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Dairy products have growth potential, Part 2

• Most U.S. consumers purchase dairy, which is also the largest category in retail.

• During the next three years about 90 percent of people have no plans to reduce

• their dairy-product-purchasing behavior.

• Globally the cheese-snack market is projected to reach $75.1 billion this year and it could grow at a compound annual growth rate of 6.5 percent through 2034.

• Private labels are outpacing brands in 10 of the 15 dairy categories. Store-brand options making considerable inroads include yogurt, cream cheese, cream and creamers.

• The lactose-free product category provides a simple yet relevant tool of innovation for dairy processors to help reach the 120 million Americans who cannot enjoy traditional dairy products due to some form of lactose intolerance.

• Consumer tastes and purchasing patterns continue to evolve – and that means dairy processors, manufacturers and marketers also need to innovate.

Snacking category growing

Driven by busy schedules and changing eating habits, consumer demand is growing for snack options that deliver greater nutritional value than typical sweet or even savory snacks. With an estimated 90 percent of Americans snacking from one to three times per day according to National Institutes of Health metrics, marketers can position cheese as an excellent inclusion to a regular snacking diet.

Globally the cheese-snack market is projected to reach $75.1 billion this year. A Fact.MR report projects the segment will grow at a compound annual growth rate of 6.5 percent through 2034.

North America’s share of that 2024 total amounts to 23.9 percent, with a growth rate driven by new flavors, formats and formulations. Globally the snacking-cheese trend took off during the COVID pandemic and has simply continued to grow. Based on U.S. Dairy Export Council and Innova Search Criteria data, all new product launches of snacking cheese in major U.S. dairy-product export markets have grown 152 percent since 2019.

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