Kefir Market to Rise at 5.4% CAGR till 2027; Soaring Demand for Organic Food & Beverage Products Worldwide to Ensure Sustained Market Growth

The global kefir market size is projected to reach USD 1.84 billion by 2027 owing to increasing popularity of flavored probiotic beverages, states Fortune Business Insights™ in its report, titled “Kefir Market Size, Share & COVID-19 Impact Analysis, By Product Type (Dairy-based & Non-dairy), By Nature (Organic & Conventional), Category (Flavored & Non-flavored), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, & Online Retail), and Regional Forecast, 2020-2027”. As per the report, the market value stood at USD 1.23 billion in 2019 and is expected to register a CAGR of 5.4% from 2020 to 2027.

The COVID-19 pandemic is anticipated to limit the kefir market growth in 2020 as companies have had to grapple with falling sales and shrinking revenue because of sharp downturn in economic activities. However, growing seriousness about gut health to counter infections will rejuvenate the demand for fermented milk and non-dairy probiotic products.

Biotiful Dairy Introduces Kefir Ice Cream, Strengthens Its Market Position

Biotiful Dairy, the leading innovator in kefir products based in the UK, launched Kefir ice cream in June 2020 and entered a niche space in the probiotics industry. The ice cream will be available in cherry, chocolate, and vanilla variants, and, like all of Biotiful’s other products, these ice creams have been made from milk sourced from the UK. Featuring a blend of the company’s much-acclaimed gut-friendly cultures and kefir, the frozen desserts have a creamy and smooth texture, mixed with the infusion of the tanginess of kefir. Moreover, the ice creams have low sugar content and natural probiotics, making them an optimal alternative to traditional ice cream products.

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Increasing Popularity of Water-based Kefir to Stimulate Growth

Water-based kefir, or tibicos, is prepared by adding grains to a mix of filtered water and sugar. Since it does not contain any dairy products, tibicos is considered a vegan source of probiotics, making it an ideal drink for those suffering from lactose intolerance. Given its wide benefits, the popularity of water-based kefir foods and beverages in steadily rising, pushing various companies to innovate in this area. For example, in 2017, US-based Thirty-Two Degrees launched a novel line-up of coconut kefir shots, featuring a mix of flavors such as blueberry with pomegranate and mango with pineapple. Such innovations are aimed at capturing the growing shift towards adoption of veganism, especially in Europe and North America. For example, the number of vegans in the UK rose 600,000 in 2019 from 276,000 in 2016, according to The Vegan Society. Water-based kefir products are, thus, gaining ground among vegans.

Strategic Product Launches by Key Players to Feed Competitive Fervor

The wide-ranging health benefits of this fermented milk drink have propelled their demand, especially in urban areas, where hectic lifestyles and rising prevalence of chronic disorders are forcing people to become more health conscious. To capitalize on this trend, players in this market making R&D investments to develop novel probiotics derived from natural sources. More importantly, companies are strategically introducing their products in the market, especially water-based kefir items, to meet the demands of the expanding vegan populations. A diversified portfolio of products will enable these companies to broaden and deepen their position in the market.

Industry Development:

• November 2019: GT’s launched a series of water kefir beverages. Touted as “sparkling probiotic drinks”, the beverages are available in six flavors – Pink Grapefruit, Orange Peach Mango, Pomegranate, Pear Ginger, Peach Pineapple, and Coconut Lime.

List of Key Players Covered in this Market Report:

• Emmi AG (Lucerne, Switzerland)


• Fresh Made Dairy (Pennsylvania, U.S.)


• Biotiful Dairy Limited (London, England)


• Danone S.A. (Paris, France)


• Lifeway Foods, Inc. (Illinois, U.S.)


• The Icelandic Milk and Skyr Corp (New York, U.S.)


• Maple Hill Creamery, LLC (New York, U.S.)


• Green Valley Creamery (California, U.S.)


• The Hain Celestial Group, Inc. (New York, U.S.)


• Nestle S.A. (Vevey, Switzerland)

Further Report Findings:

• The dairy-based segment led the overall market with a share of 80.66% and the market in Asia Pacific with a share of 71.91% in 2019 owing to the rising popularity of probiotic foods and beverages worldwide.


• Europe is expected to dominate the kefir market share during the forecast period on account of increasing adoption of vegan diets. In 2019, the region’s market size stood at USD 654.78 million.

Table of Segmentation: