United States Dairy Market Size

The United States Dairy Market is projected to experience growth over the forecast period, driven by the increasing demand for clean-label products such as cheese, yogurt, and milk. Supermarkets and hypermarkets play a significant role in the distribution channel, dominating the market due to their extensive shelf space and variety of offerings. The popularity of out-house consumption has also contributed to the rise of on-trade retailing modes, with the milk segment leading in market share.

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Market Size of united states dairy Industry

United States Dairy Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 107.1 Billion
svg icon Market Size (2029) USD 126.8 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 3.44 %
svg icon Fastest Growing by Distribution Channel On-Trade

Major Players

United States Dairy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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United States Dairy Market Analysis

The United States Dairy Market size is estimated at 107.1 billion USD in 2024, and is expected to reach 126.8 billion USD by 2029, growing at a CAGR of 3.44% during the forecast period (2024-2029).

107.1 Billion

Market Size in 2024 (USD)

126.8 Billion

Market Size in 2029 (USD)

2.04 %

CAGR (2017-2023)

3.44 %

CAGR (2024-2029)

Largest Market by Category

37.62 %

value share, Cheese, 2023

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Product consistency, surge in regional production and increasing cheese use in different cuisines are some of the major factors influencing the higher cheese consumption.

Largest Market by Distribution Channel

80.54 %

value share, Off-Trade, 2023

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The purchases through online channels, supermarkets, and hypermarkets are driving the segmental growth, with innovations in poultry meat delivery and self-checkouts.

Fastest-growing Market by Category

4.23 %

Projected CAGR, Milk, 2024-2029

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Increasing public-private funding and investments in dairy farming along with technological advancements in the industry are largely catering to the growth of the market.

Fastest-growing Market by Distribution Channel

4.13 %

Projected CAGR, On-Trade, 2024-2029

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The widened choice for on-the-go foodservice with a preference for low-priced processed dairy foods, in particular, is anticipated to drive the segmental growth.

Leading Market Player

7.79 %

market share, The Kraft Heinz Company, 2022

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An extensive range of product offerings that include processed dairy products and the brand-conscious consumers of the country support Kraft in the market studied.

Availability of clean label products is enhancing the growth of retailing unit in North America

  • The US distribution channel grew 1.62% in 2022 compared to 2021. The growth is attributed to the popularity and availability of clean-label products in dairy segments, such as cheese, yogurt, and milk. These clean-label dairy products are free from artificial ingredients, including artificial colors, flavors, and preservatives. These retailers also offer a wide variety of dairy products of various brands. Considering the demand for distribution channels in the United States, this segment is expected to rise by 16.02% in 2025.
  • Supermarkets and hypermarkets have larger spaces and shelves to store their products. As a result, under the off-trade retailing modes, supermarkets and hypermarkets dominated the country's overall distribution channel by holding a share of 61.77% in 2022. Some of these supermarkets and hypermarkets nationwide are Walmart, Target, Kroger, Amazon, Costco Wholesale Corporation, Albertsons Cos., Ahold Delhaize USA, and Publix Super Markets Inc. These retailers are providing dairy products at varied prices (low, medium, and high). The base selling price of ice cream in the United States is USD 2.68, which can go as high as USD 50.
  • In the United States, consumers majorly prefer out-house consumption. In 2022, it was observed that 23.1 million individuals were consuming food outside at least once a week in the United States. The total number of restaurants in the country was 1.05 million in 2020. As a result, on-trade retailing modes have gained popularity in the last five years in the country. In the United States, under the on-trade retailing mode, the milk segment held a share of 79.87% compared with other dairy products in 2022.
United States Dairy Market

United States Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • The US distribution channel grew 1.62% in 2022 compared to 2021. The growth is attributed to the popularity and availability of clean-label products in dairy segments, such as cheese, yogurt, and milk. These clean-label dairy products are free from artificial ingredients, including artificial colors, flavors, and preservatives. These retailers also offer a wide variety of dairy products of various brands. Considering the demand for distribution channels in the United States, this segment is expected to rise by 16.02% in 2025.
  • Supermarkets and hypermarkets have larger spaces and shelves to store their products. As a result, under the off-trade retailing modes, supermarkets and hypermarkets dominated the country's overall distribution channel by holding a share of 61.77% in 2022. Some of these supermarkets and hypermarkets nationwide are Walmart, Target, Kroger, Amazon, Costco Wholesale Corporation, Albertsons Cos., Ahold Delhaize USA, and Publix Super Markets Inc. These retailers are providing dairy products at varied prices (low, medium, and high). The base selling price of ice cream in the United States is USD 2.68, which can go as high as USD 50.
  • In the United States, consumers majorly prefer out-house consumption. In 2022, it was observed that 23.1 million individuals were consuming food outside at least once a week in the United States. The total number of restaurants in the country was 1.05 million in 2020. As a result, on-trade retailing modes have gained popularity in the last five years in the country. In the United States, under the on-trade retailing mode, the milk segment held a share of 79.87% compared with other dairy products in 2022.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Sour Milk Drinks
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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United States Dairy Market Size Summary

The United States dairy market is experiencing a steady expansion, driven by the increasing demand for clean-label products such as cheese, yogurt, and milk, which are free from artificial ingredients. This trend is supported by the robust distribution channels, particularly supermarkets and hypermarkets, which dominate the market due to their extensive storage capabilities and diverse product offerings. Major retailers like Walmart, Target, and Costco play a significant role in providing a wide range of dairy products at various price points, catering to different consumer preferences. The on-trade retailing mode, especially in the milk segment, has gained traction as consumers increasingly prefer dining out, with milk being a staple due to its rich nutritional profile, particularly for children and youth.

The market's recovery post-COVID-19 has been notable, with a resurgence in per capita dairy consumption and a fragmented landscape dominated by key players such as Danone, Froneri International, Groupe Lactalis, Nestlé, and The Kraft Heinz Company. The acquisition strategies by major companies, like Lactalis Canada's entry into the ambient category and Dairy Farmers of America's expansion, highlight the industry's focus on meeting the growing demand for products with extended shelf lives. The increasing popularity of cheese, particularly in pizza consumption, reflects broader consumer trends towards home-cooked meals and nostalgic dishes, further driving market growth.

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United States Dairy Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Butter

        1. 1.1.1.1 By Product Type

          1. 1.1.1.1.1 Cultured Butter

          2. 1.1.1.1.2 Uncultured Butter

      2. 1.1.2 Cheese

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Natural Cheese

          2. 1.1.2.1.2 Processed Cheese

      3. 1.1.3 Cream

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Double Cream

          2. 1.1.3.1.2 Single Cream

          3. 1.1.3.1.3 Whipping Cream

          4. 1.1.3.1.4 Others

      4. 1.1.4 Dairy Desserts

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Cheesecakes

          2. 1.1.4.1.2 Frozen Desserts

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Mousses

          5. 1.1.4.1.5 Others

      5. 1.1.5 Milk

        1. 1.1.5.1 By Product Type

          1. 1.1.5.1.1 Condensed milk

          2. 1.1.5.1.2 Flavored Milk

          3. 1.1.5.1.3 Fresh Milk

          4. 1.1.5.1.4 Powdered Milk

          5. 1.1.5.1.5 UHT Milk

      6. 1.1.6 Sour Milk Drinks

      7. 1.1.7 Yogurt

        1. 1.1.7.1 By Product Type

          1. 1.1.7.1.1 Flavored Yogurt

          2. 1.1.7.1.2 Unflavored Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

United States Dairy Market Size FAQs

The United States Dairy Market size is expected to reach USD 107.08 billion in 2024 and grow at a CAGR of 3.44% to reach USD 126.80 billion by 2029.

In 2024, the United States Dairy Market size is expected to reach USD 107.08 billion.

United States Dairy Market Report Snapshots

United States Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029