The retail dairy case has changed dramatically in recent years and the cultured dairy products category is no exception. According to Innova Market Insights, “In the last two years (Q4 2020- Q3 2022), almost three in four yogurt launches in the United States were Spoonable Dairy Yogurt, accounting for only a 24% market penetration for Spoonable Non-Dairy Yogurt. Both markets have a declining growth rate, -25% for dairy yogurt and -7% for non-dairy yogurt (compound annual growth rate, Q4 2017- Q3 2022).”
This downward trend can be linked to rising flexitarianism (consumption of animal products in moderation) among consumers, adds Innova. “This also led to the diversification of innovation in a new “hybrid” category, with plant and dairy combinations. Dairy hybrids have been the talk of the town in recent times, with increased interest from producers; however, at the moment we see very few options on the shelves.”