US Dairy Products Market Size, Share, and Trends 2024 to 2033

The US dairy products market size was estimated at USD 55.5 billion in 2023 and is anticipated to reach around USD 73.03 billion by 2033, poised to grow at a CAGR of 2.79% from 2024 to 2033.

Key Takeaways

• By product type, the milk segment dominated the market in 2023.
• By product type, the yogurt segment is expected to grow at the fastest CAGR during the forecast period.
• By distribution channel, the supermarket/hypermarket segment held the largest share of the market in 2023. The segment is observed to sustain the position during the forecast period.
• By distribution channel, the specialty stores segment is expected to grow at a significant rate over the forecast period.

US Dairy Products Market Overview

The U.S. dairy products market offers food products prepared with milk or containing materials derived from milk. These are mostly made from cow's milk, although they can also be made from the milk of goats, sheep, and buffalo. Many types of dairy products exist, including yogurt, ice cream, cheese, butter, and milk. Given their high nutritional content which includes calcium, vitamin D, protein, and other important minerals, these foods are a vital part of a balanced diet.

Dairy products are defined as everything that is made from milk and include things like cottage cheese, cream cheese, yogurt, butter, ice cream, sour cream, cottage cheese, and powdered milk. There are several varieties of this necessary dairy product, including whole, skim, and low-fat milk. Dairy products are used in a variety of culinary and food preparation procedures and applications related to cooking.

Ingredients, including milk, butter, cheese, yogurt, cream, and many more, are frequently utilized in a wide range of culinary applications. While butter is used as a spread and in cooking, milk may be drunk as a beverage and added to salads, sandwiches, and pasta dishes; yogurt is utilized in smoothies, dips, and salads, and cream is used to provide richness to sauces, soups, and desserts. Proteins, calcium, and vitamin D are among the nutrients that dairy products contain and are necessary for a healthy body.

• According to the data published by OBERLO, U.S. e-commerce sales are estimated to be around USD 1.04 trillion in 2022, an increase of 8.5% in 2022.

Growth Factors

• Increased awareness of the nutritional benefits of dairy products, including their high protein and calcium content, has driven consumer preferences towards these products. Manufacturers often respond by introducing fortified or functional dairy products, appealing to health-conscious consumers.
• Continuous innovation in dairy product development, including new flavors, formats, and packaging, attracts consumers and helps companies stay competitive. The introduction of novel products, such as Greek yogurt, probiotic-rich dairy items, and lactose-free alternatives, can drive the U.S. dairy products market growth.
• The rise of e-commerce has made it easier for consumers to access and purchase dairy products online, contributing to the expansion of the U.S. dairy products market. Online platforms provide convenience, a wide product range, and often direct-to-consumer options.

US Dairy Products Market Scope

US Dairy Products Market Dynamics

Driver

Raising awareness of nutrition and health

Dairy products are regarded as a vital part of a balanced diet because of their high calcium content, which is necessary for the growth and health of bones. Dairy also contains important amounts of protein, minerals (such as potassium and magnesium), and vitamins (including B12 and D). Demand for dairy products is rising as people become more health-conscious and look for nutritious, nutrient-dense meals.

The development of lactose-free and plant-based dairy substitutes has also been influenced by the increased knowledge of lactose intolerance and milk allergies, which has further changed the dynamics of the U.S. dairy products market. In response to consumer demand for functional meals that promote general well-being, dairy firms are increasingly fortifying their products with extra nutrients.

Restraint

Presence of substitutes

The expansion of the U.S. dairy products market is anticipated to be constrained by the availability of superior dairy substitutes such as soymilk, almond milk, coconut milk, and rice milk. When compared to dairy products, certain non-dairy items are easier to digest and have greater nutritional value.

For instance, rose milk is best suited for those who are lactose intolerant because it includes antioxidants that support the immune system, while soymilk is cholesterol-free and provides vital monounsaturated and polyunsaturated fatty acids. Demand for non-dairy goods has also increased as a result of the growth in veganism in some areas.

Opportunities

Rising population

Demand for vital minerals like calcium and protein, which are plentiful in dairy products, rises in tandem with the world's population growth. Due to better economic conditions and higher disposable incomes, the countries' rapidly growing populations are consuming more dairy products. The U.S. dairy products market is further supported by the fact that more individuals are switching from traditional diets that exclude processed foods and dairy products to modern ones as urbanization takes up momentum.

Expansion of e-commerce sector

The rise of e-commerce platforms and digital technologies presents opportunities for dairy companies to reach consumers directly and engage them through online channels. Investing in e-commerce capabilities, digital marketing, and direct-to-consumer sales channels can help dairy companies expand their reach, gather valuable consumer insights, and offer personalized shopping experiences. Additionally, leveraging data analytics and artificial intelligence can optimize supply chain management, inventory forecasting, and marketing strategies to drive growth and efficiency in the U.S. dairy products market.

Product Type Insights

The milk segment dominated the U.S. dairy products market in 2023. The reason for this expansion is that milk consumption has increased in developed nations due to its high nutritional value, which includes calcium and protein. In addition, milk drinking lowers the incidence of osteoporosis in the elderly, which is anticipated to increase demand for it significantly.

Besides, the yogurt segment is expected to grow at the highest CAGR during the forecast period. Consumer demand for healthier food options has driven the popularity of yogurt, as it is often perceived as a nutritious snack or breakfast item. In addition, the growing product launch is expected to propel the U.S. dairy products market over the projected period.

Moreover, the desserts segment is observed to achieve a notable rate of growth during the forecast period. Dairy products contribute to the texture, flavor, and richness of desserts, enhancing their taste and overall sensory experience. Ingredients like cream, butter, and cheese add creaminess, smoothness, and indulgence to desserts, making them more satisfying and enjoyable to consume.

Many desserts featuring dairy ingredients have deep-rooted cultural and culinary significance in various regions around the world. For example, dairy-based desserts like cheesecake, tiramisu, flan, and ice cream have become iconic symbols of culinary heritage and tradition in Western and European cuisines. The popularity of these traditional desserts contributes to the dominance of the desserts segment in the U.S. dairy products market.

Distribution Channel Insights

The supermarkets/hypermarkets segment held the largest share of the U.S. dairy products market in 2023. The segment is observed to continue dominance throughout the forecast period. Supermarkets and hypermarkets offer a diverse selection of dairy products, including milk, cheese, yogurt, butter, cream, and other related items. The extensive product range allows consumers to explore different brands, types, and variations of dairy products in one location.

Additionally, dairy product manufacturers often engage in branding and promotional activities within supermarkets and hypermarkets to attract consumer attention. In-store promotions, discounts, and product placements influence consumer purchasing decisions.

Besides, the specialty stores segment is expected to grow at a significant rate over the forecast period. Specialty stores often provide an educational experience for customers, with knowledgeable staff who can share information about the origins, production methods, and characteristics of different dairy products.

Recent Developments

• In February 2022, Danone North America introduced the Light+Fit brand of yogurt. The flavors seen in stores include orange and lemon. Like many of the company's other innovative goods, they are prepared from milk that is sourced locally and comes in packaging made of paper that is extensively recyclable.
• In June 2023, Chobani announced the release of Chobani® Zero Sugar* Drinks, a cutting-edge zero-sugar product in a handy drink container that offers customers a naturally sourced, high-protein on-the-go choice.

US Dairy Products Market Companies

• Danone SA
• Groupe Lactalis
• Froneri International Limited
• Nestlé SA
• The Kraft Heinz Company
• Conagra Brands Inc.
• California Dairies Inc.
• Continental Dairy Facilities LLC
• Dairy Farmers of America Inc.
• Schreiber Foods Inc.

Segments Covered in the Report

By Product Type

• Milk
• Cheese
• Butter
• Desserts
• Yogurt
• Others

By Distribution Channel

• Supermarket/Hypermarket
• Specialty Stores
• Convenience Stores
• Others