Yogurt is a dairy product that is made by the bacterial fermentation of milk. All types of milk, including skim milk (fat-free) and whole milk (full-fat) are used in the production of yogurt. Furthermore, yogurt contains probiotics—which are a family of healthy bacteria with live strains—which make it an extremely healthy dairy product. Products such as Greek yogurt contain beneficial nutrients such as iodine, which helps maintain weight of an individual. Furthermore, yogurts are widely available in a variety of flavors such as strawberry, mango, and raspberry. Healthier yogurt options such as those with low fat and low lactose levels are expected to gain traction, owing to the increasing health conscious among customers.

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Drivers:

Yogurt offers rich source of nutrients such as calcium, vitamin B-2, vitamin B-12, potassium, protein, and magnesium. Yogurt consumption is also linked to strengthening of the immune system and helping combat conditions such as diarrhea. Furthermore, rising health concerns among the populace, such as obesity and heart diseases are major drivers fueling growth of the yogurt market. According to the World Health Organization, 650 million people in 2016 were obese and

Trends:

Increasing number of frozen yogurt franchises such as Menchie’s Frozen Yogurt are being established globally. Frozen yogurt is considered to be a healthy substitute for ice cream, due to their lesser calorie content, lower fat content, and enhanced nutrient content per serving. Owing to these properties, the demand for yogurt is increasing among the health conscious consumers, thus driving growth of the frozen yogurt segment globally. To attract consumers, a number of frozen yogurt companies such as Orange Leaf, Yogurtland, and Menchie's Frozen Yogurt, display their calories-per-serving serving for every flavor offered.

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Market Outlook

In terms of value, Europe is expected to hold the dominant market, followed by North America. The drinking yogurt segment is gaining significant traction in the European region, which in turn is expected to result in the growth of the yogurt market in Europe. According to the EU, in 2015, the drinking yogurt category recorded highest number of product launches, accounting for 41.3% of all dairy product launches in Germany, Italy, U.K., Spain, and France.

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