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Global Dry Yogurt Market to Reach USD 1,683.5 Million by 2035, Driven by 7.2% CAGR Amid Rising Demand for Functional Dairy Ingredients | Future Market Insights, Inc.

The use of dry yogurt, mainly in the industrial sector, is set to boost its global market share. Demand remains highest in North America and Europe due to greater consumer awareness. Europe leads in usage, driven by its advanced baking and food industries

NEWARK, Del, Feb. 04, 2025 (GLOBE NEWSWIRE) -- The global dry yogurt market is projected to grow from USD 840.0 million in 2025 to USD 1,683.5 million by 2035, expanding at a CAGR of 7.2% over the forecast period.

Dry yogurt, also known as yogurt powder, is a versatile dairy product created through spray-drying or freeze-drying processes. This transformation retains essential nutrients and the characteristic tangy flavor of fresh yogurt while significantly enhancing shelf stability and usability.

Sales of dry yogurt are expected to rise owing to health benefits associated with it, such as high immunity, low sugar content, and high protein proportion.

In addition to this, demand for dry yogurt is rising due to the availability of multiple flavors, as well as the ease of manufacture and obtaining low-cost raw materials that are high in probiotics. These factors are anticipated to drive the growth of dry yogurt market share during the forecast period.

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Key Takeaways:

  • The global dry yogurt market is projected to witness significant growth due to increasing consumer demand for high-protein and probiotic-rich products.
  • Market expansion is driven by the growing application of dry yogurt in the food and beverage industry, including bakery, confectionery, and snacks.
  • North America and Europe dominate the market, with strong contributions from Asia-Pacific due to increasing health-conscious consumer behavior.
  • Leading companies such as Kerry Group (Ireland), Glanbia PLC (Ireland), and Epi Ingredients (France) continue to innovate and expand their market reach.
  • The increasing preference for shelf-stable and functional dairy ingredients in convenience foods is fueling industry growth.

“The global dry yogurt market is positioned for robust growth, driven by the increasing need for longer shelf-life dairy ingredients. Consumers are seeking functional food products with added health benefits, and dry yogurt, being rich in probiotics and proteins, perfectly aligns with this trend. Moreover, the rise of plant-based alternatives has encouraged manufacturers to diversify their product portfolios to cater to vegan and lactose-intolerant consumers.” - says Nandini Roy Choudhury, Client Partner at Future Market Insights 

Regional Analysis of the Global Dry Yogurt Market

North America: Steady Growth Led by the U.S.

The U.S. dry yogurt market is expected to grow at a CAGR of 5.9% from 2025 to 2035. The increasing demand for convenient and nutritious food products is a key driver of this growth. With a rising health-conscious consumer base, the adoption of dry yogurt in protein-rich snacks, dietary supplements, and functional foods is gaining traction. Moreover, the expanding use of dry yogurt in the foodservice sector for flavor enhancement and texture improvement further contributes to market expansion.

Latin America: Rapid Expansion in Brazil

Brazil is set to experience significant growth in the dry yogurt market, with a projected CAGR of 6.8% during the forecast period. The increasing popularity of yogurt-based functional foods and the growing awareness of gut health benefits are fueling demand. Additionally, Brazil's expanding dairy industry, coupled with a shift toward convenient and shelf-stable dairy alternative, is expected to drive market growth.

Asia-Pacific: A High-Growth Region with Strong Demand in India, China, and Japan

Asia-Pacific is expected to witness the fastest growth in the global dry yogurt market, driven by increasing health consciousness and a growing preference for dairy-based functional ingredients.

  • India is projected to record the highest CAGR of 8.1%, making it the fastest-growing market. The rising disposable income, increasing urbanization, and growing demand for protein-rich foods are key growth factors. The expanding use of dry yogurt in traditional dairy-based beverages and snacks also supports market expansion.
  • Japan is set to grow at a CAGR of 7.6%, driven by its strong consumer preference for probiotics and functional dairy products. The presence of leading food manufacturers integrating dry yogurt into innovative product formulations is further boosting demand.
  • China, with a projected CAGR of 6.1%, is experiencing increasing adoption of dry yogurt in the food and beverage industry, particularly in bakery, confectionery, and snack products. The country’s growing middle-class population and demand for convenient, nutritious dairy alternatives are fueling market expansion.


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Competition Outlook

The competition landscape of the dry yogurt market is intense. Glanbia Nutritionals, Epi Ingredients, Ace International LLP, and Almil AG companies lead the industry owing to their significant research & development investments, cutting-edge product advancements, and powerful distribution networks.

Dry yogurt is one of the numerous functional ingredients offered by Glanbia Nutritionals as part of their broader protein and probiotic-enriched product range. With its global supply chains and cutting-edge research, the company, which specializes in functional food and nutraceuticals, positions itself as a leader in health-oriented formulations.

Similarly, Epi products concentrate on premium dairy products like dry yogurt to address the growing demand for clean-label and high-protein meals in the bakery, snack, and supplement industries.

Ace International LLP and Almil AG maintain their competitive edge by offering a diverse range of dairy powders, including dry yogurt while focusing on meeting the specific needs of regional markets.

Leading Brands

  • Glanbia Nutritionals
  • Epi Ingredients
  • Ace International LLP
  • Almil AG
  • PreGel America
  • C.P. Ingredients Ltd.
  • Bluegrass Dairy & Food
  • Dr. Suwelack
  • Armor Protéines
  • Prolactal GmbH
  • Others

Looking to Expand in the Dairy Industry? Read our latest brief on Dairy and Dairy Products Market Analysis and Forecasts: https://www.futuremarketinsights.com/industry-analysis/dairy-and-dairy-products

Key Segments of the Report

By Type:

As per Type, the industry has been categorized into Skimmed Dry Yogurt, Semi-Skimmed Dry Yogurt, and Whole Dry Yogurt.

By Application:

As per Application, the industry has been categorized into Bakery Products, Snacks, Confectionery, Nutraceutical and Functional Food Industry, Cosmetic & Personal Care Industry, and Others.

By Distribution Channel:

As per the Distribution Channel, the industry has been categorized into Hypermarkets/Supermarkets, Online Retail, Convenience Stores, and Others.

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Central Asia, Russia and Belarus, Balkan & Baltics, and the Middle East & Africa.

Explore FMI’s related ongoing Coverage in Food and Beverage Domain:

The global yogurt powder industry size is forecast to reach USD 333.3 million in 2024 and further expand at a CAGR of 6.8% during the assessment period.

The adoption of probiotics yogurt is expected to increase at a CAGR of 8.00% during the forecast period. The probiotics yogurt market size is anticipated to rise from USD 26,543 million in 2023 to USD 58,092.8 million in 2033.

The global high protein yogurt market is expected to reach a market valuation of USD 36.6 billion in the year 2023. Based on the survey reports, the global market value progressed at a CAGR of roughly 2.6% over the last half-decade from 2018 to 2022.

The vegan yogurt market is set to thrive at an average CAGR of 5.8% during the forecast period. The market holds a share of USD 6.7 billion in 2023 while it is anticipated to cross a value of USD 11.7 billion by 2033.

The projected worldwide market size of flavored yogurt is going to be USD 37,523 million in 2024. Throughout the forecast period, the sector is assessed to expand at a steady 5.7% CAGR. By 2034, global flavored yogurt sales are projected to reach USD 65,268 million.

After a detailed analysis of the food and plant-based preservative market, FMI recently published a new report on the frozen yogurt market. As per the analysis, sales of frozen yogurt hold a current valuation of USD 99.29 billion in 2024.

The global Greek yogurt market is expected to reach a market size of USD 7,851.8 million in 2023 and is projected to rise at a CAGR of 7.1% to reach USD 14,991.9 million by 2033. Earlier, from 2018 to 2022, this market expanded at a CAGR of 6.6%.

Global Non-GMO Yogurt market is expected to grow at a CAGR of 15.5 %. The market value is projected to increase from USD 5,783.9 Million in 2022 to USD 24,436.5 Million by 2032. The Non-GMO Yogurt Market was valued at USD 5,123 Million at the end of 2021.

The market for Yogurt Dips is estimated to grow at a CAGR of 4.4% during the forecasted period. The value of the industry is expected to rise from USD 1,160.1 million in 2023 to USD 1,784.4 million in 2033. By the end of 2022, the Yogurt Dips Market was valued at USD 1,123.0 Million.

The aggregate profit produced by Japan-based suppliers of probiotic yogurt is likely to amount to around USD 1,048.6 million as of 2023.

The global A2 yogurt industry is estimated to be worth USD 3.4 Billion by 2025. It is projected to reach USD 5.6 Billion by 2035, reflecting a CAGR of 6.4% over the assessment period 2025 to 2035.

About Future Market Insights (FMI) 

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. 

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