Yogurt is formed by fermenting milk with bacteria. Yogurt when garnished or nourished with flavours derived from various sources such as fruits and vegetables, it is termed as flavoured yogurt. Flavoured yogurts are available in various forms based on criteria like low-fatty or non-fatty, frozen or regular and flavours from different fruits. There has been an increased demand for flavoured yoghurts due to the health benefits offered by it. The flavored yogurt market size was registering a CAGR of 4.8% from 2019 to 2028. In 2019, the strawberry segment accounted for more than half of the total flavored yogurt market share. Flavored yogurt is prepared from addition of flavor to the fermented milk with well-defined and viable bacteria which creates a thickened product having an extended shelf life. Flavored yogurt is offered in the market in various forms including drinkable, frozen, set and Greek. Flavors, sweeteners and fruits are added to the yogurt to enhance the aroma, taste and consistency.
Top Driver: Rise in awareness of the health benefits of yogurt, surge in demand for flavored yogurt
In the developing nations, and innovation in taste & flavor of yogurt propel the growth of the global flavored yogurt market. On the other hand, increase in use of dairy alternative based products curtails down the growth to certain extent. However, growing demand for organic flavored yogurts is anticipated to usher in a plethora of opportunities in the near future.
The broad consumer getting of packaged flavored yogurt products due to the presence of healthy ingredients like proteins, sugar-free content, and availability of these products in convenience stores, the market is expected to grow, and encourage international players to expand their consumer base. The demand for naturally enriched fresh fruit-flavored yogurt is very high, especially for berry flavors such as strawberry, blueberry, and raspberry. Besides these flavors like mango, chocolate, and coffee are also drawing huge attention among consumers. The product is termed as a good source of protein and calcium and is now available in varieties of flavors. Vanilla is a globally well-known flavor and is expected to grow significantly in the forecast period.
Strawberry flavor to Make Crucial Contribution to Growth of Global Flavored yogurt market
As per the flavor, the flavored yogurt market is divided into strawberry, blueberry, vanilla, peach, and others. Strawberry accounted for the largest market share of 33.0% in the year 2019. Strawberry is one of the major flavors in this segment is driving the market. Berry flavored yogurts are becoming most popular among consumers due to the presence of the naturally potent ingredients, which is anticipating the market for strawberry and blueberry flavors in the forecast period.
Innovation in product offerings such as plant-based yogurt and Greek yogurt are gaining more traction from consumers, thus driving the demand for the segment. Strawberry flavor is the fastest-growing segment in the market for flavored yogurt and is expected to witness a significant growth of more than 7.6% CAGR in the forecast period. Increasing focus on health, dietary habits, and easily available at convenience stores are among the prominent factors driving the segment.
On the basis of the distribution channel, the market is further divided into supermarkets, convenience stores, online, and others. The market is heavily dominated by the supermarket segment accounting for more than 45.0% of the market share in 2019. All the major brands of flavored yogurts are available in supermarket, thus, they generate maximum revenue based on the distribution channel. Furthermore, easy access, availability of the product, and variety are among the prominent factors driving the growth of the segment. In the U.S., supermarket chains like Walmart and The Kroger Co., have large number of supermarket stores in the region holding bulk of the dairy products. Apart from supermarkets, convenience stores are also expected to have significant growth in the coming future. Online sellers with improved storage technologies and quality will also bolster the growth of the market
Europe was the prominent market Flavored yogurt market
On the basis of region, Europe was the bulging market in 2018 and accounted for the maximum share in the global flavored yogurt market. This can be attributed to high per capita consumption of flavored yogurt in majority of the countries in Europe including Germany, France, Italy, UK, among others. Consumers in the region are attracted by the new flavors, and textures of the flavored yogurts and has led to the growth of the market in the region. Furthermore, Asia-Pacific is expected to witness a highest CAGR, owing to the rising awareness of the health benefits of flavored yogurt.
The players in the flavored yogurt market have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market.
Players to Focus on Global Flavored yogurt market
General Mills, Inc.; Danone; Nestle S.A.; Chobani LLC; Lactalis; Fonterra; and Arla foods, are some of the major players in the market. The market poses a moderate to high entry barrier due to the presence of big sharks and huge investment amount. These market players are indulged in product innovations and are investing a huge amount in research and development in order to provide the best eatable product to the consumers and to gain an edge over its competitors. The market for flavored yogurt is further driven by various mergers and acquisitions, and expansion to different regional markets by the big players in the market.
Lactalis Group : Example, Lactalis Group has acquired Stonyfield Farm, one of the major manufacturers of yogurt varieties, including grass-fed and soy to expand their flavored yogurt business across North America.
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