U.S. Cheese market hits record high

By Scout Nelson

Despite Americans drinking less milk, the U.S. dairy aisle continues to expand, experiencing substantial growth with $76 billion (about $230 per person in the US) in sales last year, as per Circana. This represents a 15.4% increase over three years, highlighting dairy's dominance in grocery sales.

"Dairy is the champion of the grocery store," said Cory Geiger of CoBank's Knowledge Exchange program, noting dairy's growth surpasses that of the liquor category. The industry's strength is further supported by a 7.7% increase in dairy product volume sold over the past decade.

Tony Banks from the Virginia Farm Bureau Federation acknowledges the rising demand for dairy amidst food price inflation, urging continuous innovation in dairy processing and marketing to meet changing consumer preferences. Notably, private labels are gaining traction over branded products in several dairy categories, including yogurt and cream cheese.

Cheese, butter, and yogurt are major growth drivers, with the cheese snack market alone poised to exceed $75 billion globally. North America claims nearly a quarter of this market, thanks to novel flavors and formulations.

U.S. cheese consumption has reached 40 pounds per capita annually, and ongoing product innovation points to potential for further growth, especially in snack cheeses and lactose-free products. The latter offers a significant opportunity, potentially broadening market reach to over 120 million Americans with lactose intolerance.

Geiger remains optimistic about the dairy industry's future, citing strong consumer retention and intent to maintain dairy consumption. This scenario presents a promising outlook for U.S. dairy farmers and the broader industry.

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