Podcast Summary
Dairy sales growth: Dairy sales reached $76B, surpassing liquor sales, with promising upside potential in cheese, butter, and yogurt due to changing consumer preferences towards healthier and more convenient options.
Dairy remains the largest category in grocery store sales, with $76 billion in sales over the past 52 weeks, surpassing even liquor sales. The report from Cobank highlights the growth in dairy product consumption, particularly in segments like cheese, butter, and yogurt, which are showing promising upside potential. Corey Geiger, the lead dairy economist at Cobank, emphasizes that these trends are a result of changing consumer preferences towards healthier and more convenient dairy options. As we continue to discuss the report, we will dive deeper into these trends and explore the factors driving the growth in these specific dairy segments. Stay tuned for more insights on the dairy industry from Corey Geiger.
Snacking Cheese Growth: Snacking cheese sales are projected to grow by 6.5% annually through 2034, offering convenience, protein, and good nutrition. US new product introductions have seen a 152% increase. Butter demand is high due to new scientific understanding, but US production can't keep up, leading to imports.
The snacking cheese category in the dairy industry is experiencing significant growth, with sales projected to increase by 6.5% annually through 2034. Snacking cheese, which is cheese paired with other foods like fruits, nuts, or meats, offers consumers convenience, protein, and good nutrition. In the US, which accounts for about 24% of global sales in this category, new product introductions of snacking cheese have seen a 152% increase. Meanwhile, the butter segment of the dairy market is experiencing high demand due to a shift in scientific understanding of saturated fats, which are now recognized as beneficial in the human diet. However, the US is currently unable to produce enough butter to meet domestic demand, leading to increased imports.
High-fat dairy trends: There's a growing demand for high-butterfat dairy products like butter and European-style spreads, leading to record-high butterfat content in milk production and imports. Greek yogurt has evolved into various forms, including bars, snacks, and ice cream, and is now consumed throughout the day instead of just at breakfast.
The demand for high-butter-fat dairy products, such as butter, is increasing in the US and Europe, leading to record-high butterfat content in milk production and imports. Consumers are now demanding more butter in various forms, including European-style spreads with up to 83% butterfat. Meanwhile, yogurt, which was traditionally a breakfast food, has evolved to become a convenient and versatile food item consumed throughout the day. Greek yogurt, in particular, has undergone significant transformation and is now used in various forms, including bars, snacks, and even ice cream. The dairy industry is exporting a larger percentage of milk production as butter and skimmed milk, highlighting the growing trend towards high-fat dairy products.
Greek yogurt expansion: Greek yogurt, naturally sugar-free, is the number one dairy category in the US, with potential for further growth, particularly in the 'grab and go' sector.
Greek yogurt, which is naturally sugar-free due to its fermentation process, has become the number one dairy category in the United States. Despite its current growth, there is still significant potential for Greek yogurt to expand further, particularly in the convenient "grab and go" sector. Corey Geiger, the lead dairy economist at Cobank, discussed these trends during a recent interview on American Ag Radio. Greek yogurt's sugar-free nature sets it apart from other dairy products and makes it an attractive option for consumers. Chobani was a pioneer in this category, and many other dairy processors have since followed suit by reformulating their products. For more information on these dairy market trends, check out the report on Cobank.com under the "knowledge exchange" tab.