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According to The Dairy Alliance, an organization that promotes dairy foods and knowledge about the dairy industry, the indent, also called a mould, isn’t just a stylistic decision. It helps control the amount of milk filled into the jug, and strengthens the container enough to hold the milk inside.
Also, the indent has nothing to do with spoiled milk.
“While such an invention would be helpful in a world of confusing dates on food packaging, the indent wouldn’t pop out because the milk’s age is just a little too old,” the Dairy Alliance said

The circular indent, too, plays a role in protecting milk as temperatures change. During the summer, plastic shrinks due to the heat, so the indents are made slightly larger to prevent milk overflow, according to Food Republic, a news outlet for recipes and cooking tips. In colder months, the indents are smaller, but consumers reportedly get the same amount of milk all year long.
Product development technologists Lauren Joshi and John Cowan also wrote in a June 2017 report that bottle shrinkage is nearly unavoidable in the milk-producing industry, as containers made from high density polyethylene (HDPE) shrink after coming off the manufacturing line. The indent, therefore, help control production costs by preventing spilled milk and supporting fuller-looking bottles, which are essential to consumer satisfaction.