Market Size of sour milk drinks Industry
| Icons | Lable | Value |
|---|---|---|
|
Study Period | 2017 - 2029 |
|
Market Size (2024) | USD 7.60 Billion |
|
|
Market Size (2029) | USD 9.59 Billion |
|
Largest Share by Distribution Channel | Off-Trade |
|
|
CAGR (2024 - 2029) | 4.74 % |
|
Largest Share by Region | Europe |
Major Players |
||
|
||
|
*Disclaimer: Major Players sorted in no particular order |
Sour Milk Drinks Market Analysis
The Sour Milk Drinks Market size is estimated at 7.60 billion USD in 2024, and is expected to reach 9.59 billion USD by 2029, growing at a CAGR of 4.74% during the forecast period (2024-2029).
7.60 Billion
Market Size in 2024 (USD)
9.59 Billion
Market Size in 2029 (USD)
4.13 %
CAGR (2017-2023)
4.74 %
CAGR (2024-2029)
Largest Market by Distribution Channel
98.56 %
value share, Off-Trade, 2023
The growth of the segment in the regions globally is largely driven by the existence of an inviting place for customers to shop, as they are constantly drawn to make large purchases.
Largest Market by Region
55.47 %
value share, Europe, 2023
Bioactive components, flavor, and nutritional value, along with digestive wellness that is associated with fermented dairy beverages are a few of the various factors accelerating Europe market.
Fastest-growing Market by Distribution Channel
4.74 %
Projected CAGR, Off-Trade, 2024-2029
The onset of the experimental economy and the rising social media platforms with increasing consumer reach in the market is driving the off-trade channels through online channels
Fastest-growing Market by Region
6.27 %
Projected CAGR, Africa, 2024-2029
The market is mainly driven by the value of nutrition and functional properties of milk and the rising demand for probiotic drinks by health-conscious consumers in the region.
Leading Market Player
6.04 %
market share, Gujarat Co-operative Milk Marketing Federation Ltd, 2022
The availability of various products by Gujarat Co-operative Milk Marketing Federation Ltd along with differentiated certifications for the manufacturer is propelling the consumer choice in the market.
Wide availablity of products coupled with strong penetration of retail channels drives the market.
- Hypermarkets and supermarkets primarily drive the high market share of off-trade channels. Supermarkets and hypermarkets covered 36.95% of volume sales of sour milk drinks in 2022. Europe is the largest sour milk-consuming region, and it covered 48.79% of the sour milk sold globally in supermarkets and hypermarkets in 2022.
- These stores operate widespread networks allowing easy access to consumers in different locations. As a result, key brands prefer supermarkets/hypermarkets to launch sour milk drinks across regional markets. In September 2022, Graham's The Family Dairy launched a new sour milk drink named Goodness of Kefir in the European market through Aldi stores. Supermarket chains offering sour milk drinks include Safeway, Sobeys, Metro, and Loblaw Companies.
- The online channel is projected to be the fastest-growing distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. North America represents more online sales of sour milk drinks than other regions. Around 22% of Canadians regularly planned to buy groceries online in 2021. In Canada, key online stores specializing in dairy products include DairyCentral, Monforte Dairy, Bddybasket, and Dairyland. Globally, online sales of sour milk drinks are estimated to record a CAGR of 7.46% during the forecast period.
Understand The Key Trends Shaping This Market
The demand from Europe followed by Middle East is dominating the global market
- Global consumption of sour milk drinks grew by 14.15% from 2017 to 2022. Sour milk drink is an ancient food that has been part of the daily diet for thousands of years across different countries. Europe and the Middle East are the largest sour milk drink consumers, globally, and they registered a market volume share of 32.52% and 41.79%, respectively, in 2022.
- Saudi Arabia and the United Arab Emirates are the region's major markets, and they collectively accounted for a 65.25% share of the overall sour milk drink volume sales across the region in 2022. The key factors driving the market growth include the high production of raw milk, rising consumer preference for quality dairy products, and adequate industry regulation to facilitate the manufacturing and trading of dairy products.
- The Government of Saudi Arabia has permitted 100% FDI (foreign direct investment) through an automatic route for food processing. The dairy industry records a substantial FDI constituting about 30% of FDIs in Saudi's food industry. Saudi Arabia is one of the largest sour milk drink-consuming countries, as laban is the key component of traditional cuisine in the country.
- In Europe, yogurt sales are estimated to record a CAGR of 4.50% during the forecast period, reaching USD 40,103.14 million by 2029. Sour milk drink is a largely consumed category across the region, with fruit flavors being the most popular in key countries such as Germany, the United Kingdom, and France. In 2022, 32% of UK consumers were willing to pay more for innovative sour milk drinks.
- Africa is expected to be the fastest-growing yogurt market, with an anticipated CAGR of 7.64%, by value, during the forecast period. The market growth can be attributed to the rising consumer awareness about the nutritional profile of sour milk drinks.
