While inflation has hit CPG hard, no category has seen prices skyrocket like dairy. This review explores how the dairy industry is responding and highlights the best opportunities to propel future growth.
- Average food and beverage inflation in Q1 2023 was 10.9% versus year ago, while dairy inflation hit 19.2%, driven by egg prices.
- Private label growth has outpaced name brands in 13 out of 15 dairy categories as consumers pursue savings.
- As inflation eases, expect brands to focus on more promotions vs. reducing prices.
- No/less oil is the fastest-growing dairy claim, driven by margarines and spreads.
- Dairy can achieve ongoing growth by addressing other U.S. adult consumption trends that include seeking more protein and avoiding sugar.