Dairy’s Moment Becomes Momentum
Dairy continues to have a powerful presence in our lives, both nutritious and delicious.
Agriculture and especially dairy remain highly relevant. While the disconnect between consumers and production agriculture continues to grow, people still crave knowledge about where their food comes from. As importantly, they continue to consume and celebrate nutritious, delicious dairy products.
Dairy’s Evolution in Health and Nutrition
Dairy’s story is one of evolution. Today, its health benefits are clearer than ever. Known for high-quality protein and essential nutrients, dairy supports bone strength, muscle repair and overall wellness. Increasingly, consumers recognize dairy as part of a “food as medicine” approach.
Research continues to highlight connections between dairy consumption and benefits such as:
- Improved bone health
- Reduced risk of Type 2 diabetes
- Cardiovascular health support
- Cancer risk reduction
- Weight management
- Gut health
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The momentum is showing up in consumption patterns. Dairy consumption trends are shifting – fluid milk sales rose 0.6% in 2024, driven by a 3.3% increase in whole milk consumption, equivalent to nearly 43 billion pounds of milk sold. This breaks a 14-year streak of declining fluid milk sales.
Cheese consumption has more than doubled since 1975, and butter consumption reached a 60-year high in 2023, averaging 6.5 pounds per person. This growth reflects not only renewed consumer trust but also the broader demand for dairy products.
Cottage Cheese Makes a Comeback
If dairy is having a moment, cottage cheese is having a year. Once a diet staple in the 1950s-70s, U.S. cottage cheese consumption peaked at 5 pounds per person before decades of decline. Now, that trend is reversing.
Sales of cottage cheese jumped 20% between June 2024 and June 2025, driven by high-protein diets, GLP-1 wellness trends and social media buzz around creative recipes. Yet supply remains tight – the number of U.S. cottage cheese plants has dropped from 80 to 48 over the past two decades. Encouragingly, new investments are underway in New York, Iowa and Wisconsin to expand production.
This surge is more than a fad, it represents consumer-driven dairy market trends toward protein-rich, functional foods that deliver both taste and nutrition.
A Broader Dairy Spotlight
The enthusiasm isn’t limited to milk, cheese, butter or cottage cheese. Yogurt sales rose 8% year-over-year in early 2025, fueled by major investments such as Chobani’s $1.2 billion plant in New York.
Dairy’s resilience and innovation are capturing national attention. Outlets including Forbes, The Wall Street Journal and Bloomberg have highlighted the industry’s growth and renewed strength, reinforcing a positive dairy outlook for the years ahead.
U.S. Dairy on the Global Stage
Looking ahead, it’s clear that U.S. dairy exports are fueling momentum beyond domestic borders. Midway through 2025, dairy exports reached $4.72 billion, a 15% increase in milk solids equivalent volume from 2024.
High-protein whey and cheese led the way, positioning dairy as a cornerstone of the nation’s agricultural trade balance. In 2024, the U.S. exported $8.2 billion in dairy products while importing $5.4 billion, creating a positive dairy trade surplus of $2.8 billion.
In May 2025 alone, the U.S. exported a record 114 million pounds of cheese, with major growth in Japan (+24%), South Korea (+20%), Central America (+23%) and South America (+47%). These numbers underscore strong global dairy demand supported by domestic investment – more than $10 billion in planned dairy production expansions through 2026.
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From Moment to Momentum
From local fairs to international markets, dairy is proving its staying power. Consumers continue to embrace it for both taste and nutrition while new investments position the industry for even greater success.
Dairy isn’t just having a moment – it’s building momentum. With global demand rising, innovation expanding and exports thriving, the U.S. dairy industry’s outlook is bright and Compeer is proud to support the producers driving that success forward.
Connect with a Compeer Dairy Specialist to discuss strategies that can strengthen your operation and position your business for the next wave of dairy market growth.
