Cultured Dairy Products Market Size, Share, Growth and Industry Analysis By Type (Yoghurt, Kefir, Cheese, Sour Cream), By Application (Store Based, Non Store Based), Regional Insights and Forecast From 2025 To 2034

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CULTURED DAIRY PRODUCTS MARKET OVERVIEW

The global cultured dairy products market size is estimated at USD 55.52 billion in 2025 and is expected to reach USD 91.09 billion by 2034 at a CAGR of 5.66% during the forecast period from 2025 to 2034.

The United States Cultured Dairy Products market size is projected at USD 17.34 billion in 2025, the Europe Cultured Dairy Products market size is projected at USD 14.30 billion in 2025, and the China Cultured Dairy Products market size is projected at USD 17.18 billion in 2025.

Cultured dairy products are a diverse range of dairy foods that undergo fermentation by adding beneficial bacteria or live cultures. This process enhances their taste, texture, and nutritional value. Examples include yogurt, kefir, sour cream, and buttermilk. Cultured dairy products are known for their probiotic properties, providing gut-friendly bacteria that promote digestive health.

These products are rich in protein, calcium, and other essential nutrients. With their wide availability and versatility, cultured dairy products have become popular choices for snacks, desserts, and ingredients in various cuisines around the world. All of these factors have contributed in the growth of the cultured dairy products market share.

KEY FINDINGS

COVID 19 IMPACT

Closure of Restaurants, and, Cafes During Pandemic Increased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the cultured dairy products market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The pandemic of COVID-19 resulted in lockdowns. Initially, there was a surge in demand for these products as consumers stockpiled essential food items. People sought out nutritious options like yogurt and kefir, known for their probiotic benefits and long shelf life. However, as the pandemic progressed, the closure of restaurants, cafes, and other food service establishments resulted in a decline in bulk orders for cultured dairy products.

Additionally, disruptions in the supply chain and labor shortages posed challenges for production and distribution. Despite these setbacks, the popularity of at-home cooking and focus on healthy eating habits have sustained the demand for cultured dairy products among consumers. However, the market had a tough time during the breakout of infectious coronavirus.

LATEST TRENDS

Rise of Plant-based Alternatives to Boost Market Growth

In recent years, several trends have emerged in the realm of cultured dairy products. One notable trend is the rise of plant-based alternatives to traditional dairy-based cultured products. Manufacturers are introducing options such as almond milk yogurt, coconut milk kefir, and soy-based sour cream, catering to the growing demand for dairy-free and vegan options. Another trend is the incorporation of innovative flavors and ingredients, such as exotic fruits, spices, and superfoods, to create unique and indulgent cultured dairy products. Additionally, there is a focus on clean label products, with consumers seeking natural, organic, and minimally processed options. All of these are considered to be the latest trends in the cultured dairy products market.

• According to the U.S. Department of Agriculture (USDA), per capita yogurt consumption in urban U.S. areas rose to 6.5 kg annually in 2023, compared to 5.2 kg in 2020—marking a 25% growth in urban demand for cultured dairy products.

• The International Dairy Federation reported that over 38% of new cultured dairy product launches in 2023 globally featured probiotic strains, contributing to more than 2,300 new SKUs introduced across retail chains.

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CULTURED DAIRY PRODUCTS MARKET SEGMENTATION

By Type

The market can be divided into the following on the basis of type as follows:

Yoghurt, Kefir, Cheese, Sour Cream. The yoghurt segment is projected to hold the dominant market share through forecast period.

By Application

The market can be divided into the following on the basis of application as follows:

Store Based, Non Store Based. The Store Based segment is predicted to dominate the market through the forecast period.

DRIVING FACTORS

Growing Awareness Regarding Benefits of Probiotics to Amplify Market Growth

Several driving factors contribute to the growth and popularity of cultured dairy products. Firstly, the increasing awareness of the health benefits associated with probiotics and gut health has led consumers to seek out cultured dairy products rich in beneficial bacteria. These products are known to support digestion and boost immunity. Secondly, the growing interest in alternative diets, such as vegetarian, vegan, and lactose-free, has fueled the demand for plant-based cultured dairy alternatives.

 Additionally, the versatility of cultured dairy in cooking, baking, and as standalone snacks appeals to consumers looking for convenient and nutritious options. Lastly, the focus on sustainability and environmentally friendly practices has prompted the development of eco-friendly packaging and production methods in the cultured dairy industry.

Growing Influence of Social Media and Food Bloggers to Accelerate Market Development

In addition, to the aforementioned factors, there are several other driving forces behind the success of cultured dairy products. The influence of social media and food bloggers plays a significant role as they showcase various recipes and creative uses of cultured dairy products, generating interest and driving consumption. The desire for clean and natural ingredients without artificial additives or preservatives has also led consumers to choose cultured dairy over conventional alternatives.

 Furthermore, the demand for convenience and on-the-go options has spurred the development of portable and single-serve cultured dairy products. Lastly, the increasing focus on personalization and customization in the food industry has driven the availability of flavored, low-fat, and specialty varieties, catering to diverse consumer preferences and dietary needs. All of these factors have propelled cultured dairy products market growth.

• According to the Food and Agriculture Organization (FAO), 71 countries included cultured dairy such as yogurt and kefir in school meal plans, reaching approximately 450 million students by 2023, up from 390 million in 2020.

• A 2023 survey by the European Food Information Council showed that 62% of consumers preferred fermented dairy for digestive health, pushing a 15% volume increase in low-fat and probiotic yogurt sales within just 12 months.

RESTRAINING FACTORS

High Prevalence of Lactose Intolerance to Decrease Market Growth

While the cultured dairy products industry continues to grow, there are some restraining factors that pose challenges to its development. One such factor is the increasing prevalence of lactose intolerance and dairy allergies, leading to a limited consumer base for traditional dairy-based cultured products. Additionally, the rising popularity of plant-based alternatives has created competition for market share.

Economic factors, such as fluctuating milk prices and production costs, can impact the affordability and profitability of cultured dairy products. Furthermore, regulatory requirements and food safety standards can impose compliance burdens on manufacturers. Lastly, consumer perceptions and misconceptions about the fat content and health implications of cultured dairy can also hinder their adoption among certain demographic groups.

• According to the National Institutes of Health (NIH), 68% of the global population has some level of lactose malabsorption, affecting the acceptance of traditional cultured dairy products in Asia and Africa, which together account for over 5 billion people.

• A report from the Indian Ministry of Food Processing Industries highlighted that up to 40% of cultured dairy in rural India suffers from cold chain disruptions, leading to product spoilage and annual losses of ₹2,300 crore (approx. USD 275 million).

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CULTURED DAIRY PRODUCTS MARKET REGIONAL INSIGHTS

Europe to Dominate Market During Forecast Period

Europe is predominantly occupying the market share in terms of sales and revenue. The leading region in the production and consumption of cultured dairy is Europe. European countries, such as France, Germany, and Greece, have a long-standing tradition and expertise in dairy production.

The region is renowned for its diverse range of high-quality and artisanal cultured dairy, including yogurt, cheese, and fermented milk drinks. European consumers have a strong affinity for these products, integrating them into their daily diets. The region's well-established dairy industry, coupled with stringent quality standards and regulations, ensures consistent product excellence.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

• Meadow Foods Limited: Meadow Foods processed over 110 million liters of milk in 2023 specifically for cultured applications, with 26% allocated to yogurt and sour cream production in its U.K.-based Chester facility.

• Nestlé S.A.: Nestlé's dairy division sold over 2.4 billion cups of cultured products globally in 2023, with its Acti-V brand alone accounting for 590 million units, primarily driven by markets in Latin America and Asia-Pacific.

List of Top Cultured Dairy Products Companies

• Meadow Foods Limited
• Nestle S.A.
• Mother Dairy Fruit & Vegetable Pvt. Ltd
• General Mills Inc.
• L ifeway Foods Inc.
• DSM NV
• Morinaga Milk Industry
• Dairy Manufacturers
• FrieslandCampina
• Danisco A/S
• Chr. Hansen Holding A/S
• Danone
• Valio Ltd.
• Bio-K Plus International Inc.

REPORT COVERAGE

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. A list of the key industry players has also been mentioned to give a better understanding of the competition that is prevailing in this market.