According to Circana data presented by MilkPEP and IRI, the average retail price of milk rose by 6.6% last year, with refrigerated skim/low-fat milk and refrigerated whole milk accounting for over 76% of dollar sales. This shift points to consumers continuing to buy core milk types but at a higher cost per gallon. Value-added varieties like organic and specialty milks also saw notable pricing growth.

In terms of product segmentation, refrigerated skim/low-fat milk led with $8.4 billion in dollar sales, although volumes dropped 2.2%. Refrigerated whole milk followed at $4.8 billion, also showing a 2.2% volume decrease. Notably, plant-based alternatives like almond and oat milk saw dollar sales declines of 4.4% and 1.5% respectively, marking a cooling trend in the non-dairy category after years of growth.

On the private label front, store brands dominated with a 56.5% share of milk dollar sales and 67.4% of volume. However, brands like Fairlife managed to gain ground, boasting a 1.1% increase in dollar sales despite a modest 0.2% dip in volume. Fairlife’s focus on value-added, ultra-filtered milk continues to resonate with health-conscious consumers seeking premium dairy options.