The Rise of Dairy in 2025: A Universal Staple in American Diets
In a recent statement, Gregg Doud, the president and CEO of the National Milk Producers Federation, emphasized the universal appeal of milk. He stated, “Milk isn’t Democratic or Republican. It’s universal, as household data shows. Dairy remains a bedrock of American diets, accessible to all, affordable and trusted. That’s something to prize in 2025.”
Over the past fifty years, the consumption of fluid milk has been on a decline. However, there was a significant shift in 2024. According to data from Circana, total fluid milk sales in the US saw a 1% increase in dollar sales, with a 3% increase in unit sales. Whole milk, in particular, experienced a strong performance in 2024, with a 3% volume increase. Households both with and without children contributed to this growth, with households with children accounting for over 80% of the volume increase in whole milk consumption.
The US Department of Agriculture reported a 0.6% increase in total fluid milk consumption in 2024, despite relatively high milk prices compared to other food and beverage items. Consumer surveys indicate that Americans are turning to milk as an affordable source of protein. Many processors have also started offering lactose-free options, addressing the lactose intolerance issue that led some consumers to avoid traditional dairy milk.
One of the key selling points of milk is its nutritional value. Milk and dairy products are minimally processed and rich in essential nutrients like calcium and vitamin D. Advances in science have also revealed that milk contains bioactives that play a crucial role in physiological functions, making it a valuable component of a healthy diet.
Apart from milk, other dairy products like yogurt and cottage cheese have also seen increased consumption. Per-capita yogurt consumption rose by 2% in 2023, while cottage cheese consumption reached a level not seen since 2019. The trend towards higher protein intake among consumers has driven the growth of various dairy products.
Cheese consumption hit an all-time high in 2023, with the average American consuming 42.3 lbs per year. Retail volume sales of cheese grew by 2.3% in 2024, with basic varieties like cheddar and mozzarella leading the market. Cheddar and mozzarella maintained significant market share, with other varieties like fresh mozzarella, queso fresco, and feta also experiencing growth.
Ice cream consumption has decreased overall, but consumers are willing to pay a premium for higher-quality products. Butter consumption, on the other hand, reached recent highs in 2023, with per-capita consumption hitting 6.5 lbs. Retail volume sales of butter also grew by 2.5% in 2024, indicating a continued preference for this dairy staple.
In conclusion, the future of dairy looks promising, with significant investments in new processing capacity set to boost innovation in the industry. Despite previous declines in consumption, dairy products continue to be a fundamental part of the American diet, offering nutritional value and universal appeal.