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).
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
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.
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.
|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|
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.
|Restraints & Challenges:||
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 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.
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.
Yogurt, pronounced 'yoo-zure', is a dairy food made by the process of bacterial fermentation of plain yogurt. The active bacteria used in making yogurt are called probiotics. Probiotic bacteria exist in the digestive tract and in the intestine. These good bacteria are usually supplied by natural yogurt that is often sold in stores. Commercial yogurt contains sugar, starch, vitamins, and other additional elements such as calcium, bromelain, vitamin K, potassium, and magnesium.
Increasing population and growing awareness regarding the health benefits of yogurts among consumers is expected to foster growth in the market. Increasing launch of variety in flavor is again projected to augment growth of the market. For instance, in June 2021, Chobani has launched two new flavors of zero sugar yogurt: Mixed Berry and Strawberry. It has only natural ingredients, 60 calories (per 5.3oz), and zero sugar.
On the other hand, the increasing lactose intolerance population and the presence of artificial ingredients in yogurt are expected to hinder growth of the market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.