The growing use of weight-loss drugs, such as Ozempic, to treat Type 2 diabetes is steering more consumers to the dairy case in search of protein. That protein helps people with suppressed appetites maintain muscle, regulate blood sugar and increase satiety.

“We have seen really strong demand for cottage cheese and yogurt,” Rebecca Wallick, senior director for dairy sourcing and policy with HP Hood.

The cottage cheese category has been really interesting. Perhaps the uptick in demand can be attributed in part to its protein content and versatility as well as an increase in social media attention, she said during the latest Dairy Download podcast.

Yogurt has also had a really good story with the Food and Drug Administration officially approving certain qualified health claims in March.

“I think both of these categories should have good momentum going into 2025,” she said.

High protein

The key thing about those two products is they are high in protein, said Eric Meyer, president of HighGround Dairy.

Whey protein was also in high demand in 2024 with a rapid ascension of prices and dwindling of inventories as the product was being put into new GLP-1 weight-loss foods, innovative products that are just packing protein wherever they can, he said.

For example, Nestle launched a Boost protein drink in December catered specifically for folks on GLP-1 drugs.

“I think that’s a really interesting trend that’s evolved in 2024 that … has some legs,” he said.

The protein trend globally is not as big as in the U.S., but it is growing, especially in developed countries where everyone is looking at these weight loss drugs, said Mary Ledman, global dairy strategist for Rabobank.

U.S. cottage cheese production was up 10% in 2023 and will be up another 10% in 2024. U.S. per-capita consumption went from 1.9 pounds of cottage cheese to 2.1 pounds of cottage cheese in 2023 and will be at 2.3 pounds in 2024, she said.

Considering per-capita consumption was 4.6 pounds in 1975, the goalpost ahead is to double cottage cheese per-capita consumption, she said.

Cheese and butter

As for cheese, the U.S. made a lot less cheddar in 2024 and a lot more products that were part skim. Pizza cheese was a big mover and earlier in the year, it seemed that was very export driven, HighGround Dairy’s Meyer said.

Mozzarella, part skim, fresh mozzarella were also kind of the big movers on the retail side. Consumers are kind of shying away from restaurants and focusing more on eating from home, he said.

“But looking forward from a demand perspective, cheese appears to be stable … with the foodservice side still a bit of a concern … ,” he said.

As for butter, there’s demand for butterfat in the developed countries and in higher-end restaurants around the world, Ledman said.

Prices remained elevated through 2024. With U.S. butter prices pulling back, it’s the cheapest fat in the world making the U.S. the exporter of choice, she said.