Dairy Processing - December 2020 - 7

26%
between

Source: USDA Economic Research Service report

2010 to 2019

Year

consumption grew

Dalgona coffee to running a mile with a glass of
milk in-hand, today's TikTok-ers are finding more
ways to connect with milk. "
Indeed, when Americans were faced with
tough times, they bought more milk, and not
just during the initial stock-up phases of the
pandemic. Milk is an " essential " for home meals.
Parents buy milk because they trust it for its
nutrition, versatility and taste. In fact, 72% of
moms said that milk was their No. 1 must-have
as the stay-at-home orders hit, above staples
like bread, eggs and vegetables, according to
MilkPEP/Radius Illumination research among 201
moms between March 17 and April 19.
To better understand the new norm of
dairy retail sales and consumer use, Midwest
Dairy, St. Paul, Minn., included a live consumer
focus group during its third annual Dairy
Experience Forum on July 15. While panelists
shared perceptions surrounding health benefits,
animal care and sustainability, they also shared
enthusiasm for dairy and habits that showcased
opportunities for the dairy industry. Among these
were increased yogurt consumption, exploring
new cheeses and cooking with dairy foods, such
as buttermilk and sour cream.
Further, based on the results of a survey
commissioned by Midwest Dairy, consumers
indicated they plan to increase their yogurt usage
in the post-pandemic world. This is likely due
to the healthful halo of yogurt, as the probiotic
cultures they contain are associated with
boosting immunity.
" Dairy drivers are the same as before -
taste, health, comfort and familiarity - but have
increased in importance in the eyes of consumers, "
said Molly Pelzer, CEO of Midwest Dairy. " This
year's challenges have provided opportunities for
dairy processors to explore consumer insights
and innovate to keep dairy foods in the home
refrigerator and on the dinner table. "

4.9
5.4
5.5
5.5
5.5
5.6
5.7
5.7
6.0
6.2

% Growth

American
butter

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

Allen Merrill, chairman
of Midwest Dairy, said,
" The dairy community now
has the opportunity to tap into
this expanded market share and build
upon consumers' enthusiasm for the category.
We can do this by focusing future innovation
on products that meet consumers' needs for
taste, affordability, nutrition, convenience
and accessibility. "
Right now, however, getting new products
into the supermarket is challenging. Data from IRI
show that the number of stock-keeping units were
down by 2.7% for dairy during the week of Aug.
30 versus the same week in 2019. This is all about
opening up space for fast-moving staples.
" The other big change taking place is that
growth percentages differ when looking at dollar
versus volume sales, " said Anne-Marie Roerink,
president of 210 Analytics. " With the exception
of yogurt, dollar gains trended ahead of volume
gains for the week ending Aug. 30 versus a year
ago. This tends to point to inflation, at least on a
per-oz basis, though the volume and dollar gaps
are significantly smaller than they have been.
In addition to pricing levels coming down, this
could mark a bit of a turn to smaller serving sizes,
as some offices and schools have reopened for
in-person activities. "

" I think it is fair
to say that we
are starting
to look at the
new normal.
Retail sales
appear
to be holding
at about 10%
above 2019
levels
with great
consistency. "
Jeremy Johnson, International
Dairy Deli Bakery Association

More Milk For America
On a per capita basis, Americans'
consumption of milk products grew
almost 8% in the last decade

LBS
PER
PERSON

2010

2019

605 653
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