Europe Yogurt Market Analysis by Mordor Intelligence
The European yogurt market size is projected to reach a valuation of USD 31.04 billion by 2025 and is expected to grow further to USD 40.02 billion by 2030, registering a compound annual growth rate (CAGR) of 5.21%. This growth highlights the increasing consumer demand for functional and protein-rich foods. The popularity of high-protein dairy products has surged, and this trend is driven by major manufacturers focusing on health-oriented recipes, the significant rise in demand for high-protein Greek yogurt, and consistent investments in sustainable packaging solutions. The market is also witnessing rapid diversification. Plant-based yogurt options are growing quickly, drinkable yogurt products are becoming popular for on-the-go consumption, and tetra-pack packaging is gaining traction due to stricter environmental regulations. Germany holds the largest share of the market, while the United Kingdom is experiencing the fastest growth, supported by favorable regulations for protein-related claims. The market faces challenges such as fluctuating milk prices and complex labeling requirements. The European yogurt market is moderately fragmented. Large-scale players benefit from their purchasing power and extensive marketing budgets, while smaller, niche companies stand out by offering organic products, regionally sourced ingredients, or yogurt backed by gut-health research.
Key Report Takeaways
- By category, dairy yogurt controlled 92.05% of the European yogurt market share in 2024, but plant-based alternatives are on track for a 7.55% CAGR to 2030.
- By product form, spoonable styles led with 79.33% revenue share in 2024, whereas drinkable yogurts are projected to grow at 7.04% CAGR through 2030.
- By packaging, cups and tubs held 71.04% share in 2024; tetra packs and pouches are poised for a 7.21% CAGR, supported by EU single-use plastic restrictions.
- By flavor profile, flavored yogurts held 46.21% of the share in 2024; plain/natural gained traction with a 6.45% CAGR through 2030.
- By distribution channel, off-trade dominated with 93.11% share in 2024, whereas on-trade outlets are projected to grow at a 6.01% CAGR through 2030.
- By geography, Germany contributed 17.56% of 2024 sales, while the United Kingdom market is forecast to expand at a 5.45% CAGR to 2030.
Europe Yogurt Market Trends and Insights
Drivers Impact Table
| DRIVER | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
|---|---|---|---|
| Rising demand for high-protein greek yogurt among millennials | +1.2% | Germany, United Kingdom, France | Medium term (2-4 years) |
| Flavor innovation using local fruits accelerating yogurt uptake | +0.8% | France, Italy, Spain | Short term (≤ 2 years) |
| Growth of on-the-go breakfast occasion boosting drinkable yogurt formats | +0.9% | United Kingdom, Germany, Rest of Europe | Medium term (2-4 years) |
| Surge in lactose-free and digestive health claims accelerating non-dairy alternatives | +1.1% | France, Italy, Spain | Long term (≥ 4 years) |
| Clean label and locally sourced ingredients aligned with sustainability preferences | +0.7% | Germany, France, United Kingdom | Long term (≥ 4 years) |
| Functional fortification (probiotics, immunity) dominating new product launches | +1.0% | France, Italy, Spain | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Rising demand for high protein Greek yogurt among millennials
Millennials are playing a significant role in changing Europe’s yogurt market by choosing high-protein options that match their active lifestyles and health-focused priorities. This shift has led to strong growth in the market, with protein-rich dairy products seeing a notable increase in sales. Millennials are looking for functional benefits, such as helping with muscle recovery and providing long-lasting energy, rather than just focusing on traditional taste preferences. The growing interest in fitness culture, flexible work-life routines, and the need for convenient, on-the-go snacks are further driving this demand. As of 2024, data from the OECD shows that 15% of Europe’s population meets the World Health Organization’s recommended levels of physical activity, which supports the rising demand for functional foods like high-protein yogurt [1]Source: Organization for Economic Co-operation and Development, "Health at a Glance: Europe 2024," oecd.org. Additionally, regulatory changes, such as the FDA’s review of protein labeling standards, are expected to influence similar reforms in the European Union, making it easier for companies to highlight the health benefits of their products. Leading yogurt brands in Europe are taking advantage of this trend by using influencer marketing and promoting wellness-focused messages.
Growth of on-the-go breakfast occasion boosting drinkable yogurt formats
The rise of busy urban lifestyles and flexible work arrangements is driving the demand for quick and convenient breakfast options. As of 2025, many European workers are allowed to work remotely for 2-3 days a week, accounting for 40%-60% of their working time, according to Eurofund [2]Source: Eurofund, "Shaping the future of work: Inside Europe’s hybrid work strategies," eurofound.europa.eu. This shift has made drinkable yogurt increasingly popular across Europe, especially in cities where long commutes and hybrid work schedules make portable and time-saving food choices essential. Companies like Danone are responding to this trend by expanding their drinkable yogurt offerings, such as the Actimel and HiPRO Drink lines, which are designed for on-the-go consumption. These products are marketed as convenient and functional, allowing brands to charge premium prices. Innovative packaging, like resealable caps and ergonomic bottle designs, makes these products easier to carry and use. Drinkable yogurt also provides an opportunity to include functional ingredients, such as added caffeine, probiotics, and vitamins, catering to consumers who want a complete and nutritious breakfast solution that fits their busy routines.
Flavor innovation using local fruits accelerating yogurt uptake
Creating yogurt flavors with locally sourced fruits is becoming a key driver of yogurt consumption across Europe. Consumers are showing a strong preference for products that feel authentic, sustainable, and connected to their region, and companies are adapting to meet this demand. For instance, Arla Foods expanded its yogurt range in the United Kingdom in 2024 by launching a larger 450g version of its Arla Protein Yogurt in vanilla and strawberry flavors, each offering 45g of protein per pot. This move not only aligns with EU sustainability goals but also supports local farmers and helps reduce the impact of fluctuating ingredient costs. Although relying on seasonal fruits can make production planning more complex, it allows brands to develop unique and culturally relevant flavors that resonate with consumers and build brand loyalty. This trend is particularly noticeable in Southern Europe, where people are more familiar with and drawn to regional fruits, making these flavors more popular.
Surge in lactose-free and digestive health claims accelerating non-dairy alternatives
Consumers in Europe are increasingly focusing on digestive health, which is driving the demand for lactose-free and plant-based yogurt alternatives. This shift is supported by a growing variety of products that offer better taste, texture, and nutritional benefits, showcasing significant advancements in this segment. Regulatory bodies, such as the European Food Safety Authority (EFSA), are becoming more receptive to digestive health claims [3]Source: European Food Safety Authority, "EFSA finalises the assessment of ‘general function’ health claims," efsa.europa.eu. Claims related to probiotics remain strictly regulated, pushing companies to back their products with strong scientific evidence. For instance, FrieslandCampina is innovating by developing products that target both gut health and muscle health, combining functional benefits with advanced fermentation techniques to closely mimic the taste and texture of traditional dairy yogurts. Plant-based yogurts still face challenges, such as lower protein and micronutrient levels compared to dairy options. To address this, companies are focusing on fortifying their products to match the nutritional value of dairy.
Restraints Impact Analysis
| RESTRAINT | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
|---|---|---|---|
| Volatile milk prices compressing dairy-based yogurt margins | -0.8% | Germany, France, Italy | Short term (≤ 2 years) |
| Import tariffs on probiotic cultures raising sme costs | -0.4% | United Kingdom, Germany, France | Medium term (2-4 years) |
| High cold-chain logistics costs hindering profitability of e-commerce channels | -0.6% | United Kingdom, Germany, France | Medium term (2-4 years) |
| FDA added-sugar labelling rules limiting formulation flexibility for flavored skus | -0.3% | United Kingdom, Germany, France | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High cold-chain logistics costs hindering profitability of e-commerce channels
Rising costs in cold-chain logistics are creating significant challenges for yogurt sales through e-commerce channels in Europe. The increasing energy prices, driven by factors like geopolitical tensions such as the Ukraine conflict, have made refrigerated transport more expensive. This issue is particularly severe in regions like the Iberian Peninsula, where limited refrigerated transport capacity adds to the problem. Online grocery platforms face higher operational costs compared to physical stores because delivering perishable dairy products requires intensive refrigeration and efficient last-mile delivery. Smaller yogurt brands that rely on direct-to-consumer models are feeling the pressure even more. High minimum order requirements and infrequent delivery schedules make it harder for these brands to reach customers effectively. To address these challenges, companies are turning to advanced technologies like AI-based demand forecasting and route optimization.
Volatile milk prices compressing dairy-based yogurt margins
Milk price fluctuations across Europe are creating challenges for yogurt manufacturers, as they struggle to maintain profit margins. These price changes are caused by factors such as geopolitical tensions, climate-related disruptions in milk supply, and rising energy costs. For instance, in February 2025, the average milk price in the EU rose to 53.8 cents per kilogram, marking a 16% increase compared to 2024, according to the Association of Milk Producers [4]Source: Association of Milk Producers, "Raw Milk Price Growth in the EU," avm-ua.org. This rise in costs significantly impacts dairy processors, as higher feed and transportation expenses add to the burden. Energy costs alone, which account for about 3% of total non-labor food production expenses, have surged due to recent price shocks. Larger companies are trying to manage these challenges by using flexible pricing strategies and sourcing milk from multiple suppliers. However, they face limitations in passing these increased costs to consumers, especially as many buyers are price-sensitive. Smaller yogurt producers are hit even harder because they lack the financial tools and negotiating power to deal with milk suppliers effectively.
Segment Analysis
By Category: Plant-Based Alternatives Challenge Dairy Dominance
The European yogurt market size for dairy-based products accounted for 92.05% of the total category revenue in 2024. Dairy-based yogurts continue to dominate the market due to their widespread consumer acceptance, nutritional benefits, and established supply chains. However, the market is evolving as consumer preferences shift toward healthier and more sustainable options. Plant-based alternatives are gaining traction, but dairy remains a staple for its high protein content and versatility. Large manufacturers are focusing on innovation in flavors and packaging to maintain their stronghold in this segment.
Non-dairy/plant-based yogurt products, while still a smaller segment, are expected to grow at a CAGR of 7.55% through 2030, driven by increasing awareness of lactose intolerance and the environmental benefits of plant-based diets. Improved fermentation techniques have significantly enhanced the texture and taste of plant-based options, making them more appealing to consumers. Popular bases like oat, almond, and coconut are leading this growth, offering a variety of choices for health-conscious buyers. Hybrid products that combine dairy and plant-based ingredients are also gaining popularity, catering to flexitarian consumers who seek a balance between nutrition and sustainability. However, EU regulations restricting the use of terms like "milk" for plant-based products present marketing challenges.
By Product Form: Convenience Drives Drinkable Format Expansion
Spoonable/set yogurts continued to dominate the European yogurt market in 2024, accounting for 79.33% of the total revenue. This dominance is largely due to their strong association with traditional breakfast habits across the region. Consumers prefer spoonable yogurts for their versatility, as they can be paired with fruits, granola, or other toppings. Additionally, the wide variety of flavors and health-focused options, such as low-fat or high-protein variants, further drive their popularity. Despite their established position, brands are innovating within this segment by introducing functional ingredients like probiotics and vitamins to cater to health-conscious consumers. The convenience of single-serve packaging also appeals to busy individuals, ensuring spoonable yogurts remain a staple in the market.
On the other hand, drinkable yogurts are gaining traction, growing at a CAGR of 7.04%. This growth is fueled by the increasing demand for convenient, on-the-go options, especially among younger, urban consumers. The introduction of resealable PET bottles and portable packaging has made drinkable yogurts a popular choice for commuters and those with busy lifestyles. Brands are also capitalizing on this trend by incorporating functional ingredients, such as immunity-boosting nutrients and low-sugar formulations, to appeal to health-conscious buyers. The strongest sales growth is observed in regions like Scandinavia and the United Kingdom, where mobility during the workday is high.
By Flavor Profile: Health Consciousness Shifts Preference Patterns
In 2024, flavored yogurts captured a significant 46.21% share of Europe's yogurt market revenue. Their widespread appeal spans all age groups, making them a favored choice for breakfast or snacks. The allure of flavored yogurts lies in their diverse taste profiles, ranging from classic fruit blends to decadent dessert-inspired options. Brands are innovating, introducing low-sugar variants and adding functional ingredients like probiotics and immunity boosters. This aligns with the region's health-conscious consumers, especially in Scandinavia and the United Kingdom.
Meanwhile, plain/natural yogurts are on a rapid ascent, with projections indicating a CAGR of 6.45%. This growth is fueled by heightened consumer awareness about sugar reduction and a shift towards clean-label, customizable nutrition. Health-conscious consumers are gravitating towards plain yogurt, using it as a versatile base to personalize meals with fresh fruits, nuts, or seeds, all while keeping a close eye on sugar content and nutritional value. In response, manufacturers are rolling out unflavored products, enriched with local fruits and superfruits like acerola, and emphasizing transparent sourcing. This move caters to the demand for natural, sustainable, and functional dairy solutions.
By Packaging Type: Sustainability Mandates Drive Innovation
Cups and tubs accounted for 71.04% of yogurt sales in 2024, but tetra-pack and pouch packaging are expected to grow at a 7.21% CAGR. This growth is driven by the EU Single-Use Plastic Directive, which encourages the use of sustainable packaging. Tetra-pack designs with tethered caps are gaining popularity as they help brands meet regulatory requirements without needing significant changes to their production lines. These innovative packaging solutions are not only eco-friendly but also convenient for consumers, making them a preferred choice for on-the-go consumption.
Companies like Valio are leading the way in sustainable packaging by collaborating with Borealis to develop yogurt pots made from recycled polypropylene. This initiative highlights the industry's commitment to a circular economy, where materials are reused and waste is minimized. Furthermore, advancements in extended shelf-life films and portion-controlled pouches are helping to reduce food waste by keeping products fresh for longer and offering convenient serving sizes.
Note: Segment shares of all individual segments available upon report purchase
By Distribution Channel: E-Commerce Growth Faces Logistics Challenges
In 2024, off-trade outlets firmly held the reins of the European yogurt market, raking in an impressive 93.11% of the total revenue. Supermarkets, hypermarkets, and grocery chains have solidified their dominance, thanks to competitive pricing, diverse product ranges, and unmatched accessibility. These outlets cater to a spectrum of consumer tastes, from flavored and unflavored to organic and functional yogurts, solidifying their status as the go-to for daily purchases. The surge in private-label products and savvy in-store promotions has bolstered the off-trade's pivotal role in yogurt distribution.
Meanwhile, the on-trade segment, encompassing cafés, restaurants, and foodservice outlets, is steadily gaining traction, boasting a projected CAGR of 6.01%. The rising incorporation of artisanal and premium yogurts in dishes like breakfast parfaits, smoothie bowls, and desserts drives this uptick. Foodservice entities are capitalizing on yogurt’s adaptability and health benefits, crafting upscale menu items that resonate with the growing consumer inclination towards health-centric, gourmet, and functional foods. The heightened appetite for unique dining experiences and specialized formulations has carved out a promising niche for premium yogurt brands in the on-trade sector.
Geography Analysis
Germany contributed 17.56% of the European yogurt market revenue in 2024, driven by its efficient dairy cooperatives and consumers' willingness to pay for protein-enriched products. Local dairy processors have managed rising milk prices by diversifying their supplier networks, ensuring a steady supply chain. Health-conscious consumers in Germany have shown strong loyalty to functional yogurt products, such as kefir-style options, which are rich in probiotics. Clear regulations on probiotic labeling have encouraged innovation among manufacturers.
France continues to be a significant segment in the European yogurt market, owing to its rich culinary traditions and preference for premium, locally sourced dairy products. French yogurt producers have successfully carved out niches by using seasonal fruits and artisanal production techniques, which appeal to a wide range of consumers. The expansion of discount chains has created competition, but premium brands maintain their edge by focusing on quality and authenticity.
The United Kingdom is experiencing the fastest growth in the European yogurt market, with a CAGR of 5.45%, fueled by sugar-reduction policies and a rising demand for high-protein products. Domestic dairy producers have adapted to post-Brexit challenges, such as import duties, by investing in local supply chains to ensure consistent production. The United Kingdom market also benefits from a strong e-commerce presence, which outpaces the European average. However, high costs associated with last-mile refrigeration remain a challenge for profitability.
Competitive Landscape
The European yogurt market is moderately fragmented. Larger companies benefit from their ability to negotiate better deals with suppliers and invest heavily in advertising. On the other hand, smaller, niche players stand out by focusing on organic products, sourcing ingredients locally, or offering yogurts with proven gut-health benefits. This balance between large-scale operations and niche differentiation keeps the market dynamic and competitive.
Lactalis’ acquisition of General Mills’ yogurt assets for USD 2.1 billion highlights the confidence in the long-term growth of the yogurt market, even with challenges like rising costs. Similarly, Danone has partnered with Microsoft to use AI tools for better inventory management and more accurate demand forecasting. These strategic moves by major players show their focus on innovation and efficiency to maintain their market positions. Such investments also reflect the growing importance of technology in streamlining operations and meeting consumer demands effectively.
Functional yogurts, such as those enriched with probiotics, are becoming a key area of focus for companies. Many are investing in clinical studies to gain approval for health claims from regulatory bodies like the EFSA. Sustainable packaging is gaining traction, with companies adopting lightweight materials and recycled plastics to meet environmental standards. While direct-to-consumer sales are growing, challenges like high refrigeration costs remain. Subscription-based models are helping brands build loyalty, especially among urban consumers who value convenience and consistent supply.
Europe Yogurt Industry Leaders
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Danone SA
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Nestlé SA
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FAGE International S.A
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Landgenossenschaft Ennstal e.Gen.
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Theo Müller Group
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Lactalis completed the USD 2.1 billion acquisition of General Mills’ yogurt businesses, adding Yoplait and Go-Gurt to its global portfolio.
- May 2025: Valio and Borealis debuted recycled-polypropylene yogurt cups aligned with EU circular-economy goals.
- April 2025: Atlante launched new products developed by its Research and Development team, combining innovation with traditional Greek elements. The company's new Indulgent Yogurt Range featured a 5% fat base that balanced taste and nutrition.
Europe Yogurt Market Report Scope
Yogurt is a food produced by the bacterial fermentation of milk. The Europe yogurt market is segmented by category, product form, flavor profile, packaging type, distribution channel, and geography. Based on the category the market is segmented into dairy-based and non-dairy-based/plant-based yogurt. Based on product form, the market is segmented into spoonable/set yogurt and drinkable yogurt. Based on flavor profile, the market is segmented into plain/natural and flavored. By packaging type, the market is divided into cups, containers & tubs, bottles, tetra paks & pouches and others. Based on distribution channels, the market is segmented into off-trade (hypermarkets/supermarkets, convenience stores, online retail channels, and other distribution channels) and on-trade. Based on geography, the market is segmented into United Kingdom, Germany, France, Italy, Spain, Russia, and the Rest of Europe. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Dairy-based Yogurt |
| Non-dairy/Plant-based Yogurt |
| Spoonable/Set Yogurt |
| Drinkable Yogurt |
| Plain/Natural |
| Flavored |
| Cups, Containers and Tubs |
| Bottles |
| Tetra Packs and Pouches |
| Others |
| Off-Trade | Supermarkets/Hypermarkets |
| Convenience Stores | |
| Online Retail | |
| Other Distribution Channels | |
| On-trade |
| Germany |
| United Kingdom |
| Italy |
| France |
| Spain |
| Netherlands |
| Poland |
| Belgium |
| Sweden |
| Rest of Europe |
| By Category | Dairy-based Yogurt | |
| Non-dairy/Plant-based Yogurt | ||
| By Product Form | Spoonable/Set Yogurt | |
| Drinkable Yogurt | ||
| By Flavor Profile | Plain/Natural | |
| Flavored | ||
| By Packaging Type | Cups, Containers and Tubs | |
| Bottles | ||
| Tetra Packs and Pouches | ||
| Others | ||
| By Distribution Channel | Off-Trade | Supermarkets/Hypermarkets |
| Convenience Stores | ||
| Online Retail | ||
| Other Distribution Channels | ||
| On-trade | ||
| By Geography | Germany | |
| United Kingdom | ||
| Italy | ||
| France | ||
| Spain | ||
| Netherlands | ||
| Poland | ||
| Belgium | ||
| Sweden | ||
| Rest of Europe | ||
Key Questions Answered in the Report
What is the current size of the European yogurt market?
The European yogurt market size reached USD 31.04 billion in 2025 and is projected to hit USD 40.02 billion by 2030 at a 5.21% CAGR.
Which product form is growing fastest?
Drinkable yogurt shows the quickest expansion, forecast to grow at 7.04% CAGR through 2030 as on-the-go breakfast demand rises.
How quickly are plant-based yogurts gaining ground?
Non-dairy alternatives are expected to post a 7.55% CAGR, outpacing the overall market thanks to lactose-free and sustainability appeal.
What packaging innovations meet EU sustainability rules?
Tetra-packs with tethered caps and recycled-polypropylene cups dominate recent launches, helping brands comply with single-use plastic directives.
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