Fermented products experience somewhat of a revival as they are aligning new offers to consumer habits and expanding choices. While breakfast remains the leading consumption occasion in Europe, expanding both animal- and plant-based options is helping to broaden reach, while new textures, flavors, inclusions and health benefits address consumer evolving demands.
Yoghurts are consumed for their health benefits, with high protein, low sugar options gaining traction. Consumers now increasingly seek more functional products that go beyond taste and overall health to enhance everyday wellness needs.
Some key statistics on fermented products, indicating room for growth:
- 17,7% of dairy and plant-based alternative volumes in Europe*
- 2.9% CAGR til 2029*
- Over 10.000 product launches in the last 3 years**
- More than 1 in 4 consumers in Europe consume yoghurt when they are snacking***
- 48% of consumers buys yoghurts first for the taste***
A fermented products definition
Fermented products include both sour milk products and yoghurt. Plant-based yoghurt and sour milk products are tracked separately under plant-based yoghurt, however, for illustration purposes are called out here as well.
Sour milk products include both plain and flavored variants regardless of fat content. Examples include kefir, lassi, laban, buttermilk and whey drinks.
Yoghurt includes both plain and flavored variants of drinking and non-drinking yoghurt. This includes both chilled (must be chilled to prevent spoilage) and shelf stable (do not need to be chilled to prevent spoilage) yoghurt products.
Note that there is no harmonized European definition of what constitutes a yoghurt. Always check natural regulations or codes of practice.
While the fermented dairy market has remained resilient, there are still ample innovation opportunities around “better-for-you” options, cost-efficiencies, indulgence and label-friendliness. Taste and cost are key purchase drivers, and made with real ingredients is the top product claim influencing consumer purchase decisions***.
What is critical, however, is that consumers are not willing to compromise on indulgence as they seek these healthier options. Balancing health, taste, cost and indulgence will be key to sustaining growth.
Key challenges
The use of specific additives is strongly dependent on the type of yoghurt. Typically, texturizers will be used in:
- Low fat and/or low protein recipes, to compensate for the texture loss
- Indulgent recipes, to create a specific texture and/or create extra creaminess
- Ambient yoghurts, to stabilize the proteins during the second heat treatment and stabilize the texture at room temperature for long shelf life
The more common way to add texturizers and increase viscosity is via the fruit preparation which can be mixed with the white mass or added as a layer.
Solutions
Cargill experts can help you design the most suitable solution for the type of yoghurt you’re creating. Cargill offers a broad range of solutions tailored to the sub-application and processing conditions.
Typically, solutions used would be:
Starch: Used in stirred and low fat & protein yoghurts for its water-binding, thickening and texture properties, starch can be a cost-effective texturizer that is compatible with other hydrocolloids such as pectin. Solutions include native or modified starches such as C*Tex®, C*PolarTex® and C*CreamTex®, and SimPure® functional, label-friendly starch.
Pectin: Used in set, stirred and low fat & protein yoghurts for its interaction with calcium reinforcing the lactic gel, and syneresis control, Low methoxyl (LM) pectins can be a label-friendly texturizers that enhance creaminess and smoothness. Solutions would be the uniPECTINE® AYS range for fermented products.
Functional Systems: Functional blends based on agar agar or gelatin are used in set, stirred and low fat & protein yoghurts to reinforce the lactic gel. Solutions include Satiagar™ or Lygomme® AYS ranges.
To create indulgence, manufacturers would typically use our sweeteners and/or chocolate-based portfolio.
The future of fermented products looks bright. Let’s co-create it together!
*Source: Euromonitor database, desserts and chilled snacks total volumes, World and Europe, 2024
**Source: Innova Market Insights product launch database, July 2022-June 2025, Europe, excluding dry desserts
***Source: Innova Market Insights category survey 2025, European average
Applications: Delivering dairy joy for everyone!
The labeling, substantiation and decision making of all claims is the customers’ responsibility. We recommend you consult regulatory and legal advisors familiar with applicable laws, rules and regulations prior to making labeling claims decisions for your products.