On April 8, a remarkable event took place in the United States, occurring only once every 18 years — a total solar eclipse. Key locations for witnessing this phenomenon included St. Louis, Southern Illinois, and Waco, Texas, all situated along the path of totality. For a brief four minutes, the daytime sky was enveloped in darkness, captivating viewers across the nation during this extraordinary occurrence that happens once every 16,585.32 days (Saros Cycle). The cultured dairy sector, which includes a variety of products such as cottage cheese, yogurt, drinkable yogurt, kefir, sour cream, cream cheese, and refrigerated dips, is experiencing a vibrant resurgence, with some segments achieving double-digit growth that is outpacing much of the dairy market. The appeal of these cultured dairy items is further enhanced by their high protein content, probiotics, and convenience. John Crawford, senior vice president for Client Insights-Dairy at Circean, a market research firm based in Chicago, highlights the impressive growth of brands like Chobani, Danone, and various private-label products, which are introducing a range of flavors and functional benefits in yogurt, Greek yogurt, and ready-to-drink (RTD) yogurts. He notes, “Yogurt has experienced a resurgence with a +6.5% increase in dollar sales and +5.4% in volume. Spoon able Yogurt has risen by +6.4% in dollar sales and +5.5% in volume, while Yogurt Drinks are seeing dollar sales and volume growth of +7.2% and +4.6%, respectively.”
From 2018 to 2023, the yogurt market, encompassing Greek-style yogurt, various other types, drinkable yogurt, and squeezable yogurt, achieved a revenue of $8.2 billion, with a compound annual growth rate (CAGR) of 1%. However, a modest CAGR of 0.5% is projected for the period from 2023 to 2028, as reported by IBISWorld in their September 2023 analysis titled “Yogurt Production in the US.” The report highlights that operators have adapted to shifting consumer preferences by promoting low-fat options like Greek yogurt to align with dietary trends, even as the healthy eating index has seen a decline over the last five years. Overall, revenue is expected to grow at a CAGR of 0.5%, reaching $8.4 billion by 2028. While revenue is on the rise, profits are likely to stagnate due to increasing price competition. Nevertheless, new market entrants are anticipated to take advantage of the growing demand, leading to a rise in the number of industry players. Additionally, the report notes that the introduction of Greek-style yogurt, particularly following the launch of Chobani LLC in 2005, significantly boosted demand for Greek yogurt at an unprecedented rate. This thicker, creamier, and healthier variant accounted for half of the revenue in 2023, as it is priced at twice the cost of standard yogurt products. Recently, Chobani unveiled a new range of functional cultured dairy items aimed at meeting consumer needs for higher protein intake in their daily diets. The Chobani High Protein line features Greek yogurt cups and drinks made with all-natural ingredients, real fruit, and no added sugars, according to the company.
This month, Chobani launched an exciting new range of High Protein products, featuring a 20G Protein Greek Yogurt available in five delicious fruit flavors. Additionally, in January 2025, the company will unveil protein-infused, ready-to-drink bottles that will offer 15, 20, and, for the first time, 30 grams of protein in each lactose-free serving. The 20G Protein Greek Yogurt comes in Vanilla, Strawberry Kiwi, Mango, Raspberry Lemon, and Cherry Berry flavors, packaged in 6.7-ounce cups with a suggested retail price of $1.99. Furthermore, Chobani plans to introduce a variety of protein-infused drinks in 7-, 10-, and 14-ounce ready-to-drink bottles, each containing 15, 20, and 30 grams of protein per serving. These drinks will be lactose-free and free from added protein powders, concentrates, or preservatives, and will be available at retailers across the country starting in January. Stonyfield Organic, a certified B Corporation co-founded by Samuel Kayden and Gary Hirshberg in 1983, has been dedicated to producing organic whole milk, low-fat Greek yogurt, and smoothies in various formats for 40 years.
A company based in Londonderry, N.H., has developed a range of products for babies and children that incorporate real fruits and vegetables. Recently, they introduced their new Kids ZERO g Sugar Added yogurt pouches, which they claim are the only dairy yogurt pouches for kids that contain no added sugar. These organic yogurt pouches with ZERO g Added Sugar are offered in tasty flavors such as Blueberry Apple Carrot and vanilla (a blend of Banana and Vanilla). They are available across the country, with a suggested retail price of $1.99 for a single serving and $6.99 for a pack of four.
Protein and probiotics, please
Recent research conducted by market analysis firms Mitel and Nielsen indicates that over 50% of consumers are aiming to boost their protein consumption, with a clear focus on low sugar and high protein options in their diets. According to a protein quality evaluation by the FAO, yogurt stands out as a superior protein source compared to alternatives such as soy and peanut butter, and it offers greater accessibility and convenience than other animal proteins like beef and chicken. Miri Eliyahu, a consultant researcher at Euromonitor International, a market research firm based in Chicago, agrees that the increasing demand for protein in dairy products is a significant trend for 2024, particularly within the realm of packaged foods and dairy alternatives.
Breakstone’s manufactures a large portfolio of cottage cheese, ricotta and sour cream products. Photo courtesy of Breakstone’s.
The rise in popularity of cottage cheese has resulted in a notable increase in both its value and sales volume. This niche product is becoming a favorite among U.S. consumers, thanks to its high protein content and gut-friendly properties. Protein is not only a sought-after macronutrient but also plays a crucial role in providing long-lasting satiety, prompting American consumers to consistently choose it when making dietary decisions. According to SPINS, a Chicago-based company, the probiotics market is evolving, with a growing presence in various food items beyond just yogurt and ready-to-drink yogurt, which has seen a 7% year-over-year growth. Probiotic incorporation in products like milk, cottage cheese, and sour cream has surged by 54%, as highlighted in an infographic from SPINS. As consumers become more informed about the microbiome and its effects on health, they are actively seeking ways to add probiotics to their diets, a trend that dairy brands are keenly aware of, as indicated by the infographic. Notably, social media platforms, especially TikTok, have sparked increased interest in cottage cheese, leading to a nearly 16% rise in dollar sales and a 13% increase in volume, according to Crawford. “Cottage cheese remains one of the fastest-growing categories in the grocery store, showcasing the influence of social media and the discovery of new ways to enjoy this product,” he states. “In the cultured dairy segment, cream cheese has seen a 1.5% increase in dollars and 0.4% in volume, sour cream has risen by 2.9% in dollars and 1.2% in volume, while refrigerated dips have experienced a consistent growth of 5.1% in both dollars and volume.” Many cultured dairy products are popular in recipes and are favored appetizers for Game Day snacks, featuring beloved dishes like Hormel Chili Cheese Dip, Spinach and Onion Dip, Pepperoni Pickle Bites, and Mexican Pizza.
Stonyfield has introduced organic yogurt pouches for kids with zero grams of added sugar, available in delightful flavors like Apple Blueberry Carrot and Vanilla (including Banana and Vanilla). Photo credit goes to Stonyfield Organic.
Breakstone’s, known for its cottage cheese, ricotta, and sour cream, has teamed up with Dash to present quick and easy egg bite recipes that can be prepared in under 10 minutes. Utilizing Breakstone’s 2% low-fat cottage cheese and the Dash Egg Bite Maker, busy families can enjoy a tasty and convenient breakfast to kickstart their day. Breakstone’s 2% low-fat cottage cheese offers 13 grams of protein and 10% of the daily recommended calcium intake per serving. Lactalis Heritage Dairy emphasizes that their cottage cheese is creamy, which contributes to the creation of soft and fluffy egg bites (containing 6g of protein) that can be customized with various fillings, including the Breakstone’s Bacon and Egg Cups recipe or the vegetarian Red Pepper and Spinach option.
The landscape of dairy
While the demand for cultured dairy products is expected to persist, Eliyahu from Euromonitor International indicates that inflation, unit pricing, and consumer price sensitivity will significantly shape the dairy market. “As long as wages do not keep pace with inflation and overall price hikes, maintaining and increasing volumes across most dairy categories will be challenging. Nevertheless, certain products like fromage and cottage cheese are experiencing notable growth due to their nutritional benefits, which are increasingly sought after by American consumers,” she explains. “Growth in dairy categories is occurring despite rising unit prices, driven by the health and wellness advantages they offer, such as probiotic and prebiotic properties found in yogurts and select soft cheeses,” she adds. “To mitigate the impact of higher costs on consumers, a successful approach is to focus on premiumization, enticing buyers even at elevated price points.” Moreover, factors such as clean-label claims, organic options, reduced or no sugar, and functional benefits will continue to shape consumer purchasing choices. “In the dairy sector, claims like No Added Sweetener (+14.2%), Natural Sweetener (+11.4%), Protein (+10.4%), Low Sugar (+9.9%), Pre/Probiotic (+8.9%), and Lactose-Free (+5.9%) are among the fastest-growing in terms of dollar value,” notes Crawford from Circean. According to Crawford and Eliyahu, these value-added features and the health benefits associated with cultured dairy position them well for ongoing innovation and future success. Crawford concludes, “Value-added dairy products are trending and have the potential to succeed. Items that promote digestive health, protein content, low sugar, lactose-free options, and ultra-pasteurized (extended shelf life) products are all promising avenues for the dairy industry.”