United States Dairy Market Size, Share, Growth, Trend & Forecast 2026

Summary

Report Description

United States dairy market is experiencing significant growth due to government initiatives and the high demand for dairy products from households. Moreover, the increasing production of dairy products in the country is having a positive impact on market growth.

United States Dairy Market Scope

Dairy products are generally defined as food products that are produced from milk. These products undergo various processes such as pasteurization, homogenization, and fermentation to enhance taste, texture, and shelf life.

United States Dairy Market Overview

Due to the increasing milk production in the United States and the demand for milk-related products, the United States dairy market is experiencing significant growth. California, Wisconsin, Idaho, Texas, and New York are the top five states in milk production, collectively supplying over 50% of the country's annual milk. Furthermore, the domestic market for dairy products in the country is substantial, with milk being a staple in most households and cheese consumption being particularly high.

United States Dairy Market Drivers

According to data from the United States Department of Agriculture (USDA), milk production reached 226.46 million pounds in 2022, positively impacting market growth. Dairy product consumption in the United States has outpaced population growth, with variations in the consumption patterns of different dairy products among consumers. For example, per capita consumption of milk has decreased in recent years, likely due to competition from other beverages and a decline in the population of children.

The surging demand for cheese has played a significant role in the growth of the United States dairy market. Factors such as a wider selection of cheese, increased dining out, and the popularity of ethnic cuisine incorporating cheese have contributed to the rise in cheese consumption. Mozzarella has been the most popular cheese in recent years, and the consumption of various cheese varieties has been steadily growing, indicating its importance in the American diet.

Government initiatives have also contributed to the growth of the dairy market. For example, the United States Department of Agriculture (USDA) introduced the Organic Dairy Marketing Assistance Program (ODMAP) in January 2023. ODMAP aims to mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices in the organic dairy industry. Under ODMAP, USDA's farm service agency has allocated USD104 million to assist organic dairy operations with marketing expenses.

United States Dairy Market Trends

Consumers' awareness of the nutritional benefits of dairy products, such as calcium, protein, and vitamins, leads to consistent demand for items like milk, yogurt, and cheese. The taste and flavor profiles of various dairy products appeal to consumers, making them popular choices for daily consumption or as ingredients in recipes. Consumers often seek convenient and ready-to-eat dairy products, like pre-packaged yogurts or single-serving milk containers, to fit their busy lifestyles. Dairy products are versatile ingredients used in a wide range of culinary applications, including cooking, baking, and desserts, which drive their demand in households and restaurants.

E-commerce and D2C sales provide convenience to consumers, allowing them to purchase dairy products from the comfort of their homes. It eliminates the need to visit physical stores, saving time and effort. By selling directly to consumers online, dairy companies can reach a broader audience beyond their local markets. This allows them to tap into new customer bases and increase their market reach. Direct sales channels enable dairy companies to engage directly with their customers. They can gather feedback, respond to queries, and build stronger relationships, leading to better customer loyalty. E-commerce platforms often offer customization options, allowing consumers to personalize their dairy product orders, such as selecting specific flavors, sizes, or packaging. Online sales platforms provide valuable data on consumer behavior, preferences, and purchase patterns. These companies can bypass traditional distribution channels and bring their unique products directly to consumers. Some dairy companies emphasize sustainability in their D2C operations by using eco-friendly packaging and implementing efficient shipping practices to reduce their environmental impact.

Challenges in the United States Dairy Market

Plant-based milk alternatives directly compete with traditional dairy products, leading to a shift in consumer preferences and a potential decrease in dairy sales. Plant-based alternatives have captured a notable share of the milk market, especially among younger consumers who are increasingly health-conscious and environmentally aware. Growing awareness of health and wellness has prompted many consumers to opt for plant-based alternatives, perceiving them as healthier options with lower cholesterol and saturated fat content. Plant-based products are often considered more environmentally friendly than dairy products due to lower greenhouse gas emissions and water usage, attracting consumers who prioritize sustainability. The increasing popularity of plant-based alternatives has encouraged more investment in research, development, and marketing, further propelling their growth and market presence.

Recent Developments

In 2022, Land O'Lakes, Inc. launched Butter Balls for everyday cooking, which is a first-of-its-kind product and has a pre-portioned size that makes cooking easier.

Market Opportunities

· The increasing interest in dairy products is driven by consumers' growing awareness of the importance of maintaining a healthy lifestyle and making informed food choices. This trend has significantly impacted the dairy industry, leading to a surge in demand for fortified and functional dairy products with added probiotics, omega-3 fatty acids, and vitamins. Probiotics are beneficial live bacteria that support gut health and aid in digestion. Consumers have become more conscious of the connection between gut health and overall well-being, leading to a rising interest in probiotic-rich dairy products like yogurt and kefir. Omega-3 fatty acids are essential nutrients known for their heart-healthy benefits. As consumers seek ways to improve their cardiovascular health, they are looking for dairy products fortified with omega-3s, such as enriched milk or dairy-based supplements. Fortifying dairy products with vitamins, such as vitamin D or calcium, addresses specific nutritional needs. These additions cater to consumers who may have dietary restrictions, deficiencies, or specific health goals. Functional dairy products go beyond basic nutrition, offering additional health benefits. For instance, some dairy beverages are formulated to improve bone health, boost the immune system, or enhance cognitive function, catering to health-conscious consumers looking for targeted solutions. The broader wellness and self-care trends have influenced consumers' dietary choices. They are seeking foods that not only satisfy their nutritional needs but also contribute to their overall well-being. The dairy industry has played a significant role in promoting the health benefits of fortified and functional dairy products through marketing campaigns and consumer education. This has helped raise awareness and drive demand. Dairy manufacturers have responded to the demand for health-conscious products by continuously innovating and developing new dairy offerings with added functional ingredients. This diversification appeals to a wider range of consumers with varying health preferences. As personalized nutrition gains popularity, consumers are seeking products that align with their individual health needs. Fortified and functional dairy products offer options for consumers to tailor their diets to their specific health goals.

Market Segmentation

The United States Dairy market is segmented based on product type, distribution channel, region and competitive landscape. Based on product type the market is segmented into drinking milk, cheese, yogurt, butter and others include cream, ice-cream, butter milk, etc. Further based on distribution channel the market is fragmented into departmental stores, convenience stores, supermarkets/hypermarkets, online and others, including direct sales, institutional sales, etc. Based on region, the market is divided into South, West, Midwest, Northeast.

Company Profiles

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., are some of the leading companies in the United States Dairy market.

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Attribute	Details
Base Year	2022
Historic Data	2018 – 2021
Estimated Year	2023
Forecast Period	2024– 2028
Quantitative Units	Value in USD Million, CAGR for 2018-2022 and 2023-2028
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Product Type Distribution Channel Region
Regional scope	South, West, Midwest, Northeast
Key Companies Profiled	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.
Customization scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Report Scope:

In this report, United States Dairy Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

United States Dairy Market, By Product Type:

Drinking Milk
Cheese
Yogurt
Butter
Others (Cream, Ice-Cream, Butter Milk, etc.)

United States Dairy Market, By Distribution Channel:

Departmental Stores
Convenience Stores
Supermarkets/Hypermarkets
Online
Others (Direct Sales, Institutional Sales, etc.))

United States Dairy Market, By Region:

South
West
Midwest
Northeast

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Dairy Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

United States Dairy Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Voice of Customer Analysis (B2C Market)

4.1. Sample Size Determination

4.2. Respondent Demographics

4.2.1. By Gender

4.2.2. By Age

4.2.3. By Occupation

4.3. Brand Awareness

4.4. Factors Influencing Purchase Decision

4.5. Customer Satisfaction

5. United States Dairy Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Product Type Market Share Analysis (Drinking Milk, Cheese, Yogurt, Butter, Others (Cream, Ice-Cream, Butter Milk, etc.))

5.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

5.2.3. By Region Market Share Analysis

5.2.4. By Company Market Share Analysis

5.3. United States Dairy Market Mapping & Opportunity Assessment

5.3.1. By Product Type Market Mapping & Opportunity Assessment

5.3.2. By Distribution Channel Market Mapping & Opportunity Assessment

5.3.3. By Regional Market Mapping & Opportunity Assessment

6. United States Drinking Milk Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type Market Share Analysis (Skim Milk, Whole Milk, Flavored Milk)

6.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

7. United States Cheese Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type Market Share Analysis (Mozzarella, Cheddar, Others)

7.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

8. United States Yogurt Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type Market Share Analysis (Flavored and Non-Flavored)

8.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

9. United States Butter Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type Market Share Analysis (Salted Butter, Unsalted Butter and Others (Clustered Butter, Clarified Butter, etc.)

9.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

10. Market Dynamics

10.1. Drivers

10.1.1. Numerous Government Initiatives

10.1.2. Rise in Production

10.1.3. Rising exports

10.2. Challenges

10.2.1. Rising Preference for Plant Based Products

10.2.2. Rising Input Costs

11. Impact of COVID-19 on United States Dairy Market

11.1. Impact Assessment Model

11.1.1. Key Segments Impacted

11.1.2. Key Regions Impacted

11.1.3. Key Distribution Channel Impacted

12. Market Trends & Developments

12.1.1. Rising demand through D2C channels

12.1.2. Shift in Consumer Preferences

12.1.3. Growing Cheese Consumption

12.1.4. Premium Dairy Products

13. Porter’s Five Forces Model

13.1. Competitive Rivalry

13.2. Bargaining Power of Buyers

13.3. Bargaining Power of Suppliers

13.4. Threat of New Entrants

13.5. Threat of Substitutes

14. SWOT Analysis

14.1. Strengths

14.2. Weaknesses

14.3. Opportunities

14.4. Threats

15. Policy & Regulatory Landscape

16. United States Economic Profile

17. Competitive Landscape

17.1. Company Profiles

17.1.1. Dairy Farmers of America, Inc.

17.1.1.1. Company Details

17.1.1.2. Product & Services

17.1.1.3. Financials (As Per Availability)

17.1.1.4. Key market Focus & Geographical Presence

17.1.1.5. Recent Developments

17.1.2. Saputo Cheese USA Inc.

17.1.2.1. Company Details

17.1.2.2. Product & Services

17.1.2.3. Financials (As Per Availability)

17.1.2.4. Key market Focus & Geographical Presence

17.1.2.5. Recent Developments

17.1.3. Land O’ Lakes, Inc.

17.1.3.1. Company Details

17.1.3.2. Product & Services

17.1.3.3. Financials (As Per Availability)

17.1.3.4. Key market Focus & Geographical Presence

17.1.3.5. Recent Developments

17.1.4. Danone North America

17.1.4.1. Company Details

17.1.4.2. Product & Services

17.1.4.3. Financials (As Per Availability)

17.1.4.4. Key market Focus & Geographical Presence

17.1.4.5. Recent Developments

17.1.5. Lactalis American Group, Inc.

17.1.5.1. Company Details

17.1.5.2. Product & Services

17.1.5.3. Financials (As Per Availability)

17.1.5.4. Key market Focus & Geographical Presence

17.1.5.5. Recent Developments

17.1.6. California Dairies, Inc.

17.1.6.1. Company Details

17.1.6.2. Product & Services

17.1.6.3. Financials (As Per Availability)

17.1.6.4. Key market Focus & Geographical Presence

17.1.6.5. Recent Developments

17.1.7. The Kraft Heinz Company

17.1.7.1. Company Details

17.1.7.2. Product & Services

17.1.7.3. Financials (As Per Availability)

17.1.7.4. Key market Focus & Geographical Presence

17.1.7.5. Recent Developments

17.1.8. Nestle USA, Inc.

17.1.8.1. Company Details

17.1.8.2. Product & Services

17.1.8.3. Financials (As Per Availability)

17.1.8.4. Key market Focus & Geographical Presence

17.1.8.5. Recent Developments

17.1.9. Agropur Inc.

17.1.9.1. Company Details

17.1.9.2. Product & Services

17.1.9.3. Financials (As Per Availability)

17.1.9.4. Key market Focus & Geographical Presence

17.1.9.5. Recent Developments

17.1.10. Prairie Farms Dairy, Inc.

17.1.10.1. Company Details

17.1.10.2. Product & Services

17.1.10.3. Financials (As Per Availability)

17.1.10.4. Key market Focus & Geographical Presence

17.1.10.5. Recent Developments

18. Strategic Recommendations/Action Plan

18.1. Key Focus Areas

18.2. Target Regions

18.3. Target Product Type

19. About Us & Disclaimer

Figures and Tables

Frequently asked questions

What are the drivers for the United States Dairy Market?

The United States Dairy Market is witnessing high demand owing to the rising production of milk and dairy products in the country and various initiatives by the government.

What are the trends in the United States Dairy Market?

The growing e-commerce and direct-to-consumer sales are expected to drive the market growth in the forecast years.

What are the challenges faced by the United States Dairy Market?

The increasing demand for plant-based products such as plant-based cheese, yogurt and butter is posing a challenge for the United States dairy market.

Which are the major companies operating in the United States Dairy Market?

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. are some of the major companies operating in the United States Dairy Market.

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