|SIC Codes:||2021 2022 2023 2024 2026|
|NAICS Codes:||311511 311512 311513 311514 311520|
Companies in this industry manufacture dairy-based products from raw and processed milk, along with dairy substitutes. Major companies include Dean Foods, Dairy Farmers of America, and Land O'Lakes (all based in the US), as well as Groupe Danone and Groupe Lactalis (France); Fonterra Co-operative Group (New Zealand); Koninklijke FrieslandCampina (the Netherlands); Meiji (Japan); and Nestlé (Switzerland).
Changes in consumer income drive demand for various types of dairy foods. The profitability of individual companies depends on efficient operations and marketing, as milk is a commodity product. There are few economies of scale in the manufacturing process, which is why small companies can effectively compete with large ones in local markets. However, economies of distribution favor large manufacturers. Many segments of the US dairy products industry are highly concentrated. The 50 largest fluid milk producers, for example, account for about 85 percent of segment revenue.
Major product segments include cheese (about 40 percent of industry revenue), fluid milk and milk products (35 percent), and dry and condensed milk products (20 percent). Other products include ice cream, other frozen desserts, and butter. Besides regular milk, milk products include buttermilk, cream, cottage cheese, yogurt, and dairy substitutes, such as soy milk.Buy Now