A new analysis finds Americans are increasingly choosing dairy products as snacks, boosting retail dairy sales by 15.4% over the past three years even as fluid milk consumption declines.
A report from CoBank indicates that growing butter, cheese and yogurt sales is compensating for the continuing erosion in drinking milk consumption.
Consumption of butter has increased by 43.2% per capita, 45.8% for cheese, and 142.4% for yogurt over the past 25 years. U.S. cheese consumption alone is expected to grow by 10 more pounds per person every 15 years, compared to European cheese consumption, which already averages over 50 pounds per person each year.
Despite concerns about lactose sensitivity or intolerance, which affects one in three Americans, cheese remains popular as a snack, with many brands contributing to its growth. The snack market for cheese is expected to reach $65.1 billion this year, with compound annual growth of 6.5% until 2034.
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U.S. dairy product exports have increased 152% since 2019. “Exports will also be an important point of focus as the U.S. is the world’s largest single-country cheese producer,” the report says.
Looking ahead, the outlook for dairy is favorable with "tighter supplies, strong product demand, and higher prices nearly across the board," says Mark Jekanowski, chairman of the USDA World Agricultural Outlook Board. USDA has been raising its forecasts for milk and dairy products, now estimating prices at $22.25 per hundredweight, with projections for a further increase next year.
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