Dairy brands target Gen Z with health focus to boost sales

USA – Dairy brands across the United States are shifting their focus to health and nutrition to win over Generation Z, a group born between 1997 and 2012, as they seek to tap into this demographic’s massive spending power. 

The move comes as the US$92.7 billion U.S. dairy market looks to grow by appealing to younger consumers who prioritize natural, unprocessed foods.

Sarah Bauman, farmer communications manager for Dairy Max, a Texas-based nonprofit representing over 900 dairy producers, emphasized the importance of engaging Gen Z. 

“Their buying power is staggering,  estimated at US$360 billion annually,” she said, noting that this group makes up more than 20% of the U.S. population, or over 68 million people. 

Dairy companies are betting on the nutritional benefits of milk-based products, like high protein and calcium, to drive interest.

A report by GlobalData, the parent company of Just Food, shows the U.S. dairy market grew 4% in 2024, with cheese leading as the largest segment at US$39.9 billion, followed by milk at US$27.7 billion. 

Drinkable yogurt is also gaining traction, with growth exceeding 5% annually. 

Meanwhile, consumer data from Circana reveals a 3.2% rise in whole milk consumption in 2024, alongside a striking 17.6% jump in raw milk sales, signaling a renewed interest in natural dairy options.

Brands like Chobani are capitalizing on this trend. The yogurt giant recently launched its High Protein line, featuring Greek yogurt cups and drinks made with natural ingredients and no added sugar. 

Chobani’s chief innovation officer, Niel Sandfort, said, “The desire for high protein, lower sugar offerings has moved beyond the fitness community and made its way to the mainstream consumer.” 

Land O’Lakes has also joined the effort, using a TikTok account to share recipes featuring its butter, cheese, and cream, targeting Gen Z where they spend much of their time—on social media.

According to Circana’s John Crawford, younger consumers may not buy as much fluid milk now, but their dairy habits could evolve with age. 

He pointed out that life changes, like starting families, often boost dairy purchases among Millennials and Gen Z. 

However, Rizwan Asad, a food blogger and former PepsiCo executive, argued that dairy has been slow to adapt. 

He noted that Gen Z craves sustainability and a compelling story—values plant-based milk brands have marketed more effectively.

Despite competition from alternatives like oat and almond milk, dairy is fighting back. 

Viral TikTok campaigns, such as those promoting cottage cheese by influencers like Melissa Ben-Ishay, have fueled double-digit growth for the product since mid-2023. 

As health-conscious Gen Z shoppers drive demand, the industry is proving it can adapt to secure its future.