In searching for signs of life in the fluid milk category, one can find a pulse. Sales of whole milk rose 4.1% from 2014 to 2015. Sales also increased for 1% milk (4.6%), whole flavored milk (6.4%), other flavored milk (1.3%) and buttermilk (5.2%). These segments represent opportunities for fluid milk processors.

2015 Introductions

• Expect stronger dairy prices in 2016
• Consumers seek new products free from GMOs, additives, gluten, and hormones

Between cutbacks from China and an embargo by Russia, their imports dropped 16.3 billion pounds. Meanwhile, global milk supplies expanded. The big question is: How will U.S. processors re-balance their stocks of dairy powders?

Food scientists seek alternative ingredients. A companion request for ‘all natural’ foods might require complex reformulation.

Nondairy beverage makers are adding flavors, like caramel to coffees and spices to teas. Sales of almond milks are up 16% in a year.

Butter churners wait in line for cream behind manufacturers of fluid products. With dairies making full-fat varieties of milk, yogurt, cheese and ice cream, there is less cream available for butter.

Falling production, retail prices and sales aren’t helping creameries. Manufacturers look to flavors and healthier formulations to revive the category.

Cheesemakers grab hold of the snacking trend, creating hybrid products that appeal to consumers. Others focus on bold flavors, portion control and convenient packaging.

While yogurt shows off its diversity with innovative new products and ingredient uses, other cultured dairy, like cottage cheese and cream cheese put up a new fight.

Milk processors are finding success with limited-time flavors like mint chocolate chip and birthday cake. A national campaign focusing on protein hopes to keep milk front-and-center on the breakfast table.