Sector Outlook 25/26: Dairy
Published 16 April 2025
The dairy market is thriving, with consumers returning to the category in droves for its natural and nourishing products, viewed by many as less processed and healthier than their dairy-free counterparts. Dairy is also winning as a protein powerhouse and gut health hero, while new product and packaging formats are cementing its role as a snacking mainstay.
Dairy’s Cleaner & Greener Image
Healthier Creamery
Captivating & Convenient Formats
After decades of falling consumption in the US and Europe, full-fat dairy milk is making a comeback thanks to a growing backlash against ultra-processed foods (UPFs) and a desire for less-processed and more wholesome dairy options. Whilst, consumers globally are demanding more ethically sourced options that put animal welfare first.
After decades of falling consumption in the US and Europe, full-fat dairy milk is making a comeback thanks to a growing backlash against ultra-processed foods (UPFs) and a desire for less-processed and more wholesome dairy options. Whilst, consumers globally are demanding more ethically sourced options that put animal welfare first.
Dairy’s wellness focus is key to its ongoing success as a category, with products globally answering consumers’ calls for high-protein and gut-healing food and beverage options. Dairy also stands to win with consumers taking GLP-1 weight loss drugs as protein-rich products like yoghurt and whey products fulfil nutrient demands.
New convenient formats like functional ingredient-infused yoghurt pouches and crunchy popped cheese bites are feeding into the soaring dairy snacks market globally, which is set to reach almost $4bn by 2033 (IMARC, 2024). Meanwhile, new packaging solutions are helping consumers cut corners in the kitchen and piquant flavours easily allow consumers to add a spicy kick to their meals.
Sector Outlook 25/26: Dairy
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