Spoiled rotten: Falling sales growth and rising operating costs have eroded operators' profit margins

Companies operating in the Dairy Product Production industry in California sell various dairy products, including fluid milk, cheese and butter to wholesalers, retailers and food service establishments. Over the past five years, dairy producers have experienced some headwinds and tailwinds. California is the top milk producer in the United States, but fluid milk consumption has been tumbling as Americans are drinking significantly less milk than they used to several decades ago. The next five years are forecast to be more promising for dairy producers in California than the previous five years. Shifting consumer preferences and product innovation, coupled with improving economic conditions, will drive industry growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$15bn
Annual Growth 12-17
-1.0%
Forecast Growth 17-22
Profit
Employment
15,277
Businesses
153

Industry Threats & Opportunities

  • The next five years are forecast to be more promising for dairy producers in California than the previous five years
  • Industry operators typically purchase large quantities of raw milk
  • Operators will increasingly invest in product innovation to stand out from competition
  • Industry Report - Industry Investment Chapter

    The Dairy Product Production industry in California has a high level of capital intensity. For every $1.00 an average industry operator spends on labor, $0.45 is allocated toward capital improvements. Dairy producers use machinery and storage facilities to assemble and manufacture products. Major producers invest in substantial amounts of capital related to technology and production compared with smaller companies because they have more money to invest. While technology is relatively simple for basic milk production, there are still many small producers that depend heavily on labor in their production process...purchase to read more.

    Additional Insights for the Dairy Product Production in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Product Production in California Industry are

  • Guaranteed supply of key inputs
  • Marketing of differentiated products
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Per capita dairy consumption and Grocery Price Index of California in the Dairy Product Production in California industry impact industry performance..

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    What's in this report

    What is the Dairy Product Production in California Industry?

    Operators in this industry primarily manufacture dairy products, such as pasteurized milk, cream, butter, yogurt, cheese and dry, condensed and evaporated milk. The industry also manufactures substitute dairy products made from soybeans and other nondairy ingredients. Producers of frozen dairy products, such as ice cream and frozen yogurt, are excluded from this industry.

    Industry Products
  • Cheese
  • Fluid milk and milk-based products
  • Dry, condensed and evaporated milk products
  • Butter
  • Industry Activities
  • Producing fluid milk products
  • Producing cheese
  • Producing dry, condensed and evaporated milk
  • Producing creamery butter
  • Producing yogurt
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita dairy consumption
  • Grocery Price Index of California
  • Per Capita Disposable Income in California
  • Price of milk

  • Current Performance
  • Changing consumer preferences
  • Severe droughts
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Capitalizing on innovation
  • Changing industry landscape
  • Table: Dairy Product Production in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Product Production in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Dairy Wholesaling
  • Supermarkets & Grocery Stores
  • Accommodation and Food Services
  • Consumers

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Coated & Laminated Paper Manufacturing
  • Dairy Farms
  • Plastic Bottle Manufacturing
  • Plastic Film, Sheet & Bag Manufacturing
  • Sugarcane Harvesting

  • Products & Services
  • Cheese
  • Fluid milk and milk-based products
  • Dry, condensed and evaporated milk products
  • Butter
  • Chart: Dairy Product Production in California Industry Products and Services Segmentation

  • Major Markets
  • Retail stores
  • Food service establishments
  • Wholesalers
  • Chart: Major Market Segmentation for the Dairy Product Production in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Product Production in California

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Product Production in California Industry

  • California Dairies Inc., Dairy Farmers of America Inc., Dean Foods Company, Land O'Lakes Inc.,
  • Table: California Dairies Inc. - financial performance
  • Table: Dairy Farmers of America Inc. - financial performance
  • Table: Dean Foods Company - financial performance
  • Table: Land O'Lakes Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Product Production in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Dairy Product Production in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Price of milk (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cooperative (Co-Op)
  • A jointly owned, vertically integrated organization that produces and distributes goods for the benefit of the owners.
  • Milk Powder
  • A manufactured dairy product made by evaporating milk to dryness.
  • Pasteurization
  • A process that slows microbial growth in food.
  • Probiotics
  • Dietary supplements of live microorganisms thought to be healthy for the host organism.
  • Soy Milk
  • A liquid beverage made from soybeans.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • Whey
  • A liquid byproduct of curdling milk or making cheese.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Dairy Product Production in California provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Dairy Product Production in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Dairy Product Production in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Dairy Product Production in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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