Asia-Pacific sour milk drinks market is projected to grow, witnessing a CAGR of 5.82% during the forecast period (2020 - 2025).
- Sour milk drinks are the traditional fermented dairy beverage in Asia-Pacific, which is consumed on a regular basis among the household. It is considered healthier beverage options compared to soft drinks, which have attracted consumer demand.
- Consumer preference for varied flavors such as fruit flavor mixed with sour milk is quite popular in the region. Bioactive components, flavor, nutritional value, and convenience are the various factors accelerating the demand for sour milk drinks across Asia-Pacific.
- The sour milk market includes packaged fermented milk products, such as Kefir, Lassi, Ayran, Doogh, Laban, buttermilk, and whey drinks. Notably, India accounts for a suitable market share in the region owing to the high popularity of buttermilk, and chaas/lassi in the country.
Key Market Trends
Surge in Innovation and Packaging of Sour Milk Drinks
Bulk packaging often struggles for profit as compared to small packs and is inconvenient. Adding convenience to the functional dairy beverage through a flexible, smaller pack provides a significant profit margin to companies. For instance, the Indian dairy giant, Amul introduced Amul Masti buttermilk multipack of 200 ml (five in one pack) for convenience to its consumers and higher profit margins to the company. Moreover, probiotic drinking yogurt saw a trend towards small bottles during the review period and is likely to expand in the coming years. Increased new product launch from the private label has created a tough competition for existing players.
India Holding a Significant Share in The Market
As health and wellness continue to permeate the snacking category, the focus on children’s nutrition is continuing to make a more pronounced presence in India. This has been particularly fruitful across the healthy beverage segment. Lassi continued to witness strong demand due to its popularity in the northern part of India and is consumed mainly in the summer season. Lassi is a good refreshment to beat the sun as well as has multiple health benefits such as aiding the digestive system, improving bone health among others. Karnataka Cooperative Milk Producers Federation and Gujarat Co-operative Milk Marketing Federation are the two leading players in the sour milk drinks market in India.
The Asia-Pacific Sour Milk Drinks market is competitive with various domestic brands competing for market share. New product offerings with exotic flavors and convenient packing are the primary strategy adopted by the key players. The major players include Yili Group, Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), Nestle SA, Meiji Holdings Co., Ltd., Danone S.A., Mother Dairy Fruit & Vegetable Pvt Ltd., and others.
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