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Drinking Milk Products in the US

United States drinking milk products market: $17 billion industry by 2017

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2014-03-12 20:03:03 - Drinking Milk Products in the US - a new market research report on

Dean Foods Co remains the leading branded milk producer in the United States drinking milk products market during 2012 with a 16% value share. The dairy producer has become the leading force in branded milk through acquisitions, product developments and marketing efforts. Dean Foods is one of the few national players in milk as most other branded milk is sold by regional dairies. The company sells Silk soy milk through its White Wave Foods division and Horizon Organic milk through its Horizon Organic Dairy division. To compete better against its rivals, especially private label producers, Dean Foods continues to focus on product innovation, such as Silk Fruit & Protein and TruMoo.

The expected 0.4% retail volume decline for fresh/pasteurised milk in



2012 will be an improvement on the review period CAGR of -1%. In current value terms, the 8% decline expected for fresh/pasteurised milk in 2012 will be a steeper drop than the review period CAGR of -3%. Volume sales of fresh milk continue to decline in the US as Americans are turning to other beverages which offer more exciting flavours. Fresh dairy milk competes with orange juice (much of which is calcium-fortified) and dairy alternatives such as soy milk and almond milk at breakfast time. At lunch and dinner time, consumers are likely to drink carbonates if they need an energy boost or bottled water which contains no calories.

Americans are expected to continue to reduce their consumption of drinking milk products over the forecast period. Milk faces increasing competition from other alternatives such as energy drinks and RTD teas, especially among young consumers. Sales of drinking milk products are forecast to decline by 2% in constant value terms over 2012-2017. In retail volume terms, sales of fresh/pasteurised milk are forecast to decline by 3% over the same period. The forecast rate of volume decline is lower than the 6% volume decline of the review period. The US has very high per capita consumption of fluid milk so volume growth prospects will be negative without a population boom.

Key Headlines

- Drinking milk products set to reach sales of US$17.1 billion in 2012, down 8% from 2011 in current value terms
- Price of milk declines in 2012 after rising in 2011
- Soy drinks set to be the best performer in 2012 with current value increase of 15% .
- Prices of drinking milk products decline in 2012
- Dean Foods Co the leading branded player, while private label dominates
- Value sales of drinking milk products forecast to decline by 2% in constant terms over 2012-2017

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Mike King
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