Cow's milk remains a staple in British households, with the Covid-19 pandemic and subsequent lockdown periods generating an uplift in retail sales.
Retail spend on milk grew by nearly 10 percent to £3.4 billion, according to Kantar data looking at the year ending 24 January 2021.
Analysing the figures, AHDB said the growth was driven by increased volume per shopping trip as consumers chose to avoid shopping as much amid the pandemic.
"As a result of nationwide lockdowns, occasions which were previously consumed out-of-home or on-the-go, were forced into the home," said Rachel Rose, AHDB analyst.
"This meant that key consumption occasions for milk, including hot drinks such as tea, performed well, with milk in tea accounting for 48% of total milk occasions."
As a staple product, the levy board predicts retail milk sales will continue to do well during the rest of this year, albeit at a slight decline.
"As 2020 was such an exceptional year for retail milk sales, year-on-year growth in 2021 may decline when compared to last year," Ms Rose said.
"However, home working is still elevated compared to 2019, therefore milk sales are predicted to perform above 2019 levels."
It follows AHDB's Milk Your Moments £1 million consumer campaign which encouraged consumption of milk and other dairy products during lockdown.
It also aimed to provide support to dairy processors and farmers who had faced challenges with the closure of cafes and other foodservice outlets during lockdown.
