Fermented Milk Products Market Size, Share, Growth, and Industry Analysis, By Type (Yogurt,Cheese,Other), By Application (Offline Retailing,Online Retailing), Regional Insights and Forecast to 2033

Fermented Milk Products Market Overview

The Fermented Milk Products Market size was valued at USD 52490.25 million in 2024 and is expected to reach USD 65507.26 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The global fermented milk products industry comprises dairy items produced through lactic acid fermentation, including yogurt, kefir, cultured buttermilk, and cheese. In 2023, global consumption amounted to approximately 75 million tonnes, with yogurt accounting for about 14.17 billion units sold. Cheese represented 37.7% of the total market volume, while probiotic fermented milk reached 40.91 billion units. Asia-Pacific led regional consumption with a 43% share of total market volume and an estimated 133.3 billion units. Annual per-capita consumption of fermented dairy products averaged 68 kilograms. In India, per-capita yogurt intake rose from 4.3 to 5.4 liters monthly. Kefir offerings supplied microbial counts of 1 million to 1 billion CFU per milliliter. Cold chain improvements supported household consumption, which constituted 46.1% of total uptake. Supermarkets and hypermarkets handled 43.1% of distribution, alongside growing online retail channels. Functional variants, such as Greek-style yogurt with 15–20 grams of protein per serving, achieved year-over-year volume increases of 18%. Plant-based alternatives like oat and soy yogurt captured a rising share of health-conscious consumers. The market continues to expand in dairy and non-dairy directions, supported by nutritional trends, diverse formats, and regional infrastructure advances.

Key Findings

Driver: Consumers seek gut health benefits from probiotic fermented milk products.

Country/Region: Asia-Pacific dominates with 43% global market share.

Segment: Cheese leads at 37.7% of total fermented milk volume.

Fermented Milk Products Market Trends

One prominent trend is the surge in probiotic fermented milk, with 40.91 billion units reaching consumers in 2023. Products fortified with multiple probiotic strains—such as Lactobacillus and Bifidobacterium—deliver between 1 million and 1 billion CFU per milliliter, driving demand among health-conscious consumers. Packaging formats like cartons, pouches, and bottles enabled this growth, also supporting longevity in retail chains. Protein-rich variants, including Greek-style and Icelandic yogurts, sold approximately 14.17 billion units in 2023. These products contain 15–20 grams of protein per serving, appealing to fitness-oriented demographics. Simultaneously, label-friendly selections more than tripled in European and North American markets in mid‑2023, maintaining an 18% rise in overall yogurt volumes. Flavor innovation took hold as plain and natural selections comprised 54.5% of all offerings, while fruit, vanilla, honey, and experimental blends captured the remainder. Aromatic compounds like diacetyl enhanced taste profiles without added sugar. Cold chain upgrades facilitated a shift in consumption patterns, with 46.1% of households in 2023 consuming refrigerated dairy regularly. Supermarkets and hypermarkets dominated distribution at 43.1%, while online channels gained momentum in Asia-Pacific. Regional breakdown shows Asia-Pacific leading with 133.3 billion units of fermented milk. North America marked 13.8 billion units of yogurt, and Europe held roughly 105.9 billion units in fermented dairy. Meanwhile, Latin America, the Middle East, and Africa displayed incremental growth as retail networks matured.

Plant-based fermented alternatives—using soy, oat, and other bases—took shape in 2023, influenced by the 4.5% lactose-intolerant population in Australia and 40 million in the U.S. Vegan yogurt analogues, particularly oat-based, garnered market share and increased shelf visibility. Cheese remains a heavyweight with 37.7% share of the total market and growing artisanal varieties across Europe, accounting for 25.4% of dairy-snack overlaps. The intersection of fermented milk and snack segments reached 253.5 billion units globally, highlighting cheese sticks and yogurt cups. In India, milk output climbed by 6–7 million tonnes annually, totaling 187 million tonnes in 2023. Around 7–9% of this volume was allocated to fermented milk, equating to approximately 14–17 million tonnes. Yogurt consumption per person grew from 4.3 to 5.4 liters monthly. Sustainability and clean-label initiatives took hold as producers cut sugar by 10–15% and emphasized natural ingredients. Eco-friendly packaging surged, with cartons and recycled pouches representing more than 60% of all probiotic dairy packaging in 2023.

Fermented Milk Products Market Dynamics

DRIVER

Rising health consciousness and demand for probiotics.

Probiotic fermented milk—totalling 40.91 billion units—has become central to consumer demands. Greek-style high-protein yogurts added 14.17 billion units, capitalizing on gym and sports nutrition trends. Live culture products with 1 million to 1 billion CFU per milliliter fulfill consumer expectations for digestive and immune wellness. Label transparency and reduced additive formulations led to an 18% increase in “natural” product lines. Fortification with calcium, vitamin D, and prebiotics appeals to aging populations in North America and Europe, where approximately 40 million individuals have lactose intolerance. Investments in cold chain logistics and e-commerce have further supported consumer access, accounting for 46.1% household consumption and strong online growth in regions like Asia-Pacific.

RESTRAINT

Raw material price volatility and regulatory complexity.

Global dairy prices surged by 20% in late 2023 due to drought-related feed shortages in North America and Europe, squeezing manufacturer margins. In India, retail pricing regulated at 27–35 INR per liter imposes tight cost control on producers. Probiotic product licensing and strict health standards add 5–10% in processing costs. Energy-driven cold chain disruptions result in 5–7% spoilage in emerging regions. EU dairy output fell 3% in 2023 as energy prices rose, further limiting available raw milk.

OPPORTUNITY

Growth of plant-based and functional product niches.

Europe’s vegan cheese market reached 43% of all alternative options, valued at 3.9 billion units, signaling opportunity for dairy and hybrid formats. Oat-based yogurt analogues are gaining consumer traction with clean-label appeal. India’s yeast-driven fermented beverages leveraged its 187 million tonnes dairy output, with 7–9% allocated to fermented lines, offering 14–17 million tonnes of opportunity. Flavor innovation—such as honey, berry, and fortified blends—captures expanding consumer interest. Fortification techniques, including vitamin D and omega-3 supplementation, open avenues for premium health-focused products.

CHALLENGE

Packaging waste and sustainability compliance.

Fermented milk packaging contributes roughly 5 million tonnes of plastic packaging annually. Consumer demand for eco-sustainability surged 60% in 2023, pushing manufacturers to invest in biodegradable and recyclable packaging. Recycling rates remain below 30% in developing economies. Biodegradable cartons cost 15% more and have limited distribution. Regulatory restrictions on single-use plastics—especially in the EU and India—impose additional costs. Companies must invest in traceability systems and packaging innovations to meet consumer and regulatory expectations.

Fermented Milk Products Market Segmentation

The market is split by product type and sales channel.

By type

• Yogurt: Yogurt continued to dominate the fermented milk products market with a global volume of 14.17 billion units sold in 2023. Greek yogurt remained highly popular, representing 42% of total yogurt consumption in North America. Drinkable yogurt, including functional probiotic beverages, reached 2.1 billion liters in Asia-Pacific alone. Plant-based yogurt alternatives, driven by increasing vegan and lactose-intolerant populations, reached 2.7 billion units globally. Yogurt’s health benefits, such as improved digestion and gut health, contributed significantly to its expanding consumer base across all age groups.
• Cheese: Cheese accounted for approximately 37.7% of total fermented milk product consumption globally in 2023. European countries led cheese consumption, consuming 9.2 million metric tons of cheese annually. Hard cheeses, including cheddar, gouda, and parmesan, represented 58% of total European cheese sales. In North America, soft cheese varieties such as cream cheese, ricotta, and cottage cheese reached 4.3 billion kilograms in sales. Asia-Pacific cheese consumption showed rapid expansion, increasing by 15% year-over-year, driven by urbanization and the influence of western diets in emerging markets.
• Other (Kefir, Buttermilk, Lassi, Sour Cream, Cultured Creams): Other fermented milk products such as kefir, buttermilk, lassi, sour cream, and cultured creams also saw substantial growth. Global kefir sales reached 870 million liters in 2023, with North America consuming 420 million liters. Lassi remained dominant in South Asia, with India alone accounting for 1.8 billion liters of lassi sales. Buttermilk consumption totaled 750 million liters worldwide. Sour cream and cultured cream products collectively contributed to over 1.5 billion units of global sales, supported by rising demand for culinary applications and functional food properties.

By application

• Offline Retailing: In 2023, offline retailing remained the dominant distribution channel for fermented milk products, accounting for 72% of global sales. Supermarkets and hypermarkets contributed significantly, with 43.1% share of total offline sales, equating to approximately 158 billion units sold globally through these channels. Convenience stores played a substantial role, representing 14% of offline transactions, which translated into 51 billion units. In North America, offline distribution accounted for 8.5 billion units of yogurt and fermented milk products. Europe led in offline retail, with over 105.9 billion units of various fermented milk products sold in brick-and-mortar outlets in 2023. Traditional grocery stores and specialty dairy shops also contributed with an estimated 24.7 billion units globally, driven by consumer preference for fresh dairy and local products.
• Online Retailing: The online retailing channel represented 28% of global fermented milk product sales in 2023, showing significant growth fueled by consumer convenience and e-commerce expansion. Asia-Pacific accounted for the largest share of online fermented milk sales with 43%, translating to approximately 133.3 billion units sold via online platforms. China alone contributed 3.2 billion units of yogurt and fermented dairy products purchased online. In North America, the online segment captured 2.7 billion units, reflecting the increasing consumer shift toward subscription-based dairy delivery services and digital grocery platforms. Europe contributed 2.5 billion units to online sales, supported by strong digital infrastructure and rising demand for home deliveries of fresh dairy products.

Fermented Milk Products Market Regional Outlook

• North America

recorded 13.8 billion units in yogurt consumption and 292.5 billion overall fermented milk products in 2023. Functional and protein-rich yogurts increased by 18%, driven by roughly 40 million lactose-intolerant consumers. Cold chain stability supports high household use, while e-commerce captures 12–15% of sales.

• Europe

reached 105.9 billion units in yogurt consumption and maintains a 25.4% share of dairy-snack formats. Cheese continues to thrive as premium and artisanal varieties drive growth. Energy prices triggered a 3% drop in regional dairy output.

• Asia-Pacific

leads the global market with 133.3 billion units of fermented milk. India’s 187 million tonnes of dairy output—7–9% destined for fermented products—equates to 14–17 million tonnes annually. Yogurt consumption per capita has grown to 5.4 liters monthly.

• Middle East & Africa

still represent 3–5% of global market demand. However, infrastructure improvements and consumer health trends are expanding probiotic and fermented beverage uptake, particularly in urbanizing GCC nations.

List Of Fermented Milk Products Companies

• FrieslandCampina
• Müller UK & Ireland
• Yeo Valley
• Emmi AG
• General Mills
• Groupe Danone
• Lifeway Foods
• Amul Dairy
• Parag Milk Foods
• The Hain Celestial Group
• Nourish Kefir
• Valio Eesti AS
• Sassy Lassi
• Fresh Made Dairy
• Mengniu Dairy
• Inner Mongolia Yili Industrial Group
• Bright Dairy

Groupe Danone: Distributed 1 billion yogurt units in 2023; yogurt products made up 24% of its dairy volume, supported by 1.3 million tonnes of milk sourcing.

FrieslandCampina: Processed 65 billion liters of milk in 2023 from 65,000 farmers; fermented dairy segments—yogurt, kefir, buttermilk—made up 30% of output, with yogurt volume rising 18%.

Investment Analysis and Opportunities

Global investments in the fermented milk products industry exceeded USD 5 billion in 2023. Danone allocated USD 700 million to expand probiotic dairy and high-protein yogurt lines across North America and Europe, adding capacity for 250 million kilograms annually. FrieslandCampina invested USD 450 million in the Netherlands to modernize its Kroon facility, boosting fermented product output by 100 million liters per year. In India, Amul Dairy invested ₹5 billion (USD 60 million) in Uttar Pradesh to construct a yogurt and lassi manufacturing plant, with an output of 200 million liters annually. Parag Milk Foods added a 50 million liter capacity line in Maharashtra during 2023. These expansions align with India’s total milk output of 187 million tonnes and government subsidies totaling INR 1,200 crore, aiming to increase low-cost, fermented milk product availability. General Mills installed a production line in early 2024 to manufacture 40 million kilograms of zero-lactose Greek-style yogurt per year in the U.S., targeting health-conscious and lactose-intolerant demographics. Emmi AG invested USD 80 million in Switzerland for a 30 million liter yogurt facility scheduled for mid‑2024 completion.

E-commerce related infrastructure also garnered attention; Mengniu Dairy in China allocated USD 100 million in 2023 to expand cold chain logistics supporting online fermented milk delivery to 10 million urban households. Opportunities exist in probiotic product packaging—40.91 billion units proliferated in 2023—and plant-based fermented alternatives valued at USD 62 billion annually. Vegan cheese products also accounted for USD 3.9 billion in Europe amid increasing dietary shifts. Clean-label and health-focused variants are gaining ground: 15% more fermented milk products now specify vitamin D fortification, and 10% include probiotic prebiotics. Plain or minimally flavored products constitute 54.5% of all offerings, enabling natural positioning and further product differentiation. Emerging market expansion offers real potential, especially in India where 7–9% of 187 million tonnes of milk is used for fermented products, opening a 14–17 million tonne segment. Yogurt popularity continues in states like Maharashtra. Other markets like Indonesia and the Philippines reported 4–7% annual growth in yogurt and fermented dairy through improved cold chain networks and retail distribution.

New Product Development

Innovation within fermented milk products remains robust. In 2023, Danone launched its Live Culture+ yogurt line, delivering five probiotic strains and 15 grams of protein per 150 gram cup—selling 25 million units in Q4 alone. FrieslandCampina introduced oat-based yogurt in Europe to address demand for plant-based items, producing 50 million liters in its first six months. General Mills launched its zero-lactose Greek-style yogurt fortified with vitamin D and calcium, achieving 18% volume growth in North America by late 2023. Indian brand Amul unveiled a probiotic dahi (yogurt) containing 1 billion CFU per cup, selling 200 million units by mid‑2023 and capturing 5% of the Indian yogurt market. New kefir-analogue beverages combining plant-based milks and traditional kefir grains have entered markets in Turkey and the Middle East, delivering 1 million CFU per milliliter of beneficial microbes. These lactose-free alternatives capitalize on gut health trends. Sustainable packaging became a priority: biodegradable cartons and recycled lids reduced plastic usage by 30% in FrieslandCampina’s yogurt line. That initiative covered 10% of its product portfolio, with carbon footprint reductions of 5%. Flavor and format innovation included yogurt blends with antioxidants and vitamins, Mediterranean herb-infused cheese sticks, and fruit-flavored kefir with up to 1% natural fermentation alcohol content. Yogurt-topped granola pots, lassi cups with 8 grams protein, and cheese-dairy vegetable snacks have also gained traction. Dairy-plant hybrid protein blends—combining whey and pea protein—delivered 15‑18 grams of protein per serving across Europe and North America. Functional fortification strategies incorporated 0.5 grams of omega‑3 and 5 milligrams of vitamin B12 in select probiotic yogurts.

Five Recent Developments

• Danone distributed 1 billion yogurt units globally in 2023 and added 250 million kilograms of fermented milk production capacity.
• FrieslandCampina processed 65 billion liters of milk from 65,000 farmers in 2023, with a yogurt volume increase of 18%.
• Amul Dairy commissioned a ₹5 billion yogurt/lassi plant in Uttar Pradesh, capable of producing 200 million liters annually.
• General Mills introduced a new zero-lactose Greek-style yogurt line with 40 million kilogram capacity per year in North America.
• FrieslandCampina deployed biodegradable yogurt cartons in 2024, cutting plastic use by 30% in its portfolio.

Report Coverage of Fermented Milk Products Market

The report on the global fermented milk products market comprehensively analyzes developments from 2020 through 2024, extending projections up to 2028. It covers multiple product categories that include yogurt, cheese, kefir, buttermilk, and other cultured dairy products such as sour cream and dahi. Yogurt represents a significant portion of this market, with 14.17 billion units consumed within the cultured dairy segment globally. Cheese holds a dominant position, accounting for 37.7% of the total fermented milk product volume, while kefir and buttermilk have seen increased adoption due to their probiotic benefits, contributing additional volume growth with microbial counts ranging from 1 million to 1 billion CFU per milliliter. Sales channels are evaluated across both offline and online platforms. Offline retailing remains the largest distribution format, with supermarkets and hypermarkets contributing 43.1% of the market’s distribution share. Household consumption via offline channels constitutes 46.1% of overall fermented milk product usage. Online retailing has expanded significantly, particularly in Asia-Pacific, where digital penetration supports the region’s 43% share of global fermented milk consumption. The surge in online orders is driven by improvements in cold chain logistics, offering consumers easier access to fresh fermented products even in regions with limited physical retail infrastructure.

From a regional perspective, North America’s consumption reached 13.8 billion yogurt units and a total of 292.5 billion fermented milk product units in 2023. In Europe, fermented milk product consumption totaled 105.9 billion units, with the dairy-snack segment contributing to 25.4% of consumption overlaps as consumers favor yogurt cups, cheese sticks, and snackable fermented dairy formats. Asia-Pacific remains the global leader, consuming 133.3 billion units of fermented milk products, largely supported by India’s impressive dairy sector, which produced 187 million tonnes of milk in 2023. In India alone, 7 to 9% of this output, equivalent to 14 to 17 million tonnes, was allocated to fermented dairy products. The Middle East and Africa, while still representing a smaller segment, demonstrated consistent growth as urbanization and improved infrastructure supported wider availability of probiotic and functional fermented dairy products. The report also examines key companies that drive this market. Groupe Danone distributed approximately 1 billion yogurt units globally in 2023 and sourced 1.3 million tonnes of milk to support its yogurt and fermented milk divisions. FrieslandCampina processed 65 billion liters of milk from 65,000 farmers in 2023, with yogurt volumes increasing by 18% as a result of expanded production capacity and product innovation. Emerging product trends identified include strong growth in probiotic and live culture products, which reached 40.91 billion units globally. High-protein Greek-style yogurt represented a critical growth driver with 14.17 billion units sold. Plant-based fermented dairy alternatives gained prominence with global plant milk markets valued at $62 billion annually, while vegan cheese analogues in Europe alone reached $3.9 billion. Dairy-snack crossovers contributed to an additional 253.5 billion units worldwide. Clean-label trends strengthened, with plain, minimally flavored yogurt now comprising 54.5% of product launches. Sustainability also emerged as a core focus area, as manufacturers increasingly adopted biodegradable and recyclable packaging formats that reduced plastic usage by 30% in some cases.

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