The global kefir products market size was valued at USD 7.0 billion in 2022 and is expected to expand at a CAGR of 8.2% from 2023 to 2030. The increasing consumer interest in functional foods with probiotic qualities is driving the demand for kefir products. Kefir is a fermented beverage made with kefir grains, which are a combination of bacteria, yeasts, and polysaccharides. The product is widely popular for its distinctive tart and sour taste and is known for its high probiotic content, which helps to maintain the gut balance and improve digestion. In addition, the increasing demand for dairy-based probiotic beverages is further driving the market growth.

Moreover, the rising demand for gluten-free and lactose-free products is boosting the demand for kefir products. For instance, in April 2021, Yofruit launched a new range of probiotic kefir drinks that are lactose-free, gluten-free, and vegan-friendly. The new products are available in a range of flavors, including strawberry, raspberry, and mango, and are made with natural ingredients. Furthermore, the rising demand for organic and natural kefir products is aiding the market growth.

Furthermore, the increasing number of product launches is also driving the market growth. For instance, in February 2022, Lifeway Foods, Inc. announced the launch of its new line of Kefir probiotic smoothies. The new product is available in four flavors, including strawberry, mango, blueberry, and peach. The product is made with organic ingredients and is free from artificial flavors and colors.

In addition, key players are focusing on expanding their presence in the market by adopting strategies such as product launches and acquisitions. For instance, in October 2021, Danone acquired the Organic Valley Kefir business from Organic Valley, a U.S. food cooperative. The acquisition is expected to strengthen Danone’s presence in the U.S. kefir market and expand its product portfolio.

Moreover, the rising trend of health consciousness among consumers is aiding the market growth. Consumers are increasingly opting for organic and natural products to ensure a healthy lifestyle. In addition, the rising disposable incomes and the easy availability of products on the e-commerce platform are further driving the market growth.

The flavored kefir segment was the largest market and accounted for a share of 34.8% in 2019. Flavored kefir has gained immense popularity among consumers due to its health benefits such as aiding digestion, boosting immunity, and helping to reduce cholesterol. The rising awareness about the health benefits of kefir among consumers, especially in developing countries, is expected to drive the flavored kefir market.

The non-flavored kefir segment is anticipated to grow at the fastest CAGR of 8.6% over the forecast period. Non-flavored kefir has become a popular alternative to dairy products due to their health benefits such as providing essential probiotics, vitamins, and minerals. Moreover, increasing demand for probiotic-rich food and beverages is expected to further boost the demand for non-flavored kefir.

The supermarkets and hypermarkets segment is anticipated to expand at a significant CAGR of 9.8% over the forecast period. Kefir products are widely available in supermarkets and hypermarkets, which are the most preferred distribution channel for convenience-based shopping. The availability of a wide range of Kefir products to choose from at a single store has further fuelled the segment’s growth. Increasing consumer inclination towards supermarkets & hypermarkets as a primary source to purchase food & beverage items is further bolstering the segment’s growth.

Online sales are expected to register the highest CAGR of 12.3% over the forecast period. The rise of online food & beverage stores has increased the availability of Kefir products. Moreover, consumers are opting for online stores due to the convenience of placing orders from the comfort of their homes. The availability of customized options, discounted prices, and swift delivery are further driving the segment’s growth. In addition, the emergence of mobile applications and websites dedicated to Kefir products has enabled vendors to reach out to a wider consumer base and gain a competitive edge.

The powdered kefir segment accounted for the largest revenue share of 56.3% in the year 2022. The increased acceptance of kefir products as a healthier alternative to dairy-based products is driving the growth of the segment. Numerous benefits associated with this product such as high calcium content, probiotic properties, and lactose-free nature are boosting its demand. Also, the growing demand for organic products is encouraging manufacturers to offer organic kefir products, which is further augmenting the segment growth.

The ready-to-drink kefir segment is expected to expand at the highest CAGR of 12.3% during the forecast period. The growing popularity of kefir drinks among health-conscious consumers is the key factor driving the segment growth. Furthermore, the availability of a variety of flavors is providing a boost to the segment growth. For instance, Lifeway Kefir, a U.S.-based manufacturer, offers an array of flavors such as mango, raspberry, blueberry, and strawberry in its product portfolio. Additionally, the convenience of these products has further increased their demand.

Europe dominated the market and accounted for the largest revenue share of over 47.3% in 2022. This can be attributed to the growing health consciousness among consumers in the region. Furthermore, the increasing demand for probiotics and fermented products as functional foods is expected to drive the market in the region. For instance, in March 2021, the European Union approved the health claim for probiotic kefir, which is expected to further drive the market growth in the region.

Asia Pacific is expected to witness the fastest growth in the coming years. This can be attributed to the presence of a large consumer base in the region. Additionally, the growing demand for functional foods and beverages is expected to drive the growth of the market in the region. For instance, in May 2021, the Australian startup Yoli launched a dairy-free kefir drink, which is expected to increase product visibility in the region.

In this part of the kefir products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your kefir products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a kefir products business comes from the sales of kefir products. Additionally, revenue can be generated from sales of other fermented dairy products, cold drinks, health supplements, and other related products or services.

Projecting Expenses

In this section, all the regular expenses related to keeping the kefir products business running will be described. The list of operating expenses includes rent or lease payments, wages, maintenance and repairs, utilities, insurance policies, advertising, packaging and shipping costs, and others.

Some of the major companies operating in the kefir products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In July 2022, Lifeway Foods launched a new line of probiotic kefir products including a variety of kefir smoothies and juices.

– In August 2022, Danone launched a new kefir-based yogurt drink, Kefir+Plus, which contains a combination of probiotics and vitamins.

– In September 2022, The Kefir Company launched a line of organic kefir products.

Some of the prominent players in the kefir products market include:

– Danone
– Lifeway Foods
– The Kefir Company
– The WhiteWave Foods Company
– Bio-Kult
– Yakult
– Arla Foods
– Dannon
– FAGE International
– Chobani, Inc.

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global kefir products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Milk Kefir
– Water Kefir
– Other Kefir Products

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Organic
– Conventional

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is the Potential of Product Innovation in the Kefir Products Market?
[A]: Product innovation has been an important driving factor of the kefir products market. Consumers are increasingly opting for products that are more nutritious, convenient, and have a variety of flavors. Companies are undertaking research and development to create innovative kefir products with healthy ingredients, such as probiotics, omega-3 fatty acids, and high-protein content. Furthermore, manufacturers are introducing new packaging formats, such as single-serve sachets and bottles, to attract more consumers.

[Q]: Who are the Key Players in the Kefir Products Market?
[A]: The key players in the kefir products market are Danone, Dannon, LIFEWAY FOODS, Inc., Nestlé S.A., General Mills, Inc., The Hain Celestial Group, Inc., Yakult Honsha Co., Ltd., SunOpta Inc., and Arla Foods.

[Q]: Which Region Offers the Largest Opportunity for Sales of Kefir Products?
[A]: Europe is expected to hold the highest share in the kefir products market. The region is expected to experience a robust growth rate due to the increasing consumption of fermented dairy products, such as kefir, across the region. The increasing demand for healthy and natural food products, as well as the growing awareness of the health benefits of kefir, have also been the major drivers of the market in the region.

[Q]: What are the factors driving the kefir products market?
[A]: The growth of the kefir products market is primarily attributed to the increasing health-consciousness among consumers, the growing demand for dairy-based probiotic beverages, and the rising demand for healthy and nutritious beverages. Furthermore, the increasing demand for functional food and beverages, the increasing demand for convenience food, and the increasing availability of kefir products in the retail sector are expected to drive the market growth in the coming years.