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Market Snapshot: Dairy

Retail-ready and flexible packaging demand is growing, and pouches and bags are expected to grow in milk packaging use.

Milk

According to “2019 Trends and Advances in Food Packaging and Processing,” a report by PMMI Business Intelligence, dairy holds a 14.9% share of the nine food categories, and though the number of establishments decreased to 1,258 between 2014 to 2017 (a CAGR of -0.6%), the number of employees increased to 124,075 in the same period, at a CAGR of 2.8%.

Dairy product packaging trends include more PET for recyclability for dairy creamers, more shelf-stable, biodegradable and transparent packaging, and the growth of retail-ready packaging, as well as flexible packaging. Both dairy-free and cheese snacks grew in the past year.

Of dairy trends, one Senior Production Specialist at a dairy company said, “Cheeses are growing but we’re consolidating SKUs to avoid capacity issues.”

Dairy Product Processing Trends

·     The U.S. Department of Agriculture predicts dairy product prices to increase 3% to 4% in 2019.

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