Dairy is the largest aisle in the grocery store and sold $77.8 billion worth of products last year, according to Circana sales data. Over the last four years, the aisle has grown, on average, 5.8% annually. This dollar amount is only for traditional dairy products and cheese snacks and does not include plant-based products or eggs. The dairy category tops the list over alcohol, snacks, carbonated soft drinks, and candy.

The next generation of shoppers

In a recent study published by the National Frozen and Refrigerated Foods Association, behaviors among American grocery shoppers are starting to shift as younger generations enter the kitchen to cook for their families. One finding for dairy found that 33% of survey respondents mentioned health benefits, such as probiotics and high protein content, as leading motivators to try new dairy products. Nearly half — 48% — of consumers navigated directly to familiar sections, while 46% preferred browsing aisles for inspiration.

New recipes found via TikTok and other social media platforms have been leveraged to shop around the grocery store, too. The survey mentioned that younger generations value innovative packaging and trendy food attributes. These findings open a wide door for dairy products as they have expanded outside of the refrigerated section and have found new places in the center of the store.

New product development

Everywhere customers look when shopping for groceries, whether in the store or online, there is a flashy new product or label to draw their attention away from the grocery list. These stores were designed with the largest aisle placed at the back of the store in order to have customers shop on their way back to the dairy refrigerator and on their way to the cash register, likely grabbing more than just the gallon of milk they originally set out to buy.

Over the last few years, new dairy products have been introduced to fulfill the demands of consumers looking for high protein, bold flavors, zero sugar, zero fat, lactose-free, and low-calorie foods and beverages. Some examples include:

  • Milk50 from DFA, a lactose-free, low-calorie option with 75% less sugar than skim milk.
  • Prairie Farms and Hiland Dairy launched the ProPack Snack, a high-protein cottage cheese product designed for busy and health-conscious consumers.
  • Darigold announced a new line of protein shakes that are lactose-free and feature 30 grams of protein.
  • Danone entered the protein shake market with a 12-ounce Oikos shake that’s nonrefrigerated with 30 grams of protein.

As food scientists, retailers, dairy processors, and others in the dairy supply chain work together to formulate new products, the innovation ideas are endless. The dairy aisle should expand further in the grocery store with more product availability for consumers of all ages.

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(c) Hoard's Dairyman Intel 2025

June 26, 2025
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