Sour Cream Market - Growth, Trends, and Forecasts (2023 - 2028)

Sour Cream Market - Growth, Trends, and Forecasts (2023 - 2028)

The global sour cream market is expected to register a CAGR of 2.54% during the forecast period.

• Sour cream contains beneficial bacteria, which support digestive health, thus, boosting its demand. Increased demand for low-fat sour cream, convenient packaging format, consumption of toppings, and organic sour cream has fueled the sour cream market's growth worldwide. The consumer demand for convenient and healthy on-the-go snack options is the primary attribute for selling dairy products like sour cream worldwide. ​
• Consumers increasingly demand various flavors in sour creams, such as spicy, roasted, and exotic combinations. Heluva Good! offers sour cream beer-battered onion ring dip, made with fried sweet yellow onions, lager, and sour cream. Sour cream is mostly consumed with snacks as a dip, topping, or mixed with other ingredients to use as a spread. Savory and spice are consumers' preferred flavors as they combine perfectly with salty snacks.
• Dairy-based products like sour cream are naturally high in calcium content and are perceived as a healthy snacking option. These products' health benefits with probiotic properties, especially their ability to improve digestion and the immune system, have attracted consumers worldwide. Health and wellness trends have led to the inclination of consumers toward low-fat, lactose-free, and calcium-rich variants of sour cream products.

• The prevalence of lactose intolerance in North American and European countries has created a burgeoning demand for lactose-free sour cream. The demand for lactose-free organic sour cream is primarily driven by increasing consumption of baked products and savory products as they provide lightening properties to these products.
• Additionally, healthy eating is a prominent trend in the market that propels the demand for lactose-free and organic sour cream products. The increased launch of lactose-free dairy products and their acceptance among consumers represent a substantial opportunity for dairy alternative manufacturers. Also, the growing cholesterol problem among consumers has paved the demand for fat-free, low-fat, and other sour cream products. Thus, such products are expected to boost the market for sour cream during the forecast period.
• Manufacturers in the market are focused on offering innovative products suiting the changing demands of consumers to increase their customer base. These players are also innovating products in terms of packaging to attract customers further.
• For instance, in August 2021, Good Culture launched lactose-free sour cream in the United States. The lactose-free sour cream was made available in squeezable and tub packaging formats.

• The market studied is primarily driven by the rising health consciousness among consumers seeking protein and calcium-rich food products. Moreover, factors such as the increasing government-run health and wellness campaigns designed to combat obesity and related problems (diabetes, high blood pressure, heart disease, and high cholesterol) have been encouraging consumers to purchase healthier products, which has been directly fueling the growth of sour cream in the region.
• Moreover, the growing demand for organic products in the market is raising the demand for organic sour cream in the region. In the European region, sour cream is comparably popular with the yogurt category and is well-positioned as a wonderfully fermented product. Also, it is widely used as an ingredient in cakes, cookies, biscuits, donuts, and scones.
• The growing market of dairy alternatives in the European region has shifted consumer preference and industrial applications to incorporate dairy-free sour cream. For consumers with lactose intolerance, manufacturers in the region are introducing lactose-free sour creams, which are expected to drive market growth over the coming years.

The market studied is competitive with the existence of both local as well as global players. New product launches in various formats, such as dip, exotic flavored sour cream, and new convenient packaging, are among the key strategies being adopted by companies. Private-label brands provide tough competition to existing players with their flavored product offerings. The prime factors determining the market players and their position in the concerned market include the continuous launch of new products with various claims, such as low fat, lactose-free, and high quality. Companies are considerably active in investing in the target segments. Thus, the key players are embarking on expansion as one of their key strategies to achieve consolidation, optimize their offerings, and increase their consumer base. Kraft Heinz Company, Dean Foods, Fonterra Co-operative Group Limited, Danone SA, and Green Valley Creamery, among others, are the key players in the market.

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