Dairy Product Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,150 dairy product manufacturers in the US produce dairy products from raw milk, processed milk, and dairy substitutes. Fluid milk products include milk of varying fat content, milk substitutes, cream, cottage cheese, sour cream, and yogurt. Other major product categories are cheese and cheese-substitute products; dry, condensed, and evaporated products; creamery butter; and ice cream and frozen dessert products.
Food Safety Compliance
Dairy foods are among the most regulated foods in the US due to the fact that raw milk can contain any number of dangerous pathogenic organisms.
Declining Milk Consumption
Per capita, fluid milk consumption in the US has been trending downward for more than 70 years and fell at a faster rate during the 2010s than in each of the previous six decades.
Industry size & Structure
The average dairy product manufacturer has about 143 employees, operates a single location and generates $113 million in annual revenue.
- The industry consists of about 1,150 companies employing 165,000 workers and generating $130 billion in annual revenue.
- There are about 225 fluid milk processors employing about 55,280 workers.
- There are about 400 cheese manufacturers with 57,965 employees.
- The 400 ice cream and frozen dessert manufacturers in the US employ about 22,765 workers.
- The dairy product manufacturing industry is highly concentrated - the top 20 companies account for 51% of industry revenue.
- Large US dairy product manufacturers include Nestle USA, Dean Foods, Schreiber Foods, Land O'Lakes, and Kraft Heinz Foods.
Industry Forecast
Dairy Product Manufacturers Industry Growth
Recent Developments
Feb 23, 2025 - Wages Rise to New High
- The producer price index (PPI) for dairy product manufacturers, which measures the price producers receive for their products, rose 5% in December compared to a year ago after falling 5.9% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by the industry was relatively unchanged year over year in December, while average wages at dairy products manufacturers rose 7.2% over the same period to a new high of $28.89 per hour, BLS data show. Industry payrolls have been trending steadily upward since early 2021.
- The US dairy products industry posted a near-record year for exports in 2024, with foreign trade reaching $8.2 billion – the second-highest total export value ever and a $223 million year-over-year increase, according to new USDA data. Mexico and Canada – tariff targets of the Trump administration – were the top destinations for US dairy exports last year, representing more than 40% of US dairy exports. Mexico and Canada imported record values of dairy at $2.47 billion and $1.14 billion, respectively, according to the USDA. US dairy exports have nearly tripled since the early 2000s and the US became the world’s third-largest dairy product exporter behind New Zealand and the European Union, according to the International Dairy Foods Association. Roughly 18% of all US dairy production is exported. In early February, President Trump agreed to pause tariffs on Canada and Mexico for 30 days, with the deadline looming next month.
- The Food and Drug Administration in December issued a final rule that updates the definition of the nutrient content claim "healthy,” that appears on food labels, Dairy Foods reports. To qualify as "healthy" under the updated definition, food products must contain a certain amount of a food from at least one of the food groups or subgroups outlined by the Dietary Guidelines for Americans including fruits, vegetables, protein foods, dairy, and grains. For the first time, the updated "healthy" claim definition sets certain limits for added sugars. As a result, flavored yogurt that qualified under the FDA’s original “healthy” claim no longer qualifies as “healthy” under the updated definition because it can be high in added sugar. However, plain low-fat or fat-free yogurt does meet the new criteria. Almost two-thirds of people (63%) exceed current dietary recommendations for added sugars, data shows.
- Dairy farms – the first link in the dairy products supply chain – are disappearing, with the number of farms down 95% since the 1970s, Food Manufacturing reports. According to research conducted at the University of Tennessee, milk price rules, which determine how dairy farmers are paid for the products they produce, are a key reason why. Federal Milk Marketing Orders (FMMO) established in 1937 set a monthly, uniform minimum price for milk based on its end use. From 2005 to 2020, the cost of production – feed and labor – has increased while farmers generally received the minimum price. Researchers at UT found that on average, a single cow that produced 24,000 pounds of milk brought in about $4,457. Yet, it cost $6,192 to produce that milk. The FMMO is currently undergoing reform, which may help stem the tide of dairy farmers exiting, Food Manufacturing reports.
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