Although the industry faces many challenges, there are exciting opportunities for future growth, according to the six dairy industry executives we queried. 

With 13.2% growth, RFG grated cheese leads category, followed by cheese cubes at 9.7% 

The past year has been quite the journey for the dairy segment — with retail sales adjusting following 2020’s pandemic-spurred growth wave, and foodservice sales starting to pick up.

In 2020 — when sales accelerated across most dairy categories — cultured dairy found itself on a divided highway. 

After years of riding in the slow lane, the retail milk category got a pandemic-related jump last year. But since COVID-19-related panic buying subsided and some normalcy returned in 2021, milk sales felt the gridlock once again. 

Nondairy beverages mainly cruised down the sales highway this year.

The natural cheese category managed to avoid gridlocks on the retail side in 2021, cruising at a comfortable speed with positive results. 

With many U.S. consumers picking up cooking/baking at home during COVID-19 shutdowns, the butter category seemed to be on easy street in 2020. But this year, the category is facing hazards on the road.

It has been quite a year for the dairy industry. Its challenges are many — from ongoing labor and supply chain issues to higher consumer expectations and increased competition from dairy alternatives.

Sales within the retail ice cream and frozen novelties segments have been traveling in two different directions of late.