Sour Cream Market Size, Share, Growth, Trends, and Forecast 2030

Sour Cream Industry Prospective:

The global sour cream market size was worth around USD 1680.90 million in 2022 and is predicted to grow to around USD 2407.60 million by 2030 with a compound annual growth rate (CAGR) of roughly 4.59% between 2023 and 2030.

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Sour Cream Market: Overview

Sour cream is a dairy product. It is also known as cultured cream and is made using fermented cream that has been inoculated with lactic acid bacteria. The resulting mixture is tart & thick and is mainly used in food products as a texture and flavor-enhancing ingredient. It is often added to soups and stews. Sour cream consists of probiotic bacteria like other fermented products such as yogurt. Consuming cultured cream is known to alleviate gastrointestinal conditions and help promote the overall immune system. It is a good source of calories and has a high fat content. While sour cream can be produced on a non-commercial level for personal use, the demand for commercially produced cultured cream is higher. This variant is pasteurized before fermentation to ensure that all forms of microorganisms are removed. The final uniform texture is achieved by then homogenizing the pasteurized content at a low temperature as it assists in the even dispersion of milk fats. Reports indicate that every region has a specific preference in terms of sour cream texture. For instance, products made in the US tend to be thicker than the European options. The industry for sour cream is expected to grow at a steady pace during the projection period.

Key Insights: 

• As per the analysis shared by our research analyst, the global sour cream market is estimated to grow annually at a CAGR of around 4.59% over the forecast period (2023-2030)
• In terms of revenue, the global sour cream market size was valued at around USD 1680.90 million in 2022 and is projected to reach USD 2407.60 million, by 2030.
• The sour cream market is projected to grow at a significant rate due to the growing demand for food products worldwide
• Based on packaging type segmentation, tubs & cups was predicted to show maximum market share in the year 2022
• Based on distribution channel segmentation, store-based was the leading segment in 2022
• On the basis of region, Europe was the leading revenue generator in 2022

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Sour Cream Market: Growth Drivers

Growing demand for food products worldwide to drive market growth

The global sour cream market is expected to grow due to the increasing demand for food products on a global scale. The increasing expansion of the world population and increased food awareness are expected to assist the market to grow at a steady pace. The food industry is currently enjoying the globalization trend as more people are becoming aware of food products from other countries aided by access to social media and food channels. This has led to a rising number of people showing interest in either cooking new food products or exploring items from food service units such as restaurants and cafes. In addition to this, the versatility of sour creams further helps the market register high growth since they can be used in a wide range of food products including soups, salads, and desserts. It is one of the most common food ingredients in Mexican cuisine which is also considered one of the world’s most famous culinary segments. For instance, a 2018 survey concluded that Mexican cuisine was one of the highest and most preferred food forms. More than 86.5% of survey respondents voted in favor.

Increasing access to same-day doorstep food delivery will assist in higher revenue

The demand for sour cream is expected to further benefit from the rising number of companies and e-commerce platforms providing access to same-day delivery of food products at doorstep. It allows consumers to order products using digital media and hence is a suitable option for buyers with limited time for grocery shopping, especially in urban areas. The grocery delivery industry is a rapidly expanding sector strengthened by increasing strategic collaboration between domestic and international players. In September 2023, UberEats announced a partnership with quick commerce player Getir in the UK region. The collaboration is a grocery delivery partnership and will help Uber Eats expand its product offerings. The companies plan to extend the partnerships to other regions in Europe as well in the coming years.

Sour Cream Market: Restraints

Health concerns associated with sour cream to restrict market growth

The global sour cream market growth is projected to be restricted due to health concerns associated with excess consumption of dairy products. While sour cream has several health benefits when consumed in restricted quantities, it may lead to allergic reactions in people intolerant to lactose or dairy items. The growing number of people allergic to dairy products is expected to restrict market growth trends. Furthermore, the product is high in calories and saturated fat thus leading to heart conditions or health issues if over-consumed.

Sour Cream Market: Opportunities

Increasing demand for organic sour cream options to create growth opportunities

The sour cream industry is expected to come across several growth opportunities led by the increasing demand for organic and chemical-free commercial cultured cream options. The rising awareness about the benefits of organic food products will result in a higher growth rate. In October 2019, Forager Project, a pioneer in plant-based food products, announced the launch of dairy-free cultured cream. The products cater to the needs of people with lactose intolerance or consumer groups seeking organic options. The new range is made of coconut milk and organic cashews along with active and live cultures. In January 2023, Violife, a leading producer of vegan cheese, launched dairy-free sour cream in around 883 Walmart stores in the US. As per company claims, the product can be used as a replacement for all cuisines made using sour cream. It is expected to retail at USD 4.99 along with other vegan products offered by Violife.

Growing investments in new packaging design may attract more consumers

Food companies are increasingly focusing on novel product designs aiming to improve product usability thus impacting brand perception. Some of the key focus areas are using renewable or sustainable packaging material along with creative product taglines. In addition to this, they are offering products in different sizes and designs such as squeeze tubes and drip-free packaging.

Sour Cream Market: Challenges

High competition within the market to challenge the expansion trajectory

The global sour cream market growth is expected to be challenged by the existing intense competition within the sour cream sector. The market is filled with multiple players including regional companies and international providers. Such intense competition can result in difficulty in achieving product differentiation. The market is further complicated due to the changing regulatory conditions related to food quality and safety. Food companies must adhere to these dynamic laws to avoid penalties or legal action in case of non-compliance.

Sour Cream Market: Segmentation

The global sour cream market is segmented based on packaging type, category, distribution channel, and region.

Based on packaging type, the global market segments are squeezers, tubs & cups, bottles, and others. In 2022, the highest growth was witnessed in the tubs & cups segment since they are the most popular type of packaging used for dairy products. Tubs and cups offer high convenience in terms of use. They can be easily stacked and transported making them the ideal packaging choice for food service units. Some of the other benefits include excellent storage capacity and availability of different-sized cups to tubs. The consumption rate of squeezers is growing steadily since they are easy to handle. 100 grams of sour cream consists of 20 grams of total fat.

Based on category, the global sour cream industry divisions are inorganic and organic.

Based on distribution channel, the global market is divided into non-store-based and store-based. In 2022, the highest demand was observed in the store-based segment since most people continue to purchase grocery products including dairy items from retail stores. However, the non-store segment is growing rapidly driven by the increasing proliferation of online sales channels. UberEats caters to more than 480 million users.

Sour Cream Market: Report Scope

Sour Cream Market: Regional Analysis

Europe to register growth rate during the forecast period

The global sour cream market is projected to grow with the highest CAGR in Europe. The region is home to some of the largest companies operating in the food & beverages sector with multiple players operating in the sour cream segment. Countries such as Germany, Poland, and France are among the top producers of different types of sour creams. Several cuisines including salad dressings and baked goods are made using cultured cream. Furthermore, Europe has a high rate of tourism driven especially by the regional food industry and people across the globe visit European countries every year. A recent report concluded that almost 5% of all tourists in Europe are culinary tourists. In August 2022, Yeo Valley, a UK-based food brand, announced plans to diversify its product portfolio in the dips and fresh soups category. In the former segment, it launched 3 flavors including Sour Cream & Chive along with other two variants. North America is an essential region with a significant growth rate. The US is one the largest regional producers of sour cream while Mexico cuisine uses cultured cream in high quantities. The growing popularity of Mexican food including nachos and other items is likely to create higher regional revenue.

Sour Cream Market: Competitive Analysis

The global sour cream market is led by players like:

• Kemps
• Daisy Brand
• Knudsen
• Dean's Dairy
• Nancy's
• FAGE
• Breakstone's
• Arla
• Hood
• Cabot Creamery
• Organic Gemini
• Land O'Lakes
• Organic Valley
• Horizon Organic
• Tillamook

The global sour cream market is segmented as follows:

By Packaging Type

• Squeezers
• Tubs & Cups
• Bottles
• Others

By Category

• Inorganic
• Organic

By Distribution Channel

• Non-Store-Based
• Store-Based

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