Say cheese: Industry revenue will rebound as dairy producers introduce new products

Over the five years to 2017, performance in the Dairy Product Production industry has been volatile due to fluctuations in the price of milk. While the industry benefited from the increasing popularity of yogurt and cheese products in the United States and abroad, fluid milk consumption has declined. Dairy producers have been able to pass along raw milk costs to consumers, especially producers that manufacture value-added products such as cheese, yogurt and condensed milk products. However, following the recent fall in the price of milk, industry revenue has grown slowly. Dairy product wholesalers and retailers have grown over the past five years after significant increases in milk prices early in the five-year period...purchase to read more.

Industry Statistics & Market Size
Revenue
$116bn
Annual Growth 12-17
1.3%
Forecast Growth 17-22
Profit
Employment
126,376
Businesses
1,295
Market Share of Companies

Industry Threats & Opportunities

  • Rising disposable income stemming from the economic recovery is expected to boost dairy product demand and industry revenue
  • Changes in downstream markets prompted a series of structural shifts for the industry
  • Dairy products will remain popular amid health issues and changing consumer preferences
  • Industry Report - Starting a New Business Chapter

    Companies wishing to enter the Dairy Product Production industry must be able to afford initial capital investments, including acquiring a production facility. Entrants also need to invest in dairy manufacturing equipment and machinery to perform the processing activities. If operators are unable to afford a facility or equipment, they will be unable to operate within the industry.New entrants must also comply with regulations. Agencies such as the Food and Drug Administration and Milk and Dairy Foods Control Branch provide regulatory barriers through various sanitary, compositional state and federal microbiological prerequisites. Com...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 Demand from supermarkets and grocery stores and Demand from dairy wholesaling 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 mainly 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 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
  • Demand from supermarkets and grocery stores
  • Demand from dairy wholesaling
  • Price of milk
  • Demand from food services and drinking places
  • Per capita dairy consumption
  • Price of feed

  • Current Performance
  • Export demand
  • Industry structure
  • Product prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption and innovation
  • Consolidation and expansion
  • 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
  • Price
  • Health trends
  • Demographics
  • Competition

  • Major Markets
  • Retail stores
  • Wholesalers
  • Food service establishments
  • 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 competition
  • External 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
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Milk Production (2008-2022)

  • 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

    Why buy this report?

    The Dairy Product Production industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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