‘Moo'ving along: As input prices rebound industry operators will milk the benefits.

The Dairy Product Production industry consists of operators that manufacture a wide variety of dairy goods, and then supply them to downstream markets such as wholesalers, retailers and food service establishments. Over the five years to 2018 industry performance had been volatile, but eventually experienced steady decline. This was primarily due to large fluctuations in the price of raw (unprocessed) milk. Industry revenue typically benefits from higher input prices as operators pass along costs downstream by charging higher prices for goods. The decline in raw unprocessed milk prices, and, subsequently, finished milk product prices, can largely be attributed to an even larger drop in prices of feed, which is a strong determinant of the input's demand...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • During the period industry performance had been volatile but eventually experienced steady decline
  • Most fresh milk products are perishable and present challenges with transporting long distances
  • The aging US population will help drive dairy product demand
  • Industry Report - Industry Key Buyers Chapter

    The Dairy Product Production industry has a low level of market share concentration, with the four largest operators expected to account for 27.4% of industry revenue. Operators within this industry can range from private and public companies, dairy cooperatives and multinational food corporations that undertake dairy production. The industry produces a wide array of products, such as milk, cheese, butter and yogurt, thus making overall industry revenue relatively large compared with other food industries. Dairy producers often focus their operations on one commodity, such as cheese or butter, while others diversify their activities to make a range of dairy products. For...purchase to read more.

    Additional Insights for the Dairy Product Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Product Production 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 Price of milk and Demand from supermarkets and grocery stores in the Dairy Product Production industry impact industry performance..

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    What's in this report

    What is the Dairy Product Production Industry?

    Operators in this industry manufacture dairy products such as pasteurized milk, cream, butter, yogurt, cheese and dry, condensed and evaporated milk. Operators supply these goods to a variety of market segments such as retailers, wholesale and food services. Producers of dairy products such as ice cream and frozen yogurt are excluded from this industry (IBISWorld report 31152).

    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
  • Price of milk
  • Demand from supermarkets and grocery stores
  • Demand from dairy wholesaling
  • Demand from food services and drinking places
  • Per capita dairy consumption
  • Price of feed

  • Current Performance
  • Production prices and profitability
  • Export demand
  • Industry structure and operator strategy
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption and innovation
  • Operators and employees
  • Exports and competition
  • Table: Dairy Product Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Product Production 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 Industry Products and Services Segmentation

  • Demand Determinants
  • Health trends
  • Consumers
  • Competition and Innovation

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

  • International Trade
    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

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

  • Industry Globalization
    Dairy Farmers of America Inc., Dean Foods Company,
  • Table: Dairy Farmers of America Inc. - financial performance
  • Table: Dean Foods Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Product Production 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 Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Milk Production (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 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

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