Currently, the Kefir Market is witnessing several trends that highlight growing consumer interest in probiotic-rich and functional foods. Nowadays kefir-a fermented dairy product, which is known to have a tangy taste and health benefits has become quite popular. One major trend is increasing interest in plant-based kefir alternatives. With the increasing focus on plant-based diets consumers also seek after replacements for dairy hence kefir is produced from coconut almond- soy as well as other non-diary plants.
This is in line with the bigger wave of plant-based eating by those who are lactose intolerant, vegans or anyone avoiding dairy. The Kefir Market is driven by health and wellness considerations. Consumers are increasingly aware of the benefits probiotics have on digestion and immunity, leading to higher popularity of kefir’s rich contents. The popularity of gut health has particularly increased demand for kefir as it is rich in a wide variety of good bacteria.
This is consistent with the larger consumer consciousness about gut-brain connection and how a well-functioning gut microbiome relates to overall health. Manufacturers are not only diversifying their product offerings with different flavours such as fruit-infused, spiced or savoury. Functional kefir formulations are also coming out with added ingredients such as herbs, vitamins and adaptogens to improve the nutritional component for those who want more than simple probiotics.
The Kefir Market is affected by a keen interest in sustainability as consumers seek the products that correspond to environmentally-friendly practices. As a result, kefir manufacturers are directed towards sustainable sourcing of ingredients eco-friendly packaging and energy efficient production methods. Thus, the increasing environmental consciousness among consumers plays a role in defining kefir brand’s market positioning since it is driven by sustainability as one of its integral factors.
Ready-to-drink kefir products are also becoming more readily available in the market. Consumers like convenience in what they buy and grab-go kefir beverages are convenient to purchase when life is too busy. Ready-to-drink products, usually offered in bottles of pouches offer the consumer a convenient and transportable mechanism for integrating kefir into their everyday schedules.
E-commerce is acting as a central piece in redefining the distribution environment of Kefir Market. The advent of online platforms has made it possible for consumers to buy kefir products directly from the producers, allowing them access and purchase a wide variety of these items.
This trend is especially important for smaller and niche kefir producers, providing a means of reaching more customers without the limitations associated with traditional retail distribution. E-commerce is making kefir market more democratic, as the accessibility becomes available to a wide range of consumers who can find and opt for different brands.
Kefir Market Size was valued at USD 2.66 billion in 2023. The Kefir industry is projected to grow from USD 2.83 Billion in 2024 to USD 4.36 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.55% during the forecast period (2024 - 2032). Growing interest in probiotic drinks and strong interest in fermented dairy products are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The market is expanding due to the rising demand for functional beverages supporting on-the-go nutrition. This probiotic beverage aids the development of a balanced gut microbiome. The market is expanding due to the rising demand for nutrient-rich beverages to lower the chance of developing certain health issues. The growing popularity of lactose-free goods fuels the demand for Kefir, as the beverage contains nearly no lactose. The production of non-dairy or water-based kefir products has been aided by the rising popularity of non-dairy beverages, which has increased demand among vegan customers. Thus, this factor is driving the market CAGR.
Due to their health benefits, fermented dairy drinks have become popular recently. The market is expanding due to the rising need for dairy protein to enhance general health. According to Food and Beverage Insider magazine, the sales of clean-label food items are anticipated to exceed USD 180 billion by the end of 2020. Consumers believe that fermented foods are "better for you," maintaining a balanced gut microbiota. In addition to serving as an immediate supply of beneficial intestinal bacteria, the fermentation process offers an attractive taste appeal. The market is anticipated to develop due to the rising demand for organic, clean-label, and lactose-free goods. Further anticipated market expansion in the next years is the rising trend of healthy snacking and on-the-go nutrition.
Kefir, a beverage made from fermented kefir grains and milk, is regarded as a superior probiotics food. It is one of the main sources of protein and includes significant quantities of vitamins and minerals. Additionally, it is an excellent source of vitamin K, calcium, vitamin B12, biotin, enzymes, vitamin B9, and other nutrients important for healthy body operation. It has a sufficient number of bacteria, which helps the digestive system work properly. Kefir supports decreasing cholesterol levels and immune system stimulation. Additionally, it aids in body weight loss and blood sugar regulation. Kefir is being utilized more often in the dairy, pharmaceutical, and nutritional supplement industries due to its positive effects on health.
Since fermentation produces a wide variety of probiotics and increases their bioavailability, it enhances the nutritional benefits of food. Improved gut, bone, and skin health are just a few of the health advantages of Kefir. Additionally, it has antifungal and antibacterial characteristics that help fight food-borne pathogens as well as cure and prevent gastroenteritis and vaginal infections. Additionally, it possesses anticarcinogenic qualities that aid in stopping the growth of early-stage tumors. Thus, this aspect will accelerate Kefir'sKefir's market revenue.
Based on type, the Kefir market segmentation includes Milk Kefir and Water Kefir. The milk kefir segment dominated the market, accounting for 35% of market revenue. Due to the increased consumer demand for dairy nutrients, including milk proteins, the milk kefir product type has the lion's share of the worldwide market. The popularity of probiotic drinks fuels the growing demand for dairy-based products. Furthermore, the demand for water-based or non-dairy Kefir, also known as tibicos, has surged due to the rising popularity of non-dairy goods. Consumers who consume just plants or follow vegan diets are getting increasingly fond of this variation. The market is anticipated to expand in the coming years due to the rising demand for water-based products in the functional water category.
The Kefir market segmentation, based on distribution channels, includes store-based and Non-store based. The store-based category generated the most income. Supermarkets and hypermarkets are constantly evolving and growing in size, and investors are using this trend to provide customers with a comfortable shopping experience. Retailers can give customers adequate-quality goods with technology improvements and equipment on the floor.
Figure 1: Kefir Market, by Distribution Channel, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on Category, the Kefir industry has been segmented into Flavored & Non-Flavored Kefir. Flavored kefir held the largest segment share in 2022. Manufacturers have been forced to create Kefir in innovative flavors due to the rising demand for flavored beverages. Eighty percent of consumers actively look for new flavors to try out regularly, according to Technomic's 2019 Flavour Consumer Trend Report Survey. The rising use of natural flavors like fruits, vegetables, and flowers is partly due to the emerging trend of natural products. Additionally, as these flavors contain natural plant extracts, this beverage is healthier when created with organically derived flavors.
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Kefir market accounted for USD 1.145 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The expanding USA Kefer market is shaping the future of the business. The popularity of plant-based Kefir is one of the main factors fueling development. Kefir manufactured from plant-based milk, such as soy, almond, or coconut, has a comparable nutritional profile to Kefir made from dairy. It is lactose-free and lower in calories and fat than dairy-based Kefir, making it a viable option for lactose intolerance. Probiotics are becoming increasingly popular, another factor fueling expansion in the US Kefer industry. Live bacteria, known as probiotics, are helpful for gut health.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: KEFIR MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
During the projected period, the Asia Pacific Kefir market is anticipated to see growth rates greater than the average for the world. Consumer interest in new beverages with fresh flavors has been growing over time. Due to the expanding millennial population and increased interest in functional beverages to promote general health, developing regions like China, India, and Indonesia are predicted to drive sales growth. Moreover, the China Kefir market held the largest market share, and the India Kefir market was the fastest-growing market in the Asia-Pacific region.
The Europe kefir market is anticipated to be the fastest growing market. The growing demand for probiotic foods and drinks is the main factor driving the market in European nations. The demand for dairy-free Kefir in the area is anticipated to rise along with the popularity of vegan diets. The trend of healthy snacking and on-the-go nutrition further fuels the market expansion in Europe. Further, the Germany Kefir market held the largest market share, and the U.K. Kefir market was the fastest-growing market in the European Region.
Leading industry companies are making significant R&D investments to broaden their product offerings, which will spur further expansion of the market for Kefir products. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The Kefir industry must offer products at reasonable prices if it is to grow and thrive in a more cutthroat and competitive environment.
One of the primary business strategies manufacturers employ in the worldwide Kefir industry to benefit customers and expand the market sector is local manufacturing to reduce operating costs. The Kefir industry has recently provided some of medicine's most important benefits. Major players in the Kefir market, including Fresh Made Dairy, Lifeway Foods Inc., Nestle SA, The Hain Celestial Group Inc., Danone S.A., and others, are attempting to increase market demand by investing in research and development operations.
Health food manufacturer Lifeway Foods was established in Illinois in 1986. They are a top provider of fermented probiotic products to support the microbiome in the United States, including Kefir. Organic Grassfed Kefir and 3.5oz Functional Shot Multipacks are two new products Lifeway Foods, Inc. announced in February 2021 for customers to assist promote immunity and enhance general health.
Biotiful Dairy sells our dairy line. They produce cultured dairy rich in protein and minerals using billions of living cultures. A new Kefir + Kefir product line will be introduced in the U.K. in May 2021 by the dairy firm Biotiful Dairy Ltd. The gut-friendly Kefir cold brew is brewed with British Milk and no additional sugar. On-the-go Biotiful Kefir Kefir is ideal for boosting immunity and providing natural energy. The new Kefir + Kefir line has two flavors: mocha and latte.
Key Companies in the Kefir market include
Kefir Industry Developments
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