This empirical research explores consumer perceptions of product traceability within the dairy industry. It seeks to address the gap between industry practices and consumer demands by investigating their preferences, perceptions, and issues, which leads to enhanced decision-making, transparency, and a sustainable future. Design Methodology/Approach: A literature review was conducted to identify research gaps. The authors developed a questionnaire about traceability in the context of food safety and quality awareness. Exploratory factor analysis (EFA) was used to analyze the data collected from 439 respondents, and Principal component analysis (PCA) was used to factor categorization and analyze consumer perception of traceability. Findings: The reliability analysis of the data shows significantly high reliability. Five factors were extracted after performing EFA, and factor loadings and communality were acceptable. The research indicates that consumer demand for transparency in the dairy industry is increasing. Consumers are increasingly interested in learning about the historical background of dairy products, production practices, and ethical aspects. Traceability becomes an influential factor in purchases and devotion to a brand. Originality/Value: This study contributes to consumer awareness and allows industry stakeholders to improve the quality and safety of food techniques, promoting transparency at all supply chain stages.