Dairy has enjoyed another bumper year – with demand for protein, health and convenience continuing to drive sales across categories and product segments.
But will the protein bubble burst – and how will the weight management trend impact innovation?
We look at some of the key macro trends and growth opportunities for brands in the next 12 months.
Premiumization and convenience
Consumers are increasingly looking for added value when choosing a product – and are willing to pay a premium for products that deliver on their taste, functionality and nutritional objectives.
Take butter and ice cream: while mini portions such as butter sticks and ice cream bites have carved out a niche as a fun and functional format, products that go the extra mile is what is really attracting consumers.
From flavored cooking butters to frozen mini bites that marry contrasting textures, there are many ways to stand out on shelf while also providing added value to the consumer.
Premium desserts also offer sustainable growth opportunities for brands, along with 100% cheese snacks such as dehydrated cheddar and goat cheese bites.
Health and wellness products such yogurts are also being positioned in new premium categories through ingredient innovation.
Fiber and biotics-fortified yogurts are entering the GLP-1-friendly category in both beverage and potted formats. This trend is expected to expand in the new year, in line with growing use of weight management medications and the introduction of GLP-1 agonists available as pills.
But getting the right formulation won’t be enough to entice those consumers: providing nutrition in convenient formats, such as RTD, pouches and snack-sized pots will be key to unlocking growth.
Healthspan
Digestive health is already dairy’s bread and butter – but for the modern consumer, health and wellness needs will expand beyond the gut and into broader areas of holistic health. Healthspan – the trend to live well (in good health) and not just long – is coming increasingly to the fore. From cognitive to cardiovascular health, from mood to muscle support, dairy can play a role across the entire lifespan.
Premium proteins such as lactoferrin are broadly used in specialized nutrition; getting them in food and beverage products will be the next frontier of functional innovation. The emergence of precision fermentation-derived lactoferrin could offer this premium ingredient at a more competitive rate – or at least in those markets where non-animal dairy has received market approval.
Dairy groups are also improving their offering in specialized nutrition spaces, such as adult and medical nutrition.
Whey and casein will also continue to find new applications in health-supporting products and formats – with hydrolyzed casein emerging as an alternative to in-demand whey powders in active nutrition.
Plant sterols may also play a growing role in shaping product innovation in dairy the coming year. These compounds found in plants can naturally reduce cholesterol by blocking its absorption in the gut.
Functional botanicals and adaptogens
According to SPINS, ingredients such as green tea and matcha continue to be in strong demand thanks to their energy, antioxidant and international flavor appeal. Maca root and functional mushrooms are the two other ingredients that have been very sought-after by health-conscious consumers in the past year.
For brands, formulating diary products enriched with bioactive ingredients can be a powerful way to expand their portfolios by introducing new premium formats to the market. However, R&D efforts would need to focus on ensuring stability of these bioactives during and after processing, as well as favorable taste and functional properties and of course, regulatory compliance.
Weight management
Yogurt was already in strong demand on the back of the high-protein trend – but the emergence of GLP-1 agonists is creating new growth frontiers across the category.
According to Mintel, households using GLP-1 medications in the US consume yogurt at nearly three times the average rate, favoring high-protein formats that support satiety.
In North America, the largest market for GLP-1 receptor agonists currently, yogurt consumption is yet to peak, and the weight management trend is expected to fuel further growth in protein.
Thus, positioning yogurt – but also other nutrient-dense, snacking-friendly categories such as cottage cheese and dairy beverages – as GLP-1 friendly could unlock significant opportunities in the year ahead.
“We think this trend is going to continue to rise because GLP-1 use is going to continue to accelerate in 2026 with the introduction of the pill format and some of the support from insurance as well that will be covering those medications,” SPINS’ senior client insights manager, Jenn Dackor, said.
The trend is also impacting portion sizes and sugar levels as well as fiber fortification.
“With weight management increasingly a long-term consumer lifestyle goal, producers are focusing reformulation around better choice empowerment, rather than calorie counting restriction,” explained Imen Ouerdiane, sales director, EMEA at Beneo. “Since those medications reduce the enjoyment of eating, offering small, nutrient-dense plates ensures adequate nourishment for those who aren’t hungry.
“In line with these developments, nutritional profile improvements are high on the agenda for many, and more manufacturers are reducing sugar, as well as increasing protein and fibre to support sustainable weight management recipe reformulations.”
Fortification with probiotics and vitamins could be key to elevating the nutritional offering of yogurt – but overall, brands must be mindful of potential ultra-processing concerns and back up their health claims.
Protein and fiber-maxxing
Despite being a major trend in the last five years already, protein is likely to experience another good year according to market analysts – with multiple trends converging to fuel its growth.
From GLP-1 users seeking to bolster muscle support and appetite control to active consumers looking for satiating snacks, the opportunities for protein-rich foods will continue to evolve in 2026 and likely, beyond.
“The reason for that is protein, that high protein trend, started with a pretty small group of people that were interested in athletic performance,” SPINS’ Jenn Dackor said. “But it has now saturated pretty much every type of consumer, every age group, every athletic activity level. Everyone is finding a reason to add protein to their diet.
“We’re seeing a very significant number of products that are being introduced to the market being high-protein. As far as growth of high-protein products, we’re seeing very strong performance right now in grocery and in vitamins, minerals and supplements.
“We know that GLP-1s are going to continue to grow in the next few years, and those are definitely some of the consumers that are driving this more recent protein trend. So I think we’re going to continue to see it grow.”
And it’s not just dairy protein – plant-based is having a moment, too.
“We’re seeing really strong performance from pumpkin seed protein, hemp protein, added bean protein, chickpea protein is doing really well,” said SPINS’ Angela Flatland.
Similar consumer trends are driving growth in fiber-fortified products. “We are seeing items with high-fiber content outperforming Total Store [in US grocery]. This is being driven by a few things: a resurgence in interest in fiber by the general consumer, but also the GLP-1 users.”
Beyond gut health
Gut health is also driving demand for biotics-fortified products, Dackor explained. “Another really strong trend that we’re seeing is in items that contain probiotics. This trend is consistent with the survey that SPINS recently did where we asked Millennials and Gen Z where they prefer to find their gut support. Those two generations prefer finding that support in food versus supplements.”
For dairy, demand for fermented beverages such as kefir and yogurt continues to rise - but brands are now adding new layers of functionality to products.
In the US, Lifeway Foods introduced creatine-based RTD beverages and a line of probiotic dressing among other innovations.
In the UK, Biotiful launched immunity focused drinking kefirs in early 2025 to hone in on the holistic health trend through its gut health drinks.
And so, there you have it: dairy is set for another strong year, driven by premiumization, health and convenience trends, with growth opportunities in high-protein, fiber-fortified, GLP-1-friendly, and functional ingredient-enriched products across categories.
