Global Sour Cream Market - 2023-2030

Global Sour Cream Market - 2023-2030

Global Sour Cream Market reached US$ 1.5 billion in 2022 and is expected to reach US$ 1.9 billion by 2030, growing with a CAGR of 2.8% during the forecast period 2023-2030.

Sour cream has a wide range of applications in various food products. Sour cream is used as a healthy ingredient in bakery products and salad dressings. The increasing demand for convenience food and quick meal options positively impacts the sour cream market, due to its use as a ready-to-use ingredient in various sweet and savory food applications.

The introduction of a new range of sour cream is positively impacting the expansion of the market. Manufacturers are focussing on introducing new variants of sour creams to meet the increasing consumer demand for innovative tastes and healthy products. The wide range of flavor availability drives the product reach to the customers to choose among their favourite flavours.

The launch of sour creams with reduced fat and low sodium is attracting health-conscious consumers. For instance, in March 2023, Elle & Vire Professionnel, a dairy products' brand announced the launch of fresh sour cream for both cold and hot uses. This light cream is convenient to use with a long shelf life and contains about 12% of fat.

Dynamics

Health Benefits Associated with Sour Cream

Sour cream enhances the taste and consistency of the food product. Apart from its taste priorities, sour creams are a rich source of various essential nutrients and are used as a healthy ingredient in various food products. Increasing demand for the product is motivating the manufacturers to improve their product production to meet the consumer demand. For instance, in October 2022, PA Dairy Processor expanded their capacity for the production of sour cream. Sour creams act as a greater source of probiotics, calcium and proteins.

Manufacturers are launching sour creams produced with healthy ingredients. For instance, in September 2023, Daisy added new products to their offerings with the launch of Sour Cream Dips in two different varieties, including French Onion and Creamy Ranch. The product is gaining attention due to its blend of herbs and spices making it tasty and healthy. The product is claimed to be produced with high-quality ingredients and is free from preservatives and other additives such as stabilisers and thickeners.

New Innovations in Sour Cream Packaging

Sour cream demand is increasing rapidly in the food service and household sectors. Manufacturers are implementing new and attractive packaging for products to gain consumers' attention towards the products. For instance, in August 2022, Tofutti, a U.S.-based dairy-free food company, introduced its new packaging for its vegan cheese and sour cream products.

The innovative approach of producing convenient and easy-to-use packaging is gaining popularity among consumers who use the product at the retail household level. For instance, in August 2021, Good Culture, a company that produces cultured dairy products, launched lactose-free sour cream in the market. The lactose-free sour cream was made available in squeezable and tub packaging formats.

In June 2023, Hiland Dairy, a farmer-owned company launched a new and improved squeezable package for their all-natural sour cream. This product now comes with a redesigned flip-top cap and a rigid bottle that fits perfectly in the refrigerator door. The new package has a space-saving design with a flip-top cap that keeps the bottle upright, making it more convenient and easier to use.

Availability of Substitute Products

The sour cream market is restrained by the presence of various alternative products in the market. Products such as yogurt, mayonnaise and cream cheese can be actively used as alternative products for sour cream. Many people replace sour cream in household cooking with various other ingredients such as buttermilk decreasing the market demand.

Most of the spur cream substitute products can be easily available in the market at reasonable prices and a wide variety of flavors. The competitor products are also launching plant-based products to attract vegan customers to this market. For instance, in March 2023, Kraft Heinz and NotCo announced the launch of NotMayo, a plant-based mayonnaise that is produced from chickpea flour.

Segment Analysis

The global sour cream market is segmented based on type, source, nature, packaging, distribution channel, application and region.

Increasing Veganism

The global sour cream market is segmented based on source into plant-based and animal-based. The plant-based sources of the sour cream market accounted for the largest share with the increasing adoption of veganism. The increasing health and environmental awareness among consumers is driving veganism. According to the World Animal Foundation's data for 2023, there are around 88 million vegans in the world. The health advantages associated with the vegan diet boost the segment growth.

To meet consumer demands manufacturers are new products into the market. For instance, in June 2023, a New Zealand-based company, Angel Food announced the launch of new products into the market. The new product line includes vegan sour cream in about 160 Countdown supermarket stores. Similarly, in September 2020, Kate Hill introduced new product lines including Kate Hill Sour Cream Alternative, a product made with a special combination of creamy coconut and almond milk.

Geographical Penetration

High Use of Sour Cream in North America

North America dominated the global sour cream market, with U.S. and Canada leading the market. Consumers of this region highly depend on sour creams as a daily ingredient in various food product applications from breakfast products to snacks. Along with dairy sour creams, the demand for lactose-free and vegan sour creams is increasing in this region with an increasing number of vegan and lactose-intolerant people.

With the high demand for the product, most manufacturers are competitively producing new products with innovative and convenient packaging to sustain in the market. For instance, in November 2021, Prairie Farms Dairy, a U.S.-based company announced the expansion of its product lineup to include squeezable pouches of all-natural sour cream.

Various manufacturers are introducing their product offerings in an easy and accessible mode of distribution for the end-users in this region. For instance, in January 2023, Upfield Holdings B.V., a Dutch food company expanded its Violife offering in the US with the introduction of Just Like Sour Cream, a new plant-based dairy product. The new dairy-free sour cream is available in around 883 Walmart stores in the country, easily accessible to consumers.

Competitive Landscape

The major global players in the market include Violife Foods, Green Valley, Uelzena Ingredients, Organic Valley, Daisy Brand LLC, Meggle Srbija, Only Plant-Based, HP Hood LLC, Bega Dairy and Drinks Pty Ltd and GCMMF.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic had a mixed impact on the global sour cream market. The strict lockdown regulations from the government interrupted the manufacturing and distribution of products. The manufacturers faced several challenges in the initial stages of the pandemic situation due to reduced raw material sourcing and limited workforce facilities. The shutdown of several offline distribution and sales stores along with multiple food service sectors negatively impacted the market.

The pandemic increased the demand for convenient food products that are ready to eat and ready to use. The high use of these sour creams in the food industries to produce various pre-packed food products increased the market demand. The availability of these products in various online stores and easy accessibility improved product sales during the pandemic.

Russia- Ukraine War Impact

The Russia-Ukraine war negatively impacted various industries. The supply chain activities were badly impacted, causing the disruption of demand-supply chain phases. This led to a scarcity of raw materials and other essential resources required for the production of sour cream and other products. The shortage of materials resulted in an increase in the prices of raw materials and final products. The disruption in the export and import trade transitions had a negative impact on the market.

By Type
• Low Fat
• Regular
• High Fat

By Source
• Plant-Based
• Animal-Based

By Nature
• Organic
• Conventional

By Packaging
• Bottles
• Tubs/Cups
• Squeezers
• Others

By Distribution Channel
• Supermarket/Hypermarket
• Convenience Store
• Specialty Store
• E-Commerce

By Application
• Bakery Products
• Salad Dressing
• Dips
• Snacks
• Sauces
• Ice Cream
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In July 2022, V&V Supremo Foods, Inc., an authentic Mexican dairy and chorizo producer, introduced new products in other crema products line with the launch of five new flavors. These new artisanal sour creams such as Crema Chihuahua and Crema Mexicana are produced from 100 % pasteurized milk.
• In September 2021, Only Plant Based, a company based in Birmingham, produced a range of vegan condiments such as mayo, sour cream, and dressings. The company claims the use a combination of rapeseed oil, spirit vinegar, vegetables, and spices to create its plant-based products such as sour cream and garlic mayo.
• In August 2021, Vermont Creamery, a premier dairy producer introduced the brand’s first cultured sour cream into the market.

Why Purchase the Report?
• To visualize the global sour cream market segmentation based on type, source, nature, packaging, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of sour cream market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global sour cream market report would provide approximately 85 tables, 91 figures and 234 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies