Innovative Cheese, Butter and Yogurt Products Fueling Dairy Market Growth
17 Julio 2024 - 12:02PM
U.S. consumers are drinking less milk with each passing year, but
overall dairy sales are on a multiyear winning streak. Cheese,
butter and yogurt are fueling category growth, along with new
dairy-based products designed to capitalize on convenience, health
and snacking trends.
Data from market research firm Circana shows the refrigerated
dairy aisle has been the largest category in retail grocery over
the last year with $76 billion in sales. Over the last three years,
dairy retail sales have notched a growth rate of 15.4% or $10.1
billion.
According to a new report from CoBank’s Knowledge Exchange,
the outlook for retail dairy sales remains strong with additional
room for growth as consumer preferences and purchasing behaviors
evolve. Cheese and butter have even more upside potential, and
dairy products tailored to meet consumers’ growing desires for
healthy, protein-rich snack products have emerged as a new growth
opportunity.
“Dairy products have a diversity of applications and innovative
dairy processors are leveraging that to their advantage,”
said Corey Geiger, lead dairy economist with CoBank. “The
healthy snacking category is a growing megatrend that dairy
products can capitalize on with a host of conveniently packaged
solutions from low-fat cheeses and specialty yogurts to functional
dairy drinks.”
Cheese continues to anchor the dairy category, with annual sales
climbing. Per capita cheese consumption in the U.S. has doubled
over the last 20 years, reaching 40 pounds in 2022. That’s still
well short of per capita consumption in many European countries,
indicating there is ample room for growth. Innovation in the cheese
sector is being driven by expanded flavor varieties to reach more
consumers as U.S. demographics shift. Hispanic-style cheese has
been the fastest growing category over the last several years.
Butter has enjoyed a renaissance in the U.S. with per capita
consumption climbing 43% over the last 25 years. While American
butter brands have traditionally featured 80% butterfat,
European-style butter with 83% butterfat has steadily gained global
market share. U.S. consumers have been stepping up their purchases
of butter with 83% butterfat and domestic manufacturers have been
retooling production lines to better serve the U.S. market.
Yogurt has moved from being a morning meal to becoming an
anytime snack or healthy dessert choice. Per capita consumption in
the U.S. has grown 142% over 25 years, with Greek yogurt pacing
category growth. Yogurt brands are also capturing new sales as
consumers step-up use of weight-loss drugs. Danone attributes a
jump in demand for its high-protein, low-calorie yogurts, at least
in part, to consumers under treatment with those drugs or just
trying to manage their weight or wellbeing.
Most U.S. consumers view dairy products as food staples, which
has fueled sales of private label products. Private label sales are
outpacing premium brands in 10 of the 15 dairy categories tracked
by Circana. Store brand options making considerable inroads include
yogurt, cream cheese and cream.
CoBank food and beverage economist Billy Roberts said
consumer concerns around highly processed foods and preference for
clean labels are areas where traditional dairy products can
resonate, particularly with younger demographic groups.
“One of the things we’ve learned from following the plant-based
food sector is that long ingredient legends are an obstacle for
many younger, health-conscious consumers,” said Roberts. “Dairy
products are generally perceived as having clean labels with few
ingredients. Dairy brands can capitalize on that with the right
product mix and marketing.”
Watch a video synopsis and read the report, Dairy Products Have
More Growth Potential.
About CoBank
CoBank is a cooperative bank serving vital industries across
rural America. The bank provides loans, leases, export financing
and other financial services to agribusinesses and rural power,
water and communications providers in all 50 states. The bank also
provides wholesale loans and other financial services to affiliated
Farm Credit associations serving more than 77,000 farmers, ranchers
and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide
network of banks and retail lending associations chartered to
support the borrowing needs of U.S. agriculture, rural
infrastructure and rural communities. Headquartered outside Denver,
Colorado, CoBank serves customers from regional banking centers
across the U.S. and also maintains an international representative
office in Singapore.
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