Asia Pacific Yogurt Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Asia Pacific Yogurt Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Asia-Pacific Yogurt Market is projected to register a CAGR of 10.92% during the forecast period.

Eating more fermented foods is thought to improve health and well-being. Owing to its delectable flavor and wide range of options, yogurt is simple to incorporate into the diet. With the growing interest in gut health and healthy eating, dairy producers are emphasizing the probiotic benefits of their yogurts. To gain improved nutritional appeal, some manufacturers also add extra vitamins and proteins.

There is a growing demand for concentrated products like Greek yogurt and quark. They are often high in protein and have a thicker consistency than regular yogurt. In the yogurt sector, one of the fastest-growing segments is fermented dairy products with added protein. For instance, in August 2021, Lactalis India, a subsidiary of France’s Lactalis Group, expanded its product portfolio with the launch of Lactel Turbo Yogurt Drink in Chennai. The company offers on-the-go drinks in two different flavors such as strawberry and mango. The company claims that its product is thicker than lassi due to the presence of protein and fruits.

Furthermore, low-sugar yogurt is another health-related yogurt trend that has producers coming up with creative solutions. Manufacturers are replacing refined sugar with natural fruit sugars, while others are converting to alternative sweeteners like stevia and aspartame. For instance, in October 2022, Akshayakalpa Organic launched organic Greek yogurt in two flavors such as plain and mango. The product line is rich in probiotics, which are crucial for preserving excellent gut health. The mango variation contains genuine organic mangoes, a bit of organic honey for sweetness, and no processed sugar.

Consumers across the world are becoming increasingly interested in dairy substitutes. Although plant-based foods are frequently promoted as sustainable and climate-friendly options, they are also usually associated with health advantages. Plant-based yogurt products are still in the early stages of development, but innovation is accelerating rapidly. Manufacturers are emphasizing research and innovations for which they are collaborating with a plant-based goods expert who can help them to avoid unnecessary costs during the production of finished products and offer a potential opportunity across the region.

Additionally, plant-based products no longer have to sacrifice taste or variety. On the contrary, a wide range of raw materials, from oats and peas to soy, rice, and almonds, can now be transformed into a variety of flavorful and high-quality products that work competently as dairy substitutes. For instance, in August 2021, Wellme introduced 100% plant-based yogurts under the brand name Berrywell. The company offers yogurts in three different flavors such as blueberry, strawberry, and coconut. The company claims that its product is 100% vegan, lactose-free, and free from all allergens; and is made with pea protein, chickpea, coconut milk, and natural fruits and vegetable fiber. The company also claims that its products are catering to the increasing demographic of young and health-conscious consumers across China, who are opting the plant-based products at a significant pace.

Yogurt consumption has increased significantly in China as a result of the appropriation of Western cultures and eating habits. The vast majority of Chinese people prefer to buy imported foreign dairy products instead of domestic products. This preference is not surprising given that nearly half of the country's population believes that domestic milk is less reliable than imported milk and thus prefers imported products. While a large portion of the Chinese population is still lactose intolerant, yogurt has the advantage of being fermented, which makes it digestible. Non-dairy yogurt is becoming more popular in China as the number of people suffering from dairy allergies or lactose intolerance grows. It provides people with allergies with a tasty alternative.

China is experiencing a veritable boom in the consumption of yogurt drinks, which is set to grow exponentially. Cow milk is highly valued in China owing to its calcium level, which helps in sports activities. However, the majority of European consumers prefer goat or sheep milk for yogurt, which is expected to allow this trend to reach across China in the upcoming years. Also, China's yogurt market is primarily dominated by three companies, namely Inner Mongolia Yili Group, China Mengniu Dairy, and Bright Dairy & Food, together constituting more than half of the market share. Other active players in the country are Danone and General Mills.

Nestle SA, Yili Group, Fonterra Co-operative Group Limited, Gujarat Co-operative Milk Marketing Federation Ltd (Amul), and China Mengniu Dairy Company Limited are some of the key players in the Asia-Pacific market. To attain a larger share of the market studied, manufacturers are revitalizing their product portfolios to present the health aspects of yogurt. The demand for Greek yogurt is expected to increase over the next few years, owing to an increased preference for new products with a variety of flavors, such as blueberry, vanilla, honey, and chocolate, along with superfoods. Health claims, like higher protein content and relatively lower fat and sugar contents, as compared to conventional yogurt, have enhanced the popularity of Greek yogurt. This variety of yogurt is manufactured by the repeated straining of regular yogurt until most of the lactose (sugar) is eliminated. For instance, in August 2022, Vitasoy launched a dairy-free yogurt range in the Australian market due to rising demand for plant-based products. The company claims that its product is fortified with calcium, vitamin D, and vitamin B12, which play a vital role in a vegetarian or plant-based diet.

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