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US dairy products market led by Kraft Foods, Nestlé and Danone

Industry Sector

Food and Drink


27 November 2012


Matt Bodimeade

Type of News


The US dairy products market is a very mature industry. US dairy products saw sales grow at a compound annual growth rate (CAGR) of 5% over 2006-2012 as it reached a value of US$130.6 billion. This valuation comes in at a staggering 35% above its value in 2006.

US households accounted for 57% of total dairy products sales in 2012. An average American is estimated to consume 128kg of dairy products per year, spending around US$370 on milk, cheese, yoghurt and "other" dairy products in 2011.

There were more than 1,000 dairy product manufacturers in 2012. However, 77% of players were SMEs with less than 100 employees in 2012. In 2012, 12% of the largest companies, employing 500 people or more, accounted for over 83% of total industry revenue. The largest corporations, such as Dean Foods Inc, Kraft Foods, Nestlé and Danone, specialise in one or two product areas in order to achieve economies of scale.

The US market for dairy remains largely untapped, according to PepsiCo, which is pumping $206 million into a new US facility to make yogurts and other dairy products as part of a joint venture with Müller.

Back in July, PepsiCo and Theo Muller Group, the largest privately held dairy business in Germany, announced their US joint venture, Muller Quaker Dairy, will enter the growing US dairy products market with innovative premium yogurt products that have never before been available to US consumers. These products -- Muller™ Corner™, Muller™ Greek Corner™ and Muller™ FrutUp™-- mark the first entry by either PepsiCo or Muller™ into US dairy aisles.US Dairy Products

Muller Quaker Dairy will satisfy the increasing demand for value-added dairy products in the US, where variety and innovation within the category lags behind other regions, especially Europe. US consumption of yogurt and other value-added dairy products is generally less than half that of Europe.

Although US dairy companies will remain exposed to volatile milk supply and prices, the liberalisation of the suppliers' market offers new opportunities for dairy producers and could potentially lower their expenditure on raw milk.

For more information on the US dairy products market, see the latest research: US Dairy Products Market

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