The yogurt market has been consistently growing in the past few years. One of the main reasons for its upward trend is the new types of yogurt that have hit the market like yogurt alternatives made from vegan milk. The health benefits of yogurt are also a major driver for the success of the industry. They have made yogurt one of the high-demand products in grocery stores. The restaurant industry is also benefiting from the popularity of yogurt and its versatility as an ingredient. It can be used in various dishes and it adds a distinctive flavor to food. In this article, we’ll examine the current state of the yogurt market and what opportunities businesses have in it.
Key takeaway: The yogurt market is fairly small compared to other consumer products. However, vegan yogurt alternatives and the health benefits of the product make it an increasingly popular one.
The Future of the Yogurt Market
Although the yogurt market is fairly small compared to other consumer products, it’s expected to rise in the future. Let’s examine the main reasons why the yogurt industry is likely to see an upward trend.
- It’s a versatile ingredient. There are multiple yogurt recipes for desserts and healthy breakfasts. Combining yogurt with whole-grain breakfast cereal like oats and with vitamin-rich fruits can be a great start to the day. In terms of cooking, yogurt has other applications. It can be a main ingredient in creamy dips, salad dressings, and marinades.
- Frozen yogurt is a favorite dessert for many. There are multiple small and big frozen yogurt businesses. Business owners who wish to start a frozen yogurt business can do so even with small capital. You can open a frozen yogurt and ice cream booth in parks or other areas where a lot of people and kids spend time.
- Yogurt is healthy. An increasing number of people strive to eat healthier. The probiotic properties of yogurt are among the main reasons why it’s good for you. It helps with digestive distress and improves gut health. Furthermore, even though organic yogurt is a dairy product (check out what is dairy), people with lactose intolerance can still consume it. That’s because the bacteria in yogurt converts lactose into lactic acid. Research shows that probiotic yogurt can play a role in suppressing the symptoms of lactose intolerance.
- New yogurt products are expected to emerge. In recent years, products like soy yogurt or coconut yogurt have become popular among vegan consumers. They can also add a distinctive flavor to desserts. Other innovative products are expected to emerge in the future as well. For example, drinkable yogurt with different fruit flavors or yogurt-making sets for enthusiasts who enjoy homemade yogurt.
Current State of the Yogurt Market
The yogurt market is expected to grow by an average of seven percent annually in the next few years. The country that consumes the most yogurt is France. That’s why it is no surprise that Danone, a multinational food corporation, originates from there. In addition to France, the other countries that consume the most yogurt per capita are Ireland and Canada. In nominal terms, China and India are the largest yogurt markets in the world.
In terms of numbers, the yogurt market’s size in 2023 was estimated at 168 billion dollars. The main drivers of the industry were yogurt products made from plant-based milk. Low-fat yogurt varieties have also shown an increase in sales. Another driver for the popularity of yogurt products is the trend of consuming organic and healthy food. Yogurt is a great example of such a product. It has numerous health benefits and can be used in skincare. Its moisturizing properties and its use as a face exfoliant make it a great homemade skincare solution.
The Online and Offline Yogurt Market
Although eCommerce trade has seen a significant rise, consumers still prefer to buy yogurt offline. Convenience, health, and grocery stores are the most popular places where people buy yogurt products. In 2023, the estimated market share of online yogurt sales was 4 percent. Usually, products bought online include more exotic ones such as buffalo yogurt or live yogurt cultures. People who buy groceries online might also purchase regular or Greek yogurt from their preferred online platform.
Business Opportunities in the Yogurt Market
Big brands like Danone and Chobani control a large portion of the yogurt industry. Even though the market is considered to be very consolidated, there are still some business opportunities in it. Let’s examine some of them.
- Frozen yogurt business. It’s one of the favorite desserts for people of all ages. Combined with toppings and other desserts such as sandwich cookies, this can be a profitable business endeavor.
- Store for dairy products. Specialized products for healthy dairy products and eggs attract a lot of customers because they offer a wide range of products. These businesses usually find suppliers of dairy goods and other consumer products. They buy wholesale and sell retail with a fairly good profit margin. You can expand the potential audience of such businesses by also selling products online.
- Making and selling yogurt. The process of making yogurt is very simple. That’s why you can start such a business from home. Make sure to do proper research as regulations regarding selling homemade food products might vary.
Frequently Asked Questions about the Yogurt Market
Although yogurt has been known for millennia, we still don’t have all the answers regarding this delicious dairy product. The BlueCart team has gathered some of the commonly asked questions about the yogurt market and you can find their answers below.
What Are the Biggest Brands in the US Yogurt Market?
There are five major brands in the US yogurt market. These companies are Danone, Chobani, General Mills, Lactalis, and Fage USA. That being said, the yogurt market in the US is very consolidated as these five big players make up the majority of it. Nevertheless, small and local dairy farming businesses still play an important role. They often focus on natural and organic options. As this is one on the food market, producers of dairy goods have a lot of opportunities to scale and grow their companies.
Is It Cheaper to Buy or Make Yogurt?
It’s certainly cheaper to make yogurt compared to buying it. You need only two ingredients to make it – milk and a starter. If you decide to make your own homemade yogurt, keep in mind that its shelf life is considerably lower compared to store-bought products. That’s because homemade yogurt is not pasteurized and the live bacteria cultures in it will make it go bad in 3-7 days, even if stored in a refrigerator. That’s why it’s recommended to make small batches of yogurt and enjoy the product fresh.
How Is Yogurt Marketed?
Different yogurt products are marketed in different ways. For example, flavored yogurt is a great option for making yogurt parfait. On the other hand, drinkable yogurt can be marketed as a combination of sweet and tart flavors. Ads and marketing materials for Greek and probiotic yogurt usually mention they improve gut health. As there is an increasing number of health-conscious consumers, the health benefits of yogurt are often part of the way it’s marketed. That’s why some of the healthiest yogurt products are low-fat organic yogurt with live bacteria. Wholesale yogurt is commonly marketed like other bulk products, by focusing on the lower wholesale price offered by wholesale dairy distributors.