Global Sour Milk Drinks Market - Segmented by Distribution Channel and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global Sour Milk Drinks market is expected to reach USD 4,895 million by 2023 registering a healthy CAGR during the forecast period. Sour Milk Drinks are fermented dairy beverage, which is made from lactic acid bacterial culture to sweet milk. Sour milk market includes packaged fermented milk products, such as, Kefir, Lassi, Ayran, Doogh, Laban, buttermilk, and whey drinks. Sour milk drink sale surpassed 2,938 million Kg in 2017 and are expected to gain retail market share owing to increased consumer preference for healthier drinks.
Europe continues to dominate the market with a volume share of 49% globally, owing to high traditional style sour milk consumption. However, the retail growth of sour milk in Europe has registered a stagnant growth over the forecast period. Sour milk has faced a stiff competition from convenient and healthy food in North America recorded a volume CAGR of 1%, during 2015-2018.
Functional along with convenience Continue to Drive
Sour milk drinks are considered as healthier beverage options compared to soft drinks, which have attracted consumer demand. The concept of snacking has changed, as consumers are more looking for healthier beverages for refreshments. Bioactive components, flavor, nutritional value, and convenience are the various factors accelerating the demand for sour milk drinks. Digestive wellness associated with fermented dairy beverages is another primary factor driving sales. Functional products have better-for-you claim, which is apparent in a dairy where manufacturers have low-profit margin due to commodity prices. Adding convenience to the functional dairy beverage into flexible, smaller pack provides significant profit margin. For instance, Dairy gain in India, Amul has introduced Amul Masti buttermilk multipack of 200 ml (five in one pack) for convenience, that offer high profit margin compared to the 1 litre pack. Fermented dairy market is growing at a faster rate in Asia-Pacifc and North America.
Kefir: Sour Milk Giant
Europe is the dominant consumer of kefir owing to increased consumption of yogurt-like fermented dairy beverages. The product launches featuring Kefir is growing at a faster rate globally. In US, alone, Kefir accounts for 40% of the total fermented beverages launched in 2016. In addition, globally Kefir products launched accounts for 8% of the total fermented beverages/yogurt introduction in 2016. Kefir contains larger number of bacterial culture and low lactose than yogurt. The inherent nutritional benefits created a point of difference from traditional yogurt-based fermented beverages has boosted sale.
Supermarkets and Hypermarkets account for more than 50% of the distribution sale of sour milk drinks. Increased launch from the private label has created a tough competition for existing players. Lifeway Foods, which is one of the major players in Kefir market has started offering private label products owing to customers demand. The company has signed an agreement with Food Lion, a new supermarket customer that has 1,200 locations in the Southeast and also gained entry into Ireland with 140 stores across two major retailers.