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Low-fat Dairy Beverages Market Size, Share & Industry Analysis, By Type (Low-fat Milk, Low-fat Yogurt Drink, Low-fat Kefir), By Flavor (Flavoured, Unflavoured), By Distribution Channel (Hypermarket/Supermarket, Departmental stores, Online Retail Stores, Others) and regional Forecast, 2024-2032

Region :Global | Report ID: FBI103828 | Status : Ongoing



The multiple health benefits of low-fat dairy beverages is anticipated to propel the market growth in forthcoming years. For instance, dairy beverages are good sources of high-quality protein. Protein is important for the body for a number of reasons such as weight loss, weight management, and others but consumption of full-fat dairy beverages increases the saturated fat content, hence the demand for low-fat dairy beverages is witnessing significant growth. Low-fat and fat-free versions of dairy beverages are recommended by health experts to reduce fat, calorie, and cholesterol intake while still consuming the same amount of protein, calcium, and vitamins as a whole and reduced-fat dairy beverages.

The increasing demand for low-fat drinkable yogurt owing to its unique taste and its functional properties is anticipated to drive the global low-fat dairy beverages market. The leading players are embarking upon the innovation and new product launches of drinkable yogurts in different variants. For instance, in March 2018, Morinaga Nutritional Foods Inc. has expanded its product portfolio with the launch of a low-fat Japanese-style yogurt drink. The product is available in three flavors- original aloe vera, strawberry banana, and coconut. 

The rising health consciousness and smart food choices among consumers due to increasing instances of obesity and other lifestyle diseases is expected to propel the sales of low-fat dairy beverages. Furthermore, the increasing popularity of low-fat kefir owing to the health benefits offered by fermented beverages, probiotics, and unique taste of the kefir is also predicted to be a favorable factor for market growth. Dairy beverages are rich sources of calcium, minerals, protein, and vitamin B12. The consumption of milk and yogurt drinks can protect the human body against heart disease and stroke, which can reduce the risk of high blood pressure and contribute to stronger bones. However, choosing full-fat varieties can increase the saturated fat and energy content in the diet which in turn is expected to increase the demand for low-fat dairy beverages. The low-fat milk contains 1% milk fat than regular milk and is usually fortified to increase its nutritional value or to retain the nutrients which are lost during processing. For instance, vitamins A and D are frequently added to the low-fat milk which promotes the normal vision and healthy bones respectively.

The increasing popularity of dairy-free diet because of allergies and intolerance to lactose is expected to hamper the market growth. The availability of alternative products that have added calcium, such as calcium-enriched soy or rice drinks is anticipated to further restrain market growth.

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Key Market Driver -

Increasing Popularity of Low-fat Dairy Beverages

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Key Market Restraint -

Rising Lactose Intolerant Population

Key Players Covered:

The prominent players operating in the global low-fat dairy beverages market are Danone, The Coca-Cola Company, Nestle S.A. Organic Valley, Dean Foods, Arla Foods, Morinaga Nutritional Foods Inc, General Mills, Inc. Rainy Lanes Dairy Foods Ltd., Springfield Creamery, Byrne Dairy, and Others

The low-fat milk is projected to hold the major chunk of share in the global market of low-fat dairy beverages. Low-fat milk is widely used as an alternative option to the whole-fat milk to reduce calorie intake.  The players operating in the global market of low-fat dairy beverages are focused on the launch of low-fat milk to fulfill consumer demand. For instance, in February 2020, Amazon announced the launch of Lactose-free 1% Low-fat Milk under the brand name Happy Belly. The new product is currently available only via AmazonFresh.

The flavored low-fat dairy beverages segment is expected to witness considerable growth in the forthcoming years owing to its tremendous popularity among children. In recent years, flavored low-fat yogurt drinks have gained significant consumer attention due to its refreshing and sweet taste. However, the addition of chemical preservatives, artificial colors, and sweeteners in the flavored low-fat dairy beverages is expected to propel the market of unflavored low-fat dairy beverages. 

Hyper and supermarket are expected to hold a considerable share in the sales of low-fat dairy beverages. The availability of a broad range of product types which provides costumers a more extensive choice range to choose the product wisely is anticipated to leverage the sales of low-fat dairy beverages. The discount offers and home delivery offered by some hyper and supermarket is also expected to propel the sales of low-fat dairy beverages. Moreover, the increasing number of well-established departmental stores across the globe is expected to boost the sales of low-fat dairy beverages through them.

Regional Analysis:

North America is expected to hold a considerable share in the global market of low-fat dairy beverages in forthcoming years. The increasing health consciousness among consumers due to increasing obesity is anticipated to propel the sales of low-fat containing products. The tremendous popularity of low-fat yogurt drinks and kefir within the region due to its high probiotic content is expected to further drive the market. The presence of prominent market players such as Organic Valley, Dean Foods, and others is expected to leverage the sales of low-fat dairy beverages positively across the region.

Asia Pacific is anticipated to witness significant growth in the global low-fat dairy beverages. The rapid urbanization and increasing disposable income has changed the consumer’s standard of living which is affecting their food choices. The increasing number of consumers Choosing healthy and low-fat containing food products over junk food to stay fit is expected to affect the low-fat dairy beverages positively. Furthermore, the tremendous improvement in per capita availability of milk, organized dairy products market in the region and rising demand for functional dairy products, due to their low fat and cholesterol content are some of the major reasons for the market growth.

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By Type

  • Low-fat Milk

  • Low-fat Yogurt Drink

  • Low-fat Kefir

By Flavor

  • Flavoured

  • Unflavoured

By Distribution Channel

  • Hypermarket/Supermarket

  • Departmental stores

  • Online Retail Stores

  • Others

By Geography

  • North America (U.S., Canada, and Mexico)

  • Europe (Germany, France, Italy, Spain, U.K., Russia, and Rest of Europe)

  • Asia Pacific (China, India, Japan, Australia, and Rest of Asia Pacific)

  • South America (Brazil, Argentina, and Rest of South America)

  • Middle East & Africa (South Africa, UAE, and Rest of ME&A)

Key Industry Developments:

  • In January 2020, The Coca-Cola Company announced the complete acquisition of US-based dairy beverage brand Fairlife. This acquisition will help The Coca-Cola Company to increase their footprint on low-fat dairy beverages.

  • In January 2020, Stonyfield Organic has expanded its product portfolio with the launch of Daily Probiotics, a probiotic yogurt drink design to support immune health. The product include real fruit and organic low-fat milk.

  • Ongoing
  • 2023
  • 2019-2022

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