Global Drinkable Yogurt Industry Outlook to 2036: Strategic Insights for R&D, Expansion, and Market Development

 

The global drinkable yogurt market is entering a phase of sustained, demand-driven growth as consumers increasingly prioritize digestive health, immunity support, and convenient nutrition. Valued at USD 60.3 billion in 2025, the market is projected to expand to USD 113.2 billion by 2035, registering a compound annual growth rate (CAGR) of 6.5% over the forecast period. The category's strong momentum reflects shifting dietary habits, urban lifestyles, and growing acceptance of functional beverages across age groups.

Drinkable yogurt has evolved from a niche dairy product into a mainstream wellness beverage, driven by its probiotic content, portability, and adaptability to clean-label and fortified formulations. The market continues to benefit from innovation in flavors, textures, packaging formats, and cold-chain logistics, which together enhance shelf life, accessibility, and consumer appeal across both developed and emerging economies.

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Market Snapshot and Growth Fundamentals

In 2025, dairy-based drinkable yogurt remains the leading segment, accounting for 56.3% of total market revenue, supported by strong consumer trust, nutritional familiarity, and wide retail availability. Plain drinkable yogurt is emerging as a preferred format, representing 47.8% of market share, as health-conscious consumers seek low-sugar, minimally processed options that allow for personalization.

Key growth drivers shaping the market include:

• Rising awareness of gut health and probiotics
• Demand for on-the-go, protein-rich beverages
• Expansion of clean-label, low-sugar, and fortified products
• Improved packaging and cold-chain infrastructure

Together, these factors are positioning drinkable yogurt as a daily dietary staple rather than an occasional indulgence.

Segmental Performance Highlights

The dairy-based yogurt category continues to dominate due to its high protein and calcium content, established supply chains, and consistent product innovation. Manufacturers are introducing lactose-free, reduced-sugar, and vitamin-enriched variants to attract a broader consumer base, including aging populations and fitness-focused buyers.

Within product types, plain drinkable yogurt is gaining traction as consumers move away from artificial sweeteners and flavorings. Its versatility in smoothies, meal replacements, and dietary programs has strengthened its relevance across retail and institutional channels.

From a distribution perspective, offline sales channels account for 42.6% of market revenue in 2025. Supermarkets and convenience stores remain critical due to refrigeration infrastructure, impulse buying behavior, and in-store promotions. However, online channels are rapidly gaining ground as consumers value convenience, subscription models, and doorstep delivery.

Regional Outlook: Where Growth Is Concentrated

Asia-Pacific leads the global drinkable yogurt market, contributing over 41% of revenue in 2024, driven by rising health awareness, urbanization, and increased spending on functional beverages. Product innovation tailored to local taste preferences and ambient yogurt solutions-such as IFF's YO-MIX ViV launched in China-are accelerating regional adoption.

North America remains a mature yet dynamic market, supported by strong brand presence from players like Chobani and General Mills. The U.S. alone represents approximately 24% of global market value in 2025, fueled by demand for sugar-free, vegan, and immunity-focused formulations.

In Europe, high consumer awareness around wellness and convenient packaging formats is driving steady growth. Portable bottles and pouches are particularly popular among working professionals seeking nutritious energy replenishment.

Market Evolution: Historic and Post-Pandemic Trends

Between 2020 and 2024, the drinkable yogurt market grew at a CAGR of 5.5%, marked by rapid product development and expanding flavor portfolios. Post-pandemic, consumer behavior shifted decisively toward preventive health and immunity-building nutrition, accelerating demand for probiotic-rich beverages.

Manufacturers have responded with:
• Reduced-sugar formulations using natural sweeteners like stevia
• Vegan and plant-based drinkable yogurts
• Gluten-free and low-calorie variants

While initial supply-chain disruptions affected availability, the market has since stabilized and is now on a trajectory of steady, innovation-led growth.

Competitive Landscape and Innovation Focus

Leading players-including Danone S.A., Nestlé S.A., General Mills Inc., Chobani LLC, Royal FrieslandCampina N.V., Groupe Lactalis, and others-are investing in product differentiation, sustainable packaging, and shelf-life extension technologies. Recent launches, such as Horizon Organic®'s expanded range of drinkable yogurts and sachets, highlight the industry's focus on targeted nutrition for children and families.

Outlook: A Functional Beverage with Long-Term Potential

As consumers continue to integrate functional foods into everyday routines, drinkable yogurt is expected to play a central role in the global wellness economy. Growth opportunities remain strong across plant-based alternatives, clean-label formulations, and digitally enabled sales channels.

With rising investments, expanding retail penetration, and sustained consumer trust, the drinkable yogurt market is well-positioned to deliver long-term value across the dairy and functional beverage ecosystem.

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