Yogurt Market Assessment, By Source [Dairy Based Yogurt, Non-Dairy Based Yogurt], By Type [Regular Yogurt, Greek Yogurt, French Yogurt, Others], By Flavor [Flavored, Unflavored], By Price Range [Value Segment, Premium Segment], By Packaging Type [Bottles,

Yogurt Market Assessment, By Source [Dairy Based Yogurt, Non-Dairy Based Yogurt], By Type [Regular Yogurt, Greek Yogurt, French Yogurt, Others], By Flavor [Flavored, Unflavored], By Price Range [Value Segment, Premium Segment], By Packaging Type [Bottles, Jars, Cups, Pouches, Others], By Size [Single-serve Packaging, Multi Packaging, Family-sized Packaging, Bulk Packaging, Others], By Fat Content [Regular, Low-fat, Fat-free], By Application [Dips and Sauces, Cooking and Baking, Smoothies and Beverages, Others], By End-user [Households, Fitness Enthusiasts, Foodservice and Hospitality Industry], By Distribution Channel [Offline, Online], By Region, Opportunities, and Forecast, 2017-2031F

Global yogurt market size was valued at USD 132.56 billion in 2023, expected to reach USD 212.08 billion in 2031, with a CAGR of 6.05% for the forecast period between 2024 and 2031. The yogurt market is experiencing growth driven by increasing consumer awareness of the health benefits associated with yogurt consumption. With a rising focus on probiotics and gut health, yogurt has gained popularity as a nutritious and convenient snack. Key players are introducing innovative flavors and formulations to cater to the diverse needs of the consumer, including lactose-free and plant-based options.

Greek yogurt continues to remain a significant trend, appealing to consumers seeking higher protein content. Additionally, the market has witnessed a surge in demand for premium yogurt products, reflecting a growing preference for quality and organic nature. Health-conscious trends and the influence of wellness culture that have led to yogurt consumption as a versatile ingredient in various recipes. The market's expansion is not limited to traditional dairy-based products, as non-dairy yogurt alternatives have gained demand among lactose-intolerant and vegan consumers.

Asia-Pacific is expected to be the largest yogurt market owing to easy availability of a wide range of yogurts products and flavors across the retail and foodservice channels. India and China are expected to be the dominating countries in Asia-Pacific due to high production of raw milk, rising consumer preference for quality dairy products, and suitable industry regulation to facilitate the manufacturing of dairy products.

For instance, in July 2023, UK-based Bio&Me Limited introduced single serve prebiotic natural yogurts available in creamy vanilla and original flavors. The product is low in lactose, high in protein, and a good source of calcium, phosphorus, B12, and B2 with no added sugar, artificial sweeteners, thickeners, or emulsifiers.

Growing Consumer Awareness Drives the Market for Yogurt

Growing consumer awareness has resulted in the expansion of yogurt market in health and wellness segment. Yogurts are rich in probiotics that support and balance gut essential for digestive health. Additionally, it has high protein content that makes it appealing to people who are looking for nutritious snack that supports muscle maintenance. Its nutritional profile is further improved by the inclusion of vital nutrients, which support immunity, bone health, and general wellbeing. The increased awareness is consistent with modern lifestyles, where people value functional foods that support their holistic health goals. As a result, yogurt is becoming a popular and adaptable option for those seeking a well-balanced and nutrient-rich diet.

For instance, in December 2022, the Icelandic skyr brand, siggi’s, launched a new yogurt line with rich and creamy skyr. The new product is a whole milk yogurt containing 10 grams of protein per serving and lesser sugar. It is available in three flavors of zesty lemon, ripe cherry and vanilla honey.

Innovations in Yogurt Industry Surge Market Growth

The yogurt market increases with the constant product innovation, catering to diverse consumer needs and preferences. Brands constantly introduce a range of flavors, from traditional to exotic, providing a wide array of taste experiences for the consumers. Innovations like Greek yogurt, with its creamy texture and higher protein content, have gained immense popularity. The incorporation of functional ingredients like added minerals and vitamins, prebiotics and probiotics, promoting digestive health and overall wellness is a notable innovation in the market. Health-conscious consumers seek these functional yogurts that offer more than the basic nutrition. Such adaptability and variety contribute significantly to the industry’s resilience and sustained consumer interest.

For instance, in March 2022, Danone S.A. brand, Activia, introduced a new drinkable yogurt called Activia+, meant to improve immunity and gut health. The new Activia+ Multi-Benefit Probiotic Yogurt Drink is a great source (20% DV) of vitamins C, D, and zinc to support the immune system, and is loaded with billions of live, active probiotics to help support the gut health. The product is available in three flavors, i.e., strawberry, peach, and raspberry, containing 9 grams of sugar and 70 calories.

Dairy Based Yogurt to Hold Largest Market Share

Dairy-based yogurt maintain the largest market share globally. Traditional dairy yogurt, derived from cow's milk, has been a staple in many cultures and cuisines, contributing to its widespread consumption and market dominance.

However, the non-dairy yogurt segment has experienced significant growth in recent years, driven by various factors such as the rising prevalence of lactose intolerance, increasing adoption of plant-based diets for health and environmental reasons, and the introduction of innovative non-dairy formulations that reflect the taste and texture of traditional yogurt. Non-dairy yogurt options, including almond, coconut, soy, and oat-based varieties, have expanded to cater to diverse dietary preferences and requirements.

While dairy-based yogurt still dominates the market, the growing demand for non-dairy alternatives indicates shifting consumer preferences and a broader trend towards plant-based eating.

In March 2023, So Delicious Dairy Free launched its new product in yogurt industry as 0g Added Sugar Coconutmilk Yogurt Alternative. Coconutmilk yogurt is an alternative to dairy based milk yogurt, revolutionizing the yogurt market as it is a yogurt alternative that derives the sweetness from fruits. The new yogurt was launched in four flavors of coconut, strawberry, vanilla, and blueberry, each made with organic coconuts to provide creaminess without dairy and is certified vegan and Non-GMO Project verified.

Impact of COVID-19

The COVID-19 pandemic has resulted in both challenges and opportunities for the yogurt market. Initially, supply chain disruptions and shifts in consumer behavior led to fluctuations in demand. With lockdowns and restrictions, there was a surge in home consumption, boosting sales of yogurt as a convenient and healthy snack. However, the closure of foodservice establishments impacted bulk sales of the product.

The pandemic accelerated trends such as online shopping, prompting yogurt brands to enhance their digital presence and e-commerce strategies. Moreover, health awareness among consumers during the pandemic increased the demand for yogurt with immune-boosting properties and functional benefits. Despite disruptions, the industry demonstrated flexibility by adapting to changing market dynamics and emphasizing product innovation. As the global situation stabilizes, the yogurt market is expected to rebound, with an increased focus on health and wellness continuing to drive consumer choices.

Key Players Landscape and Outlook

Major players in the yogurt market demonstrate a dynamic competitive landscape, continually adapting to evolving consumer preferences and global health trends. Established brands like Danone S.A., Nestlé S.A., and Chobani Global Holdings, LLC maintain market dominance through extensive product portfolios, emphasizing diverse flavors, and incorporating innovative formulations, such as Greek yogurt and probiotic-rich options.

Competitors such as Siggi's and Noosa, target customers looking for premium and unique yogurt experiences by carving out niches with their products and distinctive flavor profiles. Furthermore, player success depends on their ability to develop products quickly, adapt to customer needs, and use marketing strategy that work in the dynamically changing industry.

For instance, in June 2023, Junlebao Dairy Group Co. Ltd. introduced a new product called N-15 probiotic yogurt. The product claims to have the probiotic strain N1115 and is fermented from 100% fresh milk. Additionally, the new product comes with a simple formulation, and is free from artificial flavors, artificial colors, and sucrose.