Corporate Profiles - 2023 - 36

GRAIN-BASED FOODS
Dairy
D
Flavor fuels cheese growth while yogurt sales keep climbing
LEADING NATURAL
airy plays a significant role in the American diet. Eighty-four
percent of US consumers eat and drink dairy or dairy alternatives
while 16% don't consume either product, according to
McKinsey & Co., New York, which conducted its fifth annual survey of US
consumers of dairy and dairy alternatives to analyze how their habits
and attitudes have changed.
Based on responses from 1,217 consumers surveyed in August
2022, McKinsey data show most people consume dairy. Very few consume
alternatives exclusively. About a quarter consume both. As more
alternatives enter the marketplace, consumption of the products has
grown. Dairy processors continue to innovate to keep milk and dairy
products relevant to the evolving consumer.
For most shoppers, taste and health influence their purchase. Consumers
who value high-quality, complete protein tend to choose dairy,
while those with lactose intolerance go the alternative route. The final
influencer is taste.
When it comes to fluid choices, the growing selection of plant-based
milk alternatives is impacting fluid white milk as many consumers like
the taste of plant based. White milk volume sales continue to decline
- despite the short peak during the pandemic. Consumers have not
abandoned dairy, said John Crawford, vice president of client insights
- dairy, Circana, a Chicago-based market research firm. Value-added
dairy milk is growing, but it is not offsetting traditional volume declines.
" There are growth pockets in dairy milk with successful claims, " Mr.
Crawford said. " Milk with protein, no/low-sugar or lactose-free claims
have all experienced growth the past five years. "
Marketers are targeting younger consumers with the power of milk
protein messaging. The messaging is directing potential buyers to different
forms of refrigerated innovations as well as shelf-stable beverages
made with milk and milk ingredients. These concepts are growing in
popularity due to their versatility and convenience. In many of these
beverages, whey proteins are a key ingredient.
Sales of cultured dairy products are slow but steady. The refrigerated
category includes yogurt, cottage cheese, sour cream, cream cheese,
dips and a few other novel fermented dairy foods. Yogurt, which is about
a $9 billion retail business, accounts for nearly two-thirds of retail dollar
sales within the cultured dairy category, according to Circana data. It
is a department that requires retailers to have a dedicated employee
restocking it throughout the day.
That's because consumers cannot get enough yogurt. Data show
consumption of yogurt continues to grow year-after-year as more consumers
learn to appreciate the value of the high-protein food that often
promotes immune-boosting benefits because of probiotic culture content.
Per capita annual yogurt consumption jumped from 7 lbs in 2001
36 \ October 2023
shredded cheese vendors
% change
from
1 Lactalis Heritage Dairy
2 Sargento Foods Inc.
3 Tillamook County Creamery
4 Crystal Farms
5 BelGioioso Cheese
6 Dairy Farmers of America
7 Saputo Cheese USA, Inc.
8 V&V Supremo Foods, Inc.
9 Cabot Creamery, Inc.
Private label
Total
LEADING NATURAL
shredded cheese brands
% change
from
Dollar sales
1 Kraft
2 Sargento
3 Tillamook
4 Crystal Farms
5 BelGioioso
6 Borden
7 Frigo
8 All V&V Supremo Foods, Inc.
9 Cabot
Private label
Total
$968,639,768
$393,313,680
$181,219,697
$81,942,727
$71,475,025
$67,270,001
$47,831,274
$46,677,209
$38,410,503
$4,508,375,475
$6,660,253,650
year ago
3.3%
-2.0%
14.1%
-7.4%
12.1%
14.1%
18.8%
15.6%
10.5%
10.9%
8.7%
Data for 52 weeks ended July 16, 2023
Total US - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers,
Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Circana OmniMarket Integrated Fresh
Dollar sales
$976,026,662
$393,313,680
$181,219,697
$85,565,822
$78,573,520
$75,563,387
$61,184,006
$46,677,209
$38,410,503
$4,508,375,475
$6,660,253,650
year ago
3.2%
-2.0%
14.1%
-7.2%
9.0%
11.9%
15.6%
15.6%
10.5%
10.9%
8.7%
to 13.6 lbs in 2011 to 14.3 lbs in 2021, according to the Economic
Research Service (ERS) of the US Department of Agriculture.
Innovative flavors and convenient forms fuel the cheese category's
continued growth. The average US consumer ate about 40.3 lbs of
cheese in 2021, according to the ERS. And, over the past decade, US
per capita consumption of cheese increased by more than 5 lbs. Basic
dairy department cheeses, such as American, cheddar and mozzarella,
in shred, chunk and slice formats, remain the leaders in the space, but
it's specialty cheeses and snacking items that keep shoppers interested.
It is estimated about one third of all cheese produced in the United
States is sold in its original form directly to consumers. Another third
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Corporate Profiles - 2023

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