Many dairy products businesses are having a tough time in the US as per capita consumption of milk, ice cream, yogurt, and frozen dairy desserts has been declining. Growth categories are cheese and butter, but they are quite commoditized, making it difficult to earn a high profit margin. In the last few years, multinationals including Nestlé, Unilever and Danone have sold or are planning to sell parts of their dairy products businesses as they found it hard to grow them profitably. Beyond the broad category trends there are smaller trends to be captured though including high-protein drinks, bite-sized ice cream, probiotic yogurts and low-fat cheeses.
Source: US Department of Agriculture, November 2024.