What you need to know
Total retail sales of dairy milk posted estimated losses of 7% in 2015, dropping to $17.8 billion, a stark contrast to the year prior. The momentum dairy milk experienced in 2014 failed to continue in estimated 2015 as the category faced challenges from a surplus of milk, declining exports, declining consumer consumption, and strong competition from the non-dairy milk segment. Mintel forecast declines to continue through 2020; however, opportunities to calm future sales declines may exist with premium milks, added health benefits, and innovation with smaller, successful subsegments, such as lactose-free and organic milk offerings.
Definition
For the purposes of this Report, Mintel has segmented the market as follows:
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Refrigerated skim/low-fat milk
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Refrigerated whole milk
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Refrigerated flavored milk/eggnog/buttermilk
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Shelf-stable ready-to-drink milk/milk substitutes (primarily regular and flavored milk in aseptic packaging)
Excluded from this Report are cream, creamers, and non-dairy milk. Non-dairy milks are included in Mintel’s Non-dairy Milks – US, April 2016 and cream and creamers are covered in Mintel’s Coffee – US, September 2016.