Flavored Yogurt Market Size

Flavored Yogurt Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The flavoured yogurt market is expected to grow steadily, from a current market size of USD 10.56 billion in 2024 to USD 15.0 billion by 2035. This growth is reflected in a CAGR of 3.24% between 2024 and 2035, indicating a healthy demand for flavoured yogurt over the next ten years. The growth in this market is primarily driven by the increasing demand for convenient and healthy snacks, and a growing awareness of the health benefits associated with yogurt, such as probiotics and nutritional value. Besides this, technological advancements in the production process and new flavour combinations are also contributing to the growth of this market. Companies are focusing on product differentiation through the use of organic ingredients and unique flavours to cater to the changing preferences of consumers. These companies, such as Danone, Chobani, and General Mills, are engaging in strategic collaborations and product launches to gain a higher market share. Danone, for instance, has launched a range of plant-based yogurts to cater to the growing demand for dairy alternatives. These initiatives not only reflect the dynamic nature of the flavoured yogurt market but also indicate the importance of innovation in sustaining growth.

Regional Market Size

Regional Deep Dive

The flavoured yogurt market is a dynamic market in many regions of the world, driven by a shift in consumer preferences towards healthier snacking and the rising popularity of probiotic-rich foods. In North America, the market is characterised by a strong demand for organic products and new flavours, while in Europe, the trend is towards premium and artisanal products. In the Asia-Pacific region, rapid growth is being driven by rising incomes and a growing awareness of the health benefits of yogurt. Each region is shaped by the preferences of the local population, the regulatory framework, and the economic situation, which all influence the overall market landscape.

North America

• Danone and Chobani have reacted to this development by launching plant-based yoghurts.
• In the wake of the health-conscious trend, manufacturers are reducing the sugar content in their products. The American Heart Association has called for a reduction in sugar content in yogurts.
• The COVID pandemic had led to an increase in the sales of flavored yogurts through e-commerce platforms.

Europe

• Hence the craze for so-called "healthy" yogurts.
• The new EU regulations for labelling and health claims are forcing food manufacturers to be more transparent about the ingredients in their products, which in turn will affect consumers’ trust and buying decisions.
• In the food industry, the word "sustainability" is beginning to be heard. The packaging of products like Alpro is undergoing a change, in order to meet the growing demand for sustainable products.

Asia-Pacific

• The popularity of yogurt drinks is a factor driving growth, especially in China and India. The local brands Amul and Yakult have launched yogurt drinks with a variety of flavors.
• Lastly, the growing number of innovations in packaging, such as the single-serve and on-the-go formats, are meeting the needs of consumers for greater convenience and speed.
• The market for yoghurt is influenced by government initiatives to promote dairy consumption as part of a balanced diet. The latter have included a series of campaigns designed to educate consumers on the health benefits of yoghurt.

MEA

• The yoghurt market is growing in the Middle East and Africa because of the growing popularity of dairy products among young people. Brands like Almarai are at the forefront.
• In a similar way, the company is influenced by the taste for local flavors. Rose and saffron are added to local varieties.
• Having more and more shops, hypermarkets and other modern shops, the visibility of the products and the availability of them has increased.

Latin America

• In Latin America, the yoghurt market is benefiting from the growing trend towards health and well-being, with Danone and other producers launching low-fat and pro-biotic products to cater for health-conscious consumers.
• Local flavours are a growing trend in the region, and companies are adding local fruits like mango and passion fruit to their yogurts to cater for local tastes.
• The development of the market is driven by economic factors, such as rising incomes in countries such as Brazil and Mexico, which enable consumers to buy more expensive yogurts.

Did You Know?

“Flavored yogurt is not only a popular snack, but also a good source of probiotics, which contribute to the health of the digestive system and general well-being.” — International Dairy Federation

Segmental Market Size

The market for yoghurts is growing fast, driven by an increasing demand for healthy, convenient snacks. This sector plays a key role in the dairy market, especially among health-conscious consumers looking for a nutritious alternative to traditional snacks. Probiotics and gut health are the two main trends driving the market, as well as the trend towards on-the-go eating.

It is now in the middle of its development and has already reached a high degree of acceptance. The leading companies, Danone and Chobani, are innovating and distributing in a large number of countries. The most important applications are for breakfasts, snacks and as an ingredient in desserts and shakes. The trend towards plant-based diets and the drive for sustainability have made it possible to develop new products that are not only dairy-free but also more sustainable in their packaging. Technologies such as advanced fermentation and flavour enhancement have made it possible to offer consumers a wide range of products with different flavours and textures.

Future Outlook

In 2024, the flavored yogurt market is expected to grow at a CAGR of 3.24% from $10.56 billion to $15.0 billion. This is due to the fact that consumers are increasingly looking for convenient and healthy snacks. Moreover, consumers are increasingly looking for plant-based and pro-health products. In 2024, the penetration rate of flavored yogurt in the yogurt market is expected to be around 35%, and by 2035 it is expected to increase to 45%. This is due to the growing awareness of the benefits of yogurt consumption, including gastrointestinal health and strengthening of the immune system.

The study says that new technological developments, such as innovations in flavouring and packaging, will also drive the market growth. These include exotic and seasonal flavours and clean-label products for health-conscious consumers. The study also says that trends such as sustainable development are influencing the production and packaging practices of many companies. And government initiatives to promote healthy eating and nutrition will also be crucial. These factors will make the yoghurt market a very dynamic one, with the brands that prioritise innovation and sustainable development likely to gain the most from the opportunities.