As you perhaps read in our May “Market Trends” report, these are golden years for cultured dairy products, driven by TikTok influencers and health and wellness trends. 

As we reported last month, sales of cottage cheese, for example, reached $1.75 billion in dollar sales for the 52 weeks ending Feb. 23, an 18% year-over-year (YoY) increase, according to Chicago-based market research firm Circana. Cream cheese and sour cream sales have also been strong recently, the research firm added, which it breaks down into several subcategories. (Please see last month’s article for more).

According to Nextin Research’s Food Category Trends, 2025 report, for consumers seeking a good source of protein, 32% of U.S. shoppers said they would look for packaged foods that contain dairy. In all likelihood, these consumers would look to cultured dairy as one main source to meet their needs. 

This month, let’s place the spotlight on something not addressed in last year’s Market Trends report: yogurt, a huge poster child for consumers seeking health and wellness benefits. 

According to data from Circana, the U.S. yogurt market reached $11.8 billion in dollar sales for the 52 weeks ending April 20, representing an 11.6% YoY increase compared to the prior year. (This figure includes both dairy yogurt and yogurt beverages). Unit sales gained 7 percent YoY to 4.38 million.

Globally, IMARC Group estimates the current yogurt market size is $134.55 billion, with expectations it will grow at a compound annual growth rate (CAGR) of 5.4% annually, reaching $203.8 billion in 2033.

 “The combination of high protein, minimal sugar and premium perception resonates with today’s health-conscious consumers. Looking ahead, we see opportunity across both dairy and plant-based yogurt formats, particularly where high protein, low sugar and label-friendly        converge,” says Allison Leibovich, marketing manager for dairy and dairy alternatives, Wayzata, Minn.-based Cargill.

According to Evidnt, the U.S. yogurt market is “not just growing, it is evolving. Brands that have success in this category will be those that understand the expanding diversity of the shopper base, embrace functional and clean-label products, and respond quickly to shifts in where and how consumers buy.”

A March report from Glanbia Nutritionals also points to the success of :ratio Protein. The General Mills-owned product delivers a minimum of 25 grams of protein per serving. “:ratio Protein has become wildly successful in the yogurt category as a high-protein snack for a low-carb lifestyle,” Glanbia states. “…:ratio Protein’s spoonable and drinkable lines are big on nutrition and flavor, providing a blueprint for succeeding in the competitive yogurt market by tuning in to consumers’ evolving needs.”

Beyond the aforementioned yogurt products, Evidnt adds that Hispanic brands are an ever-growing presence, with companies including “LaLa, El Mexicano, Nuestro and La Ricura collectively responsible for approximately 31% of total yogurt sales. That’s a larger share than any single legacy brand in the market,” the company states.

“These brands succeed by offering formats that reflect cultural preferences — drinkable yogurts, tropical flavors, and high-protein dairy — paired with authenticity and strong brand equity among multicultural households. For retailers and consumer packaged goods (CPG) strategists, this presents a major opportunity to expand beyond mainstream assortments and respond to changing demographics,” Evidnt suggests in its report.

Regarding purchase trends, the firm adds supermarkets account for 55% of yogurt sales, followed by 30% at convenience stores, with the remaining 15% coming from specialty stores, cafes and ecommerce. Berry blends and strawberry are the most popular flavor purchased, followed by vanilla and banana, Evidnt states.

Other data also backs up yogurt’s tremendous run. For example, DoorDash revealed that yogurt purchases between Jan. 1 and Feb. 24 increased 110% compared to the same period last year.

Ingredient update

To look at the cultured dairy segment more in-depth on an ingredient basis, Dairy Foods invited Cargill to provide more analysis. The No. 1 trend today in cultured dairy sales is health and wellness, which explains the success of high protein and low-sugar versions, states Leibovich.

“But even here, expectations are rising. For dairy yogurts, innovations like micro-particulated whey enable double-digit protein levels with smooth, spoonable textures. Popular formats like Icelandic and Greek-style yogurts thrive because they hit that protein-rich-but-still-indulgent sweet spot,” Leibovich says.

In plant-based yogurts, the protein story is more complex. “Higher protein levels can negatively impact flavor and mouthfeel. That’s where next-gen ingredients like PURIS 2.0 pea protein come in. It offers improved solubility, cleaner taste and smoother texture. We can also leverage starches and pectins to help mimic the body and creaminess of dairy,” she explains.

Sugar reduction remains a major theme. “Historically, consumers perceived yogurt as a healthy product, but now they’re scrutinizing labels to check added sugar content,” Leibovich concludes. “Advanced solutions like our EverSweet stevia sweetener + ClearFlo natural flavor can help brands craft great-tasting yogurts with less sugar, delivering the best of both worlds.”