Press release
Canada Dairy Market Size to Reach USD 21.3 Billion by 2030 | Rising Consumer Focus on Nutrition and Premium Products
Canada Dairy Market Size & Trends | Mordor Intelligence
The Canada dairy market is projected to grow from an estimated USD 16.2 billion in 2025 to USD 21.3 billion by 2030, registering a steady CAGR of 5.63% during the forecast period. This growth reflects the strong domestic demand for dairy products, driven by evolving consumer preferences, health-conscious choices, and a robust retail infrastructure across the country. The Canadian dairy industry operates under a well-established supply management system, which maintains planned production, administered pricing, and strict import controls, ensuring stable product availability and competitive pricing for consumers.
With over 15,000 supermarkets across Canada, primarily concentrated in Ontario and Quebec, retail outlets play a critical role in making dairy products accessible to consumers. Supermarkets and hypermarkets accounted for more than three-quarters of dairy sales in recent years, underscoring the significance of organized retail. Additionally, the Canadian population's growing interest in nutritious and fortified foods has led to an increased preference for milk, cheese, yogurt, and other functional dairy products. Innovations such as lactose-free, organic, and protein-enriched variants are expanding the market and attracting health-conscious consumers.
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Key Trends Shaping the Canada Dairy Market
Nutritional Preference Drives Demand: Around 40% of Canadian consumers choose dairy products for their nutritional benefits, with milk and cheese remaining staple components of the national diet and natural cheese consumption steadily increasing.
Innovation in Product Offerings: The market is witnessing growth in premium and specialty dairy products such as flavored yogurts, fortified milk, functional dairy beverages, and artisanal cheese, reflecting evolving consumer tastes.
Digital and Multi-Channel Expansion: E-commerce and click-and-collect options are reshaping dairy retail, with about 75% of Canadians purchasing dairy products online in 2022, underscoring the growing significance of digital platforms.
Balanced Distribution Dynamics: The off-trade segment including supermarkets, hypermarkets, convenience stores, and online retail accounts for nearly three-quarters of sales, while the on-trade channel continues to play a vital role in foodservice demand for cheese, cream, and butter.
Canada Dairy Market Segmentation
By Product Category:
The Canada dairy market is diverse, encompassing a wide range of products:
Milk: Fresh milk dominates the market, supported by UHT, condensed, flavored, and powdered milk varieties. Milk remains central to Canadian diets and industrial dairy processing.
Cheese: Natural cheese, particularly cheddar, leads production volumes, with processed cheese also holding a notable share. Government support through investment funds helps processors adapt to changing consumer demand.
Butter: Cultured and uncultured butter remain key segments, serving retail and industrial applications.
Cream: Includes single, double, and whipping cream, widely used in households and commercial food preparation.
Yogurt and Sour Milk Drinks: Flavored and unflavored yogurts, along with probiotic-rich sour milk drinks, cater to health-conscious consumers.
Dairy Desserts: Ice cream, frozen desserts, cheesecakes, and mousses are increasingly popular, driven by flavor innovation and convenience.
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By Distribution Channel:
Off-Trade: Supermarkets and hypermarkets dominate, followed by convenience stores, online retail, and specialist retailers. This channel benefits from extensive reach, competitive pricing, and integration with e-commerce.
On-Trade: Includes restaurants, cafes, and foodservice outlets where dairy products are integral to menu offerings. The segment benefits from the growing trend of dining out and specialty dishes.
Key Players in the Canada Dairy Market
The Canada dairy market is characterized by a mix of domestic cooperatives and multinational companies, with major players focusing on product innovation, operational efficiency, and strategic distribution. Notable industry leaders include Agropur Dairy Cooperative, Danone SA, Groupe Lactalis, Saputo Inc., and The Kraft Heinz Company.
Local cooperatives such as Saputo and Agropur maintain strong relationships with dairy farmers and control significant market share through extensive distribution networks. These cooperatives, alongside multinational companies, continuously expand their portfolios to include organic, lactose-free, and fortified dairy products. Operational investments include modernizing production facilities, adopting advanced dairy processing technologies, and leveraging digital tools to optimize supply chains and inventory management. Strategic mergers and acquisitions are also common, allowing companies to expand their product offerings and geographic presence.
Conclusion: Future Outlook for the Canada Dairy Market
The Canada dairy market is poised for continued growth, underpinned by strong consumer demand, product diversification, and an effective supply management system. The increasing focus on health, nutrition, and premium products will continue to drive consumption across milk, cheese, yogurt, and other dairy categories. Multi-channel distribution, including the integration of online and offline retail, will play a pivotal role in ensuring accessibility and convenience for consumers.
As the industry expands, key players are expected to maintain competitiveness through operational efficiency, innovation in product offerings, and strategic partnerships with local dairy farms and retail channels. Regional producers targeting niche markets, such as organic and specialty cheese, will complement large cooperatives, enhancing diversity within the market. Overall, the Canada dairy market offers a promising outlook, with growth supported by both domestic consumption trends and evolving retail and digital strategies.
This comprehensive Canada dairy market analysis highlights the potential of the sector, offering insights into market size, segmentation, key players, and future trends. Stakeholders can leverage this canada dairy market industry report to make informed decisions, optimize strategies, and capitalize on the opportunities emerging from this dynamic and expanding market.
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