Yogurt Market Analysis

Definition of Market/Industry:

Yogurt is food produced by bacterial fermentation of milk. These bacteria’s are known as yogurt cultures and are produced by using cultures of streptococcus thermophiles and Lactobacillus bulgaricus bacteria. Yogurt is a popular fermented milk product and is gaining demand as a healthy food product as it plays an important role in fat loss and enhance digestive system functioning.

The global yogurt market is estimated to be valued at US$ 139.1 billion in 2021 and is expected to exhibit a CAGR of 10.0% over the forecast period (2021-2028).

Recent Developments:

• In June 2020, Kerry, a taste and nutrition company, has announced that it will be expanding its nutritional plant protein range, which will broaden the company's scope of proteins for food and beverages which is inclusive of but not limited to yogurt, among others.
• In 2020, AYO Almondmilk Yogurt was launched by AYO FOODS, LLC which reportedly enlivened with organic strawberries, organic blueberries, organic peaches, and organic Madagascar Vanilla, offering a smooth, clean flavor and likely the only almond milk yogurt available in the market.
• In 2019, the first Icelandic-style yoghurt will be available in the United States. Siggi's, which has been owned by Groupe Lactalis since 2018, has developed a plant-based yoghurt made from a proprietary blend of coconut, macadamia, and pea protein and boasts a high nutritional value.

Asia Pacific held dominant position in the global yogurt market in 2020, accounting for 33.5% share in terms of value, followed by Western Europe and MEA, respectively. Consumption of yogurt across the Asia-Pacific market is on the rise because of its probiotic range of products, its ability to improve metabolism, enhance digestion, and support the immune system. Yogurt is also consumed as dessert. It is offered in varieties, such as fruit yogurt, organic yogurt, and drinkable yogurt, which are well received by the consumers.

Figure 1. Global Yogurt Market Value (US$ Bn), by Region, 2020

Drivers:

The versatile nature of the yogurt and availability of yogurt in different forms is driving the market growth. Yogurt is consumed widely in all types of meals from breakfasts to lunch and to dinner. Moreover, it is available in different taste i.e. plain, flavored, with toppings, etc. which is again driving market growth of the yogurt. Moreover, the consumption of yogurt is not limited to particular meals or consumers. This is another major factor propelling the market growth of the yogurt over the forecast period.

The easy availability of key ingredients used in the preparation of yogurt is projected to foster market growth. Fruits, milk, sugars, stabilizers, flavors and bacterial culture, are some of the key ingredients used for yogurt and all these ingredients are easily available at the regional level. Convenience in procuring ingredients coupled with the increasing development of the new product by major producers is again projected to propel the market growth of the yogurt in the near future. 

Market Opportunities

Growing demand for low fat & fat-free yogurt by health conscious consumers is expected to serve key growth opportunities in the near future. Improving living of standard and increasing purchasing power of the consumers is encouraging consumers to spend on healthy food products. Also, the growing prevalence of lifestyle disorders such as obesity, cardiovascular, and diabetes is further anticipated to drive such health food products, thereby augmenting the market growth of the yogurt.

The expansion of the retail industry around the globe is increasing product availability. This is expected to offer potential market opportunities in the near future. According to the India Brand, Equity Foundation retail industry reached US$ 950 billion in 2018 at a CAGR of 13 percent and is expected to reach US$ 1.1 trillion by 2020. Moreover, revenue generated from online retail is projected to reach US$ 60 billion by 2020. Thus the expansion of the retail industry is expected to foster market growth. 

Yogurt Market Report Coverage

Report Coverage	Details
Base Year:	2020	Market Size in 2021:	US$ 139.1 Bn
Historical Data for:	2017 to 2020	Forecast Period:	2021 to 2028
Forecast Period 2021 to 2028 CAGR:	10.0%	2028 Value Projection:	US$ 280.8 Bn
Geographies covered:	Regions: North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, Middle East & Africa (MEA)
Segments covered:	By Form: Set, Strained/Greek, Drinking, & Frozen By Type: Fruit, Regular/Plain, Low Fat & Fat Free, & Flavoured By Distribution Channel: Hyper/ Super Market, Retail Stores, Convenience Stores, & Online
Companies covered:	General Mills, Inc., Nestle SA, Danone, Yakult Honsha Co., Ltd., Ultima Foods Inc., Chobani, LLC, Sodiaal, Muller UK & Ireland Group LLP, Kraft Foods Group, Inc., and Rainy Lanes Dairy Foods Ltd.
Growth Drivers:	Increasing population Growing awareness regarding health benefits of yogurts
Restraints & Challenges:	Presence of artificial ingredients

Market Trends

The adoption of advanced packaging technology for yogurt among key manufacturers is contributing to the market growth of yogurt. For instance, barrier technology is one such advanced solution. The barrier technology helps in extending the shelf-life of the product by blocking the light without the need to refrigerate it. This packaging also supports the market growth in low-income regions as well as at remote locations, where refrigerated distributor channels are not present, e.g. in various African and Southeast Asian countries.

Flavored Greek yogurt is gaining popularity among health-conscious consumers and this is projected to propel the market growth of the yogurt over the forecast period. For instance, in March 2017, Danone India Pvt. Ltd, the yogurt maker, has introduced its brand of Greek yogurt. Danone’s Greek yogurt, priced at Rs35 for an 80-gram cup, and is available in India in blueberry and mango flavors.

Figure 2. Global Yogurt Market Share, By Form, 2020

Key Takeaways of the Graph:

• The Drinking in Form segment held dominant position in the market and accounted for 44.4% share in the global yogurt market in 2020. The segment is expected to reach US$ 127.9 billion in 2028 owing to wide availability of drinking yogurt.
• Increase in awareness among people for losing weight is a vital factor escalating the market growth, also rising expansion of retail market, increasing awareness amongst people about health benefits of the yogurt, rising awareness about healthy food, increasing young population base which is health conscious, growing consumer indulgence for exotic flavours, coupled with significant investments by manufactures are the major factors among others driving the yogurt market briskly.

Market Restraints

The presence of artificial additives & ingredients in yogurt that has an adverse effect on human health is restricting product consumption. This factor is expected to hamper the market growth of the yogurt.

Lactose intolerance is more likely to eliminate the yogurt from their diet. Lactose intolerance do not have the ability to digest protein present in milk and this leads to symptoms such as nausea, bloating, stomach pain, and gas. Thus, the growing prevalence of lactose intolerance people is projected to hamper the market growth.

Competitive Section:

Company Names 

1. General Mills, Inc.
2. Nestle SA
3. Danone
4. Yakult Honsha Co., Ltd.
5. Ultima Foods Inc.
6. Chobani, LLC
7. Sodiaal
8. Muller UK & Ireland Group LLP
9. Kraft Foods Group, Inc.
10. Rainy Lanes Dairy Foods Ltd.

Recent Developments

In November 2019, Chobani launched oat-based yogurts, traditional Greek yogurt with the popular cereal grain on the bottom, as well as oat milk for coffee shops.