IFF has unveiled its 2026 Dairy Trends Report, highlighting a decisive market shift towards considered consumption and holistic health as consumers, particularly younger demographics, redefine what value means for dairy. The report shows that consumers are turning to dairy as a sustainable, nutrient-rich choice, even amid ongoing economic pressures.

We’re witnessing the end of the ‘health versus happiness’ trade-off in the dairy aisle. The consumer’s desire for holistic well-being now extends beyond personal health to that of the planet.”

The global ingredients leader says food professionals should prepare for a “health versus happiness” reset, as the boundaries between wellness, indulgence and environmental care blur.

“We’re witnessing the end of the ‘health versus happiness’ trade-off in the dairy aisle. The consumer’s desire for holistic well-being now extends beyond personal health to that of the planet,” said Richard Neish, director, CI Trend Intelligence at IFF Taste. “This shift toward ethical consumption means a product’s purpose and its impact on surrounding ecosystems are just as crucial as its nutritional benefits. The brands that will lead the future are those that prove a product can be a treat for the soul, precisely because it’s rooted in transparent, sustainable practices.”

IFF identifies five trends set to shape the dairy market in 2026: Considered Consumption, Wholistic Health, Joyful Harmony, Regenerative Resilience and Human + AI collaboration. Together, they signal a shift from price-led decisions to more purpose-driven choices.

Five key trends

Considered Consumption is emerging as the dominant force. IFF reports rising demand for multifunctional dairy products that align with social and environmental values. With 56 percent of Chinese consumers viewing yoghurt as a gut-health aid and 32 percent of Brazilians using it to replac protein supplements, dairy’s functional and versatile positioning continues to strengthen.

The report also highlights rising interest in Wholistic Health, a 360-degree approach to physical and emotional wellbeing. With protein fortification and probiotics now baseline expectations, IFF identifies the rapid uptake of GLP-1 weight-loss drugs as a major disruptor. As users experience reduced appetites, demand is increasing for compact, nutrient-dense formats that support satiety and help maintain muscle mass. Yoghurts and cottage cheese are emerging as preferred options, with IFF noting that GLP-1 households consume yoghurt at nearly three times the average rate – underscoring dairy’s strengthened role in meeting evolving nutritional needs.

In parallel, consumers are seeking Joyful Harmony through indulgence that does not compromise health. Cheese is singled out as a category with rising emotional appeal, with 45 percent of consumers in China reporting they eat cheese to improve their mood. This is opening opportunities for premium snacking formats, flavoured profiles and playful textures.

Sustainability expectations are also intensifying. Under the banner of Regenerative Resilience, the report notes a shift from sustainability as damage limitation to regeneration as a proactive restoration strategy. In the United States, 30 percent of Gen Z cheese consumers already seek sustainably produced options, while in the United Kingdom, 37 percent of yoghurt consumers want greater visibility on ingredient origins.

The fifth trend, Human + AI, explores how the industry is negotiating the integration of artificial intelligence into product development. While businesses are accelerating AI-driven innovation, consumers want reassurance that craft, care and human expertise remain central. IFF argues that discreet, ethical AI use can strengthen trust rather than dilute it.

Together, the IFF Dairy Trends Report 2026 points to a dairy sector recalibrating around purpose, performance and transparency as it moves into the new year.