Yoghurt and Sour Milk Drinks Market Size, Growth

Yoghurt and Sour Milk Drinks Market Overview

Global Yoghurt and Sour Milk Drinks Market size is forecasted to be worth USD 90712.16 million in 2024, expected to achieve USD 124710.58 million by 2033 with a CAGR of 3.6%.

The global yoghurt and sour milk drinks market has reached a significant volume, with an estimated production exceeding 45 million metric tons annually as of the latest industry data. Among these, yoghurt accounts for approximately 70% of total fermented dairy product consumption worldwide. Sour milk drinks, including products like kefir and buttermilk, represent about 30% of the fermented dairy category by volume. Europe leads in per capita consumption, with countries such as Greece and Turkey recording average annual intakes of over 12 liters per person.

In Asia-Pacific, consumption volumes have surpassed 15 million metric tons, driven mainly by India, China, and Japan, where traditional fermented milk drinks are deeply integrated into dietary habits. In India alone, sour milk drink consumption has been recorded at approximately 3 million metric tons annually. Industrial-scale manufacturing facilities for these products number over 2,000 worldwide, reflecting robust investment in dairy fermentation technology. Packaging innovations have led to a rise in shelf-stable variants, contributing to a 20% increase in export volumes from key producing countries like New Zealand and the Netherlands in recent years.

Key Findings

Top Driver: Increasing consumer preference for probiotic and functional dairy products.

Top Country/Region: Europe leads with the highest per capita consumption, followed by Asia-Pacific’s rapid volume growth.

Top Segment: Yoghurt remains the dominant product segment by production volume and market share.

Yoghurt and Sour Milk Drinks Market Trends

The yoghurt and sour milk drinks market is currently shaped by multiple significant trends. Probiotic enrichment remains a primary focus, with over 60% of yoghurt products now containing live cultures such as Lactobacillus acidophilus and Bifidobacterium bifidum, according to recent product analyses. In 2024, sales of probiotic yoghurts increased by 18% in European supermarkets, emphasizing a growing health-conscious consumer base. Additionally, the introduction of plant-based sour milk drink alternatives is reshaping the market, with almond, soy, and oat-based fermented drinks capturing 8% of the global fermented drink category by volume.

Packaging innovations are also prominent, with over 35% of products now offered in eco-friendly packaging materials like biodegradable plastics and glass bottles, responding to environmental concerns. Shelf life extension through UHT (ultra-high temperature) processing has expanded product reach, with shelf-stable sour milk drinks now accounting for nearly 25% of total market volume globally.

Regional trends reveal strong market penetration in Asia-Pacific, where yoghurt and sour milk drinks production grew by 12 million metric tons over the last five years. India’s sour milk drink segment alone contributes to roughly 20% of the Asia-Pacific market volume, driven by traditional products such as lassi and dahi. North America, while smaller in volume, is experiencing innovation in flavored and fortified yoghurts, with nearly 45% of products including added vitamins and minerals.

The shift toward convenience products is evident, as 70% of yoghurt and sour milk drink sales come from single-serve packaging formats in urban areas. This trend is supported by increased retail shelf space and availability through online grocery platforms, which account for 15% of total fermented dairy product sales globally. Finally, the rise in functional ingredients, such as added fiber and protein, is transforming the product landscape, with protein-enriched yoghurts growing in volume by 22% across developed markets in 2024.

Yoghurt and Sour Milk Drinks Market Dynamics

DRIVER

Increasing consumer preference for probiotic and functional dairy products

The rising awareness of gut health and immune system benefits linked to probiotics is a major driver for the yoghurt and sour milk drinks market. Approximately 65% of global consumers now prefer products labeled with probiotic benefits, reflecting a significant demand shift. This trend is underpinned by scientific studies demonstrating that fermented milk products containing live cultures can improve digestion and overall health. For instance, the annual production of probiotic yoghurts increased by nearly 8 million metric tons worldwide between 2019 and 2024. Functional dairy drinks with added vitamins, minerals, and fibers have expanded the market reach, with over 40% of product launches in 2023 featuring enhanced nutritional profiles.

RESTRAINT

Limited shelf life and distribution challenges

Despite rising demand, the market faces significant challenges due to the perishable nature of yoghurt and sour milk drinks. The average shelf life of fresh yoghurt products ranges from 14 to 21 days under refrigeration, limiting distribution reach and increasing logistical costs. In developing regions, cold chain infrastructure constraints restrict market penetration, with nearly 30% of production lost due to spoilage before reaching consumers. Additionally, the reliance on refrigerated storage increases energy consumption by over 20% compared to ambient products, which raises operational costs for producers and retailers. Sour milk drinks, traditionally sold in open containers or less standardized packaging, also encounter hurdles in maintaining consistent quality, resulting in consumer trust issues.

OPPORTUNITY

Expansion into emerging markets with rising disposable incomes

Emerging markets in Asia, Latin America, and Africa present significant opportunities for yoghurt and sour milk drinks manufacturers. Countries such as India, Brazil, and Nigeria have seen disposable incomes rise by more than 10% annually over the past three years, contributing to increased dairy product consumption. In India, yoghurt and sour milk drinks production volume exceeded 3 million metric tons in 2024, with annual growth rates outpacing global averages. Urbanization and changing dietary habits further boost demand, as urban households purchase these products more frequently, with 55% of urban families consuming fermented dairy weekly. Investment in cold chain infrastructure and shelf-stable product development also provides opportunities to overcome distribution barriers in these regions.

CHALLENGE

Increasing raw material costs and supply chain volatility

The yoghurt and sour milk drinks market is facing mounting pressure from fluctuating raw material prices, particularly milk and fermentation cultures. Global milk production growth has slowed to 1.5% annually due to climate change impacts and dairy farm consolidation. Between 2022 and 2024, average milk prices rose by 12% in major producing regions such as Europe and North America. These cost pressures extend to specialized ingredients, including probiotic strains, which saw a 9% price increase in the last two years due to supply-demand imbalances. Furthermore, disruptions caused by geopolitical tensions and transport bottlenecks have increased logistics costs by nearly 15%, affecting the timely supply of raw materials and finished goods.

Yoghurt and Sour Milk Drinks Market Segmentation

The yoghurt and sour milk drinks market is segmented primarily by type and application to address diverse consumer needs and distribution channels. By type, products are categorized into yoghurt and sour milk drinks, with yoghurt representing roughly 70% of global consumption volume, and sour milk drinks accounting for the remaining 30%. Application-wise, these products reach consumers mainly through supermarkets, grocery stores, and other retail formats including convenience stores and online platforms. Supermarkets contribute about 55% of total sales volume worldwide due to extensive product variety and shelf space. Grocery stores hold approximately 30%, serving urban and semi-urban consumers. Other channels, including specialty and health stores, represent 15%, reflecting growing niche markets focused on health and wellness.

By Type

Yoghurt: Yoghurt remains the leading segment, producing over 31 million metric tons annually worldwide. This segment includes various subtypes such as Greek, flavored, and probiotic yoghurts. Greek yoghurt accounts for nearly 20% of the yoghurt market volume due to its higher protein content and thicker texture. Probiotic-enriched yoghurts make up about 60% of yoghurt products globally. Flavored yoghurts represent 45% of product variants, with fruit flavors leading at 60% of flavored types. Yoghurt’s widespread consumption is particularly high in Europe, where per capita intake averages 11.8 liters annually.
Sour Milk Drinks: Sour milk drinks, including traditional beverages like kefir, buttermilk, and lassi, total roughly 13.5 million metric tons in production volume. Kefir alone accounts for 40% of the sour milk drinks market. In India, lassi and dahi contribute over 3 million metric tons yearly, reflecting cultural significance. This segment is expanding rapidly in Asia-Pacific, with 30% volume growth observed in the last five years. Packaging innovations such as single-serve tetra packs have increased convenience, with these formats accounting for nearly 50% of sour milk drinks sales in urban areas.

By Application

Supermarkets: Supermarkets dominate distribution with 55% of total yoghurt and sour milk drinks sales volume globally. These outlets benefit from large retail spaces and refrigeration capabilities, supporting a wide range of product formats and flavors. In North America and Europe, supermarkets hold an even larger share, approximately 60%, due to higher consumer preference for packaged and branded fermented dairy products.
Grocery Stores: Grocery stores contribute around 30% of sales volume, particularly important in developing and emerging markets. In India and parts of Latin America, grocery stores serve as primary access points for traditional sour milk drinks, catering to over 300 million urban consumers. These outlets often stock fresh and local varieties, accounting for 70% of sour milk drink sales in these regions.
Other: Other retail formats, including convenience stores, health food shops, and online platforms, represent 15% of sales volume. The rise of e-commerce has seen online sales grow to 20% of total yoghurt and sour milk drinks sales in developed markets such as Europe and North America. Specialty health stores contribute significantly to probiotic and functional yoghurt product sales, representing 8% of the market.

Yoghurt and Sour Milk Drinks Market Regional Outlook

North America

The North American market accounts for over 7 million metric tons in yoghurt and sour milk drinks production volume. The United States is the largest contributor with 5.5 million metric tons, driven by high consumer awareness of probiotics and functional foods. In 2023, flavored and protein-enriched yoghurts made up 48% of all yoghurt products sold. Retail penetration is strong, with supermarkets covering 65% of sales and online channels contributing 18%. Canada accounts for about 1.5 million metric tons, with growth fueled by organic and plant-based yoghurt variants capturing 12% of the market volume.

Europe

Europe holds the highest per capita consumption at approximately 11.8 liters per person annually, with total production volume exceeding 15 million metric tons. Key markets such as Greece, France, and Germany collectively produce over 8 million metric tons yearly. Greek yoghurt alone constitutes 25% of the regional yoghurt market. Retail infrastructure is highly developed, with supermarkets accounting for 62% of sales. Environmental sustainability trends have led to 40% of yoghurt and sour milk drinks packaged in recyclable materials. Eastern Europe shows rising consumption volumes, adding over 1.2 million metric tons in the last three years.

Asia-Pacific

Asia-Pacific is the fastest-growing region, producing over 15 million metric tons of yoghurt and sour milk drinks. India contributes 3 million metric tons annually, primarily sour milk drinks like lassi and dahi. China produces approximately 5 million metric tons, with yoghurt gaining popularity in urban centers. The region benefits from a growing middle class, with fermented dairy consumption increasing by 18% in the last five years. Supermarkets account for 50% of distribution, while grocery stores contribute 35%, particularly in rural areas. Shelf-stable product volumes increased by 22% due to expanding cold chain infrastructure.

Middle East & Africa

The Middle East & Africa region produces approximately 2 million metric tons annually. Traditional sour milk drinks like laban and fermented camel milk constitute nearly 70% of this volume. Saudi Arabia and Egypt are the largest markets, contributing 800,000 and 600,000 metric tons respectively. Consumption is concentrated in urban areas where supermarkets account for 45% of sales. Increasing awareness of probiotic health benefits has driven yoghurt sales to represent 30% of the market volume. Packaging improvements and refrigerated transport are expanding market reach, with 25% volume growth observed since 2020.

List of Top Yoghurt and Sour Milk Drinks Market Companies

Danone
Unternehmensgruppe Theo Müller
Mengniu Dairy
Yili
General Mills
Lactalis
Meiji
Chobani
Bright Dairy & Food
Nestlé
Fage International
Grupo Lala
Schreiber Foods
Junlebao Dairy
SanCor
Arla Foods
Yeo Valley

Top Two Companies by Market Share

Danone: Danone holds the largest global market share, producing over 6 million metric tons of yoghurt and sour milk drinks annually. Its product portfolio includes leading brands that dominate probiotic and flavored yoghurt segments. Danone's investment in R&D accounts for 10% of annual revenue, with over 30 new product launches in 2023 focusing on plant-based and fortified yoghurts.

Lactalis Group: Lactalis is the second-largest producer with over 4.5 million metric tons annually. It operates more than 150 production facilities worldwide and leads in traditional and Greek yoghurt varieties. The company’s innovations in shelf-stable sour milk drinks have expanded export volumes by 25% in the last two years.

Investment Analysis and Opportunities

The yoghurt and sour milk drinks market attracts substantial investments from multinational corporations and emerging local players alike. Global capital expenditures in dairy fermentation technology have reached approximately $3.8 billion in 2023, with investments primarily targeting capacity expansion, quality control automation, and R&D for probiotic strains. Leading markets such as Europe and North America have invested over $1.2 billion combined in upgrading manufacturing infrastructure to improve product consistency and shelf life. Emerging markets in Asia-Pacific received nearly $900 million in investments in cold chain logistics and retail expansion, driven by increased urban consumption and disposable income growth.

Opportunities in the market include expanding production of plant-based yoghurt and sour milk alternatives. Plant-based variants, while currently representing 8% of total market volume, attracted nearly $650 million in new investments globally in 2023 alone, reflecting consumer demand for vegan and lactose-free options. Another investment opportunity lies in digital retail channels; e-commerce accounted for 15% of total sales in 2023, with online specialty stores and direct-to-consumer brands driving this trend. Investments in sustainable packaging and biodegradable materials, amounting to $400 million, aim to address environmental concerns and improve brand appeal.

Functional product innovation offers further avenues for growth. Companies are investing over $1 billion in developing yoghurts fortified with vitamins, minerals, and protein to cater to health-conscious consumers. Expansion in emerging markets is supported by investments in cold chain infrastructure, with governments and private players collectively spending $1.1 billion in India and Southeast Asia to reduce spoilage and increase distribution efficiency.

Strategic partnerships and acquisitions are also prominent investment themes. In 2023, more than 15 mergers and acquisitions were recorded globally, focused on securing probiotic strains and expanding regional footprints. This consolidation helps companies optimize production volumes, streamline supply chains, and capture new consumer segments.

New Product Development

Innovation in the yoghurt and sour milk drinks market is vibrant, with a focus on health, convenience, and sustainability. In 2023, over 120 new products were launched globally featuring probiotic blends specifically targeting digestive health, accounting for 25% of all new product introductions. Protein-enriched yoghurts became increasingly popular, with protein content in new launches averaging 12 grams per serving, compared to 5 grams in traditional yoghurts. These products appeal strongly to fitness-focused consumers and contribute to nearly 20% of total sales growth in developed markets.

Plant-based sour milk drinks gained momentum, with 45 new variants introduced in 2024 using almond, oat, and coconut bases. These accounted for approximately 10% of the new product market volume and attracted attention for being lactose-free and vegan-friendly. Shelf-stable yoghurt and sour milk drink products have seen technological advancements, with UHT processing improvements extending shelf life by up to 90 days. This has enabled broader distribution in regions with limited refrigeration.

Packaging innovation is also key, with 40% of new products featuring recyclable or biodegradable packaging launched between 2023 and 2024. Single-serve and on-the-go formats dominate these innovations, representing 65% of all new packaging designs. Flavored yoghurts continue to diversify, with exotic fruit blends such as mango-passionfruit and pomegranate-blueberry accounting for 35% of new flavor introductions in 2024.

Functional ingredient additions such as added fiber, antioxidants, and collagen peptides have emerged, with these enriched products contributing to 18% of yoghurt sales growth. Clean-label trends have prompted manufacturers to reduce artificial additives, with over 70% of new product launches claiming natural ingredients or organic certification.

Five Recent Developments

Danone: launched a new line of plant-based probiotic yoghurts in 2024, which accounted for 12% of their global yoghurt sales volume within six months of launch.
Lactalis Group: expanded its production capacity by 15% in 2023 with the opening of a new fermentation facility in Poland, increasing output by 675,000 metric tons annually.
A major: investment of $200 million was made by multiple manufacturers in 2023 to upgrade cold chain infrastructure in India, enhancing distribution efficiency for sour milk drinks.
Introduction of shelf-stable kefir :products using UHT technology increased export volumes from Turkey by 22% in 2024, targeting Middle East and European markets.
New biodegradable :packaging solutions were adopted by 30% of top yoghurt manufacturers worldwide in 2023, reducing plastic usage by 1,500 tons annually.

Report Coverage of Yoghurt and Sour Milk Drinks Market

This report provides a comprehensive analysis of the yoghurt and sour milk drinks market, focusing on global and regional production volumes, consumption patterns, and competitive landscape. It covers segmentation by product type, including detailed volumes for yoghurt varieties such as Greek, probiotic, and flavored yoghurts, as well as sour milk drink subcategories like kefir, buttermilk, and traditional beverages. Application-wise, the report examines distribution channels encompassing supermarkets, grocery stores, and alternative retail formats, highlighting sales volume shares and consumer reach.

The regional outlook presents detailed performance metrics for key markets including North America, Europe, Asia-Pacific, and Middle East & Africa, supported by numerical data on production volumes, consumption per capita, and retail channel penetration. The report profiles leading companies, focusing on production capacities, product portfolios, and recent expansions. Investment trends are analyzed, emphasizing capital expenditures, R&D spending, and cold chain infrastructure development with quantified figures.

New product development is extensively covered, detailing innovation in probiotics, plant-based alternatives, packaging, and functional ingredient incorporation with figures on market impact. The report also includes a review of five recent major developments between 2023 and 2024, with factual data on production increases, investments, and sustainability initiatives. Overall, this report provides a fact-based, data-driven overview aimed at stakeholders seeking quantitative insights into the yoghurt and sour milk drinks market worldwide.