Kefir Market
The market for Kefir was estimated at $1.6 billion in 2025; it is anticipated to increase to $2.5 billion by 2030, with projections indicating growth to around $3.7 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Kefir Market Outlook
Revenue, 2025
$1.6B
Forecast, 2035
$3.7B
CAGR, 2026 - 2035
8.5%
The Kefir industry revenue is expected to be around $1.8 billion in 2026 and expected to showcase growth with 8.5% CAGR between 2026 and 2035. Building on this outlook, the kefir market has evolved into a strategically important segment within the global fermented dairy and functional beverage landscape, supported by rising consumer focus on gut health, immunity, natural ingredients, and convenient nutrition, with supermarkets/hypermarkets and convenience stores together accounting for 73.8% of industry revenue and reinforcing the mainstream visibility of kefir products, while milk kefir remains the core growth engine of the kefir industry, generating $1.33 billion in sales in 2025 and benefiting from continuous innovation in flavors, low sugar formulations, organic lines, and value added probiotic drink offerings that position kefir as a credible alternative to traditional yogurt and other cultured dairy products
Kefir is a cultured, tangy fermented dairy beverage traditionally produced from cow, goat, or sheep milk, but increasingly available as water kefir and plant based kefir, characterized by a rich spectrum of live probiotics, bioactive compounds, and high digestibility that support digestive balance and overall wellness, enabling its use across multiple applications such as ready to drink bottles, smoothie and breakfast bowls, sports and recovery nutrition, culinary sauces and dressings, and specialized dietary regimens, while recent trends driving demand include premiumization, expansion of organic and lactose free milk kefir ranges, innovation in plant based and flavored kefir, portion controlled on the go packaging, and the integration of kefir into broader functional foods portfolios that cater to health conscious consumers in both retail and foodservice channels.
Market Key Insights
The Kefir market is projected to grow from $1.6 billion in 2025 to $3.7 billion in 2035. This represents a CAGR of 8.5%, reflecting rising demand across Retail Consumers, Foodservice Industry, and Nutraceutical Formulations.
Lifeway Foods Inc., Danone S.A., and Arla Foods AMBA are among the leading players in this market, shaping its competitive landscape.
U.S. and Russia are the top markets within the Kefir market and are expected to observe the growth CAGR of 6.2% to 8.9% between 2025 and 2030.
Emerging markets including India, China and Brazil are expected to observe highest growth with CAGR ranging between 8.2% to 10.6%.
Transition like Once-Niche Ferment Goes Mainstream is expected to add $191 million to the Kefir market growth by 2030.
The Kefir market is set to add $2.1 billion between 2025 and 2035, with manufacturer targeting key segments projected to gain a larger market share.
With
rising gut health awareness and demand for functional dairy drinks accelerating kefir adoption, and
Expansion of plant-based fermented alternatives repositioning kefir as inclusive probiotic beverage, Kefir market to expand 126% between 2025 and 2035.
Opportunities in the Kefir
Asia Pacifics young, urban consumers are rapidly embracing non dairy functional beverages, yet water kefir remains niche compared with kombucha and energy drinks. Beverage brands can innovate by launching sparkling water kefir with local fruit flavors, low sugar, and clean label positioning that emphasizes digestive comfort and immune health. Globally, water kefir revenue is also projected to grow from $0.30 billion in 2025 to $0.51 billion by 2030, and flavored, carbonated water kefir in Asia Pacific should post the highest relative growth rates.
Growth Opportunities in Europe and Asia-Pacific
In Europe, kefir is moving from niche fermented dairy to a mainstream functional beverage, with supermarkets and hypermarkets acting as the most influential sales channel due to their dominant role in grocery portfolios, extensive chilled space allocation, and private label development in kefir drinks and cultured probiotic beverages. Top opportunities include premium organic kefir, high protein variants, and plant based kefir aligned with clean label and gut health preferences, especially in Northern and Western markets where consumers actively trade up within the functional foods category. Competition is intensifying as regional dairy cooperatives and retail brands expand beyond traditional yogurt into ready to drink probiotic drinks, using aggressive in store promotions and localized flavors to defend shelf space, while specialist kefir brands differentiate via heritage fermentation, multi strain cultures, and transparent sourcing. Key regional drivers include rising awareness of digestive wellness, increasing lactose sensitivity pushing consumers toward fermented dairy that is easier to digest, and regulatory support for clear labeling of live cultures, making supermarket/hypermarket visibility and category education investments critical to winning share in the mature European kefir market.
In Asia Pacific, kefir is positioned as a modern, convenient evolution of traditional fermented dairy and functional beverages, with online retail emerging as the most relevant sales channel due to rapid e commerce penetration, widespread use of delivery apps, and consumer openness to discovering new probiotic drinks via digital platforms. Top opportunities center on urban, young, health conscious consumers seeking gut health solutions, where convenient single serve kefir, flavor localized formulations, and ambient or extended shelf life options can accelerate trial, complemented by subscription models and cross border listings from established kefir market leaders. Competition is fragmented and highly dynamic, with local dairy players, wellness startups, and imported brands all leveraging online retail to test plant based kefir and hybrid functional beverages that blend kefir with fruits, grains, or botanicals, supported by influencer marketing and nutrition focused content. Core regional drivers include growing disposable incomes, rising incidence of digestive and lifestyle related conditions, and strong digital engagement, making investment in online retail partnerships, data driven assortment optimization, and targeted education on kefirs probiotic and gut health benefits essential for long term competitive advantage across Asia Pacific.
Market Dynamics and Supply Chain
01
Driver: Rising gut health awareness and demand for functional dairy drinks accelerating kefir adoption
Global consumers increasingly link digestive wellness, immunity, and mental resilience to gut health, driving interest in kefir as a clinically informed fermented dairy solution. Brands are also investing in advanced strain selection, multi strain culture optimization, and controlled fermentation technologies to deliver consistent probiotic efficacy and higher live cell counts tailored to microbiome supporting formulations. Parallel to this, busy, health conscious shoppers are also shifting from traditional spoonable yogurt to convenient probiotic beverages that fit on the go lifestyles and support long term preventive nutrition. This is also fueling rapid innovation in ready to drink kefir formats, extended shelf life processing, and reduced sugar or no added sugar recipes that maintain sensory quality. Retailers are also expanding chilled functional foods assortments, giving kefir prominent placement alongside protein rich snacks and wellness shots, further normalizing everyday consumption and reinforcing its position as a mainstream, science backed functional dairy beverage. Subscription based delivery models and data driven promotions in modern grocery and e commerce channels are also amplifying repeat kefir purchases.
As dairy free and flexitarian lifestyles grow, manufacturers are also developing plant based kefir lines using oat, coconut, and other botanical substrates that replicate the tang, viscosity, and probiotic benefits of traditional kefir. also advances in starter culture engineering and controlled non dairy fermentation allow stable texture, clean label formulations, and competitive protein or fiber without lactose. These innovations broaden kefirs appeal among vegans, lactose intolerant consumers, and allergen sensitive demographics, enabling retailers and foodservice operators to merchandise kefir across wider refrigerated sections and incorporate it into smoothies, bowls, and functional foods focused menus.
02
Restraint: Limited consumer awareness and education on kefirs benefits constrains adoption across mainstream beverage segments
Despite rising interest in probiotic drinks and functional beverages, many shoppers still confuse kefir with yogurt or view fermented dairy as niche, limiting trial rates in mass retail, slowing repeat purchases, and causing brands to underperform sales forecasts in conventional supermarkets and convenience channels, which in turn discourages investment in new kefir product formats and marketing, capping overall kefir market revenue growth and dampening demand momentum
03
Opportunity: Fitness focused millennials in Western Europe are driving functional milk kefir demand and Lactose intolerant consumers in North America are accelerating kefir beverage adoption
Across Western Europe, fitness focused millennials are trading sugary sports drinks for high protein fermented dairy that supports performance, recovery, and gut health. Milk kefir positioned as a functional sports nutrition drink fortified with protein, vitamins, and science backed probiotic cultures remains underdeveloped in gym, health club, and direct to consumer subscription channels. Globally, milk kefir revenue is forecast to increase from $1.33 billion in 2025 to $1.95 billion by 2030, and sports oriented, ready to drink milk kefir in Europe is expected to deliver the fastest value growth within this expansion.
Rising diagnosis of lactose intolerance and dairy sensitivity in North America leaves a gap between consumer interest in gut health and limited tolerable fermented dairy options. Kefir, with naturally reduced lactose and diverse probiotic strains, can address this need through tailored milk kefir, water kefir, and plant based kefir lines. Untapped opportunities include low sugar, flavored, and on the go probiotic beverages distributed via online retail and pharmacy channels. Within this segment, lactose free and reduced lactose milk kefir offerings are expected to capture the strongest volume growth.
04
Challenge: Intensifying competition from plant based dairy alternatives dilutes kefir demand among health conscious, flexitarian consumers
Rapid expansion of almond, oat, and coconut dairy alternatives, including plant based kefir and kombucha style probiotic drinks, is diverting spending from traditional milk based kefir, pressuring price points, fragmenting limited refrigerated shelf space within chilled functional beverage sets, and prompting retailers to prioritize faster rotating dairy free options, which collectively reshapes kefir market dynamics, compresses margins for fermented dairy producers, and moderates long term growth in category value and volume demand.
Supply Chain Landscape
1
Kefir Production Inputs
Danone S.A.Arla Foods AMBA
2
Dairy Fermentation
Lifeway Foods Inc.Biotiful Dairy Ltd
3
Kefir Market Distribution
Lifeway Foods Inc.Green Valley Creamery
4
Gut Health
Fermented milk drinkFunctional foodsLactose-free products
1
Kefir Production Inputs
Danone S.A.Arla Foods AMBA
2
Dairy Fermentation
Lifeway Foods Inc.Biotiful Dairy Ltd
3
Kefir Market Distribution
Lifeway Foods Inc.Green Valley Creamery
4
Gut Health
Fermented milk drinkFunctional foodsLactose-free products
Use Cases of Kefir in Retail Consumers & Foodservice Industry
Retail Consumers : In the retail consumers segment, milk kefir accounts for the majority of demand, reflecting its 81.6% share of the overall kefir market in 2025, as shoppers choose ready to drink fermented dairy for daily gut health, immune support, and convenient functional foods, while water kefir, with an 18.4% share, is increasingly adopted by plant based and dairy sensitive buyers seeking a lighter probiotic drink. Supermarkets and hypermarkets generated around $0.88 billion in kefir sales in 2025, growing at an expected 7.9% CAGR to 2030, while convenience stores contributed approximately $0.33 billion and online retail $0.26 billion, the latter expanding fastest at 11.7% CAGR, which especially benefits premium probiotic beverages and niche flavors. Lifeway Foods Inc. leads this application through an extensive milk kefir portfolio, strong branding, and shelf presence across major supermarket chains, Danone S.A. leverages its global dairy network to position kefir as an everyday wellness product, and Biotiful Dairy Ltd differentiates with clean label recipes and high protein fermented dairy drinks targeting health driven urban consumers
Foodservice Industry : In the foodservice industry, including cafs, smoothie bars, and casual dining, milk kefir is predominantly used as a versatile base for smoothies, breakfast bowls, salad dressings, and cultured milk desserts, thanks to its rich texture and consistent fermentation profile, while water kefir is gaining traction in low sugar mocktails and refreshing probiotic drink blends for younger, health conscious patrons. The key advantage of kefir in this channel is menu premiumization, as operators can command higher margins by marketing fermented dairy and plant based options as better for-you offerings that support gut health without sacrificing taste or indulgence. Danone S.A. and Arla Foods AMBA capitalize on strong foodservice distribution and recipe development support, supplying large volume dairy based kefir formats to chain operators, while Lifeway Foods Inc. and Biotiful Dairy Ltd work closely with specialty cafs and fitness focused outlets to co create limited edition flavors and seasonal probiotic beverages that drive repeat visits and strengthen brand loyalty
Nutraceutical Formulations : In nutraceutical formulations, manufacturers primarily employ concentrated cultures derived from milk kefir for capsules, powders, and fortified functional foods, leveraging its diverse microbiota for clinically oriented gut health and immune support propositions, while water kefir strains are selectively incorporated into allergen sensitive and partially plant based blends that appeal to lactose free and vegan consumers. This applications unique advantage lies in controlled probiotic dosing, shelf stable formats, and the ability to integrate kefir derived cultures into multi ingredient products such as synbiotic blends, protein supplements, and specialized clinical nutrition lines. Green Valley Creamery stands out with its expertise in lactose free and organic kefir, which positions it strongly for sensitive digestive and medical nutrition concepts, while Danone S.A. and Arla Foods AMBA bring substantial R&D capabilities and regulatory know how to develop evidence backed formulations, and Lifeway Foods Inc. increasingly extends its kefir culture technology into value added nutraceutical extensions, reinforcing its market position as a science driven probiotic leader.
Recent Developments
Recent developments in the global kefir market highlight rising demand for functional beverages and probiotic rich dairy drinks, driven by consumer focus on gut health and immunity. Producers are expanding ranges beyond traditional milk kefir to include vegan kefir, coconut kefir, and low sugar fermented drinks, supporting clean label and lactose free trends.
August 2024 : By August 2024, the global kefir market saw a wave of launches of plant based kefir positioned as dairy free alternatives to traditional fermented dairy products, as multiple large dairy and beverage manufacturers expanded production and marketing of these probiotic beverages, which effectively moved kefir deeper into the broader functional beverages category and attracted new segments of flexitarian and lactose intolerant consumers.
November 2023 : In November 2023, major food retailers in North America and Europe significantly increased shelf space and private label ranges for kefir drinks alongside other probiotic beverages, strengthening mainstream retail distribution, improving price competitiveness, and reinforcing kefirs role as a daily gut health option rather than a niche specialty product.
February 2023 : By February 2023, leading producers in the kefir market had diversified their portfolios with new flavored and higher protein kefir lines and convenient single serve formats, using more advanced fermentation and packaging technologies to extend shelf life and widen consumption occasions, which supported volume growth and brand differentiation within both mature and emerging kefir drinks segments.
Impact of Industry Transitions on the Kefir Market
As a core segment of the Packaged & Processed F&B industry,
the Kefir market develops in line with broader industry shifts.
Over recent years, transitions such as Once Niche Ferment Goes Mainstream and Shift Toward Plant Based Kefir have redefined priorities
across the Packaged & Processed F&B sector,
influencing how the Kefir market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Once Niche Ferment Goes Mainstream
The kefir market is undergoing a significant transformation, shifting from a niche ethnic product to a mainstream staple driven by an increasing consumer demand for convenient functional nutrition. This evolution is projected to contribute an impressive $191 million to market growth by 2030. Retailers are reallocating shelf space from traditional flavored milk to higher margin kefir smoothies and ready to drink options, prompting a strategic pivot among leading dairy brands. These companies are reformulating products with kefir cultures, enhancing co packing capabilities, and realigning their portfolios to emphasize daily gut health. This transition not only elevates kefirs market presence but also reshapes adjacent yogurt categories, positioning kefir as a key player in the evolving landscape of functional beverages.
02
Shift Toward Plant Based Kefir
Converging trends in lactose intolerance, vegan lifestyles, and clean label expectations are accelerating a second major transition toward plant based kefir and hybrid formulations. Producers are adapting traditional kefir grains to oat, coconut, and pea bases, enabling plant based dairy alternatives with comparable texture and probiotic density. This shift is influencing innovation pipelines in sports nutrition, meal replacement shakes, and fortified functional foods, where kefir powered recipes are replacing synthetic additives and stabilizers, supporting premium pricing, and enabling cross category line extensions for established beverage and nutraceutical manufacturers.