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By Type;
Buttermilk, Kefir, Drinking Yoghurt and OthersBy Category;
Flavored and UnflavoredBy Packaging;
Bottles, Cartons, Pouches, Snacks and OthersBy Distribution Channel;
On Trade, Off Trade, Hypermarkets & Supermarkets, Convenience Stores, Online and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Sour Milk Drinks Market Overview
Sour Milk Drinks Market (USD Million)
Sour Milk Drinks Market was valued at USD 6,860.54 million in the year 2024. The size of this market is expected to increase to USD 11,674.19 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.9%.
Sour Milk Drinks Market
*Market size in USD million
CAGR 7.9 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 7.9 % |
| Market Size (2024) | USD 6,860.54 Million |
| Market Size (2031) | USD 11,674.19 Million |
| Market Concentration | Medium |
| Report Pages | 318 |
Major Players
- PepsiCo, Inc.
- Danone S.A.
- Nestlé
- Arla Foods
- Lifeway Foods, Inc.
- Yakult Honsha Co., Ltd.
- General Mills, Inc.
- Fonterra Co-operative Group Limited
- Emmi Group
- Meiji Holdings Co., Ltd.
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Sour Milk Drinks Market
Fragmented - Highly competitive market without dominant players
The Sour Milk Drinks Market is witnessing rapid growth as demand for functional beverages continues to rise. Consumers are increasingly drawn to their probiotic properties, which promote gut health and overall wellness. With adoption rates climbing by over 30%, sour milk drinks are gaining strong acceptance as dairy-based nutritional beverages enriched with natural cultures and bioactive elements.
Health-Focused Consumption Patterns
Shifting dietary choices emphasize digestive health and immunity support, fueling market expansion. Nearly 40% of consumers prefer sour milk drinks over traditional sugary options, as these beverages deliver natural probiotics, calcium, and proteins. Their health-focused profile has positioned them as a valuable addition to daily diets.
Product Innovation Boosting Market Appeal
Innovation plays a critical role in accelerating growth, with about 45% of new product launches featuring flavored or fortified sour milk drinks. Additions such as vitamins and minerals enhance nutritional benefits while also improving taste and broadening consumer appeal. These efforts ensure sour milk drinks remain relevant across various lifestyle segments.
Strong Uptake Among Younger Consumers
Adoption among younger demographics is rising swiftly, with usage exceeding 35%. Their preference for nutrient-rich beverages that combine tradition with modern wellness trends has strengthened sour milk drinks’ role as a functional refreshment. This trend underscores their growing influence in reshaping beverage consumption habits.
Growth Opportunities Ahead
Future prospects look promising, with more than 50% of producers expanding portfolios with premium and clean-label sour milk drinks. Continued R&D investment and strategic collaborations are expected to drive innovation, enhancing product diversity and securing long-term growth opportunities.
Sour Milk Drinks Market Key Takeaways
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The Sour Milk Drinks Market is expanding steadily due to the rising popularity of probiotic-rich beverages and increasing awareness of gut health benefits.
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Growing consumer demand for functional dairy products with natural fermentation properties is fueling market growth globally.
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Products such as kefir, buttermilk, and yogurt-based drinks are witnessing strong adoption due to their nutritional and digestive health advantages.
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Rising preference for low-fat and clean-label formulations is driving manufacturers to innovate in product composition and packaging.
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Technological advancements in cold chain logistics and dairy processing are supporting quality retention and extended product shelf life.
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Challenges such as limited consumer awareness in developing regions and shorter shelf stability continue to impact market penetration.
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Europe and Asia-Pacific remain key markets due to strong consumption traditions, growing urban health trends, and robust dairy production infrastructure.
Sour Milk Drinks Market Recent Developments
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In February 2024, the market recorded strong growth driven by the surge in plant-based alternatives. The rising demand for non-dairy sour cream appealed to vegan, dairy-free, and lactose-intolerant consumers, highlighting the shift toward sustainable and health-conscious food options.
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In June 2021, the global sour cream market expanded as consumers preferred richer and creamier options for diverse culinary applications. This increasing interest fueled the popularity of premium, organic, and clean-label sour cream products focused on quality and natural ingredients.
Sour Milk Drinks Market Segment Analysis
In this report, the Sour Milk Drinks Market has been segmented by Type, Category, Packaging, Distribution Channel and Geography.
Sour Milk Drinks Market, Segmentation by Type
The Sour Milk Drinks Market is categorized by Type into Buttermilk, Kefir, Drinking Yoghurt, and Others. Each type serves unique consumer preferences and nutritional demands, with strong growth influenced by health-conscious trends, probiotic benefits, and increasing dairy innovation. The market’s evolution reflects growing consumer inclination toward fermented beverages, driven by functional nutrition awareness and premiumization.
Buttermilk
Buttermilk continues to gain traction as a traditional fermented beverage favored for its digestive benefits and low-fat profile. It is particularly popular in Asia Pacific and European regions where local dairy heritage drives consumption. Innovations in flavored buttermilk and packaging convenience are enhancing shelf visibility and expanding its appeal among younger demographics.
Kefir
Kefir remains one of the fastest-growing sour milk categories due to its potent probiotic profile and digestive health benefits. It dominates the functional drink segment, with brands emphasizing gut health, immune support, and natural fortification. The rise in plant-based kefir variants and organic labeling further broadens its reach among lactose-intolerant and vegan consumers.
Drinking Yoghurt
Drinking Yoghurt leads the sour milk beverage category, driven by its widespread acceptance as a ready-to-drink nutritional option. Enhanced shelf life through pasteurization, new flavors, and attractive packaging designs have made it a mainstream choice across urban retail channels. The growing adoption of low-sugar and high-protein variants supports long-term volume expansion in developed markets.
Others
Other sour milk drinks include region-specific traditional beverages and innovative fermented products targeting niche consumers. Market players are investing in new product development and flavor differentiation to attract experimental consumers, particularly in North America and Europe, where health-focused beverage consumption is rising rapidly.
Sour Milk Drinks Market, Segmentation by Category
The market is segmented by Category into Flavored and Unflavored variants. Both categories serve distinct consumer needs, where flavored drinks appeal to young, urban consumers, while unflavored types are favored by traditional and health-oriented buyers. Innovations in natural flavoring and reduced sugar content are key growth drivers across global markets.
Flavored
Flavored sour milk drinks dominate the market due to their palatable taste and variety in fruit-infused options. Companies are introducing regional fruit blends and low-calorie flavors to enhance adoption rates, especially among millennials. Marketing campaigns highlighting natural ingredients and immunity-boosting properties continue to boost this segment’s sales potential.
Unflavored
Unflavored sour milk drinks appeal to health-conscious consumers seeking natural fermentation without additives or sugars. This segment benefits from growing awareness of clean-label products and functional wellness beverages. Increasing adoption in hospitals, fitness centers, and dietary programs is projected to sustain steady growth over the forecast period.
Sour Milk Drinks Market, Segmentation by Packaging
The Packaging segmentation of sour milk drinks includes Bottles, Cartons, Pouches, Snacks, and Others. Packaging innovations are central to enhancing convenience, product safety, and brand recognition. Sustainable materials and extended shelf-life technologies are critical trends influencing consumer preference and manufacturer strategies.
Bottles
Bottles remain the preferred packaging form due to durability, reusability, and consumer familiarity. Glass and PET bottles dominate this space, with increasing integration of eco-friendly materials to meet environmental goals. The transparent design and portability also enhance brand visibility in retail aisles, particularly in Europe and Asia Pacific.
Cartons
Cartons are gaining prominence for being lightweight, recyclable, and cost-efficient for transportation. Major players like Tetra Pak are innovating in aseptic carton technology to preserve freshness. The focus on sustainable packaging aligns with government regulations promoting recyclable solutions in the food & beverage industry.
Pouches
Pouches are emerging as a flexible and portable packaging alternative favored in on-the-go consumption trends. Their lower production costs and customizable design appeal to small and mid-sized manufacturers. The segment benefits from increasing demand in developing economies and convenience retail formats.
Snacks
Snacks-based sour milk products represent a fusion of dairy and convenience, appealing to health-conscious consumers looking for functional food alternatives. These are often presented in squeezable or single-serve packs, targeting the youth and working-class demographics in urban centers.
Others
Other packaging formats include bulk containers and regional packaging variations. They are mainly used for institutional supply and traditional markets. Growing emphasis on localized branding and cost-effectiveness continues to shape product adoption in this category.
Sour Milk Drinks Market, Segmentation by Distribution Channel
The market is distributed through various Distribution Channels including On Trade, Off Trade, Hypermarkets & Supermarkets, Convenience Stores, Online, and Others. Evolving retail ecosystems and omnichannel marketing are key drivers influencing accessibility and consumer purchasing patterns across developed and emerging economies.
On Trade
On Trade channels such as cafes, restaurants, and hotels play a crucial role in product trial and brand promotion. Partnerships with food service chains enhance exposure, especially for flavored and premium kefir drinks. Growth is further driven by increasing consumer preference for probiotic beverages in dining establishments.
Off Trade
Off Trade encompasses retail stores, supermarkets, and other outlets where direct consumer purchases dominate. Promotional campaigns, discounts, and visibility across retail shelves are key growth strategies used by brands to maximize sales. Private label competition and in-store sampling are shaping purchasing behavior in this segment.
Hypermarkets & Supermarkets
Hypermarkets and supermarkets are the leading contributors to global sales volume due to their wide product assortment and consumer reach. Strong retail penetration in developed markets like the U.S., Germany, and Japan facilitates consistent demand growth for both flavored and unflavored varieties.
Convenience Stores
Convenience stores cater to impulse buyers and on-the-go consumers, especially in urban centers. Their proximity advantage and ready-to-drink sections make them pivotal in expanding the urban consumer base. Many brands now collaborate with convenience chains to introduce single-serve kefir bottles and flavored yoghurts.
Online
Online channels are witnessing exponential growth, accounting for over 20% of total sales in some developed markets. E-commerce platforms enable direct-to-consumer models, subscription-based deliveries, and customized promotions. The surge in digital marketing and online grocery adoption post-pandemic continues to reshape market dynamics.
Others
Other channels include vending machines, direct dairy farms, and specialty stores. Their influence, though limited, is rising in niche markets where fresh and artisanal sour milk beverages are gaining popularity among premium consumers.
Sour Milk Drinks Market, Segmentation by Geography
In this report, the Sour Milk Drinks Market has been segmented by Geography into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
North America
North America leads the sour milk drinks market owing to the rising demand for probiotic-rich beverages and functional dairy products. Major companies in the U.S. and Canada are emphasizing organic labeling and clean dairy production methods. Increasing consumer awareness about digestive wellness and immunity is fueling strong regional growth.
Europe
Europe represents a mature market with a long-standing culture of fermented milk consumption. Countries like Germany, France, and Russia showcase strong adoption of kefir and buttermilk. Growth is supported by innovations in dairy sustainability, eco-friendly packaging, and dietary diversification trends.
Asia Pacific
Asia Pacific is witnessing the fastest growth due to expanding dairy infrastructure and increasing health consciousness. Markets such as China, India, and Japan are driving demand for flavored drinking yoghurt and region-specific sour milk beverages. Government initiatives to promote dairy modernization further enhance industry outlook.
Middle East and Africa
Middle East and Africa show steady expansion supported by rising disposable income and changing dietary preferences. Growing retail distribution networks and the introduction of value-added dairy drinks are improving accessibility, especially across GCC countries and South Africa.
Latin America
Latin America is emerging as a promising market with countries like Brazil and Mexico adopting fermented dairy drinks in daily diets. Local manufacturers are innovating in flavored sour milk formulations to cater to diverse taste preferences, while international players are investing in strategic partnerships for distribution growth.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Sour Milk Drinks Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunities Analysis
Drivers
- Rising Consumer Awareness of Probiotic and Gut Health Benefits
- Growing Demand for Functional and Fermented Beverages
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Increasing Popularity of Dairy-Based Beverages in Emerging Markets- The increasing popularity of dairy-based beverages in emerging markets is a key driver for the growth of the Global Sour Milk Drinks Market. As consumer preferences shift towards healthier and more natural beverages, sour milk drinks are gaining traction due to their probiotic benefits and nutritional value. Emerging markets, particularly in Asia-Pacific, Latin America, and parts of Africa, are witnessing a growing demand for fermented dairy drinks like kefir, laban, and ayran. This trend is fueled by rising disposable incomes, changing dietary habits, and increased awareness of the health advantages associated with probiotic-rich dairy products.
One of the major factors contributing to the rising demand is the increasing urbanization in developing countries. As more people move to cities, they are exposed to a wider variety of food and beverage choices, including international dairy products. Supermarkets and convenience stores are expanding their product offerings, making sour milk drinks more accessible to consumers. Additionally, the growth of e-commerce and online grocery platforms has made it easier for consumers to purchase these products, further driving market expansion.
Another crucial factor is the growing emphasis on digestive health and immunity-boosting foods. Consumers in emerging markets are becoming more health-conscious and are actively seeking products that promote gut health. Sour milk drinks, which contain live probiotics, are perceived as a natural solution to digestive issues and overall wellness. As a result, food and beverage manufacturers are launching new flavors, fortified versions, and innovative packaging to attract a broader audience and enhance consumer appeal.
Government initiatives and investments in the dairy sector are playing a significant role in market growth. Many emerging economies are supporting local dairy production through subsidies, improved cold chain logistics, and infrastructure development. Additionally, multinational dairy companies are entering these markets through partnerships and acquisitions, ensuring a steady supply of high-quality sour milk drinks. With increasing consumer acceptance and strategic industry efforts, the Global Sour Milk Drinks Market is poised for substantial growth in emerging markets.
Restraints
- Lactose Intolerance and Dairy Allergies Limiting Consumer Base
- High Production Costs and Short Shelf Life of Sour Milk Drinks
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Competition from Plant-Based and Non-Dairy Alternatives- In the Global Sour Milk Drinks Market, one of the key restraining factors is the growing competition from plant-based and non-dairy alternatives. In recent years, consumers have been shifting toward dairy-free options due to lactose intolerance, vegan lifestyles, and perceived health benefits. This trend has led to a surge in demand for plant-based alternatives such as almond, soy, oat, and coconut-based fermented drinks, which directly compete with traditional sour milk beverages. As a result, sour milk drink manufacturers face increasing pressure to adapt to this evolving consumer landscape.
The rising preference for plant-based alternatives is also driven by increasing health awareness and concerns about digestive health. Many consumers believe that non-dairy alternatives are easier to digest and offer additional benefits, such as being cholesterol-free and lower in saturated fats. Furthermore, advancements in food technology have improved the taste, texture, and nutritional profile of plant-based fermented beverages, making them more appealing to a broader audience. As a result, traditional dairy-based sour milk drinks struggle to retain market share, particularly among younger generations and health-conscious consumers.
Another significant factor contributing to the competition is the growing influence of sustainability and environmental concerns. The dairy industry faces criticism for its environmental impact, including high greenhouse gas emissions, water consumption, and land use. In contrast, plant-based alternatives are often marketed as more sustainable and environmentally friendly, attracting eco-conscious consumers. This shift in consumer sentiment is further reinforced by endorsements from health professionals, influencers, and regulatory bodies promoting plant-based diets, further limiting the growth potential of sour milk drinks in the global market.
To counteract this competition, manufacturers in the sour milk drinks market must innovate and diversify their product offerings. Reformulating dairy-based sour milk drinks with added functional ingredients such as probiotics, vitamins, and minerals can help retain consumer interest. Additionally, companies can explore hybrid products that combine dairy and plant-based ingredients to appeal to a wider audience. Effective marketing strategies highlighting the unique benefits of sour milk drinks, such as their rich probiotic content and traditional heritage, can also help maintain relevance in a highly competitive market.
Opportunities
- Innovation in Flavor Profiles and Fortification with Nutrients
- Growing Demand for Organic and Clean-Label Products
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Expansion in Developing Regions with Untapped Market Potential- Developing regions present significant opportunities for the Global Sour Milk Drinks Market due to their expanding consumer base, rising disposable incomes, and evolving dietary habits. Countries in Asia, Africa, and Latin America are experiencing rapid urbanization and lifestyle changes that encourage the adoption of diverse dairy products, including sour milk drinks. The growing awareness of probiotics and gut health benefits further fuels demand in these markets, as consumers become more health-conscious. Additionally, traditional fermented dairy beverages in these regions share similarities with sour milk drinks, making it easier for brands to introduce their products and gain acceptance.
The relatively low market penetration in these regions compared to developed economies offers businesses a chance to establish a strong presence before competition intensifies. Multinational dairy companies and local producers can expand their product portfolios by catering to regional taste preferences and dietary requirements. Collaborations with local distributors, supermarkets, and e-commerce platforms can further enhance accessibility and visibility. Additionally, government initiatives promoting dairy consumption and nutritional programs in many developing countries can support market growth by encouraging the inclusion of fermented dairy drinks in daily diets.
Rising investments in cold chain logistics and infrastructure development in these regions also facilitate market expansion. Improved transportation and refrigeration systems reduce product spoilage, ensuring that sour milk drinks maintain quality and safety throughout the supply chain. Furthermore, advancements in packaging technology help extend shelf life, making it easier for retailers to stock and distribute these products efficiently. As consumer trust in dairy hygiene and safety improves, the adoption of sour milk drinks is likely to rise, creating a sustainable growth trajectory for companies operating in these regions.
The digital transformation in developing markets provides a unique avenue for brands to connect with consumers through online marketing and direct-to-consumer sales models. Social media platforms, health blogs, and influencer marketing can be leveraged to educate potential buyers about the benefits of sour milk drinks. Subscription-based services and personalized nutrition plans, facilitated through e-commerce, can also drive sustained demand. By strategically positioning their brands and leveraging technological advancements, companies can maximize their growth potential in developing regions with untapped market opportunities.
Sour Milk Drinks Market Competitive Landscape Analysis
Sour Milk Drinks Market reflects a competitive environment where more than 53% of companies rely on strategic collaboration, merger, and partnerships to strengthen market positioning. Increasing focus on innovation in product formulations and packaging enhances consumer appeal, driving consistent growth. Companies emphasize diversification and regional expansion to maintain strong competitiveness across diverse beverage segments.
Market Structure and Concentration
The market shows moderate concentration, with around 44% of share held by leading players. Larger enterprises adopt vertical integration strategies and frequent merger initiatives, while smaller firms introduce niche innovation. This balance supports steady growth and ensures continuous expansion into emerging categories within the dairy and functional beverage industries.
Brand and Channel Strategies
Over 50% of participants prioritize brand-centric strategies that emphasize health-focused positioning and consumer trust. Strong partnerships with retail chains, supermarkets, and online platforms enhance visibility. Companies leverage innovation in flavor profiles and convenience packaging, accelerating growth and supporting broad expansion into both traditional and digital distribution channels.
Innovation Drivers and Technological Advancements
More than 57% of investments are directed toward technological advancements in fermentation, preservation, and flavor enhancement. Firms emphasize innovation to improve nutritional value and product consistency. Collaborative R&D partnerships strengthen competitive positioning, ensuring long-term growth while driving large-scale expansion across food service, retail, and specialty beverage sectors.
Regional Momentum and Expansion
Regional players represent about 41% of market competitiveness, utilizing localized strategies and targeted consumer engagement. Strong growth in emerging economies is fueled by innovative partnerships with regional distributors. Leading international firms pursue collaboration and merger models to enhance market reach, ensuring continuous expansion and alignment with evolving consumer preferences.
Future Outlook
With nearly 64% of companies adopting forward-looking strategies, the market is positioned for sustained growth. Ongoing innovation in product diversity and nutritional enhancement will reinforce competitiveness. Expanding partnerships and global collaboration will drive broader expansion, while health-conscious demand and evolving retail structures shape the future outlook of sour milk drinks.
Key players in Sour Milk Drinks Market include:
- PepsiCo, Inc.
- Danone S.A.
- Nestlé S.A.
- Arla Foods
- Lifeway Foods, Inc.
- Yakult Honsha Co., Ltd.
- General Mills, Inc.
- Fonterra Co-operative Group Limited
- Emmi Group
- Meiji Holdings Co., Ltd.
- The Hain Celestial Group, Inc.
- Chr. Hansen Holding A/S
- The Gujarat Co-operative Milk Marketing Federation Ltd.
- Parag Milk Foods
- Nourish Kefir
In this report, the profile of each market player provides following information:
- Market Share Analysis
- 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 Category
- Market Snapshot, By Packaging
- Market Snapshot, By Distribution Channel
- Market Snapshot, By Region
- Sour Milk Drinks Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Rising Consumer Awareness of Probiotic and Gut Health Benefits
- Growing Demand for Functional and Fermented Beverages
- Increasing Popularity of Dairy-Based Beverages in Emerging Markets
- Restraints
- Lactose Intolerance and Dairy Allergies Limiting Consumer Base
- High Production Costs and Short Shelf Life of Sour Milk Drinks
- Competition from Plant-Based and Non-Dairy Alternatives
- Opportunities
- Innovation in Flavor Profiles and Fortification with Nutrients
- Growing Demand for Organic and Clean-Label Products
- Expansion in Developing Regions with Untapped Market Potential
- 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
- Sour Milk Drinks Market, By Type, 2021 - 2031 (USD Million)
- Buttermilk
- Kefir
- Drinking Yoghurt
- Others
- Sour Milk Drinks Market, By Category, 2021 - 2031 (USD Million)
- Flavored
- Unflavored
- Sour Milk Drinks Market, By Packaging, 2021 - 2031 (USD Million)
- Bottles
- Cartons
- Pouches
- Snacks
- Others
- Sour Milk Drinks Market, By Distribution Channel, 2021 - 2031 (USD Million)
- On Trade
- Off Trade
- Hypermarkets & Supermarkets
- Convenience Stores
- Online
- Others
- Sour Milk Drinks 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
- Sour Milk Drinks Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- PepsiCo, Inc.
- Danone S.A.
- Nestlé S.A.
- Arla Foods
- Lifeway Foods, Inc.
- Yakult Honsha Co., Ltd.
- General Mills, Inc.
- Fonterra Co-operative Group Limited
- Emmi Group
- Meiji Holdings Co., Ltd.
- The Hain Celestial Group, Inc.
- Chr. Hansen Holding A/S
- The Gujarat Co-operative Milk Marketing Federation Ltd.
- Parag Milk Foods
- Nourish Kefir
- Company Profiles
- Analyst Views
- Future Outlook of the Market