Study Period | 2017 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 9.03 Billion |
Market Size (2030) | USD 11.62 Billion |
CAGR (2025 - 2030) | 5.19 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Sour Milk Drinks Market Analysis
The Sour Milk Drinks Market size is estimated at 9.03 billion USD in 2025, and is expected to reach 11.62 billion USD by 2030, growing at a CAGR of 5.19% during the forecast period (2025-2030).
The sour milk drinks industry is experiencing significant transformation driven by evolving consumer preferences and changing retail dynamics. Modern consumers are increasingly gravitating towards functional beverages that offer both nutritional benefits and traditional appeal. This shift is particularly evident in the retail sector, where supermarkets and hypermarkets have emerged as dominant distribution channels, accounting for 36.95% of volume sales in 2022. The industry has witnessed substantial product innovation, with manufacturers focusing on clean-label certifications, fermented milk beverages, probiotic dairy drinks enrichment, and diverse flavor profiles to meet consumer demands.
The retail landscape continues to evolve with the integration of multiple distribution channels and strategic partnerships. Major retailers are expanding their product offerings through both physical and digital platforms, creating an omnichannel experience for consumers. For instance, in September 2022, Graham's The Family Dairy strategically launched its new Goodness of Kefir product through Aldi stores, demonstrating the crucial role of established retail partnerships in product distribution. Traditional retail chains are also modernizing their approaches by implementing loyalty programs and digital integration to enhance customer engagement and retention.
Product innovation and premiumization have become key focus areas for manufacturers, driven by increasing consumer willingness to pay for innovative and health-focused products. In the United Kingdom, a significant 32% of consumers expressed willingness to pay premium prices for innovative sour milk drinks in 2022, highlighting the market's potential for value-added products. Manufacturers are responding by introducing new flavors, functional variants, and convenient packaging formats to cater to diverse consumer preferences and usage occasions, including cultured milk drinks and yogurt drinks.
The digital transformation of retail channels is reshaping the industry's distribution landscape, with online retail emerging as a rapidly growing channel. The shift towards e-commerce has been particularly pronounced in developed markets, with approximately 22% of Canadian consumers regularly planning online grocery purchases. This digital evolution has prompted traditional retailers to enhance their online presence and develop sophisticated e-commerce platforms, offering features such as subscription services, personalized recommendations, and convenient delivery options to meet changing consumer shopping preferences. The growth of fermented milk products in online sales further underscores the industry's digital shift.
Global Sour Milk Drinks Market Trends
The growing consumption of sour milk drinks is primarily driven by the associated health benefits, including their richness in vitamins, promotion of gut health, and alleviation of digestive issues.
- Kefir, laban, and buttermilk are considered sour milk drinks. Health benefits associated with these drinks promote the growing consumption of sour milk drinks worldwide. For example, these drinks are rich in water-soluble vitamins such as folate, riboflavin, and vitamin B12. They have good bacteria, which promote gut health. Consumption of these drinks also reduces the risk of diarrhea, constipation, and other digestive issues. The per capita consumption of sour milk drinks at the global level is expected to grow by 1.35% from 2023 to 2024.
- Kefir is more popular in the North American and European regions due to the increasing awareness regarding its health benefits as it carries various medicinal properties. The growing interest in prebiotics and gut health is further fueling the growth of the kefir market.
- Middle Eastern countries mainly consume laban, which is an essential part of the Arab diet. It is majorly produced in Lebanon and some Arab countries. With the growing consumption of laban, companies are differentiating their offerings in terms of flavor, ingredient, health benefit claims, and packaging format and size. Buttermilk is highly consumed in India and Middle Eastern countries like the United Arab Emirates and Saudi Arabia. It is also gaining popularity in American and European countries due to the growing ex-pat population, especially Indians. Approximately 370,000 Indian nationals were residing in the United Kingdom in 2021, compared to 346,000 in 2017.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Milk production has been increasing globally due to factors such as improved weather conditions, rising volume of milk per cow, and changing consumer dietary habits.
Segment Analysis: Distribution Channel
Off-trade Segment in Sour Milk Drinks Market
The off-trade distribution channel continues to dominate the global sour milk products market, commanding approximately 98% of the total market share in 2024. This overwhelming market dominance is attributed to the segment's ability to provide greater convenience and variety to consumers purchasing cultured dairy drinks. Supermarkets and hypermarkets are the primary sales channels within the off-trade segment, accounting for over 50% of value sales, offering widespread networks that allow easy access to consumers across different locations. Large supermarket chains, including Schwarz, Aldi, Carrefour, and Tesco, provide diverse options for sour milk drinks at various price points, ranging from USD 0.67 to USD 2.65. The segment's growth is further propelled by retailers' focus on providing comprehensive product information, including ingredients and allergen details, while also offering promotional discounts and loyalty benefits to retain customers. The off-trade segment is projected to maintain its market leadership position while growing at approximately 6% during 2024-2029, driven by the increasing adoption of online retail channels and the expansion of modern retail formats.
On-trade Segment in Sour Milk Drinks Market
The on-trade segment represents a smaller but significant channel in the sour milk drinks market, particularly in regions where eating out is a popular cultural practice. This segment serves fermented milk beverages through restaurants, cafes, food service establishments, and other hospitality venues, offering unique flavors and combinations that cater to diverse consumer preferences. The channel's growth is supported by the increasing trend of consuming food away from home, with restaurants incorporating sour milk drinks into their menus as both beverages and ingredients in various dishes. The segment's development is also driven by the growing recognition of sour milk's health benefits, including its probiotic properties and digestive health advantages, which has led to its increased inclusion in food service menus and institutional catering services. Additionally, the rising popularity of dairy kefir as a health-conscious choice further enhances the appeal of sour milk drinks in this segment.
Sour Milk Drinks Market Geography Segment Analysis
Sour Milk Drinks Market in Africa
The African sour milk drinks market demonstrates a strong cultural connection to fermented dairy products, with varying consumption patterns across different regions. Egypt, South Africa, and other African nations showcase distinct preferences in sour milk consumption, with products being integrated into traditional cuisines and daily dietary habits. The market is characterized by increasing health consciousness among consumers and growing awareness of the digestive benefits associated with fermented dairy products. Distribution channels in Africa are predominantly off-trade, with specialty stores and modern retail formats playing crucial roles in product accessibility. The fermented milk products market in Africa is poised for growth, driven by these cultural and health trends.
Sour Milk Drinks Market in South Africa
South Africa emerges as the dominant force in the African sour milk drinks market, with traditional products like Amasi or Mass deeply embedded in local food culture. The country's market position is strengthened by approximately 42% market share in 2024. The robust market presence is supported by favorable government regulations through the South African Department of Health (DOH), which provides comprehensive recommendations on manufacturing, storage, packaging, and distribution processes. The country's supermarket and hypermarket chains, including Shoprite, Woolworths, Pick n Pay, and Walmart, have established extensive distribution networks that facilitate widespread product availability and consumer access. Additionally, the growing popularity of ayran and lassi contributes to the diversity of offerings in the market.
Sour Milk Drinks Market in Egypt
Egypt represents the fastest-growing market in the African region, with an expected growth rate of approximately 6% during 2024-2029. The market's expansion is driven by deep-rooted cultural traditions and increasing consumer awareness of health benefits. Egyptian consumers utilize sour milk in various ways, from direct consumption to incorporation in traditional cuisines like Feteer and Molokhia. The market is supported by both international and local brands, including Juhayna Zabady, Beyti, Arab Dairy, Elmarai Zabady, and Alfa Zabaday, offering diverse product options to meet consumer preferences. The introduction of drinkable yogurt products is also gaining traction among health-conscious consumers.
Sour Milk Drinks Industry Overview
Top Companies in Sour Milk Drinks Market
The leading companies in the sour milk drinks market are focusing on continuous product innovation and development to maintain their competitive edge. Companies are investing heavily in research and development activities, establishing partnerships with research institutes and technology providers to create innovative formulations and flavors. Operational agility is demonstrated through the establishment of efficient distribution networks and manufacturing facilities across multiple regions. Strategic moves include expanding production capacities, particularly in emerging markets, and strengthening presence through retail partnerships. Companies are also emphasizing sustainability initiatives, including environmentally friendly packaging solutions and responsible sourcing practices. Geographic expansion remains a key focus, with firms establishing new facilities and distribution networks in untapped markets while strengthening their presence in existing ones. The sour milk brands are also leveraging their market position to introduce new cultured milk products to cater to health-conscious consumers.
Market Structure Shows Regional Leadership Patterns
The sour milk drinks market exhibits a mix of global conglomerates and regional specialists, with different players dominating various geographical segments. Global dairy giants maintain strong positions through their established brands and extensive distribution networks, while regional players leverage their local market knowledge and cultural understanding to maintain significant market shares in their respective territories. The market structure varies by region, with some areas showing high consolidation among a few major players, while others remain fragmented with numerous local manufacturers competing for market share.
The market is characterized by ongoing consolidation through mergers and acquisitions, as larger companies seek to expand their geographical presence and product portfolios. Companies are actively pursuing strategic partnerships and joint ventures to strengthen their market position and access new distribution channels. Local players with strong regional presence are becoming attractive acquisition targets for global companies looking to expand their footprint in specific markets. The industry also sees vertical integration strategies, with companies investing in their supply chain capabilities and raw material sourcing to ensure better control over product quality and costs. The fermented milk products industry is witnessing similar trends, with a focus on expanding product lines and enhancing distribution networks.
Innovation and Distribution Drive Future Success
For incumbent companies to maintain and increase their market share, focus needs to be placed on continuous product innovation, particularly in developing health-focused formulations and new flavor profiles that appeal to changing consumer preferences. Establishing strong relationships with retailers and investing in efficient distribution networks will be crucial for maintaining market dominance. Companies must also invest in digital transformation and e-commerce capabilities to adapt to evolving purchasing patterns and maintain competitive advantage. Building sustainable and transparent supply chains while maintaining product quality and safety standards will be essential for long-term success.
Contenders looking to gain ground in the market should focus on identifying and serving niche market segments with specialized products and formulations. Developing strong regional presence before expanding to broader markets, and establishing partnerships with local distributors and retailers will be crucial for success. Companies must also consider potential regulatory changes, particularly regarding health claims and labeling requirements, and adapt their strategies accordingly. Investment in research and development capabilities, along with building strong brand identity and consumer trust through transparent practices and quality assurance, will be essential for gaining market share. The ability to quickly adapt to changing consumer preferences and maintain competitive pricing while ensuring product quality will be critical for success. Additionally, the rise of fermented beverage options presents new opportunities for companies to diversify their offerings and capture emerging consumer trends.
Sour Milk Drinks Market Leaders
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Almarai Company
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Dairy Farmers of America Inc.
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Gujarat Co-operative Milk Marketing Federation Ltd
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Lifeway Foods Inc.
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Nestlé SA
- *Disclaimer: Major Players sorted in no particular order
Sour Milk Drinks Market News
- July 2022: Gujarat Co-operative Milk Marketing Federation Ltd. announced an investment of USD 60 Million for a new dairy plant in Rajkot to expand the milk, curd, and buttermilk products segment.
- August 2021: Lifeway Foods Inc., a manufacturer of kefir and fermented probiotic products, expanded its kefir distribution in the Irish market with a listing at Tesco.
- July 2021: Lifeway Foods Inc. expanded its distribution of kefir into the French market through the retailer Costco France.
Sour Milk Drinks Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Per Capita Consumption
-
4.2 Raw Material/commodity Production
- 4.2.1 Milk
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4.3 Regulatory Framework
- 4.3.1 Russia
- 4.3.2 Saudi Arabia
- 4.3.3 South Africa
- 4.3.4 United States
- 4.4 Value Chain & Distribution Channel Analysis
5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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5.1 Distribution Channel
- 5.1.1 Off-Trade
- 5.1.1.1 Convenience Stores
- 5.1.1.2 Online Retail
- 5.1.1.3 Specialist Retailers
- 5.1.1.4 Supermarkets and Hypermarkets
- 5.1.1.5 Others (Warehouse clubs, gas stations, etc.)
- 5.1.2 On-Trade
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5.2 Region
- 5.2.1 Africa
- 5.2.1.1 By Distribution Channel
- 5.2.1.2 Egypt
- 5.2.1.3 South Africa
- 5.2.1.4 Rest of Africa
- 5.2.2 Asia-Pacific
- 5.2.2.1 By Distribution Channel
- 5.2.2.2 Australia
- 5.2.2.3 India
- 5.2.2.4 Indonesia
- 5.2.2.5 Pakistan
- 5.2.2.6 South Korea
- 5.2.3 Europe
- 5.2.3.1 By Distribution Channel
- 5.2.3.2 Belgium
- 5.2.3.3 France
- 5.2.3.4 Germany
- 5.2.3.5 Italy
- 5.2.3.6 Netherlands
- 5.2.3.7 Russia
- 5.2.3.8 Spain
- 5.2.3.9 Turkey
- 5.2.3.10 United Kingdom
- 5.2.3.11 Rest of Europe
- 5.2.4 Middle East
- 5.2.4.1 By Distribution Channel
- 5.2.4.2 Bahrain
- 5.2.4.3 Iran
- 5.2.4.4 Kuwait
- 5.2.4.5 Oman
- 5.2.4.6 Qatar
- 5.2.4.7 Saudi Arabia
- 5.2.4.8 United Arab Emirates
- 5.2.4.9 Rest of Middle East
- 5.2.5 North America
- 5.2.5.1 By Distribution Channel
- 5.2.5.2 Canada
- 5.2.5.3 Mexico
- 5.2.5.4 United States
- 5.2.6 South America
- 5.2.6.1 By Distribution Channel
- 5.2.6.2 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 6.4.1 Almarai Company
- 6.4.2 Dairy Farmers of America Inc.
- 6.4.3 Green Valley Farms Market and Creamery
- 6.4.4 Gujarat Co-operative Milk Marketing Federation Ltd
- 6.4.5 Hiland Dairy Foods Company LLC
- 6.4.6 Lifeway Foods Inc.
- 6.4.7 Nestlé SA
- 6.4.8 Producers Dairy Foods Inc. (Umpqua Dairy)
7. KEY STRATEGIC QUESTIONS FOR DAIRY AND DAIRY ALTERNATIVE CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (DROs)
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
Sour Milk Drinks Industry Segmentation
Off-Trade, On-Trade are covered as segments by Distribution Channel. Africa, Asia-Pacific, Europe, Middle East, North America, South America are covered as segments by Region.Distribution Channel | Off-Trade | Convenience Stores | |
Online Retail | |||
Specialist Retailers | |||
Supermarkets and Hypermarkets | |||
Others (Warehouse clubs, gas stations, etc.) | |||
On-Trade | |||
Region | Africa | By Distribution Channel | |
Egypt | |||
South Africa | |||
Rest of Africa | |||
Asia-Pacific | By Distribution Channel | ||
Australia | |||
India | |||
Indonesia | |||
Pakistan | |||
South Korea | |||
Europe | By Distribution Channel | ||
Belgium | |||
France | |||
Germany | |||
Italy | |||
Netherlands | |||
Russia | |||
Spain | |||
Turkey | |||
United Kingdom | |||
Rest of Europe | |||
Middle East | By Distribution Channel | ||
Bahrain | |||
Iran | |||
Kuwait | |||
Oman | |||
Qatar | |||
Saudi Arabia | |||
United Arab Emirates | |||
Rest of Middle East | |||
North America | By Distribution Channel | ||
Canada | |||
Mexico | |||
United States | |||
South America | By Distribution Channel | ||
Rest of South America |
Sour Milk Drinks Market Research FAQs
How big is the Global Sour Milk Drinks Market?
The Global Sour Milk Drinks Market size is expected to reach USD 9.03 billion in 2025 and grow at a CAGR of 5.19% to reach USD 11.62 billion by 2030.
What is the current Global Sour Milk Drinks Market size?
In 2025, the Global Sour Milk Drinks Market size is expected to reach USD 9.03 billion.
Who are the key players in Global Sour Milk Drinks Market?
Almarai Company, Dairy Farmers of America Inc., Gujarat Co-operative Milk Marketing Federation Ltd, Lifeway Foods Inc. and Nestlé SA are the major companies operating in the Global Sour Milk Drinks Market.
Which segment has the biggest share in the Global Sour Milk Drinks Market?
In the Global Sour Milk Drinks Market, the Off-Trade segment accounts for the largest share by distribution channel.
Which region has the biggest share in the Global Sour Milk Drinks Market?
In 2025, Europe accounts for the largest share by region in the Global Sour Milk Drinks Market.
What years does this Global Sour Milk Drinks Market cover, and what was the market size in 2025?
In 2025, the Global Sour Milk Drinks Market size was estimated at 9.03 billion. The report covers the Global Sour Milk Drinks Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Global Sour Milk Drinks Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Sour Milk Drinks Market Research
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