Global dry yogurt market to double by 2035

GLOBAL – The global dry yogurt market is set for significant growth, with projections indicating an expansion from US$840 million in 2025 to US$1,683.5 million by 2035 at a compound annual growth rate of 7.2%, according to a report by Future Market Insights (FMI). 

This growth is driven by increasing consumer demand for high-protein and probiotic-rich food products.

Dry yogurt, also known as yogurt powder, is gaining traction due to its nutritional benefits and versatility. 

It is produced through spray-drying or freeze-drying methods, which help retain essential nutrients while enhancing shelf stability and usability. 

The market is experiencing increased demand due to the rising awareness of health benefits associated with yogurt powder, such as its immunity-boosting properties, low sugar content, and high protein concentration. 

Additionally, the ease of manufacturing and sourcing affordable probiotic-rich raw materials is further supporting its expansion.

North America and Europe currently lead the market, with strong demand in the United States driven by a growing preference for convenient and nutritious food options. 

Latin America, particularly Brazil, is also expected to experience notable growth due to increasing awareness of gut health benefits. 

The Asia-Pacific region, led by India, China, and Japan, is projected to be a high-growth market, with India anticipated to achieve the highest growth rate due to the rising demand for protein-rich and functional foods.

The market is highly competitive, with major industry players such as Kerry Group, Glanbia PLC, and Epi Ingredients focusing on product innovation and market expansion. 

Companies are making significant investments in research and development and expanding their distribution networks to strengthen their market presence.

FMI projects continued growth in the global dry yogurt market as consumer preferences shift toward functional foods with added health benefits. 

A report by industry experts suggests that next-generation probiotics (NGPs) could revolutionize the food and pharmaceutical sectors by enabling the development of personalized functional foods targeting specific health concerns. 

Unlike traditional probiotics, NGPs are recently-isolated microorganisms designed to perform precise biological functions, such as improving gut microbiome balance and contributing to therapeutic applications.

Danone, a major player in the dairy industry, is actively researching the potential of NGPs in functional dairy products. 

Miguel Freitas, Vice President of Health and Scientific Affairs at Danone North America, emphasized the importance of understanding the microbiome for developing next-generation probiotic products. 

“Some of the most exciting areas of research are focused on studying the impact of specific probiotics in improving or helping balance the microbiome and microbiota,” he said. 

He further noted that advances in microbiology, such as DNA sequencing and metabolomics, are helping scientists better understand how probiotics interact with gut health.

Dairy products remain an ideal vehicle for probiotics due to their ability to protect beneficial microorganisms from harsh stomach conditions, ensuring they reach the intestinal tract where they provide health benefits. 

Freitas highlighted the potential of NGPs in medical nutrition, stating, “In the near future, we can conceive that each of us will be able to consume bacteria or specific probiotics that can help improve health or detect risk factors for different disorders at the earliest possible moment.”

While the global NGP market is still in its early stages, experts anticipate significant growth as consumer demand for personalized health solutions rises. 

The intersection of food, probiotics, and pharmaceutical innovations presents promising opportunities for industry stakeholders aiming to develop functional products that address chronic diseases and enhance overall well-being.