02.08.10
The global yogurt market is projected to surpass $67 billion by the year 2015, driven by growing consumer desire for convenient and health promoting products, according to new report by Global Industry Analysts, Inc. The market is also favored by the increasing popularity of yogurt as a functional food.
The global dairy industry's rapid growth is attributed primarily to the advent of functional products, with characteristics such as low-sugar, low-fat, cholesterol-reducing and favorable impact on digestive health, according to the report, titled “Yogurt: A Global Strategic Business Report.”
Among all functional foods, yogurt is considered an ideal medium for delivery of beneficial functional ingredients. Consumer focus on a healthy lifestyle is a major driving force for the global yogurt and yogurt drinks market. Over the years, the market has witnessed a shift from conventional spoonable products towards yogurt drinks, as well as products that are specifically targeted at children. In addition, demand for organic yogurt products with natural ingredients is also on the rise.
Innovative and premium products such as bio yogurts or yogurts enriched with juice and fruits are also finding favor among consumers. Attractive packaging and aggressive promotions play a major role in enticing consumers to purchase yogurt products.
Europe and Asia-Pacific dominate the global yogurts market with more than 80% share of volume consumption, as stated by the new market research report on yogurt. Asia presents a huge opportunity for global health food retailers (including yogurt manufacturers) due to the rising incidence of lifestyle-related health concerns such as diabetes and obesity brought on by rapid economic development and rising income levels. Consequently, yogurt consumption in Asia-Pacific is projected to reach 5.2 million tons by 2012. China represents the fastest growing regional market for yogurt, in terms of consumption (value and volume).
Refrigerated yogurt constitutes the fastest growing sector, and benefits from its positioning as a health-promoting product. Products with the ability to improve immune system and enhance digestive functioning are expected to hold ground in the future. Households with children constitute the segment with potential growth opportunities. However, rising prices of refrigerated yogurts drinks are acting as deterrents, preventing consumers from making repeat purchases. In addition, low-cost substitute products such as kefir milk and smoothies are posing intense competition.
Global yogurt market is characterized by intense competition prompting leading players to differentiate themselves by focusing on health benefits, branding, and incorporation of ingredients (namely fruits). Key players profiled in the report include Arla Foods UK Plc, General Mills Inc., Groupe Danone, Inner Mongolia Yili Industrial Company Ltd, Meiji Dairies Corporation, Mengniu Dairy Company Limited, Nestle S.A., Sodiaal SA, Yoplait Dairy Crest Limited, Yeo Valley Group Ltd and Yakult Honsha Co., Ltd., among others.
