Rising incidences of lifestyle disorders and growing awareness about
a healthy diet have led to increased adoption of functional foods, especially
probiotic-fortified foods. Amongst probiotic functional foods and beverage
categories, yogurt holds a significant market share due to its greater
consumption and rising popularity among the health-conscious population.
Besides being an essential part of various cuisines worldwide, yogurt serves as
a healthy option for consumers for daily consumption due to its greater
accessibility and affordability. Several research studies suggest that
consuming yogurt offers consumers a host of benefits such as reducing the risk
of type-2 diabetes, boosting immunity, enhancing bone health, helping with
cognitive function and mood, safeguarding against colorectal cancer, and
reducing high blood pressure & bad cholesterol.
In 2021, yogurt sales in the United States amounted to USD7.24
billion, up from USD5.6 billion in 2011. The presence of many yogurt brands and
huge spending on yogurt marketing has led to its ubiquitous availability across
various distribution channels and rapid consumer adoption. Rising demand for
healthier low-sugar varieties with fewer additives is providing significant
opportunities for the producers to amplify their yogurt sales and raise
margins. Fermentation remains central to yogurt’s appeal among young audiences
due to its sour taste and range of flavors. However, the target market for yogurt
is rapidly expanding with increased awareness among people for weight loss,
rising personal disposable income of the population, growing incidences of
chronic diseases, and improved standard of living. The rising popularity of
fruit-flavored yogurts such as mango, strawberry, chocolate, banana, and others
and their increasing consumption in desserts contribute to market growth.
According to TechSci
Research report on, “Global
Yogurt Market By Fat Content (Regular, Low Fat, Fat Free), By Type (Flavored, Non
Flavored), By Form (Conventional Yogurt, Greek Yogurt, Set Yogurt, Frozen
Yogurt, Yogurt Drinks, Others), By Packaging (Plastic Bottles, Tetra Packs,
Others), By Distribution Channel (Direct Selling/Wholesale and Retail Sales),
By Region, Competition, Forecast & Opportunities, 2025”, the global yogurt market
is expected to reach USD123 billion by 2025. The market growth can be
attributed to the rising awareness towards healthy food and increasing young
population. Besides, high availability of yogurt with nutritional value and
protein content are expected to boost the growth of the global yogurt market in
the coming years.
Some trends expected to dominate the global yogurt market in 2023
are as follows.
- Rising Demand for Innovative Packaging
With continued demand for delicious and high-quality foods, yogurt
producers are experimenting with new ways of enterprise marketing for fast-moving
consumer goods to attract consumers. Packaging design is one attribute that
gives rise to positive purchasing attitudes and matches consumers’ preferences.
Innovation in food packaging has also led to incorporating active components
whose function is to extend product quality and longevity. Many brands are
ditching plastic packaging and adopting bottled glass or ceramics to reduce
environmental impact and classify their product as premium. Smart packaging has
enabled smartphone users to scan a product’s unique digital code, which can
help them access all the details. To appeal to the Gen Z population, yogurt
brands are introducing sustainable packaging products that represent
nutritional information and ingredients so that they can make an informed
choice. In 2021, one of the leading yogurt brands, Chobani, announced that it
is transitioning from plastic to paper-based cups for its single-serve oat
blend yogurt. Chobani’s paper cup is 80% paperboard, which can handle the
temperature changes and moisture and keep the products fresh. Some other brands
are also working to develop smart and sustainable packaging, which reduces harm
to the environment while also maintaining the quality of the product.
- More Ready-to-Drink Options
Consumers prefer ready-to-drink protein options such as drinkable
yogurt, yogurt smoothies, lassi, etc., due to their functional probiotics and
enhanced convenience of drinking it on the go. Many brands are introducing
drinkable yogurt rather than spoonable to attract young and busy customers.
Chobani launched Low-Fat Greek Yogurt Shake, Califia introduced Dairy-Free
Yogurt Cultured Nutmilk Drink, and Morinaga launched Aloe Yogurt Drink for skin
in recent years, witnessing consumer shift towards drinkable yogurts. New
savory drinkable yogurt flavors such as carrots, beetroots, and tomatoes are
becoming a huge hit among consumers. Although drinkable yogurts started in
Japan with the introduction of Yakult probiotics, now the market has expanded
to China and India, the fastest-growing markets. Rising personal disposable
income of the population, rising incidences of chronic disorders, and increased
awareness regarding health and well-being are contributing to the rapid
adoption of drinkable yogurt.
- Increasing Online Sales of Yogurt
The rapid expansion of e-commerce grocery stores presents huge
opportunities for the yogurt brands to tap potential customers. Many consumers
are opting for online ordering for the extra safety and convenience of home
delivery. Being a convenient and ready-to-eat snackable product, yogurt fulfils
all the requirement for busy consumers who want to keep themselves and their
families healthy in busy lifestyle. Many yogurt manufacturers are incorporating
shelf-stable yogurt, which requires no cooling and can be stored in pickup
lockers.
- Expanding Lactose-free Yogurt Options
Dairy-free options in the beverage category are gaining much
traction due to expanding population of vegans and lactose-intolerants. Major
US yogurt brands like Yoplait and Activia are incorporating lactase to create
100% lactose-free dairy yogurt to meet the growing demands. Vegan yogurts such
as flax milk yogurt and hemp yogurt offer the same digestive benefits as
dairy-based yogurts. As the market for vegan yogurt is increasing, market players
are introducing many other varieties fortified with vitamins and minerals to
make them healthier and tastier, just like conventional yogurt. Several animal
welfare associations and non-government organizations are spreading awareness
regarding their health benefits, which is also expected to grow the adoption of
lactose-free yogurt and the rising prevalence of clean label products. Amongst
plant-based yogurt, the soy segment accounts for the highest share since soy is
an excellent protein and helps reduce cholesterol and blood sugar levels.
Besides, coconut and rice yogurt are gaining immense popularity as they are
considered the least allergenic milk amongst all dairy milk alternatives.
Moreover, market players are introducing new sugar-free drinkable yogurt
products without compromising the taste while providing more nutritional
benefits.
- Expanding Lactose-free Yogurt Options
Emerging dairy technologies are enabling yogurt manufacturers to
increase the concentration of proteins in both spoonable and drinking yogurt
products for their increased demand and sales. The new dairy technology, Glanbia
Nutritionals’ UltraHi Protein Yogurt Technology, helps the manufacturers to
achieve 20-50 grams of protein per serving. Other novel processing technologies
such as high-pressure processing, high-pressure homogenization, enzymatic
crosslinking by transglutaminase, ultrasonic processing are improving the
quality of existing products and producing new food structures and textures,
which is ultimately adding to the market growth.
With growing health-consciousness among customers and clean product
demand, the yogurt market will expand significantly in the coming years. However,
the trends will keep on changing as per consumer preferences for eating and
drinking dairy foods and beverages.
According to research report, “United
States Yogurt Market By Type (Non-Flavored, Flavored), By Fat Content, (Regular, Low Fat,
Fat-Free), By Form (Conventional Yogurt, Set Yogurt, Greek Yogurt, Frozen
Yogurt, Yogurt Drinks and Others), By Packaging (Pouches, Plastic Bottles,
Tetra Packs and Others), By Distribution Channel (Convenience Stores,
Independent Small Grocers, Supermarket/Hypermarket, Online Channel), By Region,
Competition, Forecast & Opportunities, 2026”, the United States yogurt
market is anticipated to reach a market size of USD7.6 billion by 2026. The
market’s growth can be attributed to the Americans’ inclination towards health
consciousness and rising preference for flavored yogurt.