From Carton to Cart:
You can still grow milk sales an additional 3% by learning what’s fueling sales and
activating on those insights.
Data shows that shoppers are reaching for dairy milk again — and their return presents fresh opportunities to grow the category.
SMART WAYS
TO WIN IN
MILK
92%
of households buy milk at some point in the year.1
Milk volume is performing its best since 2021:
the category is up +0.5 pts in share growth among milk and alternatives.2
Two-thirds of the total gains are driven by increased consumption.3
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But that doesn't mean growth has peaked.
Distribution & Assortment
Within dairy milk, three key segments are expected to drive the majority of growth:
HIGHER
FATS
Specifically:
Whole Fat,
2% Reduced
Fat
VALUE-ADDED MILK
Specifically:
Lactose Free, Health-Enhanced
FLAVORS AND SMALLER SIZES
What is helping fuel the increasing popularity of dairy milk?
It dovetails with consumers’ desire to prioritize protein in their diets.
67% of them are trying to
consume more protein.4
Include signage highlighting the high protein content of dairy milk.
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Protein is the
#2 reason people consume milk.5
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1 in 2 consumers
drink milk because it is a good source of protein.5
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Retailer Takeaway:
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In 2023, Whole and 2% linear ft. space increased
+3 pts
Whole and 2% improved volume trends by
+2 pts
Shelf Flow
&
Shoppability
Three steps are crucial to getting shoppers’ attention and unlocking additional category sales:
Optimize way finders to make it easier for shoppers to find the dairy milk section.
Use signage strategically.
Design shelf flow based on how shoppers choose milk.
Shoppers used to view the organization of the dairy milk set as usage-based, progressing from drinking a stand-alone glass to using milk as an ingredient.
Shoppers now view their ideal set as an evolution of milk products.
one
two
three
66% of shoppers prefer this shelf placement of milk and alternative types:6
Retailer Takeaways:
Place dairy milk near other dairy items like yogurt since shoppers often look for them together.6
Category dollar sales improved by
3.7 pts
Division outpaced rest of market by
2x pts
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Traditional White Milk
Milk Variations
Non-Dairy Alternatives
Creamers
1
2
3
4
Organic
Enhanced
A2, Protein, Omega-3, etc.
Lactose Free
Flavoured
& Single Serving
Plant-Based
Dairy
Non-Dairy
Merchandising & Promotions
Two-thirds of dairy milk volume is purchased by 25% of buyers.7
These three steps can help you reach the other 75% and unlock untapped dairy milk growth:
Understand How Customers Build Baskets
1
60% of buyers buy 2+ types of milk and 70% of volume sold comes from those who buy 2+ types of milk.8
Baskets that contain both white and flavored milks are 1.5x larger than those with just one milk type.7
Milk is over 3x more likely to be in a basket that also contains other top-selling dairy products.9
2
Consider Ways to Increase Purchase Frequency
3
Attract New Households by Optimizing Variety and Availability
Shoppers are in stores weekly for everyday staples, but most only grab milk 1-2 times a month—even though it complements what they’re buying most often.7
93%
of shoppers are exclusive to at least one type of dairy milk.7
$5.80 in average milk spend per trip,
+ 31%
vs white milk only spend
Chocolate milk became a
TOP 10
product in basket along with 2%
and Whole White milk
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Retailer Takeaways:
Bundle dairy milk with other high-indexing, fast-moving dairy products.
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Use clear signage to address a top 10 frustration among milk shoppers.6
Highlight key milk segments, plant-based alternatives, and new or hard-to-find products.
Prioritize signs for value-added and single serve milks.
Organize shelves based on shoppers’ preferences, first by milk type and then by fat level.
Include white milk with any promotion or merchandising of flavored milk.
Motivate shoppers to purchase dairy milk more frequently by inspiring more breakfast, baking, and cooking occasions that use milk.
Retailer Takeaway:
Drive incremental growth
by leaning into these segments.
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When a retailer increased linear feet of space for whole and 2% milks by 2 percent, volume sales trends in those categories increased by +2 pts.
—-Circana OOS data and POS sales 2023
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When fat blocking was introduced, category dollar sales improved by 3.7 pts. — and that retailer outpaced the rest of the market by 2x.10
After milk type, shoppers prefer the set to be blocked by fats before organizing products by pack size or brand.
CLICK TO SEE EXAMPLE
When a retailer included white milk in all promotions or merchandising of flavored milk, their buyers’ overall spend per trip on milk increased over 30%.11
Chocolate milk became a top 10 product in baskets along with 2% and whole white milk.11
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Who is
Funded by America’s milk companies, the Milk Processor Education Program (MilkPEP) is committed to driving milk sales and revitalizing category growth. Through national marketing, shopper insights, and performance-focused messaging, MilkPEP helps retailers reposition milk as a modern, in-demand beverage.
From turnkey assets to in-store activations, MilkPEP offers tools and support to help grocers boost engagement, drive traffic, and grow dairy sales.
LEARN
MORE
CLICK
HERE
Want to discover more about how activating category drivers can help your stores win with milk?
To learn more about MilkPEP and the resources we provide to support dairy category growth, reach out to us at growth@milkpep.org
MilkPEP.org
gonnaneedmilk.com
Sources:
1.Circana Panel, Total US – All Outlets, HHP for Custom Milk, data is WE 10/06/2024
2. Circana, Total MULO+ with Conv, Volume Sales, CY 2024
3. Circana OmniConsumerTM Scan Panel, Total US All Outlets 52 Weeks Ending 10/06/24
4. International Food Information Council, 2023 Food Health Report, p.49
5. 2024 IFIC Consumer Research: Understanding Fluid Milk & Dairy Food Consumption Patterns to Enhance Diet Quality & Nutrition Equity, p. 53
6. MilkPEP + Radius Dairy Milk Shopper Qualitative & Quantitative Research, December 2024, n=689
7. CIRCANA OmniConsumer™ Scan Panel, Total US All Outlets, 52 weeks ending June 16th, 2024 vs. YAGO
8. Circana, Dairy Beverages Menu Analysis, August 2024. Universe includes Dairy Milk and Plant-Based Beverages
9. Circana, Total US All Outlets, Product Affinity Report, Any Dairy Milk, L52 WE 6/16/2024
10. Test with a regional grocery chain in the Southeast U.S.11MilkPEP October 2024 AMC Campaign Results
11. MilkPEP October 2024 AMC Campaign Results
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In 2023, Whole and 2% linear ft. space increased
+3 pts
Whole and 2% improved volume trends by
+2 pts
What is helping fuel the increasing popularity of dairy milk?
click here
It dovetails with consumers’ desire to prioritize protein in their diets.
67% of them are trying to
consume more
click next
Protein is the #2 reason people consume milk.
click next
1 in 2 consumers
drink milk because it is a good source of protein.
back
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