Market Trends of north america dairy Industry
Growing demand for dairy-infused baked products and butter-based snacks in North America boosting the market
- The per capita consumption of the North American dairy industry observed growth of 1.33% in 2022 compared to 2021. While milk has a fat content of around 3.95%, skim solids are recorded to contain 8.94%. These average percentages of both milk fat and skim solids in farm milk (cows' milk from dairy farms) have increased over the last decade. Consequently, consumers are becoming more aware of the benefits derived from dairy products, such as improved strength, consumption of natural ingredients, and other advantages, leading to a rising demand for dairy products in the North American region.
- Consumers in the North American region also gravitated toward butter-based snack products such as cookies and crunchies. Consequently, there was an increase in the import volume of butter. In 2022, butter prices in the United States rose due to additional imports, aligning them with international price levels. The strong demand for premium butter, coupled with the lifting of import tariffs in early 2021, contributed to this trend. Notably, butter imports increased by 0.4 billion pounds in 2021, and estimates based on a milk-fat basis project imports to reach 6.9 billion pounds by 2023.
- With the growing demand for baked foods, including pizza, Baked Macaroni with Mortadella, and other cheese-based products, the demand for cheese is also increasing in the region. Domestic cheese consumption showed continued growth of 2.7% in 2021. To meet the demand for cheese-based foods, cheese imports increased every month (except for February and December) compared to the same months in 2020, reaching a total of 0.3 billion pounds in 2021, marking a 13.2% increase. Cheese production also saw a 2.8% increase, reaching 13.6 billion pounds in 2021.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rising milk cow numbers and increasing butter prices drive production in the region
- Influence of exporting demand and milk price growth on production in North America
- Growing demand for processed cheese products drives the market in North America
