Global Dairy Cultures Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Mesophilic Type and Thermophilic Type.By Fermentation Type;
Yeast-Lactic Acid Fermentation, Lactic Acid Fermentation, and Fungus-Lactic Acid Fermentation.By Application;
Cheese, Yoghurt, Buttermilk, Cream, Kumys, Kefir, Generic Probiotic, Special Cultures, and Others.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Dairy Cultures Market (USD Million), 2021 - 2031
In the year 2024, the Global Dairy Cultures Market was valued at USD 1,139.48 million. The size of this market is expected to increase to USD 1,915.55 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.7%.
The Global Dairy Cultures Market is experiencing substantial growth due to the increasing demand for fermented dairy products, driven by evolving consumer preferences for healthy, natural, and functional foods. Dairy cultures are microbial preparations that are used to ferment dairy products, playing a critical role in the development of flavor, texture, and nutritional properties of dairy items. These cultures typically consist of bacteria, yeasts, and molds that help in the fermentation process, producing beneficial compounds like probiotics that offer health benefits. The dairy culture market is expanding in line with the growing popularity of functional foods, particularly those that promote gut health, digestion, and immunity. With the rise in demand for products like yogurt, cheese, kefir, and other fermented dairy goods, the market is poised for continued growth.
Over the last decade, the dairy culture market has witnessed increasing innovation, with new strains of bacteria and yeasts being developed to enhance the quality and nutritional profile of fermented dairy products. These innovations cater to the growing consumer demand for healthier, more diverse dairy products. As consumers become more health-conscious, they are looking for products that offer added health benefits, such as probiotics, which have become a key selling point for many dairy-based products. Probiotics, found in products like yogurt and kefir, are linked to improved gut health, immunity, and overall wellness, which has led to increased consumer preference for fermented dairy products.
In terms of geography, North America and Europe dominate the dairy culture market, driven by a long-standing tradition of dairy consumption and an increasing awareness of the health benefits of fermented dairy products. However, Asia Pacific is emerging as a key region for growth due to the rising adoption of dairy-based products in countries like China and India, along with an increase in disposable incomes and changing dietary habits. In addition, the growing demand for dairy alternatives, such as plant-based yogurt and vegan cheese, is also contributing to the development of new dairy culture applications, providing opportunities for growth in the market. As consumers become more aware of the health benefits associated with fermented dairy and cultured products, the dairy cultures market is expected to continue its expansion, driven by both product innovation and changing consumer preferences.
Global Dairy Cultures Market Recent Developments
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In May 2022, Chr. Hansen, a leading global supplier of dairy cultures, launched a new line of innovative cultures designed to enhance the flavor and texture of low-fat dairy products
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In March 2021, DSM announced the acquisition of a dairy culture company based in Germany, broadening its portfolio and enhancing its capabilities in microbial cultures for dairy
Segment Analysis
The Global Dairy Cultures Market can be segmented by Type, Fermentation Type, and Application, each of which plays a key role in shaping the market dynamics. By Type, the market is divided into Mesophilic Type and Thermophilic Type cultures, each of which has distinct properties and applications in the dairy fermentation process. Mesophilic cultures thrive in moderate temperatures and are commonly used in the production of yogurt and cheese. Thermophilic cultures, on the other hand, operate at higher temperatures and are mainly used for the production of cheese and other heat-treated dairy products.
In terms of Fermentation Type, the dairy cultures market is segmented into Yeast-Lactic Acid Fermentation, Lactic Acid Fermentation, and Fungus-Lactic Acid Fermentation. Each type plays a crucial role in developing the desired properties of the final dairy product. Yeast-lactic acid fermentation is typically used for products like kefir and kumys, which require the combined action of both yeast and bacteria. Lactic acid fermentation is the most common method used in dairy culture production, particularly for yogurt, cheese, and buttermilk, where lactic acid bacteria are used to convert lactose into lactic acid. Fungus-lactic acid fermentation is used for certain specialty cheeses that require the action of molds or fungi, contributing to their distinctive flavors and textures.
In terms of Application, the dairy cultures market caters to a broad spectrum of dairy products, including Cheese, Yoghurt, Buttermilk, Cream, Kumys, Kefir, Generic Probiotic Cultures, Special Cultures, and other fermented dairy products. Cheese and yogurt dominate the market, given their widespread consumption and high demand for both traditional and functional varieties. With increasing awareness of the benefits of probiotics, the demand for probiotic-rich products like yogurt and kefir is growing, further fueling the demand for dairy cultures. Special cultures, designed for premium or niche products, are also gaining popularity as consumers seek new and unique flavors in dairy products. The growing preference for organic and plant-based dairy alternatives is expected to create further growth opportunities for the market.
Global Dairy Cultures Segment Analysis
In this report, the Global Dairy Cultures Market has been segmented by Type, Fermentation Type, Application, and Geography.
Global Dairy Cultures Market, Segmentation by Type
The Global Dairy Cultures Market has been segmented by Type into Mesophilic Type and Thermophilic Type.
In the dairy cultures market, the Mesophilic Type is commonly used for producing dairy products that ferment at moderate temperatures, typically around 30-40°C. These cultures are ideal for products such as yogurt, cream, and soft cheeses. They are popular because they create a milder, more subtle flavor profile, which is preferred in many dairy products. These cultures play a crucial role in producing smooth, creamy textures and mild flavors, making them the choice for a wide range of dairy items.
On the other hand, Thermophilic Type cultures are used for dairy products that require higher fermentation temperatures, usually between 45-60°C. They are typically used for hard cheeses, such as mozzarella and cheddar, where higher temperatures are necessary for proper fermentation. These cultures produce more robust and tangy flavors, which are characteristic of many aged cheeses. Thermophilic cultures are essential in the production of cheese with firmer textures and are increasingly popular as demand for aged cheeses grows.
Both mesophilic and thermophilic types are critical to the dairy industry, offering unique benefits and applications. As dairy products continue to diversify, the demand for both types of cultures remains strong, with manufacturers leveraging these cultures to meet the diverse needs of consumers for different tastes and textures in dairy foods.
Global Dairy Cultures Market, Segmentation by Fermentation Type
The Global Dairy Cultures Market has been segmented by Fermentation Type into Yeast-Lactic Acid Fermentation, Lactic Acid Fermentation and Fungus-Lactic Acid Fermentation.
Yeast-Lactic Acid Fermentation is commonly used in products like kefir and kumys, where both yeast and lactic acid bacteria work synergistically to ferment the dairy base. Yeasts produce alcohol and carbon dioxide, giving kefir its effervescence, while lactic acid bacteria contribute to the sour taste and thick texture of the product. This fermentation type is seeing increasing demand due to the probiotic benefits of kefir, which are believed to support digestive health and immunity. Lactic Acid Fermentation, the most widely used fermentation method, is key in producing products such as yogurt, cheese, and buttermilk, where lactic acid bacteria like Lactobacillus and Streptococcus ferment lactose into lactic acid, thickening the product and enhancing its tangy flavor. This method is crucial for creating probiotic-rich dairy, supporting the growing global preference for healthy and functional foods.
On the other hand, Fungus-Lactic Acid Fermentation is used for the production of specialty cheeses like Roquefort, Gorgonzola, and Camembert, where molds and fungi, in addition to lactic acid bacteria, are responsible for creating unique textures and complex flavor profiles. The presence of molds such as Penicillium gives these cheeses their distinctive characteristics, including the blue veins in Roquefort or the creamy texture in Camembert. As the demand for premium and artisanal cheeses continues to rise, especially those made with traditional and specialized fermentation methods, fungus-lactic acid fermentation is expected to see steady growth in the market. These fermentation types cater to different consumer tastes, from the tangy and creamy textures of yogurt and cheese to the effervescent, probiotic-rich qualities of kefir, driving the diversity of products in the global dairy cultures market.
Global Dairy Cultures Market, Segmentation by Application
The Global Dairy Cultures Market has been segmented by Application into Cheese, Yoghurt, Buttermilk, Cream, Kumys, Kefir, Generic Probiotic, Special Cultures and Others.
Cheese remains one of the largest applications for dairy cultures, as the fermentation process is key to developing the texture, flavor, and preservation of various types of cheese, including soft, hard, and semi-soft varieties. Probiotic strains are often used to enhance the health benefits of cheese, such as promoting gut health and boosting the immune system. Similarly, the Yoghurt segment is a significant consumer of dairy cultures, with lactic acid bacteria playing a crucial role in fermenting milk to produce the creamy texture and tangy flavor that consumers prefer. The increasing demand for probiotic yogurt, known for its digestive benefits, has been a major driver of growth in this segment.
In addition to traditional dairy products, Buttermilk, Cream, Kumys, and Kefir are also gaining popularity in the market, especially among health-conscious consumers. Buttermilk, a by-product of butter production, is valued for its low-fat content and is used in a range of beverages and cooking applications. Cream is widely used in dairy-based desserts, sauces, and as a standalone product in the culinary industry, with specific dairy cultures enhancing its flavor profile. Kumys and Kefir, both fermented dairy beverages, are gaining popularity due to their probiotic content and health benefits, particularly in regions like Eastern Europe and Central Asia. The Generic Probiotic application is focused on the production of functional dairy products with health benefits, such as improved gut health and immunity. Special Cultures are used for premium, artisanal dairy products, offering unique flavor profiles and textures, particularly in cheeses and other fermented products. As consumers seek healthier, functional, and flavorful dairy products, the demand for specialized dairy cultures continues to grow, driving the expansion of this segment in the global market.
Global Dairy Cultures Market, Segmentation by Geography
In this report, the Global Dairy Cultures Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Dairy Cultures Market Share (%), by Geographical Region, 2024
he market is divided into regions, including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2022, the Asia-Pacific region led the global market and is expected to maintain its dominance during the forecast period. This is largely due to the region’s strong economic growth, technological advancements, and a rising demand for dairy culture products.
The dominance of the Asia-Pacific region is anticipated to continue, driven by ongoing developments, supportive government policies, and a growing middle class. Companies often tailor their strategies to the specific characteristics of each region, making this subdivision essential for effective marketing, product positioning, and overall business planning. A deep understanding of regional differences enables stakeholders to make more informed decisions and adapt to the diverse market conditions worldwide.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Dairy Cultures Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Growing Demand for Functional Foods
- Health Consciousness and Probiotic Benefits
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Increased Innovation in Dairy Culture Strains-The increased innovation in dairy culture strains presents a significant driver for the Global Dairy Cultures Market, as it allows manufacturers to cater to the ever-evolving consumer demands for healthier, tastier, and more diverse dairy products. Over the past few years, there has been a rise in the development of new strains of lactic acid bacteria, yeast, and molds that are capable of improving the functional properties of dairy products. For instance, new strains of probiotics that offer enhanced health benefits, such as supporting gut health, improving digestion, and boosting immunity, are gaining popularity. As consumers become more health-conscious, they are increasingly seeking dairy products that not only taste good but also offer tangible health benefits, especially those related to digestion and immunity. The ability of dairy culture manufacturers to innovate and develop strains that provide specific health benefits, such as better gut flora balance or lactose intolerance relief, directly addresses the consumer need for functional foods and wellness-focused products.
innovations in dairy culture strains have also led to improvements in flavor profiles, texture, and even the shelf life of dairy products. For example, certain strains are being developed to enhance the flavor and texture of cheeses, giving rise to new and unique varieties that appeal to niche consumer segments. Some innovations also focus on reducing the fermentation time, making the production process more efficient and reducing overall production costs. As these innovations continue, they offer dairy culture manufacturers opportunities to create high-value, differentiated products that can cater to the growing demand for functional, specialty, and health-focused dairy products. This innovation not only enhances the appeal of fermented dairy products but also strengthens the market position of manufacturers who are able to keep up with the latest advancements in dairy culture technology.
Restraints:
- Price Sensitivity and Affordability Issues
- Consumer Preferences for Non-Dairy Products
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Regulatory Challenges and Standards-One of the key restraints in the Global Dairy Cultures Market is the regulatory challenges and standards that govern the production and use of dairy cultures. The dairy industry is subject to stringent regulations regarding food safety, quality, and labeling, which can vary significantly from country to country. For instance, in regions such as Europe and North America, dairy culture manufacturers must comply with rigorous food safety regulations to ensure that their products meet health standards and are free from contaminants. These regulations often require thorough testing and validation of microbial strains used in dairy cultures, which can be time-consuming and costly. Furthermore, some countries have specific rules regarding the use of genetically modified organisms (GMOs), which can impact the development of certain types of dairy cultures that may be based on GMO strains.
The variability in regulations across different regions can create challenges for global dairy culture manufacturers, especially those looking to expand into new markets. Manufacturers must navigate these complex regulatory environments to ensure their products are compliant, which can involve significant investment in research, development, and documentation to meet local standards. Additionally, inconsistencies in regulations can lead to delays in product launches, which can affect market penetration and revenue generation. While the increasing demand for dairy cultures presents a lucrative opportunity, manufacturers must be prepared to address these regulatory hurdles, ensuring that their products meet the necessary legal requirements in every market they enter.
Opportunities:
- Expansion into Emerging Markets
- Growth in Plant-Based Dairy Alternatives
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Increasing Popularity of Specialty and Organic Dairy Products-The increasing popularity of specialty and organic dairy products presents a significant opportunity for the Global Dairy Cultures Market. As consumers become more health-conscious and aware of the environmental impact of their food choices, there is a growing demand for specialty and organic dairy products. These products are seen as healthier alternatives, often made with fewer artificial ingredients and more sustainable practices. The rise in demand for organic dairy products, in particular, is a direct result of consumers’ preference for products that are free from synthetic pesticides, hormones, and antibiotics. Organic dairy cultures, which are derived from organic farming practices, are gaining popularity in this context, offering manufacturers an opportunity to capitalize on this trend by developing and marketing organic cultured dairy products.
Specialty dairy products, such as those with added probiotics, gluten-free options, or lactose-free varieties, are also becoming more popular as consumers seek products that align with their specific dietary preferences or health needs. The growing interest in niche dairy items like kefir, artisanal cheeses, and plant-based dairy alternatives further expands the market opportunities for dairy culture innovation. By leveraging specialty and organic ingredients, dairy culture manufacturers can cater to these evolving consumer preferences, offering a diverse range of products that meet the increasing demand for functional, natural, and high-quality dairy options. This trend provides manufacturers with an opportunity to differentiate their products, build brand loyalty, and expand their market share in both established and emerging markets.
Competitive Landscape Analysis
Key players in Global Dairy Cultures Market include,
- Amul
- Fonterra Co-operative Group Limited
- Arla Foods Amba
- Clover S.A. Proprietary Limited
- Dean Foods Company
- Saputo Inc.
- SanCor
- Hatsun Agro Product Ltd
- Grupo Lala
- Foremost Farms USA
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Fermentation Type
- Market Snapshot, By Application
- Market Snapshot, By Region
- Global Dairy Cultures Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Growing Demand for Functional Foods
- Health Consciousness and Probiotic Benefits
- Increased Innovation in Dairy Culture Strains
- Restraints
- Price Sensitivity and Affordability Issues
- Consumer Preferences for Non-Dairy Products
- Regulatory Challenges and Standards
- Opportunities
- Expansion into Emerging Markets
- Growth in Plant-Based Dairy Alternatives
- Increasing Popularity of Specialty and Organic Dairy Products
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Dairy Cultures Market, By Type, 2021 - 2031 (USD Million)
- Mesophilic Type
- Thermophilic Type
- Global Dairy Cultures Market, By Fermentation Type, 2021 - 2031 (USD Million)
- Yeast-Lactic Acid Fermentation
- Lactic Acid Fermentation
- Fungus-Lactic Acid Fermentation
- Global Dairy Cultures Market, By Application, 2021 - 2031 (USD Million)
- Cheese
- Yoghurt
- Buttermilk
- Cream
- Kumys
- Kefir
- Generic Probiotic
- Special Cultures
- Others
- Global Dairy Cultures Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Dairy Cultures Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Amul
- Fonterra Co-operative Group Limited
- Arla Foods Amba
- Clover S.A. Proprietary Limited
- Dean Foods Company
- Saputo Inc.
- SanCor
- Hatsun Agro Product Ltd
- Grupo Lala
- Foremost Farms USA
- Company Profiles
- Analyst Views
- Future Outlook of the Market