Global drinkable yogurt market is growing at a CAGR of 4.8% during the forecast period (2020-2025).
- The market is mainly driven by the rising demand for probiotic foods and healthier snacking food products among health-conscious consumers including both adults and children. Also, recent launches of formulated functional products with new flavors have further fueled the global market, such as drinkable yogurt fortified with omega 3, collagen, aloe vera, plant sterols, and soy isoflavones. For instance, Morinaga Nutritional Foods Inc. launched a low-fat Japanese-style yogurt drink under its popular Alove brand in three flavors- original aloe vera, strawberry banana and coconut in March 2018. Also, new drinkable yogurt flavor, such as the savory flavor of vegetables- carrots, beetroot, and tomatoes, have become popular among consumers. In addition, consumers are seeking more healthier and natural ingredients in drinkable yogurts, such as stevia, instead of bulk sweeteners, to reduce calories.
- However, the major challenge in this sector is the regulations claimed by the regulatory bodies, for instance, the U.S. Department of Agriculture recommends limiting the yogurt drinks to 3 cups per day, which includes not just yogurt but any milk, cheese or other dairy products.
Key Market Trends
Rising demand for probiotic foods and supplements
The probiotic foods are mainly driven by the robust demand for health-based products, among consumers, as probiotics are a part of functional foods and beverages, and are known for improving gut functionality, along with other benefits, including immunity boost and so on. Therefore, yogurt is one of the highest consumed probiotic food products, its market has been witnessed with a significantly increasing trend. Also, with the increasing internet penetration, the online market for the purchase of food items including probiotic foods and supplements has seen rapid growth globally in the last 3-4 years. This category has attracted a few vertical specialists like Amazon, Walmart, Carrefour, etc. who are riding on increasing e-retailing growth and vying for a significant pie in online yogurt space.
Asia Pacific region to the drive the global drinkable yogurt market
Asia-Pacific is the dominant market for drinkable yogurt, driven by the consumer awareness of probiotic products and supported regulatory environment. The region accounts for a market share of 40%, globally. Drinkable yogurt sales started in Japan with the introduction of Yakult in 1935. The supported FOSHU (Foods for Specified Health Uses) regulation in Japan has driven the market. China and India are the fastest-growing markets, in Asia, driven by changing lifestyles, rising income among the young population, and growing health concerns among consumers. Trust among foreign brands has increased significantly, which has encouraged companies to launch new flavors in the market.
The global drinkable yogurt market is highly competitive in nature having a large number of domestic and multinational players competing for market share and with innovation in products being a major strategic approach adopted by leading players. Additionally, merger, expansion, acquisition, and partnership with other companies are the common strategies to enhance the company presence and boost the market. For instance, in March 2018, Archway Food Group, with its brand Pillars, introduced drinkable Greek yogurt which contains probiotic live cultures as well as prebiotic fiber that boosts digestive health and is made up of stevia and non-GMO grass-fed cow milk that supports the natural claim.
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