Sales of refrigerated yogurt, cottage cheese and kefir slide. Meanwhile, cream cheese and sour cream fare better, and shelf-stable yogurt/yogurt drinks take off.
The cultured dairy segment is seeing its ups and downs. Yogurt, once the driving force, has seen sales struggle of late. Concurrently, other cultured categories such as cream cheese and sour cream are holding their ground or trying to push ahead.
A byproduct of Greek yogurt manufacturing, acid whey presents an environmental challenge that will require the combined efforts of many parties to resolve.
Over the past decade, the dairy industry has experienced a boom in the production of Greek-style yogurt (GSY). While in 2004 GSY accounted for less than 2% of all yogurt types produced domestically, by 2015 this number skyrocketed to almost 40%.
Up until recently, cottage cheese was arguably one of the most yawn-worthy subcategories within the cultured dairy segment. With so much other innovation in the cultured dairy space, consumers likely viewed the product as bland and boring, and retail sales data reflected that reality.
About a decade ago, Greek yogurt was the game-changer in the U.S. cultured products space. But newer cultured dairy products are now providing some competition, and adding excitement to the dairy case.