Dairy Product Production in the US
Over the five years to 2017, performance in the Dairy Product Production industry has been volatile due to fluctuations in the price of milk. While the industry benefited from the increasing popularity of yogurt and cheese products in the United States and abroad, fluid milk consumption has declined. Dairy producers have been able to pass along raw milk costs to consumers, especially producers that manufacture value-added products such as cheese, yogurt and condensed milk products. However, following the recent fall in the price of milk, industry revenue has grown slowly. Dairy product wholesalers and retailers have grown over the past five years after significant increases in milk prices early in the five-year period. In the next five years, rising household disposable income stemming from the economic recovery is expected to boost dairy product demand and industry revenue. In addition, continuing the trend in recent years, producers are anticipated to introduce innovative products that cater to changing consumer tastes. Nevertheless, feed costs and the price of milk are expected to stabilize after their downfall, hampering profit expansion, while competition from overseas dairy producers will temper revenue growth.
Operators in this industry mainly manufacture dairy products such as pasteurized milk, cream, butter, yogurt, cheese and dry, condensed and evaporated milk. The industry also manufactures substitute dairy products made from soybeans and other nondairy ingredients. Producers of dairy products such as ice cream and frozen yogurt are excluded from this industry (IBISWorld report 31152).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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