Success in dairy and ice cream means embracing flavor and experience.
“Flavored milks, especially single-serve options like chocolate and strawberry, continue to be popular,” said Nick Triantafellou, director of marketing and merchandising at Powell, Tenn.-based Weigel’s, which operates more than 80 c-stores in Tennessee.
Dairy milk overall fell 7.8% in dollar sales, while refrigerated white dairy milk, specifically, declined 9% in dollar sales for the calendar year 2024, ending Dec. 29, according to Circana, a Chicago-based market research firm. Flavored milk saw a smaller drop of 4.9% in dollar sales for the same period.
How can companies rebound from these decreases in each segment, including a fall of 26.6% in plant-based milk dollar sales?
“We expect to see a greater push for single-serve and ready-to-drink dairy products,” Triantafellou said. “The rise of grab-and-go culture influences purchasing behavior, and we are preparing for this by expanding our offerings in those categories.”
Packaging and serving sizes will also matter greatly.
“Customers continue to trade down from the larger package sizes of milk,” said Kevin Platt, senior category manager at Nouria, which operates 172 stores across New England. “We continue to see increased sales in pints, quarts and half gallons, especially in flavored milk.”
Another area in milk sales that has become popular is protein drinks.
“Dairy-based protein drinks will continue to increase in sales in 2025,” said Mike Jackson, category manager for Carroll Motor Fuels and High’s Stores, which operates 60 stores in the Mid-Atlantic region. Jackson said customers use protein drinks as a meal replacement option.
Ice Cream
In the ice cream segment, while package size matters, it’s mainly about flavors and quality.
“Customers use this category to indulge and reward themselves but have cut back on the number of times they purchase,” Platt said.
Circana reported that overall ice cream/sherbet dollar sales fell 2% in 2024, with gains in ice milk (5.5%) and sherbet/sorbet/ices (25.5%). In all segments, flavors remain the important driver, whether it’s traditional indulgence or wanting to try something new.
“While classics like vanilla and chocolate remain staples, there’s a noticeable rise in demand for adventurous flavors and mix-ins, such as salted caramel, cookie dough and exotic fruit combinations,” Triantafellou said.
Ice cream remains about customers treating themselves. They want innovation and quality, whether it’s national favorites like chocolate and vanilla, regional preferences, or creative combinations.
“Ice cream is a staple of both our retail and foodservice programs,” Jackson said. “We offer a very high-quality ice cream, and the biggest thing that affects our sales is innovation. There are items that sell well everywhere, but (also) items that are more local that will drive customers to your store.”
