Dairy products and alternatives in 2025: The big picture
In 2025, the reimplementation of tariffs by the Trump administration has had a mixed impact on the US economy, particularly regarding GDP growth, inflation, and consumer spending. After recording a GDP growth rate of 2.8% in 2024, economic expansion is expected to slow to 1.6% in 2025. The new tariffs have raised production costs for businesses, leading to higher prices for a wide range of goods. This inflationary pressure, combined with an already cautious consumer environment, has weakened household purchasing power and negatively affected consumption, with dairy products and alternatives being no exception.
Key trends in 2025
In 2025, with the exception of baby food and plant-based dairy, the remaining categories within dairy products and alternatives have expanded in retail volume terms or, in the case of drinking milk products, at least stabilised.
Competitive Landscape
Compared to other industries, the competitive landscape in dairy products and alternatives remains highly fragmented, with a large number of companies and brands competing across the different categories. Despite this fragmentation, private label products have gained significant traction, accounting for a value share of 31% in 2025. Over the past two years, private label has experienced modest but consistent growth, driven largely by consumers seeking more affordable options amid persistently high inflation and rising food prices. In response, retailers have expanded their private label ranges, strategically positioning them around value, nutritional benefits, and quality to engage price-sensitive consumers. Among the most important launches was seen from leading retailer Walmart with its bettergoods range in 2024, this was the largest private label food launch in 20 years. The launch included more than 350 items in several categories, including in dairy and plant-based dairy, as well as frozen foods, snacks, pasta, soup, beverages, coffee, among others. To satisfy the growing demand for healthy food options, one of the pillars of the bettergoods private label line is that its products are focused on free-from claims.
Channel developments
Retail offline remains the leading distribution channel within dairy products and alternatives overall in 2025. While the COVID-19 pandemic introduced many consumers to online shopping and last-mile delivery, the majority still prefer to purchase dairy products and alternatives in physical stores. This high offline penetration is largely due to the fact that dairy items are essential in weekly or monthly grocery trips, with supermarkets and hypermarkets being the most convenient points of purchase for many consumers.
What next for dairy products and alternatives?
Innovation in dairy products and alternatives is expected to remain high and focused on functional benefits. As health and wellness trends continue to shape consumer preferences, manufacturers are likely to keep developing high-protein options and incorporating ingredients such as probiotics or omega-3. Packaging and marketing campaigns will play a key role in communicating product benefits, with increased emphasis on clear nutritional information such as protein content per serving and other health-related claims. These messages are becoming more prominent as brands aim to build trust and differentiate their products in a competitive and increasingly mature market.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in USA with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in USA, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in USA report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in USA?
- Which are the leading brands in Dairy Products and Alternatives in USA?
- How are products distributed in Dairy Products and Alternatives in USA?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in USA?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in the US
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in the US
KEY DATA FINDINGS
Prices stabilise but demand continues to fall
Private label producers invest in premiumisation to win share
Value seeking consumers boost Omni-Sales Growth
Falling birth rates and economic uncertainty could undermine demand
Wellness trends set to have a mixed impact on the market
Erratic legislative policy could negatively impact the market
Butter and Spreads in the US
KEY DATA FINDINGS
Butter benefits from better taste and natural image
Private label leads while brands focus on differentiation to gain share
Modern grocery retailers dominate but e-commerce wins share
Competition to intensify between premium and value segments
New flavours and formats could inform new product development
Healthy eating trends and new regulation set to inform the market
Cheese in the US
KEY DATA FINDINGS
Cheese continues to grow with consumers favouring unprocessed options
Kraft Heinz Co loses ground to private label
Consumption of artisanal cheese boosts online sales
Private label set to win over price-sensitive consumers
Health and wellness trend will boost premium innovations
Consumers will continue to favour traditional cheese over plant-based options
Drinking Milk Products in the US
KEY DATA FINDINGS
Drinking milk products finds new lease of life with full-fat options
Private label continues to dominate sales
Convenience stores underperform due to high prices and limited variety
Competition with plant-based milk will continue
The resurgence of drinking milk products presents new opportunities for growth
Legislators are considering reintroducing full fat milk in schools
Yoghurt and Sour Milk Products in the US
KEY DATA FINDINGS
Plain yoghurt and sour milk products benefit from healthy image
High demand for Greek yoghurt influences the competitive landscape
Supermarkets and wholesale clubs embrace functional dairy as e-commerce and DTC sales rise
Health and wellness trend will remain the key growth driver
Regulatory changes to boost demand for low-sugar and clean label yoghurt
Yoghurt innovation expands beyond breakfast to meet evolving lifestyle behaviours
Other Dairy in the US
KEY DATA FINDINGS
Ingredient transparency and focus on protein reshaping other dairy
New brands looking to drive innovation
Digital channels fuel brand loyalty while supermarkets and hypermarkets dominate
Supply chain pressures and input cost volatility set to shape market dynamics
Protein claims and functional health benefits should drive premiumisation
Digital integration presents opportunities but high costs could limit uptake
Plant-Based Dairy in the US
KEY DATA FINDINGS
Sales decrease as consumers shift back to traditional dairy
Danone continues to lead sales of plant-based dairy
Supermarkets continues to lead sales despite e-commerce’s rapid expansion
Competition with dairy will remain intense
Taste and texture key to unlocking the potential of plant-based cheese and yoghurt
New FDA guidance targets clarity in plant-based cheese and yoghurt
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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