According to a new report published by AkVis Intelligence, titled, “Fermented Milk Market by Type, Form, Application, End-users, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the Global Fermented Milk market size was valued at USD 53.38 billion in 2023, and is projected to reach USD 111.62 billion by 2032, registering a CAGR of 8.54% from 2024 to 2032. Fermented milk is a type of dairy item that has been through the fermentation process, during which good bacteria change lactose into lactic acid. This procedure adds a sour taste and alters the consistency of cultured milk.

The market expansion has been fuelled by the rising awareness about the health benefits of fermented milk. These products are recognized for their possible positive effects on health, such as better digestion and being a reliable source of probiotics.

Probiotic-rich fermented dairy products offer a range of health benefits. These helpful probiotics promote intestinal health, assist with digestion, and enhance the immune system. As individuals focus more on their health, the popularity of these fermented milk products rich in probiotics has gone up. The process of fermentation can enhance the availability of nutrients like vitamins, minerals, and proteins, making them more readily absorbed and utilized by the body. The benefits of probiotics, enhancements in digestive health, nutritional content, and compatibility with current healthy living trends.

Consumers are more and more looking for food options that are healthy and convenient to suit their hectic schedules. Innovations in packaging like single-serving sachets or containers that are portable make consumption easier. Innovations in packaging, such as eco-friendly materials, recyclable containers, and reusable packaging options, provide environmentally-conscious alternatives for customers. Incorporating superfoods like chia seeds or goji berries into fermented dairy products, such as yogurt or smoothies, boosts their nutritional content and aligns with the latest wellness fads.

As people become more aware of the environmental impact of animal farming, they may opt for plant-based alternatives due to ethical and sustainability reasons, which presents a challenge for the fermented milk industry. Some people choose to follow plant-based diets for health reasons, as they believe they offer more benefits than dairy products. Even though fermented dairy products provide multiple health benefits, such as probiotics and essential nutrients. This decision can impact the request for traditional fermented dairy items. To remain competitive and address the growing demand for vegan products, the fermented milk industry could broaden its product offerings by introducing more plant-based alternatives such as soy yogurt, almond yogurt, and coconut kefir.

Global Fermented Milk Market, Segmentation

The Fermented Milk market is segmented based on Type, Form, Application, End-users, Distribution Channel, and region.

Application:

Consuming fermented milk products directly as a snack or meal offers consumers convenience and versatility as they can be enjoyed on their own or incorporated into a meal. Yogurt's popularity and relationship with the culture as a snack or healthy food choice contribute to making the direct consumption segment the main player.

Fermented dairy items like yogurt, lassi, and buttermilk are ready to eat without the need for additional cooking or preparation. This makes them a quick and convenient option for individuals with hectic schedules. These items can be mixed into smoothies or incorporated into various recipes. Fermented dairy products provide a distinct tanginess and creamy texture. Mixing these products with fruits, honey, or other ingredients creates a delightful flavour and consistency.

Distribution Channel:

Retail stores provide consumers with convenient access to a variety of fermented dairy products, allowing them to easily purchase their favourite brands or try out new ones at nearby grocery stores. Retail establishments can connect with and showcase their products to a broad consumer base on a more extensive level. The presence of fermented milk products in retail stores exposes them to consumers who may not be actively seeking them out. This leads to a higher chance of discovering new products and trying them out, which contributes to the success of retail stores.

The retail stores promise consistent availability and product quality. A robust and efficient supply chain network can boost the growth of the fermented milk industry. Retail stores utilize different marketing tactics like in-store presentations, showcasing product features, and offering discounts to attract customers. These activities are particularly effective in enhancing consumer understanding and testing products.

Region:

Asia Pacific is home to the largest population globally that looks for convenient and healthy food options. Yogurt is a popular food in countries like India, Japan, and South Korea, which helps to establish a strong market presence in the region. The rise in consciousness and evolving consumer tastes for health and wellness caused a growth in the healthy food industry. Fermented dairy items are recognized for their probiotic qualities, promoting digestive well-being, and providing a variety of nutrients, making them a great option for individuals interested in health trends. The retail and e-commerce system in the Asia Pacific area ensured fermented milk and its products were readily accessible.

Some of The Active Market Players Are-

• • Danone (France)
  • Nestle (Switzerland)
  • Yakult Honsha Co., Ltd. (Japan)
  • Lactalis (France)
  • General Mills (United States)
  • Chobani (United States)
  • Muller Group (United Kingdom)
  • Yoplait (France)
  • Arla Foods (Denmark)
  • Kraft Heinz (United States)
  • FrieslandCampina (Netherlands)
  • Parmalat (Italy)
  • Fonterra Co-operative Group (New Zealand)
  • Mother Dairy (India)
  • Meiji Co., Ltd. (Japan), and Other Major Players.

Key Industry Developments

• • February 2024: Nestlé introduced its initial fermentation dairy protein powder, a whey isolate product from the Orgain brand that is free of animals and lactose. The item consists of a specifically fermented whey component that mimics whey protein, lacking lactose and being more easily digested.
  • June 2023: Häagen-Dazs introduced a new Cultured Crème product using fresh milk, cream, and real fruit, with a fermentation process that is five times longer than traditional yogurt for a creamy ice cream-like texture. It consists of flavours such as vanilla bean, blueberry, and black cherry.

Key Findings of the Study 

• • Global Fermented Milk market growth driven by rising awareness about health benefits of fermented milk.
  • The process of fermentation can enhance the availability of nutrients like vitamins, minerals, and proteins, making them more readily absorbed and utilized by the body.
  • Consuming fermented milk products directly as a snack or meal offers consumers convenience and versatility as they can be enjoyed on their own or incorporated into a meal.
  • Yogurt is a popular food in countries like India, Japan, and South Korea, which helps to establish a strong market presence in the region.