Dairy-based snacks account for around 13% of the total snacks consumed, globally. Currently, there is almost a 51% greater chance in the dairy snacks innovation, compared to other snack categories. During the last two decades, this industry has not created any new consumer-friendly snacks, due to the refrigeration and portability issues. If this industry can focus on such problem elimination, innovation, and product differentiation, the share of dairy snacks can increase in the global snacks industry. However, there are few good market changes happening, such as rising consumer awareness, the popularity of inherent goodness of milk products, and rising demand for dairy-based ingredients, which can be beneficial for the industry.
The global dairy snack industry is largely driven by rising consumer health consciousness, increasing disposable incomes and growing snack consumption habits. However, increasing lactose intolerance among the consumers and a shift to non-dairy products are restraining the growth of this market. The rise in popularity of vegan trends is another restraint for this market. Regarding opportunities, products with longer shelf-life and innovative products with different ingredients still prevail in the market.
The global dairy snack market is segmented by product type into cheese, yogurt, butter, buttermilk, ice cream, lactose-free milk and others. The demand for ice creams has been growing rapidly, and consumer indulgence is the major reason for this growth. Also, lactose-free milk has gained popularity, globally, due to the rise in lactose intolerance among the people. By taste, the market is segmented into sweet and sour. Regarding distribution channel, the market is segmented into super markets/hyper markets, grocery stores, convenience stores, online and others. Super markets/hyper markets are the major channels of distribution, globally.
Europe dominates the global dairy snack market. Germany, France and the U.K are the major markets in this region. However, growth in this region is restrained due to the rise in lactose intolerance among the consumers. On the other hand, the Asia-Pacific region is the fastest-growing market for dairy snacks, due to the growing population and increasing disposable incomes in the region. In India, yogurt and buttermilk are consumed daily, by many people.
The market for dairy snacks is highly fragmented with many regional and international vendors, who compete for pricing, innovation and distribution. The introduction of lactose-free milk by manufacturers is an attempt to attract the lactose intolerant population and increase the consumer base. Such innovations are the key to success in this market. Major companies have also invested heavily in R&D, to increase the shelf-life of dairy snacks.
Some of the major players in the market include -
Key Deliverables in the Study