Cultured Milk Market Size, Share, Growth, and Industry Analysis, By Type (Cheese, Yogurt, Butter, Sour Cream, Others), By Application (Specialty Stores, Supermarket & Hypermarket, Online Stores) Regional Insights and Forecast to 2031

Updated On: 22 April 2024

cultured milk market REPORT OVERVIEW

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The global cultured milk market size was 315 million in 2021 and is projected to touch USD 420 million by the end of 2027, exhibiting a CAGR of 4.91% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market growth and demand returning to pre-pandemic levels.

The market is experiencing a surge in popularity, driven by the growing demand for probiotic-rich dairy products. Cultured milk, enriched with beneficial bacteria like Lactobacillus and Bifidobacterium, offers a range of health benefits, including improved gut health and enhanced digestion. This segment includes a variety of products such as yogurt, kefir, and buttermilk, each contributing to the market's dynamic growth. Consumers are increasingly drawn to these fermented dairy options due to their unique flavours, nutritional value, and association with promoting overall well-being. As the health and wellness trend continues to flourish, the market is poised for sustained expansion.

COVID-19 Impact: Profound Adverse Effects of the COVID-19 Pandemic on the Market

The cultured milk market has faced significant challenges due to the COVID-19 pandemic. Disruptions in the supply chain, lockdowns, and economic uncertainties have impacted production and distribution. With consumers prioritizing essential goods, there has been a shift in purchasing behaviour away from specialty items like cultured milk. The closure of restaurants and cafes, a key market for these products, further contributed to a decline in demand. Additionally, financial constraints have led some consumers to opt for more economical choices, affecting premium cultured milk sales. Despite these setbacks, the industry is adapting through innovation, emphasizing online channels, and addressing changing consumer preferences to recover from the pandemic's negative impact.

LATEST TRENDS

"Rise of Non-Dairy Cultured Alternatives Expanding the Market"

A significant trend in the market is the growing popularity of non-dairy alternatives. Fueled by the increasing demand for plant-based options, consumers are embracing cultured products made from sources like almond, coconut, soy, and oat milk. This trend reflects a broader shift towards plant-powered lifestyles, driven by environmental concerns, ethical considerations, and health-conscious choices. Manufacturers are responding with innovative formulations that mimic the creamy textures and probiotic benefits of traditional cultured milk, providing a diverse range of options for those seeking dairy-free and vegan alternatives in the cultured dairy aisle.

cultured milk market SEGMENTATION

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• By Type

Based on the type of market is classified as cheese, yogurt, butter, sour cream, and others.

• By Application

Based on application the market is classified as specialty stores, supermarkets & hypermarkets, online stores.

DRIVING FACTORS

"Increasing Emphasis on Gut Health to Drive the Market Growth"

The increasing emphasis on gut health is a driving force in the market. Consumers are drawn to products rich in probiotics, such as Lactobacillus and Bifidobacterium, recognizing their role in promoting a healthy digestive system. This heightened awareness has led to a surge in demand for fermented dairy options, positioning cultured milk as a go-to choice for those seeking not only delicious flavours but also functional benefits.

"Flavour Innovations to Propel Market Demand"

Another key driver is the market's response to diverse consumer palates. Cultured milk products are undergoing a flavour revolution, with manufacturers introducing unique and exotic varieties. From exotic fruit-infused yogurts to savoury herb-flavoured kefirs, the industry is catering to a broad spectrum of taste preferences. This focus on diverse flavours not only enhances the culinary experience but also attracts a wider audience, contributing significantly to the cultured milk market growth and adaptability.

RESTRAINING FACTOR

"Supply Chain Disruptions to Impede the Market's Seamless Flow"

A notable restraining factor in the market is the persistent impact of supply chain disruptions. The industry relies on a complex network involving dairy farmers, processing facilities, and distribution channels. External factors, such as extreme weather events, transportation challenges, and global pandemics, have created bottlenecks, leading to interruptions in the seamless flow of production and distribution. These supply chain strains not only affect the timely availability of cultured milk products but also contribute to increased operational costs. Navigating these challenges requires strategic resilience and adaptability within the industry to ensure a consistent and stable market presence.

cultured milk market REGIONAL INSIGHTS

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"Asia Pacific to Dominate the Market owing to Awareness of Health"

The Asia Pacific region is poised to play a dominant role in the cultured milk market share. Rapid urbanization, changing dietary preferences, and a rising awareness of health and wellness are driving the increasing demand for cultured dairy products in countries like China and India. These nations boast large populations with a growing middle class that is increasingly inclined toward premium and health-oriented food choices. Additionally, the rich tradition of fermented dairy products in some Asian cultures aligns seamlessly with the global popularity of probiotics. As a result, the Asia Pacific region is becoming a key player, both in terms of consumption and production, shaping the dynamics of the market on a global scale.

KEY INDUSTRY PLAYERS

"Financial Players to Contribute Towards Expansion of the Market"

Financial players are poised to become significant contributors to the expansion of the market. Recognizing the burgeoning consumer interest in health-centric food choices, investment firms, venture capitalists, and private equity entities are directing capital toward the development and scaling of innovative cultured dairy ventures. These financial injections empower dairy companies to invest in research and development, production infrastructure, and marketing initiatives. The influx of funds not only facilitates the introduction of novel products but also supports the expansion of market reach, enabling cultured milk to carve a more substantial niche in the broader landscape of the food and beverage industry.

List of Market Players Profiled

• Britannia Industries Limited (India)
• Parmalat S.p.A. (Italy)
• Chobani, LLC (U.S.)
• Yakult Danone India Pvt Ltd (India)
• Royal FrieslandCampina N.V. (Netherlands)
• GENERAL MILLS, INC. (U.S.)
• Nestle S A (Switzerland)
• Danone (France)
• Muller UK & Ireland Group LLP (U.K.)
• Arla Foods amba (Denmark)

REPORT COVERAGE

The market stands at the crossroads of tradition and innovation, navigating a landscape shaped by shifting consumer preferences and global dynamics. The heightened focus on health and wellness, particularly the appeal of probiotics for digestive well-being, propels the market forward. While challenges such as supply chain disruptions pose hurdles, the industry showcases resilience through adaptability and strategic responses. Notably, the Asia Pacific region emerges as a powerhouse, signalling a transformative phase in the market's global presence. With financial players injecting vitality, the market is not just a dairy aisle staple but a dynamic arena where tradition meets cutting-edge formulations, promising a flavourful and functional future.