The Dairy Product Production industry consists of operators that manufacture a wide variety of dairy goods and then supply them to downstream markets, such as wholesalers, retailers and food service establishments.
Industry revenue performance has been volatile but has declined overall.
Volatility in the industry has also been due to large fluctuations in the price of raw, or unprocessed, milk.
Thus, industry revenue has declined at an annualized rate of 0.3% to $111.2 billion over the five years to 2021, including a decline of 0.3% in 2021 alone due to the lingering impact of the COVID-19 (coronavirus) pandemic creating unfavorable economic conditions.
The pandemic has reduced demand from wholesalers and food service establishments, although research anticipates this will rebound during the outlook period.