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Canada Dairy Market Size

The Canada Dairy Market is projected to experience significant growth over the forecast period, with the market size expanding steadily. The distribution landscape is characterized by a dominance of off-trade retailing channels, such as supermarkets and hypermarkets, which cater to consumer preferences for purchasing dairy products. These channels have seen increased demand due to their ability to offer discounts and a wide variety of products. Meanwhile, the on-trade segment, including restaurants and foodservice operators, is also witnessing growth driven by the rising trend of out-of-home consumption. This dual-channel growth underscores the expanding market size of the Canadian dairy sector.

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Market Size of canada dairy Industry

Canada Dairy Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 15.58 Billion
svg icon Market Size (2029) USD 19.94 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 5.06 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration Medium

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Canada Dairy Market Analysis

The Canada Dairy Market size is estimated at 15.58 billion USD in 2024, and is expected to reach 19.94 billion USD by 2029, growing at a CAGR of 5.06% during the forecast period (2024-2029).

15.58 Billion

Market Size in 2024 (USD)

19.94 Billion

Market Size in 2029 (USD)

2.49 %

CAGR (2017-2023)

5.06 %

CAGR (2024-2029)

Largest Market by Category

37.65 %

value share, Cheese, 2023

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The increasing cheese production in the country aided with the supporting government initiatives in the sector, is largely driving the segmental growth in the market.

Largest Market by Distribution Channel

87.07 %

value share, Off-Trade, 2023

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The product assortment and shelf space in off-trade retail channels is allowing consumers to compare the products, which has emerged to be one of the major factor driving segmental growth.

Fastest-growing Market by Category

7.57 %

Projected CAGR, Cheese, 2024-2029

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The growing health consciousness of consumers who actively seek out protein-rich foods along with its use in wider menu boquets is the main factor driving the cheese segment.

Fastest-growing Market by Distribution Channel

4.93 %

Projected CAGR, Off-Trade, 2024-2029

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The increased adoption of e-commerce platform among the consumers and growing presence of online retailers in Canada is anticipated to drive the off-trade segment.

Leading Market Player

16.28 %

market share, Saputo Inc., 2022

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The differentiated market strategies used by the Saputo Inc along with strong manufacturing and distribution capabilities is largely captivating leadership of the company.

Easy availability of dairy products through wide retail sector is boosting the growth.

  • Distribution channels in the Canadian dairy market are divided into on-trade and off-trade retailing. The off-trade retailing channels have been in high demand among consumers. As a result, sales through these distribution channels grew by 3.3% in 2022 compared to 2021. The growth was also attributed to these retailers enabling consumers to purchase their preferred products. In Canada, the online retail channels, convenience stores, and supermarkets and hypermarkets sub-segments offer a wide variety of ice creams at different prices ranging from USD 4.46 to more than USD 23.5.
  • The off-trade segment dominates the distribution channels of the Canadian dairy market. Through the off-trade segment, consumers prefer buying dairy products from supermarkets and hypermarkets, as people get discount coupons for bulk shopping in these outlets. The sales value of dairy products through supermarkets is anticipated to register a CAGR of 4.78 during the forecast period. As of 2022, there were over 15,000 supermarkets in Canada, mainly in Ontario and Quebec.
  • The on-trade segment includes restaurants and foodservice operators. The rising demand for out-of-home consumption has boosted the demand for the on-trade retail channel. Many Canadian dishes include dairy products. Hence, dairy product sales through on-trade channels are anticipated to grow by 3.4% in 2024 from 2021. In 2022, more than 97,000 restaurants were functional in Canada.
Canada Dairy Market

Canada Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • Distribution channels in the Canadian dairy market are divided into on-trade and off-trade retailing. The off-trade retailing channels have been in high demand among consumers. As a result, sales through these distribution channels grew by 3.3% in 2022 compared to 2021. The growth was also attributed to these retailers enabling consumers to purchase their preferred products. In Canada, the online retail channels, convenience stores, and supermarkets and hypermarkets sub-segments offer a wide variety of ice creams at different prices ranging from USD 4.46 to more than USD 23.5.
  • The off-trade segment dominates the distribution channels of the Canadian dairy market. Through the off-trade segment, consumers prefer buying dairy products from supermarkets and hypermarkets, as people get discount coupons for bulk shopping in these outlets. The sales value of dairy products through supermarkets is anticipated to register a CAGR of 4.78 during the forecast period. As of 2022, there were over 15,000 supermarkets in Canada, mainly in Ontario and Quebec.
  • The on-trade segment includes restaurants and foodservice operators. The rising demand for out-of-home consumption has boosted the demand for the on-trade retail channel. Many Canadian dishes include dairy products. Hence, dairy product sales through on-trade channels are anticipated to grow by 3.4% in 2024 from 2021. In 2022, more than 97,000 restaurants were functional in Canada.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Sour Milk Drinks
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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Canada Dairy Market Size Summary

The Canadian dairy market is experiencing a steady expansion, driven by a combination of consumer preferences and strategic distribution channels. The off-trade retail segment, which includes supermarkets, hypermarkets, and online retail channels, is particularly dominant, catering to consumer demand for convenience and variety. This segment's growth is supported by promotional offers such as discount coupons for bulk purchases, which are popular among consumers. The on-trade segment, encompassing restaurants and foodservice operators, is also witnessing increased demand due to the rising trend of out-of-home consumption. Dairy products, especially milk, remain a staple in the Canadian diet, reflecting their nutritional value and importance in a balanced diet. Despite a decline in per capita consumption of drinking milk, the overall demand for dairy products continues to be robust, with cheese consumption on the rise, influenced by a positive shift in consumer attitudes towards butterfat-rich foods.

The market is moderately consolidated, with major players like Agropur Dairy Cooperative, Danone SA, Groupe Lactalis, Saputo Inc., and The Kraft Heinz Company holding significant market shares. Recent strategic moves, such as Lactalis Canada's acquisition of Kraft Heinz's Grated Cheese business, highlight the dynamic nature of the market. Innovations and partnerships, such as Danone North America's collaboration to launch probiotic yogurt drinks, are indicative of ongoing efforts to cater to evolving consumer preferences. The market's growth trajectory is supported by strong retail grocery demand and the increasing popularity of dairy products in both direct and processed forms, suggesting a promising outlook for the Canadian dairy industry.

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Canada Dairy Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Butter

        1. 1.1.1.1 By Product Type

          1. 1.1.1.1.1 Cultured Butter

          2. 1.1.1.1.2 Uncultured Butter

      2. 1.1.2 Cheese

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Natural Cheese

          2. 1.1.2.1.2 Processed Cheese

      3. 1.1.3 Cream

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Double Cream

          2. 1.1.3.1.2 Single Cream

          3. 1.1.3.1.3 Whipping Cream

          4. 1.1.3.1.4 Others

      4. 1.1.4 Dairy Desserts

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Cheesecakes

          2. 1.1.4.1.2 Frozen Desserts

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Mousses

          5. 1.1.4.1.5 Others

      5. 1.1.5 Milk

        1. 1.1.5.1 By Product Type

          1. 1.1.5.1.1 Condensed milk

          2. 1.1.5.1.2 Flavored Milk

          3. 1.1.5.1.3 Fresh Milk

          4. 1.1.5.1.4 Powdered Milk

          5. 1.1.5.1.5 UHT Milk

      6. 1.1.6 Sour Milk Drinks

      7. 1.1.7 Yogurt

        1. 1.1.7.1 By Product Type

          1. 1.1.7.1.1 Flavored Yogurt

          2. 1.1.7.1.2 Unflavored Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

Canada Dairy Market Size FAQs

The Canada Dairy Market size is expected to reach USD 15.58 billion in 2024 and grow at a CAGR of 5.06% to reach USD 19.94 billion by 2029.

In 2024, the Canada Dairy Market size is expected to reach USD 15.58 billion.

Canada Dairy Market Report Snapshots

Canada Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029