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Welcome to the 2025 State of the Industry report. For this year’s theme, we tap into the music industry where the music scene meets the dynamic world of dairy and dairy alternatives.

Dairy Foods reports on how the dairy industry in faring in our eight State of the Industry categories: milk, ice cream and frozen novelties, cheese, yogurt and cultured dairy, butter, nondairy beverages, ingredients and exports.

In the 1967 musical “Doctor Doolittle,” Rex Harrison in the title role sings about being a “reluctant but sincere vegetarian,” as he hears piglet Gub-Gub’s squeals as sausage and bacon sizzle over an open flame.

Sales in several dairy alternative subcategories soured for the 52-week period ending June 16, according to new data provided by Chicago-based market research firm Circana. 

Although some may not consider its sales gains gangbusters, the butter and creamer dairy subcategories are led by refrigerated butters and refrigerated coffee creamers, according to Chicago-based market research firm Circana.

Milk, tea, coffee, aseptic juices, and bottled juices, major components of the ready-to-drink (RTD) dairy beverage market, are seeing great growth. In fact, the global RTD beverages market is projected to grow from $766.69 billion in 2024 to more than $1 trillion by 2032. 

It’s the age of cottage cheese. At first glance, it may sound like an exaggeration, but it’s not. TikTok has sent cottage cheese sales to the moon with sales of $1.33B. While private-label is still No. 1, brands like Daisy and Breakstone's are doing well. 

It placed third in the 2021 Dairy 100. It placed second in the 2022 Dairy 100. This year it is No. 1. Other companies saw major growth. Moving 33 spaces,  Valley Queen Cheese Factory Inc., Milbank., S.D., No. 87 in 2021 net revenue, moved to No. 54 with a 2022 net revenue of $600 million.

To manage their food spending, U.S. consumers are finding ways to manage higher food costs by shopping at value retailers, spending less on non-food purchases, switching to store brands, and canceling committed expenses, like subscriptions, reports Circana.

Refrigerated ready-to-drink (RTD) coffee and tea were red hot, with percolating sales of nearly $949 million and $1.44 billion, respectively, in multi-outlets for the 52 weeks ending July 10, IRI data states. Percentage-wise, coffee saw a 27% sales increase, while tea added year-over-year sales of 11%.