As per MRFR analysis, the Canada Dairy Market Size was estimated at 40.73 (USD Billion) in 2023.
The Canada Dairy Market Industry is expected to grow from 42.15(USD Billion) in 2024 to 58 (USD Billion) by 2035. The Canada Dairy Market CAGR (growth rate) is expected to be around 2.944% during the forecast period (2025 - 2035).
Key Canada Dairy Market Trends Highlighted
The Canada dairy market has experienced notable shifts in consumer habits and health consciousness over the past few years. The demand customers have for organic and natural dairy products is on the rise as Canadians paying increased attention to health and sustainability. This shift is supportive of the government’s attempts to encourage the production of clean food sourced from within the country, focusing on a local, eco-friendly approach and clean label movements within the dairy industry. Additionally, plant-based alternatives are becoming more popular among those who wish to reduce their dairy consumption, necessitating innovation by traditional dairy producers and the diversification of their offers to include these alternatives.
Canadian dairy producers can use these shifting gaps as opportunities to diversify their product lines. Many Canadians are keen on purchasing functional dairy products with additional health benefits such as probiotic yogurt or high protein milk. This certainly offers an opportunity for marketers to create distinct products that meet these demands. Moreover, the growing international market for dairy products presents new opportunities for Canadian producers to export their quality dairy products. The Canadian dairy industry is also witnessing a growing concern for animal welfare and eco-friendly farming methods as standard practices.
People are increasingly concerned about the ethical treatment of animals in dairy farms and choosing brands that practice, or at least pretend to practice, good animal welfare. This is pushing producers towards more sustainable practices and supporting environmentally friendly initiatives. The changes occurring in Canada's dairy market integrates elements of wellbeing, eco-friendliness, and social responsibility, which will dictate the future direction of the sector.
Canada Dairy Market Drivers
Growing Health Consciousness Among Consumers
The increasing health consciousness among consumers is a significant driver for the Canada Dairy Market Industry. Canadians are becoming more aware of the benefits of dairy products, such as their nutritional value, which includes high protein content and essential vitamins. According to the Canadian Dairy Information Centre, dairy consumption per capita in Canada has shown a steady increase over the past decade, reflecting a growing preference for products like yogurt, cheese, and milk.
This rise in consumption is attributed in part to an increase in health awareness, where individuals are increasingly looking for nutrient-dense food options. As more Canadians recognize the importance of dairy as part of a balanced diet, this trend is expected to contribute positively to market growth. The Dairy Farmers of Canada, an established organization in this space, emphasizes the role of dairy in promoting overall health, further driving consumer demand.
This health-oriented shift in consumer behavior serves as a robust foundation for sustained market growth in the coming years.
Increased Demand for Organic Dairy Products
The demand for organic dairy products is on the rise in Canada, significantly impacting the Canada Dairy Market Industry. A study conducted by Industry Canada showed that organic food sales have quadrupled over the last decade, with organic dairy being one of the top-selling categories. The organic certification in Canada ensures that products meet specific standards that appeal to environmentally conscious consumers. As more Canadians prioritize sustainability and organic farming practices, leading brands like Organic Meadow are expanding their portfolios to include diverse organic dairy options.
These brands are not just meeting demand; they are often involved in education about organic practices, further solidifying consumer trust and loyalty. This growing interest in organic dairy is expected to translate into substantial market opportunities through 2035.
Innovation in Dairy Processing Techniques
Innovation in dairy processing techniques is another key driver for the Canada Dairy Market Industry. With advancements in technology, Canadian dairy producers are able to enhance product quality, extend shelf life, and meet evolving consumer preferences. Initiatives by organizations such as the Dairy Processors Association of Canada have promoted the adoption of modern processing methods that improve efficiency and sustainability. These innovations include the use of advanced pasteurization techniques and nutritional fortification, resulting in products that cater to both health-conscious individuals and diverse dietary needs.
The Canadian government has also introduced grants and funding programs aimed at boosting Research and Development for dairy technologies, which supports ongoing industry evolution. This focus on innovation not only satisfies current market demands but also creates conducive conditions for growth in the coming years.
Canada Dairy Market Segment Insights
Dairy Market Product Type Insights
The Canada Dairy Market exhibits a rich and diverse Product Type segmentation, with various categories contributing uniquely to the broader industry landscape. Among these, milk continues to be the cornerstone of the dairy segment, deeply integrated into the daily lives of Canadian consumers, known for its nutritional value and versatility in various applications. Following milk, cheese stands as one of the most popular dairy products, renowned for its wide range of flavors and textures, making it a staple in many households. Cheese production in Canada benefits from a strong cheese-making tradition, producing high-quality varieties that have gained recognition both domestically and internationally.
Butter, once regarded as less healthy due to fat content, has seen a resurgence as consumers embrace products with natural ingredients, showcasing a blend of tradition and modern dietary preferences. Yogurt, particularly Greek yogurt, has surged in popularity, driven by health trends and a growing demand for probiotics, positioning it as an essential choice among health-conscious consumers. The Dairy Cream segment adds to the market dynamism, being essential in culinary applications, both in home cooking and the restaurant industry. Ice cream, a beloved indulgence, thrives in Canada, especially during warmer months, with innovative flavors and premium offerings catering to diverse consumer preferences.
Other dairy products encompass a variety of items such as kefir and flavored milks that are growing in acceptance as consumers look for more variety and new taste experiences. Each of these categories presents distinct growth opportunities and challenges, influenced by shifting consumer preferences, health trends, and market innovations. The Canadian dairy industry is characterized by its robustness, with a focus on sustainability, local production, and premium quality products, driving the ongoing evolution and competitiveness of these Product Types within the Canada Dairy Market.
Dairy Market Category Insights
The Canada Dairy Market is a well-established segment within the broader agricultural landscape, characterized by a diverse array of products that cater to varying consumer preferences. The market is primarily divided into Organic and Conventional categories, reflecting different production methods and consumer demand. Organic dairy has gained traction among health-conscious consumers, emphasizing natural farming practices and higher nutritional standards, which significantly resonates in regions such as British Columbia and Ontario, where there is a strong emphasis on sustainability and animal welfare.
Meanwhile, Conventional dairy remains dominant due to its widespread availability and cost-effectiveness, serving the majority of dairy needs across urban and rural areas alike. As Canadian consumers increasingly seek healthier and more transparent food sources, the Organic segment is projected to expand, leveraging opportunities stemming from consumer trends toward organic and non-GMO products. To support this growth, the Canada Dairy Market industry faces challenges such as fluctuating production costs and regulatory compliance, yet it remains positioned for steady development as it adapts to evolving consumer preferences and market dynamics.
The segmentation of the Canada Dairy Market thus encapsulates the balance between traditional methods and the rising demand for organic products, jointly contributing to the overall vitality of the sector.
Dairy Market Distribution Channel Insights
The Distribution Channel segment of the Canada Dairy Market plays a crucial role in the overall market dynamics, reflecting changing consumer preferences and shopping behaviors. Store-Based channels, which include supermarkets and convenience stores, account for a substantial majority of the market revenue, with consumers in Canada largely favoring physical shopping for their dairy needs due to factors such as product variety and the desire to inspect quality before purchasing. This channel is often preferred for its convenience and ability to provide a wide assortment of dairy products.
On the other hand, Non-Store-Based channels have been gaining traction, especially with the rise of e-commerce and home delivery services, appealing to a more tech-savvy demographic. This segment allows consumers to access dairy products with ease, which has become increasingly important in urban areas with busy lifestyles. Growing awareness of health benefits associated with dairy consumption further supports both distribution channels, while the Canadian government promotes local dairy production as a means to bolster the economy. Overall, the interplay between these channels reflects the evolving landscape of consumer preferences and market dynamics in the Canada Dairy Market.
Dairy Market Store-Based Insights
The Store-Based segment of the Canada Dairy Market plays a crucial role in overall distribution and consumer accessibility of dairy products. As of 2024, this segment is characterized by a variety of retail formats, including Supermarkets and Hypermarkets, Convenience Stores, and Others, which collectively cater to a diverse consumer base. Supermarkets and Hypermarkets dominate the scene, offering a wide array of dairy products such as milk, cheese, and yogurt, which are often sought after for convenience and variety. Convenience Stores, on the other hand, play a significant role in urban areas, providing essential dairy products for on-the-go consumers.
The shift towards health-conscious choices is a key driver in this segment, with increased demand for organic and plant-based dairy alternatives. Challenges such as competition from online retailers and price sensitivity among consumers are notable; however, there are also opportunities for growth in product innovation and sustainable practices. The emphasis on local sourcing and eco-friendly packaging is expected to resonate well with Canadian consumers, ultimately influencing purchasing decisions and driving the dynamics within the Store-Based segment of the Canada Dairy Market.
Canada Dairy Market Key Players and Competitive Insights
The Canada Dairy Market is a pivotal sector within the country's agricultural landscape, characterized by a rich diversity of products ranging from fluid milk to cheese, yogurt, and other dairy derivatives. The competitive landscape is defined by a mix of established players and emerging entities, each vying for consumer loyalty and market share through innovative offerings and strategic marketing. As consumer preferences evolve, driven by health consciousness and sustainability concerns, dairy companies are optimizing their supply chains, enhancing product quality, and introducing new flavors and formulations to meet market demands. Government regulations and support for dairy farmers also shape the competitive dynamics, as firms navigate price controls and quotas, while striving for sustainability and quality in production processes.
Agropur stands out in the Canadian Dairy Market due to its extensive cooperative structure, which empowers farmers and enhances local community engagement. The company's robust presence allows it to leverage supply chain efficiencies and ensure quality control throughout its operations. With a diverse product portfolio, Agropur emphasizes innovation in cheese and dairy products, meeting the demands of both consumers and foodservice operators. The company's strengths lie in its commitment to sustainability, a focus on new product development, and strong regional ties that bolster its market position. As a significant player in the dairy field, Agropur benefits from a strong brand reputation and customer loyalty, positioning itself effectively amidst stiff competition.
Saputo has established a dominant footprint in the Canadian Dairy Market through its comprehensive array of dairy products, including cheese, fluid milk, and specialty dairy items. Its strong market presence is supported by strategic mergers and acquisitions that have expanded its operations and diversified its product offerings over the years. Saputo's commitment to quality is evident in its branding, which resonates with health-conscious consumers. The company emphasizes sustainability in its production practices, aligning with evolving consumer trends towards eco-friendly products. Notable strengths include its ability to scale production efficiently, extensive distribution networks across Canada, and a strong focus on research and development that drives innovation within its product lines. By continually adapting to consumer preferences and market challenges, Saputo maintains a competitive edge in the Canadian dairy sector.
Key Companies in the Canada Dairy Market Include:
Canada Dairy Market Industry Developments
Recent developments in the Canada Dairy Market have showcased a range of significant activities. In September 2023, Agropur announced an investment aimed at upgrading its production capabilities, which is expected to enhance efficiency and product quality. Similarly, in October 2023, Saputo unveiled its plans for a sustainable dairy processing facility, focusing on reducing its carbon footprint, reflecting a wider trend towards sustainability within the industry.
Current affairs also indicate a strong emphasis on innovation, with Vega expanding its plant-based product line, catering to the increasing demand for dairy alternatives. In terms of mergers and acquisitions, Lactalis, a notable player in the dairy sector, completed its acquisition of a regional cheese producer in Alberta in August 2023, further consolidating its market presence. The Dairy Farmers of Canada continues to advocate for fair pricing and trade practices, highlighting concerns over imports affecting local dairy prices.
Over the past two to three years, the market has seen gradual growth driven by health-conscious consumer trends, with the market valuation of companies like Neilson and Danone significantly impacted by evolving consumer preferences towards natural and nutritious dairy products. Overall, the Canada Dairy Market remains dynamic, reflecting both challenges and opportunities for its prominent players.
Dairy Market Segmentation Insights
Dairy Market Product Type Outlook
Dairy Market Category Outlook
Dairy Market Distribution Channel Outlook
Dairy Market Store-Based Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | 40.73(USD Billion) |
| Market Size 2024 | 42.15(USD Billion) |
| Market Size 2035 | 58.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 2.944% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Agropur, Saputo, Vega, Galloping Goose, Dairy Farmers of Canada, Neilson, Danone, Maple Leaf Foods, Lactantia, Canada's Dairy Industry, Lactalis, Nestle, Breyers, Schneiders, Fairlife |
| Segments Covered | Product Type, Category, Distribution Channel, Store-Based |
| Key Market Opportunities | Plant-based dairy alternatives growth, Organic dairy product demand, Value-added dairy innovations, Sustainability-focused dairy practices, E-commerce dairy product sales expansion |
| Key Market Dynamics | sustainability trends, health consciousness, pricing pressures, government regulations, evolving consumer preferences |
| Countries Covered | Canada |
Frequently Asked Questions (FAQ) :
The Canada Dairy Market was valued at 42.15 billion USD in 2024.
In 2035, the Canada Dairy Market is projected to reach a valuation of 58.0 billion USD.
The expected CAGR for the Canada Dairy Market from 2025 to 2035 is 2.944%.
The Milk segment contributed the highest value at 15.0 billion USD in 2024.
The Cheese segment is expected to be valued at 14.0 billion USD in 2035.
The Yogurt segment was valued at 7.0 billion USD in 2024.
Key players in the Canada Dairy Market include Agropur, Saputo, and Danone, among others.
The Butter segment is expected to reach a valuation of 7.0 billion USD in 2035.
The Dairy Cream segment was valued at 5.15 billion USD in 2024.
Challenges may include changing consumer preferences and competition from plant-based alternatives.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Research Analyst Harshita post graduate mba in business administration from welingkar institute, mumbai and 5 years of experience in the field of product market research. as a research analyst, i have cross-domain experience in packaging, and industrial automation & equipment. i am currently looking after the research process of packaging, logistics & transportation, and industrial automation & equipment at market research future reports. my responsibilities at the organization involve handling syndicate and custom reports as well as responding to client inquiries, and organize, co-ordinate with a group of 5 to 6 persons to manage all workflows.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
