Dairy processors invest $11B in the industry

America’s dairy processors are responding to surging demand for their products by investing more than $11 billion in new and expanded manufacturing capacity across 19 states, according to data released by the International Dairy Foods Association (IDFA).

With U.S. milk production expected to grow 15 billion pounds by the end of the decade and dairy consumption and export demand rising as consumers seek out wholesome protein and nourishment, dairy processors have undertaken more than 50 individual building projects between 2025 and early 2028. These new and upgraded facilities add to the billions-of-dollars of new processing capacity that has come online in the past decade as consumers seek out foods and beverages that boost strength and endurance, enhance health, and reduce illness.

In October, American businesses celebrate the importance of U.S. manufacturing innovation and ingenuity to America’s standard of living by recognizing Manufacturing Month. Dairy processing is one of the fastest-growing sectors in the U.S., and food manufacturing is the leading manufacturing sector in 19 states. The nation’s dairy manufacturing industry is powered by 1,200 dairy processing plants that source wholesome milk from nearly 24,000 American dairy farming families.

“The U.S. dairy industry is a vital part of the nation’s manufacturing economy, contributing $779.45 billion in overall economic impact, more than 3.05 million jobs that generate $197.6 billion in wages, and more than $83 billion in taxes to state and local economies,” said Michael Dykes, D.V.M., president and CEO of IDFA. “Our industry’s $11 billion investment in new processing capacity in the United States reflects the confidence dairy companies have in the future of American agriculture and their commitment to meeting growing domestic and global demand for nutritious dairy foods.”

Why U.S. Dairy Is Making These Investments

U.S. milk production is expected to grow by 15 billion pounds by 2030 to meet demand. That is enough milk to fill more than 1.7 billon gallon jugs.
U.S. dairy exports are also growing, as buyers and consumers in South and Central America, Southeast Asia, and the Middle East spend their growing incomes on safe, reliable, and affordable U.S. dairy nutrition.
Consumer demand for high-protein, wholesome foods has led to surging sales for dairy foods, including yogurt, shakes and smoothies, cottage cheese, milk products, whey protein powder, and more. Cottage cheese sales alone have surged by about 20% in the U.S. in the year leading up to June 2025, according to Circana.
Per-capita consumption of dairy in the United States reached a record 661 pounds per person in 2023, driven by increased demand for cheese and butter. Per capita cheese consumption has doubled in the last 50 years, and fluid milk consumption is growing for the first time since 2009.

Top 5 States by Investment Total