United States Dairy Market to Grow with a CAGR of 3.49% through 2030
The United States dairy market is
mature, driven by high domestic consumption, innovation in plant-based
alternatives, rising exports, and evolving consumer preferences for health and
sustainability
According
to TechSci Research report, “United States Dairy Market – By Region, Competition,
Forecast & Opportunities, 2030F”, the United States Dairy market stood
at 109.93 billion in 2024 and is anticipated to grow USD 134.55 billion by 2030
with a CAGR of 3.49% during forecast period. The United States dairy market is one of the largest and
most influential in the world, playing a critical role in the global food
industry. It encompasses a wide range of products, including milk, cheese,
yogurt, butter, and other dairy derivatives. Dairy consumption has deep
cultural roots in the U.S., with dairy products being a staple in the daily
diets of Americans. Over the years, the market has evolved significantly, with
innovations in production, distribution, and consumer preferences. While the industry
remains strong, it is facing several shifts and challenges as it adapts to
changing consumer demands, environmental concerns, and competition from
alternative products.
Consumer preferences in the U.S. dairy
market have shifted in recent years, with an increasing focus on health and
wellness. Many consumers are now seeking dairy products that offer additional
health benefits, such as high protein content, probiotics, and vitamins. For
example, the popularity of Greek yogurt has soared due to its higher protein
content and perceived health benefits. Additionally, lactose-free and organic
dairy products are increasingly sought after, catering to consumers with
dietary restrictions or a preference for organic food products.
There is also growing demand for
functional dairy products—those that offer health benefits beyond basic
nutrition. These include products enriched with probiotics for digestive
health, omega-3s for heart health, and added vitamins such as Vitamin D and calcium
for bone strength. Brands have capitalized on this trend by introducing
fortified dairy products that appeal to the health-conscious consumer, and this
shift is expected to continue driving growth in the market.
Despite its strength, the U.S. dairy
market faces several challenges. One of the most pressing issues is price
volatility. Milk prices fluctuate based on factors such as global demand, feed
costs, weather conditions, and government policies. These fluctuations can have
a significant impact on the profitability of dairy farmers, especially smaller
operations that may not have the resources to absorb price fluctuations.
Additionally, competition from plant-based alternatives and changing consumer
preferences are further reshaping the market landscape.
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"United States Dairy Market”
The United States Dairy market is segmented into type, sales
channel, and company.
Based on the sales channel, the online segment is
the fastest-growing channel in the United States dairy market. E-commerce
platforms provide consumers with greater convenience and access to a wide
variety of dairy products, including niche and premium items. The rise in
online grocery shopping, fueled by the increasing popularity of home delivery
services and subscription models, has accelerated this trend. Additionally, the
ability to purchase directly from brands' websites or third-party platforms has
given consumers more options, often at competitive prices. This growth is
driven by the demand for personalized shopping experiences, ease of access, and
the expansion of online grocery offerings.
Based on the region,
the West region is the fastest-growing area in the United States dairy market,
propelled by large-scale operations and technological advancements. States like
California, the nation's leading milk producer, have significantly increased
productivity through innovations in genetics, breeding, and equipment. Large
farms, particularly those with over 1,000 cows, have driven this growth, with
the West and Southwest regions experiencing the most rapid productivity
increases. These developments have led to higher milk yields and more efficient
production processes, positioning the Western region at the forefront of the
U.S. dairy industry's expansion.
Major companies
operating in United States Dairy market are:
- Dairy
Farmers of America, Inc.
- Saputo
Cheese USA Inc.
- Land
O’ Lakes, Inc.
- Danone
North America
- Lactalis
American Group, Inc.
- California
Dairies, Inc.
- The
Kraft Heinz Company
- Nestle
USA, Inc.
- Agropur
Inc.
- Prairie
farms dairy, Inc.
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“One of the most
notable shifts in the U.S. dairy market has been the rise of plant-based and
dairy-free alternatives. The popularity of plant-based milks such as almond,
soy, oat, and coconut milk has increased dramatically in recent years,
especially among consumers who are lactose intolerant, vegan, or
environmentally conscious. According to market research, the plant-based dairy
alternative sector is growing at a rapid pace, with consumers increasingly
choosing plant-based options over traditional dairy. The surge in popularity of
plant-based dairy alternatives has created new competition for traditional
dairy producers, leading many to diversify their product lines. Some dairy
brands have responded by launching their own plant-based milk and yogurt products,
while others have embraced the hybrid model, creating dairy blends with
plant-based ingredients,” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based management consulting firm.
"United States Dairy
Market, By Product Type (Drinking Milk, Cheese, Yogurt, Butter, Others), By
Sales Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others),
By Region, Competition, Forecast & Opportunities, 2020-2030F”,
has evaluated the future growth potential of United States Dairy market and
provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the United States Dairy market.
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