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The Greek yogurt market size is projected to increase by USD 3.56 billion, at a CAGR of 6.51% between 2023 and 2028.
North America significantly drives the Greek yogurt market, with the US and Canada leading in consumption and innovation. The region experiences a notable growth rate driven by the perceived health benefits and creamy texture of Greek yogurt. Factors such as new flavors, attractive packaging, and innovative mix-ins contribute to market expansion. With a rising demand for gluten-free and organic dairy products, consumers are willing to pay more for genuine options, driving market growth. The availability of a diverse range of Greek yogurts, coupled with a strong distribution network, further fuels the market in North America.
The market shows an Accelerated CAGR during the forecast period.
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Growing consumption of Greek yogurt as meal replacement/snack is the key factor driving market growth. With the changing times, traditional mealtimes are gradually getting blurred, and consumers are increasingly adopting snacking between meals and meal replacement culture. This is because they often look for guilt-free healthy snacks and meal options. As Greek yogurt contains more protein and calcium content than that found in conventional or regular yogurt, it is beneficial for consumers to inculcate Greek yogurt as a good meal replacement option.
Furthermore, snacking on healthy yogurt products helps consumers avoid feeling famished or hitting starvation mode. Consequently, currently, many market players are marketing Greek yogurt as a successful meal replacement and snack option. For example, FAGE International S.A. makes Fage Crossovers, which are Greek strained yogurt blends full of crunchy toppings. Hence, the increasing consumption of Greek yogurt as a meal replacement/ snack boosts the growth of the market during the forecast period.
Growth in demand for private-label brands is the primary trend shaping market growth. Yogurts offered by private-label brands are found in hypermarkets, supermarkets, grocery stores, and departmental stores. Private-label brands offer a substantial range of Greek yogurts, which include those that are made by established vendors. Established vendors face stiff competition from the growing number of in-store supermarket bakeries that have their own offerings with competitive pricing. In-store bakeries are gaining prominence, owing to the convenience of one-stop shopping and low prices. Price-conscious consumers are gradually opting for private-label supermarket offerings.
Moreover, aligned with market trends and analysis, various online retailers are extensively offering several types of private-label Greek yogurts under their own brands. For instance, Amazon Inc. provides a range of Greek yogurts under its brand 365 Everyday Value, including the prominent Organic Greek Whole Milk Yogurt. In Europe, the Greek yogurt market is experiencing significant growth, bolstered by the availability of private-label options and increasing consumer preference for healthier dairy products. In China, Alibaba Group similarly supports local vendors and private-label brand owners in selling Greek yogurts through its e-commerce platform, further expanding market reach and accessibility. This trend towards private-label offerings is anticipated to drive continued market expansion throughout the forecast period, catering to diverse consumer preferences and enhancing the overall competitiveness of the European Greek yogurt market.
The high-cost manufacturing process of Greek yogurt is a challenge that affects market growth. The steep cost of Greek yogurt products has been a challenge to the market, manufacturers, and consumers product. This is because it takes three times as much milk to make traditional Greek yogurt as it does to make conventional yogurt. The manufacturing process of Greek yogurt involves the separation of liquid whey from the mix to form solid blocks of curds. Due to its high production cost, the final product is also priced high. Consequently, many price-sensitive consumers opt for the much more reasonable conventional packaged yogurt for their daily consumption.
However, many market players are coming up with solutions to solve the cost problems of Greek yogurt. For instance, Arla Foods Ingredients Group P S globally sells Nutrilac solution, which, when used in combination with the new process. This is one of the most cost-effective ways to manufacture Greek yogurt, as in this process, virtually all the raw materials end up in the finished product, therefore manufacturing more units of the finished product for every unit of raw material. Hence, such factors may impede the growth of the market during the forecast period.
The offline segment includes department stores, supermarkets, hypermarkets, convenience stores, and in-store bakeries. Tesco Plc (Tesco), Walmart Inc. (Walmart), and Target Corp. (Target) are some of the largest retail chains that have a separate retailing section for Greek yogurts. Market players use promotional and marketing strategies, such as branding through signages and discounts on product packages at their stores. The growing retail industry and the establishment of numerous retail outlets are driving sales in this segment. Furthermore, gluten-free menus have penetrated fast-food restaurants in the US, and some restaurants have started their online services as well. With the increasing penetration of gluten-free food menus in restaurants, there is a demand for healthy dairy products, such as gluten-free Greek yogurts. Hence, increasing sales in the offline segment boosts the growth of the market during the forecast period.
The market share growth by the flavored Greek yogurt segment will be significant during the forecast period. Flavored Greek yogurt has become a prominent segment offering a diverse array of options to cater to varied consumer preferences. Fruit-flavored Greek yogurt is particularly popular, featuring natural or added fruit extracts, creating a sweet and tangy taste. Flavored Greek yogurt is available in both low-fat and non-fat packs. Customers, particularly millennials, are increasingly opting for Greek yogurt, as it not only offers nutritional value but is also available in varied flavors.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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