US Yogurt Market Size & Share Analysis - Growth Trends & Forecasts

US Yogurt Market Trends and Insights

Rising Demand for High-Protein Greek Yogurt Among United States Millennials

The high-protein yogurt segment leads growth in the United States yogurt market, reflecting consumers' increasing preference for nutritious options. Manufacturers are expanding their protein-enriched product lines in response to this demand. In October 2024, Chobani introduced a new range of high-protein Greek yogurt cups and drinks in the United States, featuring products with varying protein content, including 20g Protein Greek Yogurt cups and 15g, 20g, and 30g Protein Drinks. Millennials demonstrate significant interest in increasing their protein intake, driving market growth. Manufacturers now position Greek yogurt as a daily nutrition product, broadening its appeal beyond the athletic and fitness consumer segments. In the dairy aisle, protein content has become a crucial factor in consumer decision-making. Consumers now weigh nutritional benefits equally with flavor when selecting yogurt products, indicating a fundamental shift in purchase criteria. This emphasis on protein content reflects its importance in modern dietary preferences and consumers' desire for products that deliver both nutrition and taste.

Flavor Innovation Using Local Fruits Accelerating Yogurt Uptake

Flavor innovation serves as a key differentiator in the yogurt market, with manufacturers incorporating both traditional and exotic fruit varieties to meet consumer preferences. Taste remains a primary factor in consumer purchasing decisions, particularly among health-conscious individuals. The increasing yogurt consumption is largely driven by taste preferences. In response to consumer demand for new taste experiences, yogurt brands have expanded their product ranges. Additionally, dessert-inspired varieties such as strawberry cheesecake and almond chocolate yogurt offer consumers healthier alternatives to traditional desserts. This expansion of flavor offerings enables manufacturers to drive market growth by attracting both regular yogurt consumers and individuals seeking novel taste experiences. For instance, in April 2024, Danone North America introduced new yogurt flavors under its Oikos REMIX line. These include Coco Almond Chocolate (coconut nonfat yogurt with honey praline almonds and dark chocolate mix-ins), S'mores (vanilla nonfat yogurt with graham cookies, dark chocolate, and toasted marshmallow bark mix-ins), and Salted Caramel (salted caramel nonfat yogurt with sea salt praline pretzels, dark chocolate, and butter toffee mix-ins).

Growth of On-the-Go Breakfast Occasion Boosting Drinkable Yogurt Formats

The United States market for drinkable yogurt is expanding due to increasing consumer demand for convenient breakfast options. Millennials, representing approximately 74.19 million people in the United States in 2024, according to the U.S. Census Bureau, constitute the largest generational demographic and drive yogurt consumption trends ^{[1]Source: US Census Bureau, "National Population by Characteristics: 2020-2024", census.gov/}. Their mobile lifestyles have increased market demand for drinkable yogurts as convenient, nutritious breakfast alternatives. Generation Z consumers demonstrate similar preferences for portable, functional foods, making convenient yogurt formats a key product category for manufacturers targeting younger, health-conscious market segments. This trend aligns with the broader consumer movement toward convenient, healthy options that accommodate busy schedules. Drinkable yogurt products serve as a practical solution by combining probiotics and essential nutrients in a portable format. 

Surge in Lactose-Free and Digestive-Health Claims

The rising awareness of lactose malabsorption among consumers and increased focus on gut health and microbiota in social media discussions have driven the growth of plant-based and lactose-free yogurt alternatives. These products serve individuals who experience digestive issues from dairy consumption while meeting the needs of consumers seeking health-conscious dietary options focused on digestive wellness. The expanding consumer knowledge about probiotic benefits from various sources has increased the demand for alternative yogurt products, indicating evolving dietary preferences and heightened attention to gut health. Moreover, fungi-derived and precision-fermented dairy alternatives enable manufacturers to produce products containing eight or more grams of protein without animal ingredients, appealing to both vegan consumers and environmentally conscious flexitarians. For instance, in January 2024, Nature's Fynd launched the first dairy-free yogurt made from Fy™ nutritional fungi protein at Whole Foods Market stores across the United States. The Fy Yogurt offers an alternative to conventional and plant-based yogurts by using Fy, a sustainable fungi protein, rather than cow milk, nuts, oats, or soy.

Volatile U.S. Milk Prices Compressing Dairy-Based Yogurt Margins

The United States Department of Agriculture (USDA) 2025 Dairy Market Outlook reveals significant challenges in the dairy industry due to milk price fluctuations affecting processor margins. The volatility, combined with increased feed costs and disease outbreaks, has compelled dairy manufacturers to modify their promotional approaches to protect profit margins. The rising feed prices have intensified economic pressure on dairy farms, affecting livestock health and production output. In response, manufacturers have reduced promotional activities that do not generate immediate returns. For instance, in September 2024, General Mills divested its North American yogurt division, indicating potential margin improvements under specialized dairy companies better positioned to manage the yogurt market. The persistent price instability has led manufacturers to streamline their product portfolios, concentrating on core products while pursuing sustainable profitability. These adjustments demonstrate the industry's ability to adapt and maintain operational stability during challenging conditions.

Rising Popularity of Low-Carb and Keto Diets Curtailing Sweetened Yogurt Sales

The increasing popularity of low-carbohydrate and ketogenic diets in the United States affects traditional sweetened yogurt products. According to The International Food Information Council (IFIC) Annual Food and Health Survey 2024, approximately 7% of Americans followed a low-carb diet, while 5% followed a keto diet in 2024 ^{[2]Source: International Food Information Council, "2024 IFIC Food & Health Survey", ific.org} . The West and Northeast regions demonstrate this dietary shift most prominently. As consumers reduce their carbohydrate intake, sales of conventional high-sugar yogurts decline. In response, yogurt manufacturers are developing low-sugar and sugar-free alternatives to meet evolving consumer preferences. These product reformulations require more expensive ingredients and manufacturing processes, impacting profit margins unless manufacturers can implement premium pricing. The influence of low-carb dietary preferences is likely to continue, though its impact may vary as nutritional guidelines change. This market shift drives product development in the yogurt industry, with manufacturers prioritizing protein-rich, reduced-sugar options to maintain their competitive position.

Segmental Analysis

By Category: Plant-Based and Traditional Dairy Compete Through Innovation and Sustainability

The dairy-based yogurt segment commands 92.52% market share in 2024, leveraging its established consumer base and extensive distribution network. Dairy manufacturers maintain their market position through ultrafiltered and triple-strained processes that enhance protein content per serving. These companies are forming partnerships with regenerative farms to demonstrate the compatibility of responsible animal agriculture with environmental sustainability. The competitive focus has shifted to protein quality measurements, moving beyond the traditional animal versus plant protein debate.

The non-dairy/plant-based segment exhibits robust expansion with a 6.77% CAGR (2025-2030), surpassing overall market growth rates. Alternative ingredients, including coconut, oat, and fungi-based products, have gained market acceptance through their texture profiles, fiber content, and ability to meet lactose-free protein requirements. High-protein non-dairy yogurt products are expanding their market presence. The segment's growth is further supported by the increasing number of vegans and flexitarians seeking plant-based alternatives.

By Product Form: Drinkable Yogurt Formats Gain Market Share Through Convenience Appeal

Spoonable/set yogurt maintains market dominance with an 82.01% share in 2024, the drinkable yogurt segment is experiencing rapid growth at 5.78% CAGR (2025-2030). Spoonable yogurt retains its market leadership due to established consumer preferences and its versatility in culinary applications. To address the growing demand for convenient snacking options, manufacturers are introducing intermediate textures, such as "smoothie-bowl" consistency. Additionally, the industry's efforts to convert acid whey into beverages provide a cost-efficient solution for managing production by-products. These developments suggest that environmental sustainability is poised to play a more significant role in driving product format innovations.

The drinkable yogurt segment, while comprising a smaller market share than traditional yogurt, records double-digit value growth across multiple periods. The segment's growth is driven by its utility for commuter consumption, post-exercise nutrition requirements, and school lunch applications, with its resealable packaging eliminating utensil requirements. Aseptic processing technology facilitates ambient distribution, enabling product placement outside refrigerated dairy sections. The strategic positioning of beverage refrigeration units creates opportunities to reach consumers who do not frequent conventional dairy aisles.

By Flavor Profile: Indulgent Versus Traditional

Flavored yogurt accounts for 52.11% of the market size in 2024 and generates the majority of incremental revenue. Traditional flavors such as strawberry, vanilla, blueberry, and peach remain popular, while dessert-inspired variants like mocha tiramisu and cherry cheesecake attract new consumers through indulgent offerings. For instance, in December 2023, Chobani introduced dessert-inspired Greek yogurt in six flavors: Mocha Tiramisu, Apple Pie a la Mode, Cherry Cheesecake, Orange Cream Pop, Bananas Foster, and Caramel Sundae. These premium flavors maintain higher price points without increased promotional sensitivity, reflecting robust consumer demand.

The plain yogurt market is expected to register a CAGR of 4.98% during 2025-2030. Consumer adoption of plain yogurt as an alternative to sour cream and mayonnaise continues to increase, while maintaining its position in the snack segment. Recipe websites demonstrate their applications in marinades and baked goods, extending beyond breakfast consumption. Thus, manufacturers are implementing product usage strategies through recipe inclusion on packaging, shifting focus from price-based promotions to value enhancement.

By Packaging Type: Sustainable Pouches Accelerating

Traditional cups, tubs, and multi-serve containers still represent 67.55% of the United States yogurt market share in 2024, benefiting from stackability and shelf familiarity. Yet tetra-packs and flexible pouches are recording a 6.87% CAGR as shoppers favour lighter, resealable formats that align with sustainability goals. Besides, the yogurt industry shows increasing adoption of Tetra Pak-style cartons and recyclable cardboard packaging, as manufacturers respond to sustainability goals and consumer preferences. These packaging formats provide convenience and recyclability while reducing carbon emissions compared to conventional plastic containers. The industry's shift toward environmental responsibility has led to the development of paperboard cartons with reduced plastic content, supporting the transition to sustainable dairy packaging solutions. For instance, in January 2024, Yoplait transitioned to recyclable cardboard packaging made from 78% plant-based materials, reducing packaging volume by 50% compared to its previous plastic containers.

Packaging graphics are evolving in parallel. For instance, Chobani’s folk-art illustrations suggest heritage craftsmanship, while clear labelling on recyclability and carbon footprint delivers instant reassurance to eco-minded consumers. Retail category resets increasingly consider life-cycle assessments when allocating shelf space, implying that packaging’s environmental score may soon influence slotting-fee negotiations

Note: Segment shares of all individual segments will be available upon report purchase

By Distribution Channel: Emerging Role of On-Trade in Yogurt Consumption

The off-trade distribution channel accounts for approximately 62.33% of U.S. yogurt sales in 2024. This distribution network includes supermarkets, hypermarkets, convenience stores, online retailers, and specialty shops. Supermarkets and hypermarkets generate the highest revenue share in off-trade sales, driven by their product diversification and volume-based promotional strategies that increase customer retention. The distribution channel's performance reflects consumer demand for nutritious snacks, with flavored and Greek yogurt segments showing significant market penetration. 

Moreover, the on-trade segment is projected to register a CAGR of 6.32% during 2025-2030, outpacing the overall market growth rate. On-trade consumption through cafes, restaurants, fast-food outlets, and foodservice venues represents a smaller but strategic segment of the market. While this distribution channel maintains a lower market share, it demonstrates growth potential through yogurt integration in menu items such as parfaits, smoothies, and breakfast bowls. In the United States, 55% of consumers preferred dining at restaurants over ordering takeout or delivery in 2023, according to US Foods Inc ^{[3]Source: US Foods, Inc., "The Diner Dispatch: 2024 American Dining Habits", usfoods.com/}. This consumer behavior creates market opportunities for yogurt-based offerings in foodservice establishments. Foodservice operators and yogurt manufacturers are establishing strategic partnerships to develop convenient, protein-rich menu items that meet consumer demands.

Geography Analysis

The South holds the largest United States Yogurt market share at 32.99% in 2024, driven by its large population base and increasing health awareness. Also, yogurt has gained popularity in Southern cuisine, appearing in dishes ranging from parfaits to savory sauces. The growing millennial population and young families are driving demand for nutritious, protein-rich snacks. The region's warm climate enables year-round yogurt consumption, establishing it as a dietary staple. Besides, consumer inclination for tropical and berry combinations indicates that regional flavor adaptation improves sales performance in southern states.

The Northeast region projects the highest growth rate at 4.68% CAGR through 2030, driven by high-income, health-conscious consumers who accept premium pricing for protein-enriched and sustainably sourced products. Regional grocery chains' advance purchasing patterns indicate that specialized products, including oat-milk-based Greek yogurt and high-protein lactose-free varieties, are anticipated to gain prominence in urban retail locations over the forecast period.

The Midwest and West regions contribute unique market advantages. Midwest manufacturers leverage their proximity to dairy sources but face greater exposure to raw material price fluctuations, leading to increased focus on ultrafiltered products to optimize non-fat milk solid usage. The West, particularly California, serves as an innovation center for plant-based and precision-fermented dairy alternatives, supported by consumer acceptance and venture capital availability.