Widespread Acceptance of Yogurt as a Healthy Snack will Augment Demand for Yogurt in North America, reports TMR

Yogurt1The North America yogurt market is highly competitive with leading players focusing on product differentiation and innovation. With an intent to capture more market share, players are striving to achieve reduced product pricing through innovation, states a new report by Transparency Market Research (TMR). Yogurt manufacturers such as General Mills, Groupe Danone S.A., and Chobani have entered into long term contracts with dairy suppliers, ensuring the uninterrupted supply of milk and other ingredients for the production of yogurt.

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The major buyers of yogurt are grocery stores, mass markets, supermarkets, and hypermarkets. Since the retail buyers look for higher margins, keeping their discounts in account, the bargaining power is expected to be high in the coming years. The North America yogurt market is led by players such as Groupe Danone S.A., Chobani, Yoplait, and Fage S.A. However, the market’s growing attractiveness invites many new entrants, developing new yogurt recipes. There exists a significant threat of private labels entering the market. Thus, the threat of new entrants is expected to be high in the coming years.

Health Benefits of Yogurt Driving Demand

The growing preference for yogurt as an important element at breakfast, lunch, and dinner is driving the demand across North America. Consumers are consuming yogurt as a meal in itself, a replacement to meal, snack, and as a dessert. The easy availability of yogurts is also aiding the sales of the different variants of yogurts. Additionally, people in the U.S. have started giving much importance to yogurts in their dietary plans since the awareness about the benefits of consuming dairy products has heightened. Health benefits of yogurt relating to bones and the affluence of calcium are also driving their consumption. Moreover, yogurt is considered to help in the burning of fat, prevention of high BP, and reduction of weight.

Ensuring Seamless Milk Supply from Rural Areas to Pose Challenge

The number of yogurt production plants is increasing due to growing demands of consumers, which in turn adds to the fixed cost. Collecting milk from rural areas is becoming a challenge for milk processing companies, thereby increasing the transportation cost. The cost of milk may also rise owing to mass production of yogurt. Another factor hampering the demand for yogurt is the misconception that yogurt, like all other dairy products, contains fat or high calories. Since health issues such as obesity and diabetes are two important concerns for the American population, such misconceptions about yogurt is leading towards lower consumption.

Growing Affinity towards Different Variants of Yogurts to Increase Consumption

When compared to the Europeans, the Americans still eat less yogurt and thus, there is an opportunity for the yogurt sale to increase and double by 2019. The people in North are showing an affinity towards the different variants of yogurts. It has become the fastest selling item in grocery stores. Increasing preference for yogurt by the health conscious people is also creating a huge opportunity for the different variants of yogurt.

The yogurt market in North America is expected to be worth US$11.7 bn by 2019. By product, the set yogurt segment is expected to lead both by volume and value by 2019. However, the frozen yogurt segment is expected to grow at the fastest rate from 2013 to 2019. On the basis of geography, the U.S. is expected to lead in terms of revenue in the North America yogurt market by 2019.

This information is based on the findings of a report published by Transparency Market Research titled “Yogurt Market – North America Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2020.”

The North America yogurt market is segmented as follows:


  • Frozen Yogurt

  • Set Yogurt


  • U.S.

  • Canada

  • Mexico