Dairy & non-dairy yogurt NPD likely to exceed US$100B, reveals Innova Market Insights

14 Dec 2021 --- A new report from Innova Market Insights has shed light on the burgeoning dairy and non-dairy yogurt categories, outlining significant growth in 2021. The market researcher believes the global market value will exceed US$100 billion for the very first time.

Yogurt’s role as a healthy, tasty and natural part of the diet has seen volume and value sales grow consistently.

On average, 57% of global consumers regularly buy yogurt, although individual country rates vary from 32% in Indonesia to 78% in Spain.

Further, 29% of consumers increased their yogurt consumption in 2020, mainly for health reasons, while 60% said their consumption levels were stable, and just 11% said they had decreased.

Dairy & Non-Dairy Yogurt is a new report from Innova Market Insights, which uncovers the future direction of this food category.Asia is the largest market with 43% of yogurt value sales. It is also seeing the most growth, flags Innova Market Insights. The region is home to the top two individual countries in terms of value, with China leading the way and Japan taking second place ahead of Brazil and the US.

Non-dairy expands
Meanwhile, the rising popularity of non-dairy yogurt has had a considerable impact on the category, with 25% of consumers globally now eating plant-based spoonable yogurt and 22% enjoying plant-based drinking yogurt. 

Perhaps unsurprisingly, spoonable non-dairy yogurt is the most active sub-category in terms of innovation, seeing new product launch activity grow by 9.6% (five-year CAGR to the end of Q3 2021). This compares with just 0.2% for the yogurt category as a whole, reveals Innova Market Insights. 

Key themes driving innovation are largely the same for both dairy and non-dairy, but each of these tends to create its own path, the market researcher shares. 

There is a strong focus on highlighting organic status, sourcing, clean label and provenance, with animal welfare issues increasingly important in dairy and sustainability under the spotlight for non-dairy alternatives.

Tapping into the demand for provenance, FrieslandCampina recently revealed it is strengthening local dairy production in Nigeria by building a mobile yogurt plant, which will enable the company to process milk from local dairy farmers into yogurt drinks with a long shelf-life. 

Boosting health
Health is a driving factor, particularly added well-being attributes such as probiotics, immune support and digestive benefits. Protein and fiber content remains essential, including sugar and fat reduction and free-from formulations. At the same time, research also indicates that consumers would be prepared to pay more for added health benefits. 

With 20% of consumers in Innova’s survey being influenced by “made with real ingredients” and “natural” claims when buying yogurt, simple and clear ingredient lists will continue to be an area of focus. 

Other potentially rewarding directions for new products exist in the sensory arena by developing new flavor combinations and improved texture/mouthfeel, particularly for low, light and non-dairy options. The rising popularity of non-dairy yogurt has had a considerable impact on the category as a whole.

Flavors spotlighted
While fruit flavors dominate global product launches, and more complex confectionery and dessert-style offerings are also increasingly popular, there is growing activity in vegetable flavors. 

According to Innova Market Insights, this trend is moving beyond Asia, where vegetable and savory tastes in traditionally sweeter food categories are already well established.

Vegetables such as beetroot and carrot are widely used to color yogurt preparations. Still, they are now being increasingly selected as main flavors along with a raft of more locally and regionally-sourced produce and ingredients.

Edited by Elizabeth Green