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Title: .S. Market for Cultured Dairy Products

Published: February 2005

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The following is the abstract from the full report:

The refrigerated cultured dairy products category is poised for unprecedented growth as a result of a variety of marketplace factors. These include dairy’s healthful halo and the explosive growth in the Hispanic population, an ethnic segment that views cultured dairy products as staples in their daily diet and in meal preparation. With 2004 retail sales in the neighborhood of $8 billion, cultured dairy categories such as drinkable yogurt, probiotic shots, dips, and cream cheese-style spreads are driving growth.

This new report from Packaged Facts, The U.S. Market for Cultured Dairy Products: Yogurts, Cream Cheese, Sour Cream and Related Products, provides details on the latest and greatest in cultured dairy foods, including new technologies and innovations such as lower-carbohydrate formulations and good-for-you bacteria. You will find profiles of the top retail players, along with comprehensive demographic data and brand share information. This report is a must resource for anyone involved in the cultured dairy products, or anyone thinking of entering it

Yogurt sold in multi-packs and individual cups, as well as squeeze tubes for spoon-free eating, are also showing impressive growth thanks to better-for-you and demographic-focused formulations. This includes the addition of probiotic bacteria, fiber, vitamins, minerals, and other healthful ingredients, along with flavors and colors that appeal to kids, adults, and aging baby boomers. Though branded cultured products are typically sold through retail venues, single-serving containers are gaining distribution through foodservice outlets. This presents an opportunity for marketers familiar with selling cultured product such as cottage cheese, cream cheese, and sour cream in bulk to foodservice establishments such as restaurants and cafeterias.

And, like many industries, marketer consolidation is making the big players bigger, and the smaller players smaller. Bigger means more marketing dollars and a greater chance of success. Smaller translates to a greater chance of failure as a result of fewer resources; however, in the cultured dairy segment, smaller also means more willingness to be creative and take risks when it comes to innovation.

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