Dairy remains a staple

Dairy remains a staple in Australian households, with more than 95 per cent of households continuing to purchase dairy products in the 12 months to February.

While most overall category performance appears stable, significant changes are unfolding beneath the surface as consumers rethink how they shop.

Rather than leaving dairy behind, shoppers are adjusting their choices; focusing on formats, pack sizes, and products that better meet evolving needs shaped by cost-of-living pressures.

Purchasing decisions continue to be more deliberate, driving households to prioritise value and everyday utility.
This is particularly evident in milk, where total volumes rose modestly by 0.5%, but the three litre pack size continues to gain share.
This format offers better value per litre and aligns with fewer, more planned shopping trips.
Similar patterns are emerging across other dairy categories.
In dairy spreads, total volumes declined slightly, yet butter continues to grow in both volume and value, even amid rising prices.
Consumers are moving away from blended spreads and margarine, suggesting a growing preference for simpler ingredient lists.
Cheese tells a comparable story: while overall growth is modest, demand is consolidating into specific formats.
Cooking cheeses and sliced varieties are gaining traction, reflecting their versatility and relevance to everyday meals, while other segments soften.
Yoghurt remains a steady performer, with regular yoghurt maintaining the largest share.
However, Greek yoghurt is gaining momentum as shoppers increase both purchase frequency and volumes per trip, supported by broader health and usage trends.
Demographic groups are accelerating many of these shifts. Young Australians are rapidly adopting larger milk formats, and leading growth in Greek yoghurt, influenced by digital food trends and evolving dietary preferences.
Meanwhile families are driving the transition toward butter, despite its cost per kilogram growing the greatest of the yellow spreads.
Private label products are losing ground across most dairy categories as shoppers become more selective, often favouring branded options when price gaps narrow.
Yoghurt is the exception, where private label continues to grow due to its everyday usage.
At the same time, plant-based beverages have seen volumes decline, indicating softer demand as consumers reassess priorities around nutrition and value.
Overall, dairy remains highly relevant, but the way Australians engage with the category is changing. Growth is no longer about expansion, but refinement; consumers are focusing on more purposeful choices that deliver both value and utility.