Dairy product manufacturing: 2026 FCC Food and Beverage Report

The following information is from the 2026 FCC Food and Beverage Report, which highlights the opportunities and challenges for Canadian food manufacturers by sector. To get the big picture, read the full report.

Navigating rising milk costs and evolving consumer trends
Canada’s dairy processing sector is diverse and dynamic. It spans everything from fluid milk and butter to cheese, milk protein products, specialty powders used in infant formula, beverages and snacks. Downstream markets include retail, foodservice and further manufacturing. Given strong demand for protein, milk proteins are being used as ingredients in other processed food products and seeing rising demand. Of more than 600 processors nationwide, nearly 70% are concentrated in Quebec and Ontario, and most are small operations employing fewer than 100 people.

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