Cultured Non-Fat Dairy Ingredients Market Report 2026

The cultured non-fat dairy ingredients market size has grown steadily in recent years. It will grow from $14.88 billion in 2025 to $15.53 billion in 2026 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to rising consumption of fermented dairy products, growing demand for reduced-fat food ingredients, expansion of bakery and processed food industries, increased awareness of gut health benefits, availability of advanced culturing techniques.

The cultured non-fat dairy ingredients market size is expected to see steady growth in the next few years. It will grow to $18.4 billion in 2030 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to growing demand for functional and fortified foods, rising adoption of high-protein dairy formulations, increasing use of cultured ingredients in plant-dairy hybrids, expansion of health-focused food innovations, growing focus on clean-label ingredient sourcing. Major trends in the forecast period include increasing adoption of probiotic-based dairy ingredients, rising demand for clean-label and low-fat formulations, growing use of cultured dairy in functional foods, expansion of powdered cultured dairy ingredients, enhanced focus on texture and moisture enhancement.

The growing demand for dairy-based beverages is anticipated to drive the expansion of the cultured non-fat dairy ingredients market in the coming years. Dairy-based beverages include drinks that are produced from or contain dairy components such as milk, yogurt, or buttermilk. Cultured non-fat dairy ingredients are used to enhance dairy beverages by imparting unique flavors, improving moisture retention, and delivering appealing organoleptic characteristics. For example, in March 2025, the UK Department for Environment, Food and Rural Affairs, a UK-based government body, reported that UK dairies processed 1.2 billion litres of milk in December 2024. The 12-month rolling average up to December 2024 increased by 0.4% compared with the volume processed in the 12 months ending November 2024. Therefore, the increasing consumption of dairy-based beverages is contributing to the growth of the cultured non-fat dairy ingredients market.

Major companies operating in the cultured non-fat dairy ingredient market are increasingly focusing on forming strategic partnerships to gain a competitive edge and expand their product offerings. These collaborations are essential for innovation and meeting the growing demand for health-conscious, functional dairy products. For instance, in February 2023, Dairy Farmers of America (DFA), a US-based farming cooperative, partnered with Good Culture, a US-based food company, to launch Good Culture Probiotic Milk. This product stands out as the first-ever ultra-pasteurized milk fortified with probiotics, catering to consumers seeking functional nutrition options and promoting digestive health. Through such partnerships, companies in the cultured non-fat dairy ingredient market are enhancing their product portfolios and meeting the evolving needs of health-focused consumers.

In December 2023, Archer Daniels Midland Company, a US-based food processing company, acquired Revela Foods to enhance its presence in the flavors and ingredients category, particularly in dairy and savory flavor segments. Revela Foods, a US-based food ingredient company specializing in dairy flavor ingredients and solutions, aligns with Archer Daniels Midland Company's strategic objectives to expand its portfolio and strengthen its position in key market segments.

Major companies operating in the cultured non-fat dairy ingredients market are Cargill Incorporated, Nestlé S.A., Lactalis Group, FrieslandCampina, Saputo Inc., Arla Foods, Schreiber Foods Inc., Sodiaal Group, Valio Ltd., Meadow Foods Limited, Volac International Ltd., Dairy Farmers of America Inc., Cayuga Milk Ingredients, Ingredia Dairy Experts, EPI Ingredients, AMCO Proteins, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), Lifeway Foods Inc., Danone S.A., Morinaga Milk Industry Co.

North America was the largest region in the cultured non-fat dairy ingredients market in 2025. The regions covered in the cultured non-fat dairy ingredients market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the cultured non-fat dairy ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The cultured non-fat dairy ingredients market consists of sales of non-fat dairy yogurt, sour cream, yogurt, and lactose-free cottage cheese. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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