Welcome to to the 2025 State of the Industry report. For this year’s theme, we tap into the music industry, citing iconic rock ‘n roll hits and a few “sad songs” in the case of dairy alternatives. Even milk, long considered a laggard in terms of sales, had a "record-breaking" year, with dollar sales rising 4% year over year to $20.4 billion. We also should note kefir, housed under Circana’s “All other milk” category, was definitely "in tune," as dollar sales skyrocketed by 22% YoY to nearly $227 million.

Despite many dairy categories "walking on sunshine" overall, some dairy — and non-dairy — categories were "singing the blues." Check out our pivotal "State of the Industry" reports on Milk; Ice Cream/Novelties; Cheese; Yogurt and Cultured Products; Coffee, Tea and Juice Beverages; and Nondairy Beverages to learn what categories are "Top 10" and which ones are "Falling" out of consumer consciousness. We also "Can't Help Falling in Love" with several new products highlighted in this report.

Ingredients and Exports also are "shooting for the stars" in the dairy processing industry so be sure to check out the latest trends in those categories. So, sit down with a favorite CD or vinyl record and enjoy this year's "State of the Industry."

Editor’s note: This report is meant as a standalone State of the Industry report. It is not intended to be compared to any prior Dairy Foods report as different time periods and other factors could skew results.

Milk-sales value reaches $20.4 billion as pricing climbs

Milk category sees year-over-year growth of 3.5%, while plant-based milks decline 3.3%.
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Heavenly growth for natural cheese

With 4.3% growth, the cheese category exceeds $21 billion in sales.
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Lapping up luscious ice cream

The $8.9B frozen novelties category outpaces $8.6B ice cream/sherbert category.
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Innovation continues in the dairy ingredient space

Ingredient suppliers share top considerations for modern dairy innovation.
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Cultured dairy’s rock star moment

Yogurt and cottage cheese leading category to new heights.
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Milk alternatives sales hit a snag

Coconut milk remains a winner however.
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Canned and aseptic juices have excellent years

Some other areas of RTD beverages are struggling however.
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Cheese, butter "rockin' out" with record exports

U.S. cheese exports at a “record” 14%, which butter is at a 10-year high.
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