South America Yogurt Market - Growth, Trends and Forecasts (2018 - 2023)
South America yogurt market is expected to register a CAGR of 5.45% during the forecast period, 2018 to 2023. The growth in South American yogurt market is driven by rising health-conscious demand, the impact of cost pressures on prices and manufacturer’s value-adding innovation. Sales through modern retail formats has increased significantly, but at present there is a recovery or marginal increase in dairy sales through traditional stores and smaller supermarkets, suggesting that the traditional retailing channel can exist alongside larger stores. Smaller retail format is still the main channel for general foods, including dairy, especially dairy products with short shelf-life. There are a considerable number of processing companies in South American yogurt industry, who are now focusing on sugar free and fat free yogurt products.
Rising Consumer’s Awareness Regarding Health Benefits of Probiotics
The increase in health-consciousness among consumers has led to a shift in eating preference, mostly toward healthy, minimally processed and nutritious food products. The nutritional profile of yoghurt is what drives health conscious consumers to opt for yoghurt over other processed alternatives. Greek yogurt is a good option among the other dairy products, especially for consumers who have slight lactose intolerance, since in the production process, much of the lactose is removed from the yogurt. The growth in demand for probiotics is attributed to the rising awareness among consumers of yogurt in South America regarding its numerous health benefits. Consumer preference for frozen yogurt is on a rise.
Fat Free Yogurt is Gaining Popularity
Regular yogurt holds the largest share in South America yogurt market. However, fat-free yogurt is expected to see a faster growth, owing to rising health consciousness among consumers supporting its demand. Regular yogurt is a popular category, owing to its low price and widespread availability. Regular yogurts are readily available in both online and offline retail outlets. According to a recent survey, about 45% of consumers picked breakfast as the time of day they usually consume regular yogurt products. The flavor and texture are major reasons for the consumer demand for regular yogurt.
By form, Greek yogurt holds the highest share. The demand for Greek yogurt, which holds about more than half of the share in the total market, is expected to rise as it contains few carbohydrates and fats and is high in protein content.
Brazil Dominates the Market
Brazilian economy has been stabilized in the past few years, which gives a huge opportunity in dairy market, by increasing the per capita consumption. The growth in the forecast period is driven by rising health-conscious demand, the impact of cost pressures on prices and manufacturer’s value-adding innovation. There have been interesting growth and development in dairy categories and sub-products in Argentina, where milk caramel and yogurts are the most important, especially the latter, has duplicated its production and consumption rates in the last decade.Major PLAYERS: CHOBANI INC., DMK DEUTSCHES MILCHLONTOR, FAGE, FONTERRA, GENERAL MILLS, GROUPE DANONE, GRUPO ALPURA, KRAFT FOODS GROUP, NESTLE, SCHREIBER FOODS, THE DANONE COMPANY, ULTIMA FOODS INC, YAKULT HONSHA CO., LTD., YEO VALLEY and YOPLAIT, amongst others.