Dairy Product Manufacturers NAICS 3115

Feb 23, 2026 - Protein Trend Boosts Sales of Whole Milk

• Newly-released USDA data shows a rebound in US milk consumption in 2024, driven entirely by whole‑milk growth. Sales of whole milk rose 3% in 2024, reversing a decade‑long decline and helping to offset continued declines in most other beverage milk categories, including reduced-fat and skim milk. The resurgence in whole milk sales in households with and without children aligns with consumer trends favoring higher‑protein, higher‑fat “whole food” products that also benefit related categories like cottage cheese, which dairy product manufacturers can leverage through innovation and expanded product lines. For processors, stronger whole‑milk demand can improve plant utilization and support higher margins, especially in beverage milk, which has a larger influence on farm‑gate prices. Manufacturers may also benefit from policy tailwinds: Congress has approved the return of whole milk to the National School Lunch Program, potentially expanding institutional demand.
• New data from the USDA shows butter consumption in the US reached an all‑time high of 6.8 pounds per person in 2024, while yogurt consumption showed the strongest overall growth among dairy foods, up 6% in 2024 compared to 2023, followed by cottage cheese and regular ice cream. Only milk consumption saw a modest decline to 127 pounds per person in 2024, per USDA data. Americans' butter binge reflects a broader surge in demand for wholesome dairy products. For dairy manufacturers, the upward trend strengthens the market for value‑added butter, cultured dairy, and premium fat‑based products. To meet rising demand for butter, yogurt, and other wholesome dairy foods, manufacturers may need to expand churning, packaging, and cold‑storage capacity.

• Aging food processing infrastructure – some dating back more than half a century – poses risks for food manufacturers, especially producers of perishable products that must move swiftly through the system to preserve freshness and quality, Food Processing (FP) reports. Older equipment is more likely to break down, interrupting production and potentially leading to product loss and unexpected replacement costs. FP notes that while processing plants have scaled up production and adopted more advanced technologies, underlying systems have struggled to keep up, resulting in a growing mismatch between modern operational demands and aging physical assets. Moreover, many aging plants may not be equipped to handle growing demand and regulatory scrutiny due to lack of capital investment over the years. Because environmental, safety and building codes have evolved since many food processing plants were built, replacement costs can be substantial, according to FP.
• Producer prices for dairy products manufacturers fell 5% in November compared to a year ago, after rising 5.1% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Retail prices for dairy and related products fell 1.6% year over year in November, while the price of milk declined 0.8% over the same period, according to the November 2025 Consumer Price Index. Employment by the industry grew 2.4% YoY in November, while the average industry wage climbed 9% over the same period to a new high of $30.84, BLS data show.