Cultured Dairy Products Market Size, Share, Growth, and Industry Analysis, By Type (Yoghurt,Cheese,Cream,Others), By Application (Food Processing,Foodservice,Retail), Regional Insights and Forecast to 2033

Cultured Dairy Products Market Overview

The Keyword Market size was valued at USD 47999.49 million in 2024 and is expected to reach USD 73837.63 million by 2033, growing at a CAGR of4.9% from 2025 to 2033.

The global cultured dairy products market has seen remarkable expansion due to increasing health awareness and dietary preferences across regions. In 2024, over 65.2 million metric tons of cultured dairy products were consumed worldwide. Among these, yogurt led with more than 34.5 million metric tons, followed by cheese at 24.7 million metric tons, cultured cream at 3.1 million metric tons, and other products making up the remainder. Probiotic-rich items have gained widespread popularity, with over 61% of global consumers preferring fermented dairy over traditional options.

North America, Europe, and Asia-Pacific collectively contributed to 84% of total consumption. Plant-based cultured alternatives saw a 26% increase in production volume from the previous year, especially in Europe and North America. Supermarkets and hypermarkets accounted for over 58% of product distribution globally. Innovation in flavor, packaging, and fortification with vitamins and minerals has helped increase demand in urban and semi-urban areas. Functional dairy products targeting gut health and immunity dominated new product launches, with over 4,200 SKUs introduced globally in 2024 alone.

Key Findings

Top Driver reason: Increasing demand for probiotic-rich, gut-friendly dairy products in health-conscious populations.

Top Country/Region: The United States led the global market with consumption surpassing 11.3 million metric tons in 2024.

Top Segment: Yogurt was the top product type, accounting for over 34.5 million metric tons in global consumption.

Cultured Dairy Products Market Trends

The market for cultured dairy products is experiencing a transformation driven by health, convenience, and innovation. In 2024, over 61% of global dairy consumers reported actively seeking probiotic-enriched yogurt and cheese for digestive health. The demand for low-fat and lactose-free cultured products rose by 19% globally, with over 12.7 million metric tons produced to meet these dietary requirements. Lactose-free yogurt alone grew to 3.6 million metric tons, mainly consumed in Europe and North America.

Snacking behavior is significantly influencing the market. Single-serve packs accounted for 44% of all yogurt sales, while 27% of cheese products were marketed as snack portions under 100 grams. Functional foods with added vitamins B12, D3, and zinc were included in over 1,500 new cultured dairy launches during 2023–2024. In Japan and South Korea, products with collagen-enriched and skincare-positioned claims grew by 31%.

Flavored variants have become dominant, with fruit and dessert-inspired yogurt blends representing over 38% of new product introductions. Greek yogurt maintained its global appeal with consumption of 6.2 million metric tons, growing by 9% year-over-year due to high protein content.

Clean label and organic cultured products are trending, especially in the EU, where 4.3 million metric tons were certified organic. Plant-based cultured dairy, including almond and oat-based yogurt alternatives, reached 2.7 million metric tons globally. The U.S. and Germany were major consumers, collectively accounting for 61% of this volume.

Cultured Dairy Products Market Dynamics

Drivers

Growing demand for gut-health-supporting functional foods.

Consumer preference for functional foods that enhance gut health is one of the strongest drivers in the cultured dairy products market. In 2024, probiotic-based cultured dairy items made up over 44 million metric tons of total volume. A rise in digestive disorders and increased awareness of the gut microbiome contributed to over 67% of global consumers identifying yogurt and fermented cheeses as daily dietary essentials. Brands capitalized on this by launching more than 3,100 products with added live cultures, particularly Bifidobacterium and Lactobacillus strains, which became common across product labels.

Restraints

Shelf life and cold chain dependency.

Despite demand, the market faces a significant challenge due to perishability and cold chain logistics. Cultured dairy products typically require storage between 2°C and 6°C, limiting shelf life to 14–30 days for most items. In 2024, approximately 9.8 million metric tons of cultured dairy products were discarded globally due to spoilage or temperature violations during transport. In emerging markets, only 43% of retail outlets meet the required cold chain infrastructure, affecting distribution efficiency and reach.

Opportunities

Expansion in plant-based cultured dairy alternatives.

The plant-based cultured dairy segment represents a fast-growing opportunity. In 2024, over 2.7 million metric tons of plant-based cultured alternatives were consumed, up from 2.1 million in 2023. Asia-Pacific led innovation in this space, launching 780 plant-based yogurt SKUs. The U.S. saw almond and cashew-based fermented products expand their footprint to over 18,000 retail stores. This segment offers room for new entrants to develop high-protein, allergen-free, and lactose-free cultured items catering to vegan and flexitarian consumers.

Challenges

Fluctuating milk prices and raw material availability.

The market is highly dependent on the availability and price stability of fresh milk, cream, and bacterial cultures. In 2024, average global milk prices rose by 12% compared to 2023 due to feed cost inflation and weather-related supply issues. This price volatility impacted the production costs of yogurt and cheese, resulting in reduced profitability margins. Some manufacturers were forced to scale back operations, especially in Latin America and parts of Africa, where milk procurement is decentralized and less regulated.

Cultured Dairy Products Market Segmentation 

By Type

• Yoghurt: Yogurt dominates the market with more than 34.5 million metric tons consumed in 2024. Greek yogurt contributed 6.2 million metric tons, while drinkable yogurt reached 4.9 million metric tons. Asia-Pacific led yogurt consumption with 14.7 million metric tons, followed by Europe at 10.9 million metric tons. Functional yogurt with probiotics was included in over 65% of SKUs globally.
• Cheese: Cheese accounted for approximately 24.7 million metric tons in 2024. Cultured varieties such as cottage cheese, blue cheese, and cream cheese comprised 8.3 million metric tons. The U.S. and France were major consumers of cultured cheese, each consuming over 3 million metric tons. Cheese snacks and spreads saw a 17% volume increase in convenience retail channels.
• Cream: Cultured cream, including sour cream and crème fraîche, reached 3.1 million metric tons in 2024. North America consumed 1.2 million metric tons, with sour cream dominating 88% of the segment in that region. Packaged formats of cultured cream for dips and baking grew by 11% in supermarkets.
• Others: Other cultured dairy products, such as kefir, labneh, and buttermilk made up around 2.9 million metric tons. Kefir consumption alone rose by 18% in 2024, especially in Russia and Eastern Europe, which collectively accounted for 62% of total global kefir volume.

By Application

• Food Processing: Food processing industries consumed 8.6 million metric tons of cultured dairy ingredients in 2024, mainly in ready-to-eat meals, salad dressings, and bakery fillings. Yogurt and cultured cheese were used in over 11,000 processed food SKUs launched globally.
• Foodservice: The foodservice segment consumed more than 18.2 million metric tons, with quick service restaurants and cafes being the largest buyers. Cheese and yogurt toppings were used in 5.3 billion servings of food globally in 2024.
• Retail: Retail dominated with 35 million metric tons sold through hypermarkets, supermarkets, and convenience stores. Yogurt and cheese together accounted for over 85% of retail volume, with private labels increasing their share to 41% globally.

Cultured Dairy Products Market Regional Outlook

• North America

North America consumed over 16.4 million metric tons of cultured dairy products in 2024. The United States led the region with 11.3 million metric tons, driven by a sharp increase in probiotic yogurt and cottage cheese consumption. Retail channels accounted for 67% of all sales. Canada’s cultured dairy segment grew by 9%, reaching 2.1 million metric tons, with Greek yogurt and sour cream being dominant products. Over 28% of consumers in the U.S. purchased low-sugar or plant-based alternatives, contributing to a surge in niche product offerings.

• Europe

Europe recorded a total consumption of 22.7 million metric tons of cultured dairy in 2024. Germany and France led the region with a combined 9.6 million metric tons. Organic and clean-label trends dominated, with 4.3 million metric tons labeled organic. Kefir and probiotic yogurt were among the fastest-growing products, with over 1.1 million metric tons consumed across Eastern Europe. Traditional fermented products such as labneh and skyr saw a 15% increase in Nordic countries.

• Asia-Pacific

Asia-Pacific emerged as the largest regional consumer with over 24.6 million metric tons in 2024. China alone consumed 8.4 million metric tons, followed by India at 5.2 million and Japan at 3.6 million. Drinkable yogurt and probiotic-enriched formats accounted for over 43% of yogurt sales in urban Asia. South Korea led innovation with 480 newly launched SKUs in 2024, many of which included collagen or herbal infusions. The region also saw 14% growth in plant-based cultured products, led by oat and coconut-based varieties.

• Middle East & Africa

The Middle East & Africa consumed 5.1 million metric tons of cultured dairy products in 2024. Turkey and Iran together accounted for 2.3 million metric tons, with traditional yogurt and labneh leading the segment. In Africa, consumption reached 1.7 million metric tons, driven by urbanization and increasing refrigeration capacity in Nigeria, Kenya, and South Africa. UHT-treated cultured dairy products gained popularity, accounting for 620,000 metric tons, due to poor cold-chain access in rural markets.

List of Top Cultured Dairy Products Companies

• Alfa Cheese Industries
• Arla Foods
• Bel Brands USA
• BelGioioso Cheeses
• Boar's Head
• Cabot Creamery
• Calabro
• Cappiello Foods, Inc.
• Chobani
• Crystal Farms
• Dairygold Co-Operative Society
• Danone
• Dansko Food
• Dean Foods
• Devondale Murray Goulburn
• Dlecta
• Fonterra
• Franklin Foods
• General Mills
• Glanbia group
• Grande Cheese Company
• Great Lakes Cheese
• Kraft
• Lactalis Group
• Land O Lakes
• Leprino Foods
• Materne North America Corp
• Mozzarella Company
• Open Country Dairy
• Organic Valley

Top Two Companies with the Highest Share

Danone: In 2024, Danone produced over 3.7 million metric tons of cultured dairy products across more than 35 countries. Their probiotic yogurt line alone accounted for 1.6 million metric tons globally, supported by over 680 distribution hubs.

Lactalis Group: Lactalis led global volume with 4.1 million metric tons of cultured products, particularly cheese and yogurt. The company supplied to over 110,000 retail outlets worldwide and operated 62 manufacturing facilities dedicated to cultured dairy.

Investment Analysis and Opportunities

In 2024, global investments in the cultured dairy products market reached record levels as manufacturers scaled up production, distribution, and R&D efforts. Over 1,200 new manufacturing lines were added globally, particularly in Asia-Pacific and Europe, accounting for a capacity increase of 6.4 million metric tons. Investment in plant-based cultured dairy reached $960 million globally, with 470 companies expanding portfolios to include non-dairy yogurts and spreads.

In the U.S., 38 companies expanded into functional dairy drinks, resulting in a 28% increase in regional production capacity for probiotic beverages. In India, government and private sector initiatives funded 64 new dairy cold chain infrastructure projects, impacting 1.1 million metric tons of cultured dairy logistics annually.

The foodservice sector remains a high-potential investment zone. Global fast-food chains and cafes incorporated over 140 million new servings of cultured dairy-based menu items in 2024, particularly yogurt bowls and cheese sandwiches.

M&A activity also intensified. Four major dairy conglomerates acquired smaller cultured dairy startups in 2024, each transaction valued between $45 million and $230 million. These acquisitions helped expand specialty product lines, including grass-fed cheese and coconut yogurt.

Additionally, more than 3,700 investors backed dairy innovation funds aimed at probiotic strain development, packaging solutions, and shelf-life extension. The growing consumer base of flexitarians and wellness-driven consumers makes the cultured dairy sector an attractive space for both public and private investment.

New Product Development

New product development in the cultured dairy products market surged in 2023–2024, with over 4,200 SKUs launched across 52 countries. Innovation was led by functional ingredients such as protein isolates, collagen peptides, adaptogens, and digestive enzymes. In the U.K., 190 new cultured products were launched with added Vitamin D and zinc targeting immune support.

In North America, Greek yogurt SKUs with fruit-on-the-bottom and granola toppings grew to 620 new launches in 2024. Cream cheese blended with herbs, honey, and superfoods was introduced in 300 variants across U.S. and Canadian markets. In South Korea and Japan, beauty-positioned cultured dairy featuring collagen and ceramide-enriched yogurt expanded to 180 retail SKUs.

Packaging innovation played a major role in new product appeal. Recyclable pouches, spoonless tubes, and biodegradable cups were introduced in over 930 products in 2024. These designs reduced plastic consumption by up to 41% across product lifecycles.

Shelf-life enhancements through microfiltration and high-pressure processing allowed new UHT yogurt formats with up to 90 days of ambient stability. These were widely adopted in Southeast Asia and Africa, where cold chain infrastructure is underdeveloped.

Dairy-free cultured products with added protein from peas, chickpeas, and oats entered 24 new country markets, contributing 1.1 million metric tons to total category volume in 2024. This expanding segment shows high velocity in retail, especially among millennials and Gen Z consumers.

Five Recent Developments

• Danone expanded its Oikos brand by launching a new protein shake, marking its entry into the $7 billion protein shake market. The shake contains five grams of fiber and is designed to meet the growing U.S. consumer demand for protein-rich and health-focused food options. This move aligns with the increasing popularity of high-protein diets, especially among individuals using weight-loss drugs that require higher protein intake to prevent muscle loss.
• Good Culture, founded in 2015, has successfully rebranded cottage cheese as a desirable, high-protein food. U.S. sales of cottage cheese have increased over 50% in the past five years, with a 16% rise in 2023 and another 17% in 2024. Good Culture's efforts, including enhanced flavor, thicker consistency, modern packaging, and avoiding artificial preservatives, have helped reposition cottage cheese as a versatile and appealing option for health-conscious consumers.
• Israeli company DairyX announced the development of yeast strains capable of producing casein proteins essential for making stretchy, creamy cheese without using cows. This innovation addresses the texture issues commonly associated with plant-based cheeses and could significantly reduce the environmental impact of the dairy industry. Regulatory approval for this product is expected by 2027.
• Häagen-Dazs ventured into the dairy aisle with its first non-frozen product: Cultured Crème. This product combines yogurt and ice cream elements to create an indulgent snack made with fresh milk, cream, and real fruit. Undergoing a fermentation process up to five times longer than traditional yogurt, Cultured Crème offers a thick, creamy texture and a smoother taste without the typical sour yogurt flavor.
• Indian dairy company Milky Mist announced plans for an initial public offering (IPO) to raise between ₹1,500 crore and ₹2,000 crore. The funds will support its expansion into markets outside southern India, such as Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, and Delhi-NCR. Milky Mist operates the largest fully-automated mozzarella plant in India and has been investing in advanced processing technologies to enhance its product offerings.

Report Coverage of Cultured Dairy Products Market

This report covers the full spectrum of the cultured dairy products market, encompassing product types, distribution channels, regional consumption patterns, key players, and innovation trends. The market was quantified at over 65.2 million metric tons in global consumption for 2024, with detailed analysis across yogurt, cheese, cream, and specialty cultured items.

The report outlines developments across food processing, foodservice, and retail sectors, with a regional breakdown spanning North America, Europe, Asia-Pacific, and the Middle East & Africa. More than 1,000 data points support findings on application-specific consumption trends, such as yogurt in health-oriented snacks or cheese in fast food.

A competitive overview profiles over 30 major companies, two of which—Danone and Lactalis—hold dominant market share based on production volume and brand penetration. Innovations in probiotic formulations, packaging, and plant-based cultured products are extensively covered, with specific focus on over 4,200 product launches in 2023–2024.

The report also provides insights into capital investment trends, mergers, acquisitions, and infrastructure development. It highlights opportunities in emerging markets such as India, Vietnam, and Kenya, where consumption of cultured dairy grew by double-digit volume percentages. Challenges such as milk price fluctuations, cold chain limitations, and short shelf life are analyzed, along with strategies companies use to mitigate these risks.

Frequently Asked Questions