Dairy Foods presents its 2023 State of the Industry report.
Inflation remains a key dairy trend
The state of the dairy industry is strong
Several categories enjoyed significant strength in the past year.
Welcome to to the 2025 State of the Industry report. For this year’s theme, we tap into the music industry, citing iconic rock ‘n roll hits and a few “sad songs” in the case of dairy alternatives. Even milk, long considered a laggard in terms of sales, had a "record-breaking" year, with dollar sales rising 4% year over year to $20.4 billion. We also should note kefir, housed under Circana’s “All other milk” category, was definitely "in tune," as dollar sales skyrocketed by 22% YoY to nearly $227 million.
Despite many dairy categories "walking on sunshine" overall, some dairy — and non-dairy — categories were "singing the blues." Check out our pivotal "State of the Industry" reports on Milk; Ice Cream/Novelties; Cheese; Yogurt and Cultured Products; Coffee, Tea and Juice Beverages; and Nondairy Beverages to learn what categories are "Top 10" and which ones are "Falling" out of consumer consciousness. We also "Can't Help Falling in Love" with several new products highlighted in this report.
Ingredients and Exports also are "shooting for the stars" in the dairy processing industry so be sure to check out the latest trends in those categories. So, sit down with a favorite CD or vinyl record and enjoy this year's "State of the Industry."
Editor’s note: This report is meant as a standalone State of the Industry report. It is not intended to be compared to any prior Dairy Foods report as different time periods and other factors could skew results.
In the case of U.S. dairy exports, no “rebelling” is needed, particularly since price is powerful. For all the concern about trade wars, slowing global economic growth, shipping issues and de-globalization, U.S. dairy exports have been strong for products where U.S. prices have been relatively cheap over the past year.
Ingredients are similar to a great singer-songwriter. The hits keep coming and they resonate for years to come with iconic artists like Billy Joel, Journey, Bon Jovi, Pink and Lady Gaga . We take an in-depth look at the ingredient market, starting with the big buzzword: protein.
Sponsored by IFPC.
If we had to characterize plant-based milk alternative sales as a song, they were definitely nowhere near the level of a nasty “breakup” song, like Taylor Swift’s “We Are Never Ever Getting Back Together,” or Robyn’s “Dancing on My Own.” However, the overall category has been "singing the blues" recently.
Sponsored by Cargill.
For most every musician, some songs become big hits, while others simply do not catch on. In the ready-to-drink (RTD) coffee, tea and juice categories, there are also some hits and misses.
These days, cultured dairy is a rock and roll legend that people would figuratively spend thousands to see in concert, a la Beyoncé, Coldplay or The Weeknd. Thanks primarily to the health and wellness trend — which encompasses those taking GLP-1 medications as well as TikTok videos — yogurt and cottage cheese are definitely two of the hottest subcategories in the entire food industry.
Sponsored by CEM.
When it comes to natural cheese, “it’s almost heaven” for the category, which Chicago-based market research firm Circana notes is growing in both sales and units.
Sponsored by Nercon.
Demonstrating staying power in the ice cream category is the $8.9 frozen novelties category, which for the 52 weeks ending Sept. 7 not only generated year-over-year (YoY) growth of 2.5%, but outpaced the ice cream/sherbert category, which “lapped up” dollar sales of $8.6 billion, according to data from Chicago-based market research firm Circana.
After a decades-long decline and fluctuating volume, consumers are saying “yes” and “loving” the nutritional value of milk, sticking with “real” dairy as the most familiar option versus the perceived heavily processed plant-based dairy alternatives.
Sponsored by NOSHOK.
Opening image courtesy of brebca / iStock / Getty Images Plus.