Dairy Product Manufacturers

The 1,197 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.

Aug 23, 2026 - Ransomware Attack Disrupts Production

• Fairlife has resumed most production at its four US dairy processing facilities after a ransomware attack temporarily disrupted operations in July, Dairy Processing reports. The ultra-filtered milk manufacturer said it discovered unauthorized third-party access to a portion of its systems, including systems tied to production. Fairlife's owner, Coca-Cola, said unauthorized access affected part of Fairlife's systems and resulted in the theft of certain data, but the company is continuing to restore impacted systems. Existing inventory kept retail product availability largely uninterrupted, and Coca-Cola said product quality, food safety, and its financial results were not materially affected. For dairy product manufacturers, the incident signals the growing cybersecurity risks facing food processing operations and the importance of maintaining strong data security, business continuity plans, and adequate inventory to minimize production disruptions and protect customer supply.
• A proposed strict federal definition of "ultraprocessed foods" under the Make America Healthy Again initiative could have significant implications for some yogurt manufacturers, The New York Times reports. Depending on how regulators define ultra-processed foods, products such as flavored yogurts that contain additives, flavorings, or emulsifiers could be classified as ultra-processed even if they are generally considered nutritious. (Plain yogurt would not be considered ultra-processed.) Industry stakeholders are concerned that such a strict definition could lead to warning-label requirements, restrictions in school meal programs, or limits on eligibility for food assistance programs, potentially affecting sales. The uncertainty is also encouraging states to pursue their own regulations. Dairy manufacturers could face pressure to reformulate products, simplify ingredient lists, and reduce additives to avoid an ultra-processed designation. While the final federal definition remains under development, the debate highlights growing consumer and regulatory focus on ingredient transparency, product formulation, and perceived healthfulness.
• 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.
• Producer prices for dairy products manufacturers inched up 0.4% in July compared to a year ago, after falling 0.6% in the previous July-to-July annual comparison, according to the latest US Bureau of Labor Statistics data. By comparison, retail prices for dairy and related products dipped 0.5% year over year in July and were flat versus June, while the price of milk rose 5.1% YoY and 0.5% versus June, according to the Labor Department’s July 2026 Consumer Price Index report. Employment by dairy products manufacturers grew only 0.4% YoY in June, while the average industry wage climbed 8.7% over the same period to a new high of $32.16 per hour, BLS data show.

Industry size & Structure

The average dairy product manufacturer has about 140 employees, operates a single location and generates $133 million in annual revenue.

• The industry consists of about 1,197 companies employing 168,000 workers and generating $159 billion in annual revenue.
• There are about 225 fluid milk processors employing about 57,060 workers.
• There are about 410 cheese manufacturers with 60,220 employees.
• The 450 ice cream and frozen dessert manufacturers in the US employ about 23,400 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 Dairy Farmers of America (DFA), Saputo USA, Lactalis USA, Schreiber Foods, and Land O'Lakes.