Dairy Fermentation Starter Market By Product Type (Mesophilic Type, Thermophilic Type, Probiotics) , By Application (Yogurt, Cheese, Cream, Buttermilk, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033

Dairy Fermentation Starter Market By Product Type (Mesophilic Type, Thermophilic Type, Probiotics) , By Application (Yogurt, Cheese, Cream, Buttermilk, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033

Dairy Fermentation Starter Market

The dairy fermentation starter market was valued at $1.3 billion in 2023 and is projected to reach $2.6 billion by 2033, growing at a CAGR of 7.2% from 2024 to 2033.

A dairy fermentation starter is a microbial culture required to initiate the process of fermentation. It converts the milk into desired dairy products such as yogurt, cheese, butter, and sour cream. The starter primarily consists of lactic acid bacteria, a microorganism that metabolizes lactose into lactic acid and other byproducts. Other essential microorganisms present in the starters include yeasts, molds, and bifidobacteria. Along with dairy fermentation starters, other elements that determine the effectiveness of the fermentation process are milk quality, pH, temperature, and salt concentration.

Increase in the consumption of different varieties of cheese, particularly artisanal cheese, has upsurged its production. This fuels the requirement for efficient dairy fermentation starters and acts as a key driver of the market. In addition, rise in health consciousness among consumers has surged the demand for probiotics and functional dairy products, thereby propelling the market growth significantly. A notable trend dominating the market in recent times is the development of lactose-free and allergen-free dairy fermentation starters. These cultures are designed to cater to lactose-intolerant or hypersensitive base of consumers, who are not able to consume traditional dairy products.

However, the high cost of innovative, premium starters hinders their utility in price-sensitive areas, thereby hampering the development of the market. Moreover, the retailing of fermentation starters is subject to rigorous testing and requires compliance with certain food standards, lack of which restrains the market growth significantly. On the contrary, rise in the popularity of precision fermentation for the formation of dairy products is poised to present remunerative opportunities for the dairy fermentation starter market. For instance, according to a survey conducted by Accenture—a global professional services company— regarding the willingness of consumers to try or purchase fermentation-enabled products, approximately 51% of the consumers were interested in trying precision fermented dairy. Precision fermentation is a process of engineering bacteria and yeast strains to inculcate desirable traits in the fermentation process or the final products, which is expected to open new avenues for the market.

Segment Review

The dairy fermentation starter market is segmented into product type, application, and region. On the basis of product type, the market is divided into mesophilic type, thermophilic type, and probiotics. Depending on application, it is classified into yogurt, cheese, cream, buttermilk, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key Findings

On the basis of product type, the thermophilic type segment held a high share of the market in 2023.

Depending on application, the cheese segment acquired a high stake in the market in 2023.

Region wise, North America was the highest revenue generator in 2023.

Competition Analysis

The major players in the global dairy fermentation starter market include Danisco, DSM, CSK, Lallemand, Sacco System, Dalton, BDF Ingredients, Lactina Ltd., LB Bulgaricum Ltd., Chr. Hansen Holding A/S, and Probio-Plus. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.

Key Market Segments

By Product Type

Mesophilic Type
Thermophilic Type
Probiotics

By Application

Yogurt
Cheese
Cream
Buttermilk
Others

By Region

North America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA

Key Market Players

CHR. Hansen
Danisco
DSM
CSK
Lallemand
Sacco System
Dalton
BDF Ingredients
Lactina Ltd.
LB Bulgaricum Ltd.
Chr. Hansen Holding A/S
Probio-Plus