These days, cultured dairy is a rock and roll legend that people would figuratively spend thousands to see in concert, a la Beyoncé, Coldplay or The Weeknd. Thanks primarily to the health and wellness trend — which encompasses those taking GLP-1 medications as well as TikTok videos — yogurt and cottage cheese are definitely two of the hottest subcategories in the entire food industry.

According to data provided by Chicago-based market research firm Circana, yogurt dollar sales for the 52-week period ending Sept. 7 zoomed higher by 14% year over year (YoY) to $12.44 billion. Unit sales rose 8% YoY during the same period to 4.5 million.

Also in yogurt, the investment community perhaps sees a brighter future for the cultured dairy food, evidenced by the fact that Lititz, Pa.-based Painterland Sisters closed its seed funding round led by angel investment groups The Angel Group, its partner fund Supernatural Ventures and Spacestation Investments. The exact amount of funding was not disclosed, but Adam Spriggs, founding member at The Angel Group and managing partner at Supernatural Ventures stated that “Painterland Sisters checks every box for us. It’s a brand with proven traction, strong fundamentals, and founders who are all-in on a mission that truly resonates. Their immediate resonance and momentum in the market spoke to the first-to-believe, first-to-move ethos that sets our investment ethos apart.”

In addition, on June 30, Buffalo, N.Y.-based Lactalis USA, the U.S. affiliate of Lactalis, completed the previously announced acquisition of General Mills’ U.S. yogurt business. With this acquisition, Lactalis USA acquires the Yoplait, Go-Gurt, Oui, Mountain High and :ratio businesses in the U.S. The acquired business represents approximately $1.2 billion in annual net sales.

This year has seen a tremendous number of yogurt product launches. Among these launches are New York City-based Icelandic Provisions adding banana and caramel to its skyr lineup. “At Icelandic Provisions, we are committed to delivering incredible flavor alongside balanced nutrition, so we’re excited to add Salted Caramel & Banana to our fan-favorite line of Extra Creamy skyr,” says John Heath, chief of innovation of Icelandic Provisions. “Doubling down on our commitment to highly curated ingredients and the rich tradition of Icelandic skyr, this new flavor combines real ripe banana swirled with rich, salty caramel, and has 11 grams of protein.”

Clover Sonoma launched its Pasture Raised Organic Greek Nonfat Plain Yogurt, which is made with fresh pasture-raised organic milk from Clover's network of California family farms. The new Greek yogurt contains 22 grams of protein per serving with zero grams of added sugar and live and active cultures to benefit gut health, the Petaluma, Calif.-based dairy says.

Next up, Nounós Creamery announced the launch of A2 Greek Yogurt. The introduction of A2 Greek Yogurt reflects the company's ongoing pursuit of excellence and its responsiveness to evolving consumer preferences, the company said. “At Nounós Creamery, we believe that real milk — sourced from healthy cows raised on healthy soil — is nature's original superfood. It's packed with essential nutrients and naturally occurring proteins that support whole-body health,” states Steve Iounnou, co-founder of New York-based Nounós Creamery.

This year Oui also debuted its newest special-batch flavor of the French-style yogurt: Strawberry Lemon. “With the juicy taste of strawberry and brightness of summer lemon, this fresh new flavor is like sipping a glass of lemonade on a warm, sunny day,” the company said.

Chobani also introduced a plethora of flavors this year, Chobani Greek Yogurt, Fruit Punch and Chobani Flip, Red, White and Poppin.’ On April 22, Chobani broke ground on a new, $1.2 billion, state-of-the-art dairy processing plant in Rome, N.Y. “New York is where Chobani's journey began. It was the perfect spot to start Chobani 20 years ago, and it's the perfect place to continue our story. Working with dedicated dairy farmers and the resilient community, we built something truly special — something bigger than the food we make. We ignited a movement toward better food made with heart, passion, and only the highest-quality ingredients,” said Hamdi Ulukaya, founder and CEO of Chobani.

Cottage cheese earns “platinum record”

As impressive as the yogurt statistics are, on a percentagewise basis, cottage cheese had an even YoY advancement, as dollar sales rose 21% to $1.95 billion. Unit sales increased by 14% YoY to 604 million. One big new cottage cheese launch this year was Prairie Farms and Hiland Dairy introducing ProPack Snack, a high-protein cottage cheese designed for busy, health-conscious consumers. ProPack Snack offers a convenient way to fuel an active lifestyle. Available in a 4-oz. portable cup, ProPack Snack boasts 12 grams of protein per serving.

“We are thrilled to introduce ProPack Snack, an innovative product that reflects our commitment to providing high-quality dairy options that cater to modern consumers’ lifestyles," said Matt McClelland, CEO/executive vice president of Edwardsville, Ill.-based Prairie Farms, and Rick Beaman, president of Hiland Dairy, Springfield, Mo. "Whether you’re looking for a post-workout snack or a satisfying mid-day boost, ProPack Snack delivers protein-packed goodness without compromising on taste.”

The aforementioned Lactalis USA made a big investment this year to the tune of more than $75 million to upgrade both its Walton, N.Y., and Buffalo, N.Y., facilities, enabling it to expand capacity and gain efficiencies. The Walton plant, located at 261 Delaware St., produces Breakstone’s Sour Cream and Cottage Cheese. It will undergo a $15 million modernization, focusing on automating and expanding the cottage cheese and sour cream production lines, enhancing efficiency, capacity and sustainability. 

According to John Crawford, senior vice president, Client Insights-Dairy for Chicago-based market research firm Circana, growth in yogurt and cottage cheese have similar drivers. “Both are driven by consumer interest in high protein and low sugar options. Cottage cheese fits both of these trends today. Cottage Cheese’s rebirth began back in Spring of 2023 when Cottage Cheese went viral on TikTok. The viral videos shared new use occasions including use in casseroles, smoothies, ice cream and hiding in dishes (bringing protein to kids). It gave younger consumers ideas on how to use this high protein, low sugar powerhouse in their kitchens. Since Spring of 2023, Cottage Cheese has experienced double-digit growth.”

As for yogurt, “growth is driven by high protein and low sugar products like Oikos Triple Zero, Oikos Pro, etc. Both spoonable yogurt and yogurt drinks,” Crawford reveals. The executive adds good news lies ahead for dairy processors. “I believe the overall consumer health evolution focusing on low sugar and high protein will continue as the GLP-1 trends are expending well beyond just consumers on the medication,” he predicts.

Singing an upbeat tune

Looking at other cultured dairy subcategories, sour cream is anything but sour, as dollar sales jumped by 5% YoY to $1.9 billion, along with a 0.3% YoY unit sales gain to 703.6 million, Circana data shows. In sour cream-related news, San Jose, Calif.-based Marquez Brothers International Inc. on April 1 acquired Hato Potero Farms, owner of YoGusto brand. YoGusto’s different products consist of lactose-free milk, chocolate milk, sour cream and cheeses.

“This acquisition fits our strategy of focusing and growing in the Hispanic food categories and will allow us to continue growing our core business by strengthening our position in a rapidly growing market that is gaining space in mainstream consumption,” said Gustavo Marquez Jr., CEO of Marquez Brothers International.

Cream cheese kept the uptrend going in terms of dollar sales, which eked out a 1% YoY gain to $3 billion, but unit sales dipped slightly by 0.6% YoY to 802 million.

Lastly, this year, we are also including butter/margarine/spreads in this report. The category had a strong year as dollar sales rose 4% to $7.7 billion. Unit sales gained YoY 0.8% to 1.585 billion, per Circana data.

Among butter product launches this year were Kerrygold, an international brand of Ireland-based Ornua, introducing cinnamon and sugar buttery goodness made with milk from Irish grass-fed cows. Cinnamon & Sugar Butter Sticks combine the rich, creamy texture of all-natural Irish butter with a blend of cinnamon, brown sugar and nutmeg.  

“The new Kerrygold Cinnamon & Sugar Butter Sticks embodies our commitment to combining tradition with innovation, delivering flavors that evoke warmth and comfort in every bite," says Kelly Harfoot, senior brand manager, Ornua Foods North America. "By offering a fresh twist on a nostalgic flavor combination, we've carefully crafted this butter to elevate everyday culinary experiences, bringing a touch of sweetness and a hint of spice to your favorite dishes. This delicious new addition to Kerrygold's existing butter portfolio not only inspires new and delightful moments at the table but also reminds us of the timeless joy of traditional flavors reimagined for modern tastes.”

Challenge had its own major product launch, debuting Challenge Butter Cubes, a new, cube-shaped butter format, designed for easy measuring and less messy cooking. Each cube is individually wrapped and pre-portioned into four tablespoons, offering precision, convenience, and a cleaner prep experience for today’s busy home cooks, the company notes. “Challenge has been in kitchens for over 100 years, and we’ve seen how cooking habits have changed, concludes Priya Kumar, vice president of marketing for the Dublin, Calif.-based company. “Butter Cubes are our way of meeting today’s cooks where they are with a format that’s intuitive, tidy, and ready to help get a great meal on the table, fast.”

Challenge also launched Challenge Snowflake Butter, a new limited-edition offering crafted to bring a touch of magic to holiday tables. Each delicately molded snowflake is made from rich and creamy Challenge Salted Butter, using 100% rBST-free milk from California cows.

“Most growth (in the butter category) is driven by higher prices, but Kerrygold has reinvigorated the category. Certainly, consumers also are looking for clean label and butter offers a much better option to margarine/spreads. In addition, consumers are wary of rapeseed oils, which are prevalent in margarine/spreads,” Crawford concludes. DF