IFF unveils 2026 dairy trends report on conscious consumption and holistic health

IFF, a global leader in flavors, fragrances, food ingredients, health and biosciences — published its Dairy Trends Report 2026, offering fresh insights into the evolving landscape of dairy and alternative dairy. The report identifies five key trends that will drive market changes and product innovation, with “considered consumption” emerging as the dominant theme.

“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.”

The 2026 report highlights a major shift in consumer priorities, redefining ‘value’ — previously centered on price — into a broader, more nuanced concept. Consumers are moving from basic wellness to holistic well-being, from simple sustainability to proactive regeneration, and from convenience to meaningful indulgence. This transformation is reflected in five interconnected trends shaping the future of the dairy industry:

Considered Consumption

Consumers are increasingly spending more intentionally, guided by purpose rather than impulse. They seek products that deliver multifunctional benefits and align with their social and environmental values. Dairy is especially well suited to meet these expectations. For example, approximately 56 percent of Chinese consumers see yogurt as a gut-health aid, and 32 percent of Brazilians use it as a replacement for protein supplements.

Wholistic Health

Consumers are adopting a 360-degree view of health, one that includes managing energy, sleep, stress and mood. This has made functional benefits, such as added protein and probiotics, a baseline expectation in dairy products. With the rise of weight-loss drugs such as GLP-1s, dairy has a unique opportunity to provide compact, nutrient-dense options. High-protein yogurts and cottage cheese can help users manage reduced appetites and support satiety.

Joyful Harmony

Consumers today are seeking “emotional nourishment” through indulgence, play and nostalgia. They are no longer willing to choose between health and happiness — they expect dairy products to deliver both. Cheese, in particular, is emerging as an indulgent, premium snack and mood lifter. With 45 percent of consumers in China reporting they eat cheese to improve their mood, there is growing potential for flavored, whipped and interactive cheese formats tailored for personal indulgence.

Regenerative Resilience

The industry standard is shifting from sustainability (minimizing harm) to regeneration (actively restoring ecosystems). For example, in the United States, 30 percent of Gen Z cheese consumers seek out sustainably produced options. As global logistics remain fragile and demand for transparency grows, more brands are turning to local and regional farms to secure their supply chains and reduce their carbon footprint. In the United Kingdom, 37% of yogurt consumers want to know more about the origins of the ingredients, highlighting the importance of provenance and traceability.

Human + AI

As artificial intelligence (AI) becomes more integrated into product development, the dairy industry is navigating a delicate balance between technological efficiency and human authenticity. While businesses embrace AI for innovation and optimization, many consumers remain cautious. Crucially, consumers value not only the taste and functionality of products, but also the craft and care behind them. By integrating AI discreetly and ethically, brands can reinforce a sense of intimacy, trust, and expertise.

The report leverages IFF’s proprietary Panoptic Framework, a trend intelligence tool that analyzes and anticipates future shifts in consumer preferences across three distinct horizons: short-, mid-, and long-term drivers.