Kefir Market by Type (Organic Kefir, Low Fat Kefir, Greek Style Kefir, Frozen Kefir, and Others), by Composition (Coconut Kefir, Milk Kefir, and Water Kefir), by Distribution Channel (Hypermarkets/Supermarkets, Grocery Stores, Convenience Stores, and Others), and Geography  

Kefir Market was valued at USD 1,451.6 million in 2022 and is expected to grow at 6.6% CAGR from 2023 to 2029 owing to the health benefits that may help manage blood sugar, lower cholesterol, and boost digestive health. Kefir is a fermented milk drink similar to a thin yogurt made from fermented milk and kefir grains prove to be an excellent source of probiotics. It is a beverage containing collections of bacteria and yeast having a sour taste and fizzy consistency as a result of fermentation. The increased demand for probiotic drinks with increased health awareness among consumers related to diarrhoea, inflammatory bowel disease, irritable bowel syndrome is expected to fuel the demand for kefir market. For instance, according to WHO, diarrhea kills around 525,000 children and is the second leading cause of death in children under five years of age, increased the importance of probiotics. Moreover, recent development has shown kefir water to have antimetastatic and antiangiogenetic effects on breast cancer cells thus increasing the opportunities for research and commercialization of kefir. Furthermore, according to a research article, kefir has proven to significantly decrease the levels of bone turnover markers and prevent bone loss, deterioration of trabecular microarchitecture, and biomechanical dysfunction resulting in market growth.

The availability of different flavours and type depending on dairy preference has increased the consumer base of the kefir market. For instance, in August 2022, Yeo Valley Organic launched its kefir ‘Love Your Gut’ yogurt range with natural, mango, passionfruit, and cherry flavours in the United Kingdom. The increased health consciousness during COVID-19 to boost immunity has tremendously boosted the market in post-pandemic duration. But the availability of other probiotic product alternatives and the preference for home-made probiotic drinks in underdeveloped countries over store bought is hindering the growth of kefir market. However, escalating prevalence of gastrointestinal ailments, increased investments by key industry players in the R&D sector to create probiotic products and growing demand for organic and natural products are further strengthening the kefir market.

The Kefir Market Key Developments:

• In March 2023, Lifeway Foods, Inc., a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, launched new flavours including Guava Low-fat Kefir, Organic Strawberry Banana Whole Milk Kefir and Organic Black Cherry Whole Milk Kefir, along with the seasonal flavours Rainbow Cake Low-fat Kefir and Campfire S'mores Low-fat Kefir, at Natural Products Expo West 2023.
• In March 2021, Lactalis Canada Inc. ('Lactalis Canada'), formerly Parmalat Canada Inc., a subsidiary of Lactalis Group, acquired all shares of Agropur Cooperative's Canadian yogurt business, Ultima Foods Inc.