At 661 pounds per capita, dairy product consumption last year moved to levels not seen since Dwight Eisenhower was serving his second term as U.S. president in 1959. As calculated by USDA’s Economic Research Service (ERS), the 661 pounds of dairy consumed by the average American in 2023 was up 7 pounds from the year prior. Back in 1959, Americans consumed 672 pounds of dairy products as measured on a milkfat, milk-equivalent basis.
Consumption among the big three
Cheese was the star of the 2023 dairy product show as Americans consumed a record 40.2 pounds in 2023. Butter also continued its rebound as U.S. consumers ate 6.5 pounds of butter, the highest mark since 1965, according to USDA ERS data going back to 1909. When compared to the previous year, butter netted a 7.1% gain.
Overall, the big three — cheese, yogurt, and butter — continue to grow each year as fluid milk consumption declines. In the past year, yogurt netted 13.8 pounds on a per capita basis, which is slightly off the high-water mark of 14.9 pounds posted in both 2013 and 2014.
In 2023, fluid milk consumption fell 1.5% to 128 pounds. This is well below the peak of 247 pounds per person in 1975. While the fluid milk number of 128 pounds seems high on the surface in comparison to cheese, remember that 100 pounds of fluid milk yields 11.24 pounds of cheese.
USDA also calculates what percent of milk is allocated to each dairy product. In 2000, 37.7% of the U.S. milk supply was manufactured into cheese. That allocation grew to 42.2% in 2023. Butter experienced similar growth from 16.3% in 2000 to 18% in 2023. Combined these two categories account for nearly two-thirds of the U.S. milk supply on a milkfat basis.
Milk allocated to make fluid beverage milk and frozen dairy products has been on a steady decline. In 2000, fluid milk used 18% of the milk supply; by 2023, that number was nearly halved at 10.1%. Frozen dairy products fell from 11% in 2000 to only 6.5% in 2023.
Surprising growth in small categories
Dry whey and whey protein concentrate (WPC), cottage cheese, and nonfat dry milk and skim milk powder exhibited the most growth on a percentage basis in 2023. Dry whey and WPC skyrocketed 58.9% to 1.9 pounds per capita, cottage cheese jumped 11.2% to 2.1 pounds per capita, and nonfat dry milk and skim milk powder grew 8.9% to 2.5 pounds per capita.
While those volumes appear small, shifting consumer trends are driving the uptick in consumption. For example, millennial and Gen Z consumers are seeking more protein in their diets and meeting those goals with protein powder made with WPC or other whey proteins. Cottage cheese took off on social media in 2023 and 2024 as a low calorie, high protein, low sugar, and low-fat snack or meal ingredient, aiding in the large boost in consumption.
As consumer preferences evolve, dairy consumption patterns will continue shifting. Regardless of the dairy product, consumers benefit from dairy’s 13 essential nutrients and vitamins to meet their everyday nutritional needs. The outlook for dairy consumption is bright, especially considering the positive trendline dating back decades in USDA data.
