To start the new year, Dairy Farmers of Canada (DFC)’s policy team examined trends from the Canadian dairy marketplace in 2025 to offer insights for the coming months.
Overall consumption for dairy products is increasing, according to the most recent data. But from population to price to protein, there are interesting trends influencing consumer preferences as Canadians explore a wider range of dairy options.
New Canadians, shifts in shopping and dining habits shape dairy consumption
Steady population growth since 2022 has supported overall sales of dairy products. Shifts toward certain specialty butter products, such as ghee and clarified butter, reflect the preferences of new Canadians.
While population growth is expanding the dairy market, economic pressures like inflation, interest rates and the level of disposable income have meant consumers are shopping around to find the best prices on their groceries.
Although the farmgate price has remained stable in Canada – and even decreased slightly in 2025 – retail prices are influenced by other players on the supply chain, with the final price being set by the retailer. In fact, the retail price of butter dropped in 2025, which helped butter sales increase by 4%.
In contrast, high retail prices have weighed on plant-based beverages; they now account for a smaller share of total retail sales in the milk and substitutes category. Margarine and other butter substitutes are losing share as consumers gravitate toward more natural, less-processed products, which has contributed to the rise in butter sales.
We have also seen changes in how people eat when they are away from home. As employees spend more days in the office, milk sales in food services are up. Meanwhile, consumers are choosing limited-service (fast food, takeout) restaurants over full-service (fine-dining, buffets). These shifts could have a greater effect on per-capita consumption of dairy ingredients in prepared meals, such as natural cheese or cream.
Consumers seek protein-rich, nutritious products
Health- and protein-focused consumption trends have meant products associated with nutritional benefits continue to perform well.
More companies are offering protein-rich products. According to a 2024 Mintel report on Canadian yogurt consumption, "high in protein" was the most important health claim influencing purchase decisions.
The same report noted that Gen Z and Millennial consumers prefer frequent snacks rather than structured meals. This positions yogurt as a convenient and nutritious option. When we look at the most recent data on yogurt sales, there was a 5.4% increase compared with the same period the year before. Larger packaged formats of yogurt are reinforcing this growth, offering consumers cost efficiencies without reducing how much they are consuming.
Cottage cheese sales at retail have also surged, rising over 25% year over year according to the most recent data. While it’s hard to measure exactly, the jump in cottage cheese sales may be tied to its growing popularity as a high-protein ingredient in social media recipes.
Canadian dairy farmers are there to meet Canadian demand
Despite shifts in consumer behaviour, Canadian dairy remains integral to national consumption trends. With the arrival of 2026, one thing is sure: Canada’s dairy farmers will continue to ensure a stable supply of milk for the dairy products Canadians love.
Want to keep up with the latest trends? Check out DFC's Quarterly Skim
Every quarter, DFC’s policy team analyzes the latest trends in the dairy marketplace and shares them with farmers in the Quarterly Skim. It offers key insights on dairy trade, consumer trends, farmgate prices and much more. Read the latest edition on the DFC website.
Dairy Farmers of Canada (DFC) is the national policy, lobbying and promotional organization representing Canadian dairy producers. DFC strives to create stable conditions for the dairy sector in our country. It also seeks to maintain policies that promote the sustainability of Canadian dairy production and promote dairy products and their health benefits. Visit the DFC website for more information.
