Dairy Research and Trends

Because taste drives purchase decisions, dairy processors have an opportunity to be creative with ingredients and flavors to keep up with consumer preferences, such as adding nostalgic or novel flavors. Cheese processors are meeting this need by combining unique flavors like mango and chili to create the “swicy” (sweet & spicy) flavor profile Gen Z craves. Over half (53%) of Gen Z shoppers say they enjoy “swicy” flavored foods and beverages.

Consumers are more price sensitive in recent years due to economic pressures like the rising cost of living, leading consumers to favor cheaper products, reduce meat consumption, and seek affordable, high-quality substitutes. This “trading down” effect influences food industry strategies, pushing for value-driven products and promoting categories like dairy. More consumers are reaching for cheese and whole milk to fuel their nutritional needs; volume sales grew at retailers 2.4% and 2.8% respectively in 2024. These positive trends continued in 2025.

As more consumers scrutinize labels for less sugar, artificial ingredients, and more beneficial components like protein, dairy processors and retailers are expanding their offerings. Specifically, protein has been a growing focus for the food industry as consumers’ desire for protein grows. According to Mintel, in 2024, 71% U.S. adults sought to add or increase their protein intake, up from 59% in 2022. Demand for more healthful products is reshaping the snack industry; even indulgent categories like ice cream are improving their nutritional profiles by adding protein and removing sugar/lactose.

Functional foods like yogurt and kefir (fermented milk) are also growing. Over the past 24 months, Tastewise data reveals a 16.0% year-over-year growth in social discussions about kefir, reflecting a steady upward trajectory across recipes, social platforms, and restaurant menus.

Demand for convenience foods is increasing, driven by hectic lifestyles, busy schedules, and urbanization, which creates a need for quick meal solutions. Many consumers are replacing traditional meals with healthy snacks or smaller, more convenient eating occasions throughout the day. Consumers view dairy as a great snacking solution, especially cheese. According to Innova Market Insights, 47.0% of consumers are interested in snackable-sized cheese products. Cheese processors have responded with new snackable cheese offerings, such as individually wrapped cheeses in a wide variety of cheese types and flavors. In addition, products like high-protein cottage cheese are increasingly available in portable sizes.

According to Mintel, 19% of consumers say organic and local are important factors when selecting a food or beverage. In addition, 15% of consumers say animal welfare and environmental sustainability are important. Increasing awareness of climate change and a desire to align purchases with a pro-environmental self-image are boosting consumer demand for sustainably sourced and produced food.

According to research conducted by Midwest Dairy, nearly half (48%) of consumers would purchase more dairy if a local farm began supplying dairy products to their usual store. With 3,600 dairy farms in the Midwest Dairy region, milk’s journey from the farm to the grocery store only takes about 48 hours, giving dairy a local story to tell.