Dairy 26/27: Sector Outlook
Published 09 March 2026
The future for dairy is bright as consumers tap into the multitude of natural wellness benefits inherent to the category, including naturally high protein levels, healthy fats and beneficial probiotics. Alongside functional benefits, products like butter are enticing flavour-chasers looking for indulgent tastes and textures.
Dairy’s Widening Health Halo
Fresh & Functional
Supporting Climate-Smarter Dairy
The Butter Boom
New US governmental nutrition guidelines centring natural protein sources and an ongoing pushback against ultra-processed foods are driving a growing market for full-fat and cleaner-label dairy products. Products like kefir and cottage cheese are also profiting owing to their natural gut health and high-protein benefits.
New US governmental nutrition guidelines centring natural protein sources and an ongoing pushback against ultra-processed foods are driving a growing market for full-fat and cleaner-label dairy products. Products like kefir and cottage cheese are also profiting owing to their natural gut health and high-protein benefits.
Beyond a focus on digestive health and high-protein formulations, manufacturers are taking dairy in new wellness-focused directions by adding ingredients like collagen and creatine. Meanwhile, dairy is staking its claim as a GLP-1-friendly food category.
Multinational dairy companies are future-proofing their supply chains by investing in large-scale sustainable farming initiatives centred on regenerating soil health and reducing carbon and methane emissions. Reducing waste is also a priority, with brands turning to biotech solutions to upcycle otherwise discarded ingredients.
Butter is a standout category in the dairy sector, with its indulgent texture, expanding flavour options and flexible applications appealing to a growing cohort of consumers globally. Restaurants are also leaning in here with menus centring butter as a standout ingredient.
Dairy 26/27: Sector Outlook
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Dairy 26/27: Sector Outlook
The future for dairy is bright as consumers tap into the multitude of natural wellness benefits inherent to the category, including naturally high protein levels, healthy fats and beneficial probiotics. Alongside functional benefits, products like butter are enticing flavour-chasers looking for indulgent tastes and...