As consumers have become more knowledgeable about their health and well-being, probiotics have taken off for the health benefits associated with them, particularly probiotic yoghurts.
The probiotic yoghurt market is expected to experience substantial growth, with a projected CAGR (compound annual growth rate) of eight percent from 2023 to 2033, according to the latest data from FMI (Future Market Insights). The market value is expected to surge from US$ 26,543 million in 2023 to an impressive US$ 58,092.8 million in 2033, with several key trends driving this growth.
The shift towards functional foods, driven by increased awareness of gut health, has diverted consumer attention from conventional to more nutritious probiotic yoghurts. Probiotics, recognised for digestive health, mood improvement, and heart health, are gaining traction, with around 70 percent of people consuming yoghurt for general health and wellness.
Notable other trends influencing this market's expansion include the adoption of clean labelling by probiotic yoghurt manufacturers, aligning with consumers' demand and desire for transparency and accountability of the brands they purchase, helping give brands that utilise this trend a competitive edge as it supports the building of consumer trust. The market is also adapting to the growing wave of veganism, with dairy-free probiotic yoghurts gaining popularity among consumers.
Challenges in the market include limited awareness of probiotics and their benefits, coupled with the high cost of probiotic products. Regulatory concerns highlight the need for regulations to protect consumers against misleading health claims. However, this is a double-edged sword, as stringent regulations may impede industry expansion.
On the opportunity front, the growing preference for preventive healthcare services is propelling the market, with probiotics gaining popularity over pharmacological medicines. Ongoing research and development promise new probiotic products, offering solutions for ailments like constipation and gum disease.
Regionally, the yoghurt market in India is projected to grow at a significant CAGR of 30.6 percent, driven by rising disposable income and innovative marketing strategies. The United States commands a 23.6 percent share of the global market, where health benefits and evolving consumer lifestyles drive the probiotic yoghurt industry.
In this highly competitive market, international players are strategically expanding their portfolios to tap into consumer preferences. The upward trajectory of this market is mainly driven by consumer interest in health products, and manufacturers within this industry can utilise the health benefits that come naturally with probiotic yoghurts, as well as transparency and clean-labelling technique to not only remain market relevant but gain a competitive edge as a brand. Innovation will also be key, with the need for sustainable packaging and plant-based innovations necessary as consumers have become increasingly concerned by both their health and the planet's health.