Canada's dairy companies boost production amid 'national cottage cheese shortage'

Canada's dairy sector is responding to a surge in cottage cheese popularity, with companies like Gay Lea Foods investing heavily to boost production and combat a perceived national shortage. The trend, fueled by high-protein diets promoted on social media, appears to be more than a fleeting fad, according to industry leaders.

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Our customers are asking for more. Unfortunately, we’re sort of tapped out at our current capacities as we speak.

Gay Lea Foods, known for its Nordica cottage cheese, announced a $200 million investment to expand its Toronto manufacturing facility. "Our customers are asking for more. Unfortunately, we’re sort of tapped out at our current capacities as we speak," said Suzanna Dalrymple, president and CEO of Gay Lea Foods, emphasizing the need to increase output.

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I think really fundamentally people are looking for more affordable animal proteins and dairy is really having a moment because of that.

National production figures support the growing demand. Statistics Canada data shows a 15% increase in cottage cheese production between the first quarters of 2025 and 2026, rising from 8,571 tonnes to 9,870 tonnes. This growth aligns with a broader trend of consumers seeking affordable animal proteins, with dairy products experiencing a significant moment, according to Sylvain Charlebois, director of Dalhousie University's Agri-Food Analytics Lab.

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I love the videos. They’re so fun to watch. And at the beginning, I think that was what contributed to a lot of people thinking that maybe it was a fad. But it’s certainly not.

Social media platforms, particularly TikTok, have played a crucial role in popularizing cottage cheese. Dalrymple noted the engaging nature of the videos, initially thought by some to indicate a fad, but now recognized as a driver of sustained consumer interest. Agropur, another dairy co-op, has also announced plans to expand its cottage cheese production, signaling confidence in the market's long-term viability.

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It means that they’re pretty confident that it’s not just a trend. It’s really going to be something that’s going to be sustainable over the long term.