Dairy products and alternatives in 2025: The big picture
Volume sales growth of dairy products and alternatives in Canada in 2025 improved compared to the review period, including the years prior to the pandemic. Several factors underpin this performance. First, population growth has moderated to around 1% following the exceptional expansion of close to 3% in 2022 and 2023. Second, price levels remain high, even after inflation slowed in late 2024 and early 2025. Third, ongoing trade tensions between the US and Canada have driven – and are likely to continue driving – further price increases, as reflected in recent market developments. Finally, on the value side, rising health consciousness continues to fuel demand for higher-priced, higher-margin health-and-wellness-themed products, particularly in categories such as yoghurt and sour milk products.
Key trends in 2025
Health and wellness is increasingly embedded as a baseline expectation across dairy categories, shaping new product development and driving premiumisation. Protein-rich claims, in particular, have become more prevalent, especially in yoghurt, as seen with Danone Canada’s Oikos PRO line. This aligns with the strong and sustained shift toward non-dairy, dairy-free alternatives, with notable expansion in plant-based butter and spreads, cream, and coffee whiteners.
Competitive Landscape
The Canadian dairy products and alternatives market in 2024-2025 remained dominated by three major domestic players – Saputo Inc, Lactalis Canada, and Agropur Co-operative – alongside Danone Canada and a range of smaller competitors. These leaders continued to leverage brand strength, extensive distribution networks, and innovation capabilities to maintain share.
Channel developments
Supermarkets remained the leading distribution channel for dairy products and alternatives in 2025, although their value share declined slightly. Several factors contributed to this shift. First, in the current economic climate – characterised by relatively high unemployment and under-employment rates, modest disposable income growth, and low consumer confidence – many Canadians are seeking more affordable shopping formats. This has boosted the appeal of discounters, warehouse clubs, and e-commerce, which often deliver stronger price-value propositions. Second, the penetration of e-commerce continues to rise, drawing some sales away from physical supermarket formats. Third, supermarkets are perceived as offering less of a clear bargain proposition than warehouse clubs, which provide value through bulk purchasing, or hypermarkets, which combine competitive prices with the convenience of one-stop shopping.
What next for dairy products and alternatives?
The modest forecast growth for dairy products and alternatives will be underpinned by several factors. Population growth is expected to slow following immigration policy adjustments introduced in 2024, reducing the pace of volume expansion. High price levels will persist, potentially intensified by ongoing trade frictions with the US, which could affect the cost and availability of imported products, ingredients, and processing equipment across dairy categories – from baby food to yoghurt.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Canada with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Canada, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Canada report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Canada?
- Which are the leading brands in Dairy Products and Alternatives in Canada?
- How are products distributed in Dairy Products and Alternatives in Canada?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Canada?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Canada
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in Canada
KEY DATA FINDINGS
Volume sales recover moderately as inflationary pressure eases
Organic baby food leaders stabilise following prior weakness
E-commerce regains momentum as a growth channel
Limited volume and value growth forecast for baby food
Infant formula recovery and evolving competitive landscape
Other baby food to benefit from the rising snacking trend
Butter and Spreads in Canada
KEY DATA FINDINGS
Volume sales remain modest while value growth slows
Upfield Canada retains leadership in margarine and spreads
Discounters and e-commerce strengthen their position
Moderate growth outlook constrained by population trends and trade uncertainty
Health and wellness drives innovation in dairy proteins and plant-based formats
Flavour innovation to sustain consumer engagement
Cheese in Canada
KEY DATA FINDINGS
Consumption supported by health positioning and demographic growth
Saputo strengthens leadership through innovation and brand engagement
Supermarkets remain dominant while e-commerce drives incremental growth
Growing demographic diversity to support demand for speciality cheeses
Plant-based competition likely to intensify
Exemption from front-of-pack labelling requirements to sustain demand
Drinking Milk Products in Canada
KEY DATA FINDINGS
Retail volume decline continues despite value growth
Health-focused innovation and flavour diversification
E-commerce expansion continues to reshape distribution
Foodservice expansion to help offset retail decline
Intensifying competition from plant-based milk
Labelling exemption supports dairy milk positioning
Yoghurt and Sour Milk Products in Canada
KEY DATA FINDINGS
Value growth supported by health positioning and expanding usage occasions
Category shake-up as General Mills exits yoghurt
E-commerce penetration rises alongside gains for discounters
Continued strong momentum supported by health positioning and expanding usage occasions
Innovation in marketing and merchandising to address evolving consumer needs
Sugar reduction remains a priority as regulatory exemptions protect category growth
Other Dairy in Canada
KEY DATA FINDINGS
Volume sales remain modest while value growth slows
Saputo, Agropur, Lactalis and Gay Lea maintain leadership
E-commerce penetration and discounter strength continue to rise
Moderate volume and value growth expected
Health and wellness continues to reshape other dairy
Flavour experimentation set to drive engagement
Plant-Based Dairy in Canada
KEY DATA FINDINGS
Health and demographic shifts fuel strong growth
Companies expand portfolios and invest in production
E-commerce gains momentum as a discovery channel for niche products
Plant-based to continue rising on affordability, accessibility and innovation
Strategic partnerships to accelerate innovation in plant-based cheese
Potential reformulation to address new labelling requirements
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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