Dairy Cultures Market Size, Share, Trends, Growth 2032

Dairy Cultures Industry Prospective:

The global dairy cultures market size was worth around USD 935.30 million in 2023 and is predicted to grow to around USD 1566.81 million by 2032 with a compound annual growth rate (CAGR) of roughly 5.9% between 2024 and 2032.

  Request Free Sample

Dairy Cultures Market: Overview

Yeast and other bacteria are the most common microorganisms utilized in dairy culture, while other microorganisms are also occasionally employed. By improving the flavor, texture, and quality of milk, these cultures are essential to producing goods like yogurt and cheese. Lactose is fermented into lactic acid by starter cultures, which are made up of particular microbes. These cultures add distinctive qualities to the finished dairy product. To create mother cultures for wider usage in dairy processing, a commercial culture, sometimes referred to as a master culture, is obtained from a laboratory. Fermentation of milk with lactic acid bacteria produces cultured dairy products like yogurt, which have unique flavors and health advantages.

Key Insights

• As per the analysis shared by our research analyst, the global dairy cultures market is estimated to grow annually at a CAGR of around 5.9% over the forecast period (2024-2032).
• In terms of revenue, the global dairy cultures market size was valued at around USD 935.30 million in 2023 and is projected to reach USD 1566.81 million by 2032.
• The growing demand for healthy products across the globe is expected to drive the Dairy Cultures industry over the forecast period.
• Based on the type, the thermophilic segment is expected to dominate the market over the forecast period.
• Based on the fermentation type, the yeast-lactic acid segment is expected to hold a significant market share over the projected period.
• Based on the end user, the cheese segment is expected to capture the largest market share over the projected period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

Request Free Sample

Dairy Cultures Market: Growth Drivers

Growing health benefits associated with dairy product drives market growth

Producers of high-quality dairy goods, particularly dairy starting culture components, are under pressure to meet consumer demand for safe dairy products and growing market awareness. The taste, texture, and color of dairy products are enhanced by dairy starting culture, giving them the right consistency. The dairy culture market is anticipated to rise significantly over the forecast period due to an increase in consumer demand for premium dairy products. Furthermore, the health benefits of adding starter microorganisms to dairy products—such as immunity system strengthening, constipation relief, lower serum cholesterol, anti-carcinogenic effect, and antiallergenic properties—are anticipated to drive the growth of the global dairy culture market in the near future.

Dairy Cultures Market: Restraints

High production costs and competition from plant-based alternatives hinder market growth

Sophisticated technology and stringent quality control procedures are necessary for the creation of high-quality dairy cultures, which raises manufacturing costs. Dairy products can become more costly and possibly lose their competitiveness in the market if these expenses are passed on to customers. The market for dairy cultures is also under a big threat from the rising popularity of plant-based dairy substitutes including oat, soy, and almond products. Consumer demand is being shifted away from dairy-based goods by these substitutes, which frequently do not employ traditional dairy cultures.

Dairy Cultures Market: Opportunities

Growing product launches offer a lucrative opportunity for market growth

The growing product launch is expected to offer a lucrative opportunity to the Dairy Cultures market over the projected period. For instance, in September 2023, a new generation of starter cultures for very mild yogurts called Delvo®Fresh Pioneer was introduced by DSM-Firmenich, a global pioneer in nutrition, health, and beauty. This launch meets the demand of yogurt makers for high-quality ingredients, robust production methods, and constant mildness throughout shelf life by enabling outstanding pH stability during processing and throughout the product's lifespan. This range, which is a component of DSM-Firmenich's toolset for fermented dairy, is the outcome of the business's proficiency in biotechnology and dedication to purpose-led research. Compared to previous generations for mild yogurt recipes, yogurt pH is significantly more stable with this generation of cultures, lasting up to 60 days in cold storage.

Dairy Cultures Market: Challenges

Fluctuation in milk prices poses a major challenge to market expansion

An important component of dairy products, raw milk can fluctuate in price depending on the price of feed, the state of the weather, and agricultural regulations. Uncertainties in the dairy culture industry might result from variations in milk prices, which can impact the total cost of manufacturing cultured dairy products. Therefore, the fluctuation in milk prices is expected to pose a major challenge to the market growth.

Dairy Cultures Market: Segmentation

The global dairy culture industry is segmented based on type, fermentation type, end-user, and region.

Based on the type, the global dairy cultures market is segmented into mesophilic and thermophilic. The thermophilic segment is expected to dominate the market over the forecast period. Several reasons contribute to the segment's prominence. Food processing, biofuel manufacture, and bioremediation are a few industrial activities that can benefit from the use of thermophilic enzymes because they are extremely stable and active at high temperatures. Comparing thermophilic and mesophilic enzymes, the former frequently shows greater substrate selectivity and catalytic efficiency. The preference for thermophilic enzymes is expected to last throughout the forecast period, fueling their dominance in the market as industries continue to demand more sustainable and efficient operations. Further bolstering their sustained dominance in the global market is the growing use of thermophilic enzymes in a wide range of industrial applications.

Based on the fermentation type, the global dairy cultures industry is bifurcated into yeast-lactic acid, fungus-lactic acid, and lactic acid. The yeast-lactic acid segment is expected to hold a significant market share over the projected period. This can be ascribed to the extensive use of yeast-lactic acid fermentation in manufacturing cheese and yogurt, among other dairy products. The demand for yeast-lactic acid cultures has increased due to consumers' rising desire for these fermented dairy products due to their distinct flavors and health advantages. The need for this particular type of fermentation has also been driven by improvements in fermentation technologies and the growing acceptance of foods high in probiotics.

Based on the end user, the global dairy culture market is segmented into cheese, yogurt, kefir, and others. The cheese segment is expected to capture the largest market share over the projected period. Cheese’s taste profiles are pleasant, it is widely accepted by consumers, and it is versatile in culinary applications that make it popular. Cheese is still in high demand because it is a basic component of many different cuisines around the world. Cheese's continued appeal among consumers and its crucial position in the food sector is reflected in its sustained dominance of the market. Cheese's role as a major driver of the worldwide dairy market is cemented by the trend's predicted continuation, which highlights the persistent customer preference for the product.

Dairy Cultures Market: Report Scope

Dairy Cultures Market: Regional Analysis

Asia Pacific leads the market over the projected period

The Asia Pacific is expected to lead the global dairy cultures market growth during the forecast period. Technological developments, strong economic growth, and rising consumer demand for dairy culture are the main factors driving market expansion. Because of ongoing innovations, supportive policies from the government, and a growing middle class, the area is likely to continue to dominate the market during the forecast period. Businesses frequently adjust their plans to account for local differences. Therefore, this section is essential for focused advertising, positioning products, and general business planning. Comprehending regional disparities enables stakeholders to make knowledgeable selections and adjust to the varied market circumstances that are commonplace worldwide. Thus, this is expected to drive the dairy culture market growth in the region.

Dairy Cultures Market: Competitive Analysis

The global dairy cultures market is dominated by players like:

• DSM
• CHR. Hansen Holdings A/S
• Lallemand Inc.
• Novus International
• BASF SE
• ADM
• Alltech Inc.
• Charoen Popkhand Foods
• Associated British Foods Plc
• Cargill
• Incorporated
• Upside Foods
• MosaMeat
• Aleph Farms Ltd
• Integriculture Inc.
• Balletic Inc.
• AVANTMEATS.COM
• Finless Foods Inc.

The global dairy cultures market is segmented as follows:

By Type

• Mesophilic
• Thermophilic

By Fermentation Type

• Yeast-Lactic Acid
• Fungus-Lactic Acid
• Lactic Acid

By End User

• Cheese
• Yogurt
• Kefir
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa