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Despite slipping fluid milk sales, refrigerated dairy aisle remains largest retail category.
July 18, 2024
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. Over the next three years, approximately 90% of people have no plans to reduce their dairy product purchasing behavior.
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.”
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