanization, leading to increased demand for dairy products. Warm climate conditions necessitate advancements in dairy farming practices and cooling technologies. The region also benefits from a growing preference for flavored and value-added dairy products, such as yogurt and cheese. Investment in dairy processing facilities and distribution networks supports market expansion and meets the needs of a diverse and expanding consumer base.

In the West, the market is characterized by large-scale dairy farms and a focus on technological innovation in farming practices. California, the leading dairy producer in the U.S., benefits from a favorable climate and access to export markets via West Coast ports. The region's emphasis on sustainable and organic dairy products caters to health-conscious consumers. Additionally, the proximity to tech hubs drives innovation in dairy processing and distribution, enhancing market efficiency and growth.

Competitive Landscape:

• The report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
• The competitive landscape of the United States dairy market is highly intense, with major players like Dean Foods, Dairy Farmers of America, and Nestlé dominating. These companies focus on product diversification, innovation, and sustainability to maintain the United States dairy market share. Smaller, regional dairy producers and organic brands, such as Organic Valley and Horizon Organic, also compete by catering to niche markets and health-conscious consumers. For instance, in March 2024, the Kansas City Current announced a partnership with Dairy Farmers of America (DFA) through 2024. DFA is a national farmer-owned cooperative with nearly 11,000 family farm owners. Headquartered in Kansas City and with more than 19,000 employees worldwide, DFA also manufactures a variety of dairy products including fluid milk, cheese, butter, ice cream, and more that connect its family farms to family tables across the United States, including in Kansas City.

United States Dairy Market News:

• In June 2024, the Gujarat Cooperative Milk Marketing Federation, which markets dairy products under the Amul brand, announced the expansion of its product range in the US market after launching fresh milk in collaboration with the Michigan Milk Producers Association.
• In April 2024, Platinum Equity announced that the acquisition of a majority interest in Horizon Organic and Wallaby from Danone has been completed. Horizon Organic is the largest USDA-certified organic dairy brand in the world and is a pioneer in dairy beverages, having introduced the first organic milk available coast to coast in the United States in 1991. Horizon Organic’s portfolio of organic dairy products includes milk, creamers and whiteners, yogurt, cheese and butter. The acquisition also includes the Wallaby brand, an Australian-inspired Greek-style yogurt made with organic milk and premium ingredients.

United States Dairy Market Report Scope:

Key Questions Answered in This Report:

• How has the United States dairy market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the United States dairy market?
• What is the breakup of the United States dairy market on the basis of product?
• What is the breakup of the United States dairy market on the basis of application?
• What is the breakup of the United States dairy market on the basis of distribution channel?
• What are the various stages in the value chain of the United States dairy market?
• What are the key driving factors and challenges in the United States dairy market?
• What is the structure of the United States dairy market, and who are the key players?
• What is the degree of competition in the United States dairy market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States dairy market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States dairy market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States dairy industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.