Dairy Trends Drive Innovation in 2025

The dairy industry is transforming as consumers demand healthier and more sustainable food options. In response, retailers are expanding their Dairy selections with innovative products that offer both nutrition and taste.

Dairy Sales Remain Strong Despite Inflation

Dairy sales continue to thrive, despite inflation impacting household budgets. According to the International Dairy Deli Bakery Association (IDDBA), the category experienced a 40% increase in dollar sales in 2024. However, unit sales remained steady as shoppers purchased less per trip.

“Natural cheese was a key growth driver,” said Whitney Atkins, vice president of marketing at IDDBA. “Yogurt, whipped toppings, and cottage cheese also contributed.”

The Rise of Better-for-You Dairy Products

Shoppers are seeking Dairy options, including reduced-sugar products, probiotics, and enriched varieties. Amanda Oren, VP of industry strategy at RELEX, noted that high-protein yogurt, kefir, and lactose-free milk are gaining traction.

Bioactive proteins are also becoming popular, thanks to advancements in precision fermentation technology. “These innovations are transforming dairy nutrition,” said Shipra Pareek, senior account manager at NSF International.

Sustainability and Regenerative Dairy Gain Momentum

Environmental concerns are influencing consumer choices. Regenerative dairy products, known for improving soil health and reducing carbon emissions, are drawing interest.

“Sustainability is now a major factor in food decisions,” said Katie Macarelli, spokesperson for Natural Grocers. “A2 dairy, valued for its digestive benefits, is also trending.”

Looking Ahead: A Year of Dairy Innovation

With sustainability, nutrition, and transparency driving trends, 2025 promises continued innovation in the dairy sector. Shoppers can expect more Better-for-You Dairy options that deliver taste and health benefits.

Explore more Dairy industry updates and trends on this website for the latest insights.