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Dairy Product Production in the US Industry Market Research Report from IBISWorld Has Been Updated
Date:11/29/2013

pply vendors on a national scale, and maintaining competitive prices became important for securing national sales contracts. However, rising feed costs caused raw milk input costs to surge, forcing producers to raise prices. Buyers are willing to pay higher prices to a certain extent therefore, to achieve lower per-unit costs and function on a national scale, many dairy producers have merged. Consequently, the number of enterprises is expected to fall in the five years to 2013.

Over the next five years, “rising household disposable income stemming from the economic recovery is expected to boost dairy product demand and industry revenue,” says Neville. Additionally, continuing the trend over recent years, producers are anticipated to introduce innovative products that cater to changing consumer tastes. Nevertheless, rising feed costs will increase the price of milk, hampering profit expansion, while competition from overseas dairy producers will temper revenue growth. Overall, the industry is forecast to grow moderately in the five years to 2018.

For more information, visit IBISWorld’s Dairy Product Production in the US industry report page.

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IBISWorld industry Report Key Topics

Operators in the Dairy Product Production industry mainly manufacture dairy products such as pasteurized milk, cream, butter, yogurt, cheese, and dry, condensed and evaporated milk. The industry also manufactures substitute dairy products made from soybeans and other nondairy ingredients. Producers of dairy products such as ice cream and frozen yogurt are excluded from this industry (IBISWorld report 31
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