Dairy Industry Trends: From Moment to Momentum
Dairy continues to have a powerful presence in our lives — both nutritious and delicious. From summer fairs across the Midwest to grocery aisles nationwide, dairy remains deeply embedded in American culture and consumption.
Wisconsin’s State Fair offers a clear example of that connection. In 2025, the event highlighted how central dairy remains to the state’s identity. Despite severe rain shortening the fair, participation stayed strong. Nearly 893,000 visitors attended, more than 2,100 agricultural exhibitors participated and iconic dairy favorites were enjoyed by the thousands. The Blue Ribbon Dairy Products Auction raised a record $81,000 and the renovated Dairy Building drew strong interest from consumers eager to learn more about where their food comes from.
Those moments offer a broader signal. While the disconnect between consumers and production agriculture continues to grow, interest in dairy has not faded. Instead, evolving dairy industry trends point to renewed demand driven by nutrition, taste and trust in the product itself.
Dairy’s Evolution in Health and Nutrition
Dairy’s story today is one of evolution. Long known for delivering high-quality protein and essential nutrients, dairy is increasingly recognized as part of a “food as medicine” approach to health.
Ongoing research continues to highlight links between dairy consumption and improved bone health, muscle maintenance and overall wellness. Studies also point to associations with reduced risk of Type 2 diabetes, cardiovascular support, cancer risk reduction, weight management and gut health.
That growing awareness is showing up in consumer behavior. Fluid milk sales increased 0.6 percent in 2024, driven by a 3.3 percent rise in whole milk consumption. Nearly 43 billion pounds of milk were sold to consumers, ending a 14-year stretch of declining fluid milk sales.
Cheese consumption has more than doubled since 1975 and butter consumption reached a 60-year high in 2023 at 6.5 pounds per person. While still below mid-20th century peaks, the rebound reflects shifting perceptions around nutrition and dietary fats.
Cottage Cheese Makes a Comeback
If dairy is having a moment, cottage cheese is having a year.
Once a staple in American diets during the mid-20th century, cottage cheese consumption peaked in the early 1970s before declining for decades. That trend is now reversing. Sales jumped 20 percent between June 2024 and June 2025, fueled by renewed interest in high-protein foods, GLP-1-related dietary shifts and increased visibility through social media.
Supply, however, remains constrained. The number of U.S. cottage cheese plants has fallen from 80 two decades ago to just 48 in 2024. Encouragingly, new investments are underway in states such as New York, Iowa and Wisconsin to expand capacity and meet growing demand.
A Broader Dairy Spotlight
Momentum is not limited to milk, cheese, butter and cottage cheese. Yogurt sales grew 8 percent year over year in early 2025, supported by major investments such as Chobani’s $1.2 billion greenfield plant in Rome, New York.
National and global media have taken notice. Publications including Forbes, The Wall Street Journal and Bloomberg have highlighted dairy’s resilience, innovation and expanding role in consumer diets. These dairy industry trends reinforce confidence across the supply chain, from producers and processors to lenders and investors.
U.S. Dairy on the Global Stage
Dairy’s story also extends well beyond domestic borders. Through mid-2025, U.S. dairy exports reached $4.72 billion, representing a 15 percent increase in milk solids equivalent volume compared with the same period in 2024.
High-protein whey and cheese led the growth. In May 2025 alone, the U.S. exported a record 114 million pounds of cheese. Key export markets included Japan, South Korea, Central America and South America, all posting double-digit growth.
In 2024, the U.S. exported $8.2 billion in dairy products while importing $5.4 billion, resulting in a positive trade surplus of $2.8 billion. This export strength is supported by more than $10 billion in planned dairy production expansions between 2023 and 2026.
From Moment to Momentum
From fairs and festivals to international markets, dairy continues to demonstrate staying power. Consumers are embracing dairy for both taste and nutrition, while ongoing investment supports innovation and long-term growth.
Dairy is not just having a moment. Current dairy industry trends suggest it is building durable momentum that could extend well into the future.
Talk with your Compeer dairy specialist today to discuss how evolving dairy trends and market momentum fit into long-term planning and investment decisions.
