2026
8
Canada Milk and Plant-based Alternatives Market Report 2026
2026-07-24T10:02:35+00:00
REPD7BB8BA5_254A_49BC_BB8B_A5254AE9BC9C
3695
195042
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Report
en_GB
Canada's milk landscape continues to evolve as many consumers balance dairy with plant-based choices. Opportunities to advance these categories fall at the intersection of health, taste, and practicality – where…
Canada
Dairy and Dairy Substitute Drinks
simple

Canada Milk and Plant-based Alternatives Market Report 2026

"While milk is a Canadian staple, there's ample room for plant-based alternatives. Both can succeed by finding specific uses where they maximize their value."

Joel Gregoire, Associate Principal for Food & Drink

Joel Gregoire, Associate Principal for Food & Drink

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for dairy milk and plant-based alternatives
    • Opportunities
    • Leverage specific “performance moments”
    • Anchor value in dairy with a focus on Canadian sourcing
    • Make the “default” simple for older generations, and “upgrades” obvious for younger ones
  2. THE MARKET

    • Canadians and the economic outlook
    • Food inflation remains persistently elevated
    • Graph 1: annual change in CPI and retail food prices by month, January 2019-April 2026
    • Milk prices are rising, but at a lower rate than grocery overall
    • Graph 2: year over year monthly percent change by select category, April 2026 vs April 2025
    • The vast majority of Canadians express concern about climate change
    • Graph 3: level of concern over climate change, 2025-26
    • Supply management in Canada remains a sticking point for the Trump administration
  3. THE CONSUMER

    • Dairy milk and plant-based beverage alternative purchase behaviours
    • Canadians gravitate to familiar types of dairy milk
    • Graph 4: types of dairy milk purchased in the past three months, 2019, 2023, 2026
    • Almond drinks remain most popular, but Canadians also turn to a diverse array of plant-based options
    • Graph 5: types of plant-based beverage alternatives purchased in the past three months, 2019, 2023, 2026
    • Appetite to grow usage of dairy milk and plant-based beverage alternatives
    • Graph 6: buying more, the same or less dairy milk now compared to a year ago, 2026
    • Graph 7: buying more, the same or less plant-based beverage alternatives now compared to a year ago, 2026
    • With dairy milk everywhere, plant-based drinks need to find their moments
    • Differences in how dairy milk and plant-based beverage alternatives are used
    • Dairy milk anchors nutrition; plant-based beverages support specific needs
    • Graph 8: attitudes toward beverages and plant-based beverage alternatives, 2026
    • There is room for differentiation in positioning across beverage types
    • Graph 9: situations when dairy milk/plant-based beverages are used, 2026
    • Align plant-based beverages with core usage occasions
    • Graph 10: beverage-based situations when dairy milk/plant-based beverages are used, 2026
    • Graph 11: food-based situations when dairy milk/plant-based beverages are used, 2026
    • Match the plant-based drink to the moment
    • Graph 12: situations when plant-based beverages are used, by type, 2026
    • Capitalize on coconut beverage’s versatility to anchor value-driven from-scratch cooking
    • Blend flavour with function using flavoured milk
    • Graph 13: situations when dairy milk is used, by type, 2026
    • Leverage the moments consumers value most
    • Dairy milk, plant-based beverage alternatives, and wellness
    • Opportunity to elevate with functionality
    • Graph 14: attitudes toward dairy milk, plant-based beverage alternatives and wellness, 2026
    • Lead with low sugar or protein to appeal to health-conscious consumers
    • Graph 15: features of interest when buying a dairy milk or plant-based beverages, 2026
    • Milk and plant-based alternatives should prioritize functional benefits with younger consumers
    • Graph 16: would like dairy milk or plant-based beverage alternatives to offer more functional benefits (any agree), 2026
    • Functionality builds stronger engagement among younger generations in different ways
    • Graph 17: features of interest when buying a dairy milk or plant based beverages, by generation, 2026
    • Dairy as a functional platform
    • Clearly signal protein’s value to grab younger consumers’ attention
    • Graph 18: ideal amount of protein in a cup of dairy milk or plant-based beverage alternative (grams), by generation, 2026
    • Differentiate with added benefits in the plant-based market
    • Graph 19: features of interest when buying a dairy milk or plant based beverage, by drinkers of any plant-based beverage alternatives vs those who drink only dairy milk, 2026
    • Flavours of interest
    • Don’t lose sight of taste’s and freshness’s foundational importance in dairy milk and plant-based beverages
    • Graph 20: factors that matter most when buying dairy milk or plant-based beverage alternatives (top 3 NET), 2026
    • Mid-tier flavours can be a base for range expansion
    • Graph 21: flavours of interest in dairy milk or plant-based beverage alternatives, 2026
    • Leverage Gen Z’s openness if expanding beyond classic flavour boundaries
    • Graph 22: flavours of interest in dairy milk or plant-based beverage alternatives, by generation, 2026
    • Leverage flavour variety to drive engagement for plant-based offerings
    • Graph 23: flavours of interest in dairy milk or plant-based beverage alternatives, drinkers of any plant-based beverage alternatives vs overall, 2026
    • Canadian-produced dairy
    • Double down on Canadian-based quality and health cues to reinforce trust
    • Graph 24: attitudes toward the importance of Canadian vs the US-produced dairy, 2026
    • Boomers anchor Canadian-produced dairy to quality and trust
    • Graph 25: attitudes toward the importance of Canadian vs the US-produced dairy, by generation, 2026
    • Buy Canadian momentum strengthens dairy’s value
    • Leverage Canadian dairy as a symbol of sovereignty
    • Sustainability, dairy milk and plant-based beverage alternatives
    • Established trust gives dairy credibility on sustainability
    • Graph 26: attitudes toward sustainability in dairy milk and plant-based beverage alternatives, 2026
    • Invest in sustainability for long-term viability, not immediate purchase impact
    • Dairy can bolster its sustainability reputation with younger generations
    • Graph 27: attitudes toward sustainability in dairy milk and plant-based beverage alternatives, by generation, 2026
    • Environmental challenges facing Canada’s dairy sector
    • How Canada’s dairy industry supports sustainability innovation
    • Newer Canadians, parents and dairy milk/plant-based beverage alternatives
    • Embrace flexibility to win with newer Canadians
    • Companies can cater to the unique demands of growing consumer groups
    • Appeal to parents by highlighting key areas of differentiation
  4. PRODUCT, INNOVATION AND MARKETING

    • Promote protein’s power
    • Address digestion concerns
    • Help consumers unlock their inner-barista
    • Embrace enjoyment with fun flavours
    • Dairy concept: HydraBoost Milk
    • Dairy concept: Good Karma Cultured Milk
    • Plant-based beverage concept: Upcycle+ Pistachio Protein Drink
    • Concept: Oat+ Coffee Froth Drink
    • “Canada Strong[er]”, with Canadian Dairy
    • Make milk personal
    • Capitalize on milestones and lifestage transitions
    • Inspiration dairy milk and plant-based alternatives can take from non-alcoholic beverages overall
  5. APPENDIX

    • Report scope
    • The consumer
    • Consumer research questions
    • Consumer research methodology – Canada
    • Correspondence analysis methodology
    • How to read a correspondence map
    • Canada generation groups
    • Other data source methodologies
    • Mintel Spark
    • Abbreviations

Canada’s milk landscape continues to evolve as many consumers balance dairy with plant-based choices. Opportunities to advance these categories fall at the intersection of health, taste, and practicality – where long-held habits meet expectations around “better-for-you” options.

Context and trade-offs drive choice, rather than loyalty to a single option. Dairy tends to win when consumers prioritize familiarity, perceived wholesomeness, and utility in cooking, while plant-based options gain ground when consumers want variety, digestive comfort, or a product that aligns with personal values. Price sensitivity, flavour preferences, and trust in claims continue to influence behaviours, and many households now turn to both dairy and plant-based options – creating opportunity for clearer positioning by occasion.

Looking ahead, growth hinges on resolving key tensions consumers navigate, such as indulgence versus wellness, and simplicity versus functional enhancement. Brands that can deliver on taste, offer credible benefits, and provide an easy “fit” for daily routines – while communicating with clarity – are well positioned to convert curiosity into engagement.

This Report Looks at the Following Areas:

  • The market dominance of dairy milk and the importance of plant-based alternatives
  • Usage occasions for both dairy and plant-based beverages
  • Wellness priorities among consumers of dairy milk and plant-based beverages
  • Key purchasing factors and opportunities for new flavours
  • The importance of “Made-in-Canada” positioning
  • Views on sustainability and its impact on purchasing decisions
  • Generational differences in consumer demand

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