Kefir Market Size - By Form (Organic, Conventional), By Nature (Flavoured, Non-flavoured), By Type (Milk Kefir, Water Kefir), By Distribution Channel (Offline, Online), Regional Analysis and Forecast, 2024 – 2032

Kefir Market Size

Kefir Market was valued at USD 2.85 billion in 2023 and is anticipated to register a CAGR of over 6.3% between 2024 and 2032. The increasing adoption of innovative beverages from the health and nutrition focused consumer is constantly developing the market.
 

The association of kefir with digestive health and potential immune-boosting properties has resonated well with consumers looking for products that contribute to overall well-being. Growth in dairy products industry witnessed over 31.64 million bottles in 2021 which propelled the demand for nutritional and fortified dairy beverages like kefir constantly. The increasing disposable incomes and rise in urban populations will cater to the inclination of probiotic drinks market and is forecasted to account for over USD 65.5 Billion by 2032, further facilitating the demand for Kefir globally.
 

The growing popularity and health benefits of kefir is often overcome by the price of the product that creates a restraint for wider market adoption. Compared to conventional milk, the fermentation process and specialized cultures used in kefir production push up its cost, potentially alienating budget-conscious consumers. This price sensitivity acts as a significant restraint, particularly in regions with lower disposable incomes which limits kefir's reach. It also disturbs its ability to fully capitalize on the booming demand for functional and probiotic-rich foods. Streamlining production processes and establishing efficient distribution networks in the future can help reduce costs and improve kefir's affordability.
 

Kefir Market Trends

There is a growing global trend towards natural and functional foods, with consumers seeking products that offer health benefits beyond basic nutrition. Kefir fits into this trend as a functional food with potential digestive and immune health benefits. The desire for clean label products and those perceived as being minimally processed has further boosted the demand for kefir, as it is often positioned as a wholesome, natural beverage. The association of kefir with digestive health and potential immune-boosting properties has resonated well with consumers looking for products that contribute to overall well-being.
 

Kefir Market Analysis

The conventional forms segment surpassed USD 2.1 billion in 2023. Conventional kefir has been widely available and accepted in the market for a long time. It caters to consumers who may prioritize factors such as price and availability over organic certifications.
 

The flavoured segment is dominating the 55% of the market share in 2023, due to its widespread use in food and beverage processing, particularly for probiotic rich drinks production. Rising demand for plant-based beverage products and functional food innovations fuels the popularity of kefir induced beverages. Flavored kefir has gained popularity due to its ability to cater to diverse taste preferences. The availability of a range of flavors allows consumers to choose options that align with their personal preferences, making kefir more accessible to a broader audience.
 

The offline segment was reached USD 2.3 billion in 2023. Supermarkets and hypermarkets continue to be major contributors to kefir distribution. Consumers often prefer purchasing dairy products like kefir in person, and these stores provide a wide variety of options. The placement of kefir products in prominent locations within these stores, such as the dairy aisle or health food section, enhances visibility and accessibility. Convenience is a key factor for many consumers, and the availability of kefir in convenience stores contributes to its market growth. These outlets often carry a selection of dairy and health-oriented products, making kefir accessible to consumers looking for quick and convenient shopping options.
 

Europe dominated the global Kefir market in 2023. Within Europe, Russia and Germany generated a combined revenue of over USD 325 million in 2023.  Fermented dairy products, including kefir, have a long history in European food culture. This cultural relevance has played a role in the widespread acceptance and adoption of kefir in the region. Consumers in Europe may be more open to trying and incorporating kefir into their diets due to its familiarity as a traditional dairy product. The growing awareness of the health benefits associated with probiotics and fermented foods has driven the demand for kefir in Europe.
 

Kefir Market Share

The global Kefir industry is highly fragmented owing to the presence of several market players. Major companies operating in the market are DANONE, Lifeway Foods Inc., Hain Celestial Group accounting for over 40% of the market share in the year 2023. The major market players are focusing on mergers & acquisitions, facility expansion, and strategic partnerships to expand their product offerings, customer reach, and enhance market presence. Companies are also focusing on acquisition strategy.
 

Competition ranges from premium pricing by established players with strong brands to cost-effective offerings by regional and emerging players. An acquisition strategy enables a company to enter new markets and product lines instantaneously with a recognized brand having a good reputation and an existing client base. An acquisition can overcome market entry barriers that were previously challenging.
 

Kefir Market Companies

Major players operating in the global kefir industry include:

• Lifeway Foods, Inc.
• Nestle SA
• Danone SA
• The Hain Celestial Group, Inc.
• Green Valley Creamery
• Muller
• Biotiful Dairy Ltd.
• Nourish Kefir
• Redwood Hill Farm & Creamery
• OSM Krasnystaw
   

Kefir Industry News

• In September 2023, Danone announced a joint business development plan signed with bioscience company Chr. Hansen. This new plan will enable Danone to push boundaries of innovation in the dairy and plant-based categories by using Chr. Hansen’s leading bio-solutions capabilities and leveraging both companies’ extensive culture collections.
   
• In May 2021, Biotiful Dairy Ltd., a dairy company based in the United Kingdom, introduced a fresh product line named Kefir + Coffee in the UK market. This cold brew coffee infused with kefir is crafted using British Milk and contains no additional sugar, making it gut-friendly. Biotiful on-the-go Kefir Coffee is an ideal beverage for a natural boost of energy coupled with immunity support. The newly introduced Kefir + Coffee range is available in two enticing varieties: mocha and latte.
   

This kefir market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Kilo Tons) from 2018 to 2032, for the following segments:

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Market, By Form

• Organic
• Conventional

Market, By Nature

• Flavoured
• Non-Flavoured

Market, By Type

• Milk Kefir
• Water Kefir

Market, By Distribution Channel

• Offline
  • Hypermarkets / Supermarkets
  • Convenience Stores
  • Others
• Online

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Poland
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Australia
  • Malaysia         
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt