Global Fermented Milk Market Worth USD 493.10 Billion By 2030 | CAGR of 4.9%

Introduction

An important source of probiotic microorganisms is fermented dairy products. Fermented or cultured milk products have been fermented with lactic acid or yeast. Lactobacillus and Bifidobacterium are the most prevalent types of bacteria used in fermentation. During conversion, various substances, including diacetyl, acetic acid, and acetaldehyde, are released, contributing to the products' distinctive flavor and aroma.

Ethyl alcohol is also produced during the fermentation process of kefir and koumiss. These fermented dairy products impart flavor, texture, and consistency to certain foods, such as sauces and relishes. In order to produce high-quality goods, milk must have a high bacteriological quality, which includes a low bacterial count and the absence of substances that can inhibit the growth of yogurt culture. A dairy must procure milk for yogurt production from approved, vetted producers and conduct a thorough analysis of the milk.

Market Dynamics

Growth in Demand for Dairy Beverages Drives the Global Market

The dairy industry is rural producers' primary source of income and means of subsistence. It is the primary source of nutrition in both rural and urban areas of the world. In recent years, governments have significantly emphasized increasing milk production by instituting programs to increase milk productivity, input supplies, and access to the organized milk processing sector. In recent years, these assistance programs have rapidly increased global milk production. In addition, population growth significantly contributes to the rise in dairy product demand, which drives the market for fermented milk products.

Increasing Demand for Fermented Milk in Developing Nations Creates Tremendous Opportunities

The nutritional value of fermented milk has been misconstrued for a very long time. As a result, the advancement of cultured milk was neglected. In developed countries, the per capita consumption of milk and milk products is higher. Increasing incomes, population growth, urbanization, and dietary shifts increase the demand for milk and other milk products in developing nations. This trend is most prominent in East and Southeast Asia, especially in densely populated nations such as China, Indonesia, and Vietnam. Consequently, the increase in demand for milk and other fermented milk products, such as butter, cheese, and yogurts, presents an excellent opportunity for producers in high-potential, peri-urban areas to enhance their living standards through increased production.

Regional Analysis

North America is the most significant global fermented milk market shareholder and is estimated to exhibit a CAGR of 4.4% during the forecast period. The United States, Mexico, and Canada have well-established economies that dominate North America. These nations contribute the most to the expansion of the North American economy. Several fundamental macroeconomic factors, such as rising healthcare awareness and per capita income, are anticipated to cause the market for fermented milk to grow substantially over the coming decades. In addition, the global attitude of consumers toward dairy products is evolving. Some tendencies contribute to the global increase in dairy consumption. For example, label-friendly products are gaining popularity in North America. This demand is providing the market with growth opportunities.

Europe is estimated to exhibit a CAGR of 3.9% over the forecast period. According to a report published by the European Parliament in 2016, the dairy industry is the second-largest agricultural sector in the European Union, accounting for more than 12 percent of total agricultural output. Milk is produced in its member nations and transformed into fresh products like cheese and butter. Cheese products have a considerable market share due to their utilization as a primary ingredient in numerous food products, including bakery goods and fast food, as well as in numerous Italian cuisines, breakfast foods, and other foods. The EU's dairy policy comprises various instruments designed to aid farmers and resolve market imbalances. In addition, it designs policies that benefit every aspect of the product development life cycle. It includes direct payments and rural development measures, among others. Such initiatives by the EU are anticipated to stimulate the development of the fermented milk market in the region.

Key Highlights

• The global fermented milk market was valued at USD 60 billion in 2022. It is estimated to reach USD 493.10 billion by 2031, growing at a CAGR of 4.9% during the forecast period (2023–2031).
• Based on type, the global fermented milk market is bifurcated into cheese, yogurt, butter, sour cream, and others. The yogurt segment dominates the global market and is projected to exhibit a CAGR of 5.31% over the forecast period.
• Based on the distribution channel, the global fermented milk market is segmented by specialty stores, supermarkets and hypermarkets, and online stores. The specialty stores segment owns the market and is estimated to exhibit a CAGR of 4.1% during the forecast period.
• North America is the most significant global fermented milk market shareholder and is estimated to exhibit a CAGR of 4.4% during the forecast period.

Competitive Players

Competitive Players

The key global fermented milk market players are Danone, Nestle, Parmalat S.p.A., Yakult, Chobani LLC, Yoplait, Arla Foods, Muller, Britannia Industries Limited, and FrieslandCampina.

Recent Developments

Market News

• In August 2022, Fonterra and Royal DSM announced that they are introducing a start-up to commercialize fermentation-derived proteins with dairy-like properties as part of a "complementary nutrition partnership." Since 2019, the two companies have collaborated to develop an in-depth comprehension of how to use precision fermentation science and technology to create proteins comparable to those found in dairy.
• In November 2022, Phyx44, India's First Full-Stack Precision Fermentation Business, raised USD 1.2 million in seed funding. The Bangalore-based company Phyx44 claims to produce whey and casein proteins and fatty acids present in dairy without the lactose or environmental impact of conventional dairy.

Segmentation

Global Fermented Milk Market: Segmentation

By Type

• Cheese
• Yogurt
• Butter
• Sour Cream
• Others

By Distribution Channel

• Supermarkets and Hypermarkets
• Speciality Stores
• Online Store

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA