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
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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
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
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
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
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
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
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
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