Dairy Products Culture Global Market Report 2025

The dairy products culture market size has grown strongly in recent years. It will grow from $2.6 billion in 2024 to $2.78 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to an increasing focus on extending product shelf life, the rising demand for plant-based and hybrid dairy alternatives, growing consumer preference for premium and artisanal dairy products, increasing urbanization and disposable incomes, and heightened awareness about sustainable and ethical dairy production.

The dairy products culture market size is expected to see strong growth in the next few years. It will grow to $3.59 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period will be driven by rising consumer demand for functional and probiotic-rich foods, increasing health consciousness, growing preference for clean-label and natural ingredients, greater adoption of fermented dairy products, and the rising popularity of high-protein dairy foods. Major trends expected during this period include advancements in fermentation technology, the integration of automation and digital monitoring systems, innovations in microbial strain engineering, the use of data analytics and IoT in dairy operations, and technological progress in freeze-drying and preservation techniques.

The rising demand for nutritious foods is expected to drive the growth of the dairy products culture market going forward. Nutritious foods are those that supply essential nutrients required for maintaining health, growth, and overall well-being. This demand is increasing as consumers become more aware of the connection between diet and overall health, encouraging them to choose foods that provide essential nutrients and promote long-term wellness. Dairy product culture enhances the nutritional value of foods by adding beneficial bacteria that support digestion, improve nutrient absorption, and enrich foods with probiotics, proteins, calcium, and vitamins vital for good health. For instance, in June 2024, according to the International Food Information Council, a US-based nonprofit organization, the share of consumers aiming to increase their protein intake rose from 59% in 2022 to 67% in 2023 and 71% in 2024. Therefore, the rising demand for nutritious foods is fueling the growth of the dairy products culture market.

Companies operating in the dairy products culture market are focusing on developing innovative offerings such as functional foods to meet the increasing demand for health-promoting, nutrient-rich, and immunity-boosting dairy options. Functional foods refer to products that provide additional health benefits beyond basic nutrition, often containing ingredients that support improved health or reduce disease risk. For instance, in April 2025, Parag Milk Foods Ltd., an India-based dairy company, introduced a new high-protein product line, including Greek yogurts, paneer, and protein bars, to address the growing consumer demand for healthy, protein-enriched foods. These nutrient-dense and convenient options cater to health-conscious consumers and fitness enthusiasts, offering superior protein content that supports daily nutrition, muscle health, and balanced diets. The launch underscores the company’s commitment to innovation and quality, positioning it as a leader in the expanding protein-rich dairy nutrition market in India and globally.

In January 2025, Hatsun Agro Product Limited, an India-based dairy company, acquired Milk Mantra Dairy Private Limited for $26 million (233 crore rupees). This acquisition aims to expand Hatsun Agro Product Limited’s presence in the Eastern Indian dairy market, particularly in Odisha, by leveraging Milk Mantra’s strong brand and processing facilities to enter new regional markets and strengthen its distribution network. Milk Mantra Dairy Private Limited is an India-based dairy company that provides dairy products culture.

Major players in the dairy products culture market are Fonterra Co-operative Group Limited, DSM-Firmenich AG, International Flavors & Fragrances Inc., Kerry Group Plc, Meiji Holdings Co. Ltd., Angel Yeast Co. Ltd., Lallemand Inc., Chr. Hansen A/S, Novasol Ingredients Pvt. Ltd., Arla Foods Ingredients Group P/S, Sierra Nevada Cheese Company, Biena Foods Inc., Lesaffre et Compagnie SA, Procudan A/S, Bioprox SAS, Sacco System S.r.l., Mediterranea Biotechnologie S.r.l., ProbioFerm Inc., Biochem S.R.L., Dairy Connection Inc., and Proquiga Biotech S.A.

North America was the largest region in the dairy products culture market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in dairy products culture report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the dairy products culture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The accelerated imposition of U.S. tariffs and the emerging trade conflicts in spring 2025 are significantly influencing the food and beverage sector by raising the costs for imported ingredients including olive oil, cheese, and tropical fruits, forcing food brands to reformulate products or accept lower margins. Beverage makers face similar pressures, with aluminum can tariffs increasing packaging expenses. Retaliatory tariffs on U.S. agricultural exports (e.g., soybeans, pork) have also disrupted farm-to-processing supply chains. Companies are reformulating recipes, sourcing locally where possible, and hedging commodity purchases to manage volatility.

The dairy products culture market research report is one of a series of new reports that provides dairy products culture market statistics, including dairy products culture industry global market size, regional shares, competitors with a dairy products culture market share, detailed dairy products culture market segments, market trends and opportunities, and any further data you may need to thrive in the dairy products culture industry. This dairy products culture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Dairy product culture refers to microbial preparations containing lactic acid bacteria or other microorganisms that are intentionally added to milk to begin and regulate the fermentation process. These cultures play a vital role in producing various dairy products by influencing their flavor, texture, acidity, and overall quality.

The primary types of dairy product cultures include probiotic cultures, traditional cultures, mesophilic cultures, thermophilic cultures, and specialty cultures. Probiotic cultures refer to live microorganisms, mainly bacteria and yeasts, that provide health benefits when consumed in adequate quantities by improving or restoring the natural balance of gut microbiota. These cultures are available in different forms such as liquid culture, powdered culture, freeze-dried culture, concentrated culture, and starter culture, and are distributed through channels such as online stores, supermarkets or hypermarkets, specialty stores, and others. Their key applications include yogurt, cheese, buttermilk, cream, and fermented milk products.

The dairy products culture market consists of sales of butter, kefir, and paneer. 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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