Overview:

The global market for kefir has experienced substantial growth, valued at USD 1,305.4 million in 2024. Projections indicate continued expansion, with the market reaching USD 1,345.9 million in 2025. Over the decade leading up to 2035, sales are expected to increase at a global Compound Annual Growth Rate (CAGR) of 3.7%, culminating in a market value of USD 1,914.9 million by the end of 2035.

The surge in demand for functional food and beverage options has significantly amplified the size of the kefir market. As a recognized source of probiotics supporting digestive health, kefir is increasingly favored by health-conscious consumers, offering a healthier alternative to traditional sweetened dairy products. The growing focus on gut well-being, immune function, and overall wellness has fueled the fermented food trend, with kefir emerging as a prominent leader in this movement.

Major industry participants have responded to evolving consumer preferences by broadening their product ranges to include various forms such as milk-based, water-based, and plant-based options like almond and coconut kefir. This strategy aims to capture segments of the market comprising lactose-intolerant individuals and those following vegan diets. This expansion has also facilitated the introduction of flavored kefirs, featuring options like berry, vanilla, and citrus, enhancing palatability while retaining health advantages.

Geographically, the consumption of kefir is rapidly increasing in North America and Europe, primarily driven by strong consumer interest in foods that support digestive health. In the Asia-Pacific region, rising income levels and greater awareness of health-oriented foods are stimulating demand. Online retail platforms are increasingly significant in contributing to the sales growth of specialized kefir products, particularly among urban populations.

Factors such as continuous product innovation, the consumer preference for clean-label products, and wider availability in supermarkets and health food stores are encouraging the frequent inclusion of kefir in daily diets. Furthermore, its growing use in diverse culinary applications, including smoothies, breakfast bowls, and cooking, is boosting its acceptance across different consumer demographics.

Kefir’s positioning as a functional beverage offering probiotic benefits, combined with the worldwide shift towards healthier, natural, and minimally processed food choices, is anticipated to underpin steady market expansion over the next decade.

Semi-Annual Market Update

The following table provides a comparative evaluation of the difference in CAGR over six months between the base year (2024) and the current year (2025) for the global kefir market. This analysis identifies key changes in performance and reflects revenue realization trends, thereby giving stakeholders a clearer picture of the growth path over the year.

During the first half (H1) of the 2025 to 2035 decade, the company is anticipated to grow at a CAGR of 3.5%, while in the second half (H2), the growth is expected at 3.7% CAGR. In comparison with the 2024 period, the sector saw an increase of 250 BPS in H1 and 250 BPS in H2, reflecting an abrupt improvement in market performance due to increased consumer demand for functional, probiotic drinks such as kefir. The huge 250 BPS boost in both halves indicates greater demand momentum, more robust distribution channels, and product diversification which are the foundation of this growth pattern.

Market Concentration

Tier 1 of the kefir market is dominated by established large dairy corporations and premium specialized fermented beverage companies characterized by strong brand recognition and extensive global networks. These entities make significant investments in marketing, product innovation, and the broader functional and probiotic beverage categories. A prime example is Lifeway Foods, a leading player in the USA and international kefir markets, offering a diverse portfolio including flavored kefir drinks, organic ranges, and products with high probiotic content.

Lifeway’s well-established brand reputation for health and its widespread retail availability ensure strong placement across supermarkets, health food stores, and online channels. Another Tier 1 competitor, Danone, leverages its considerable global dairy framework to promote kefir products through a variety of localized brands. Danone’s emphasis on nutritional functionality and digestive wellness has propelled its kefir product lines to leading positions in both advanced and developing regions.

Tier 2 encompasses smaller regional dairy businesses and emerging health-focused beverage producers with more limited sales volumes and localized market presence. Tier 2 players often market kefir products under conventional, organic, and flavored varieties, typically positioned as premium or artisan offerings. Examples include certain British milk kefir producers and Green Valley Creamery in the USA, which serves the lactose-intolerant market with lactose-free kefir. These Tier 2 companies compete by emphasizing unique health advantages, ethical sourcing, and regional brand identity within the probiotic beverage sector.

Tier 3 consists of small-scale dairies, local kefir producers, and new ventures focusing on handcrafted, raw, or plant-based kefir alternatives (such as those derived from coconut, almond, or oats). Their distribution channels are generally restricted, relying heavily on direct sales, farmers’ markets, and independent local stores. Some notable examples include Small Batch Organics and Maple Hill Creamery, known for their organic, grass-fed kefir products with minimal processing.

Tier 3 participants aim to cultivate a sense of craft, purity, and community connection within their local markets, appealing to consumers who prioritize natural ingredients and health benefits through a regional focus.

Understanding Shift in Kefir Market Demand Trends and How Key Brands Are Addressing To This

Increasing Demand for Plant-Based Kefir on Account of Vegan and Dairy-Free Food Trends

Shift: Consumer preferences are increasingly shifting towards dairy-free and vegan diets, leading to a significant surge in demand for non-dairy kefir alternatives. Growing concerns about lactose intolerance, animal welfare, and environmental impact are prompting consumers to select these alternatives. Younger demographics, particularly Millennials and Gen Z, are embracing veganism more widely, accelerating the growth of oat, coconut, almond, and soy-based kefir products. This trend is particularly notable in North America, Western Europe, and selected areas of Asia-Pacific as flexitarian dietary patterns become more common.

Strategic Response: Lifeway Foods (USA): Lifeway Foods responded by launching its Plantiful range, an organic oat-based plant kefir line. Lifeway strategically highlighted the probiotic content and sustainable packaging of these products to resonate with environment-conscious consumers. The company also expanded distribution through key retailers like Whole Foods Market and Target and invested in digital marketing initiatives focused on gut health and plant-based nutrition. As a result, the Plantiful brand contributed to a 12% increase in overall sales and secured prominent shelf space in US retail chains up to 2024.

Increasing Trend of Functional and Immunity-Boosting Foods Propelling Probiotic Kefir Demand

Shift: The global pandemic heightened consumer focus on immune health, consequently driving up the demand for functional foods rich in probiotics, like kefir. There is a growing consumer desire for products that support digestive well-being, and kefir is increasingly sought after due to its exceptionally high and diverse probiotic count, often surpassing that found in most yogurts. Health-focused consumers in regions such as Europe, North America, and South Korea are incorporating kefir into their daily health routines, and brands are effectively using health-related labels on packaging.

Strategic Response: Danone (France): Danone enhanced its Actimel kefir brand within the Danone-Wave portfolio by incorporating clinically supported probiotic strains known for benefits to gut and immune health. Danone utilized results from clinical trials to communicate the advantages of kefir to consumers, targeting marketing initiatives towards demographics like working professionals and urban families. In 2024, Danone also launched immunity-focused kefir shots in markets including Canada, Germany, and France, which contributed to a 17% rise in probiotic kefir sales. This action aligns with Danone’s broader strategy of prioritizing health and wellness through innovation.

Accelerating Consumer Demand for Artisanal, Small-Batch Kefir Products with Local Production

Shift: Artisanally produced, locally sourced kefir products appeal strongly to consumers seeking authenticity, traditional craftsmanship, and minimal processing. This trend is particularly prevalent in urban centers where consumers value transparency in sourcing, including local dairy origins. Small-batch kefirs characterized by simple ingredient lists and traditional fermentation methods are gaining significant presence in health food stores, farmers’ markets, and high-end grocery retailers.

Strategic Response: Redwood Hill Farm (USA): Redwood Hill Farm introduced a new range of artisan goat milk kefir, made using milk from regionally sourced goats in Northern California. The company’s marketing strategy emphasized small-batch fermentation, reduced additives, and the use of authentic kefir grains. Redwood Hill established partnerships with local farms and adopted sustainable packaging practices, which resonated with ethically conscious consumers. Sales in natural and organic retail outlets saw a 15% year-over-year increase, supported by expanded distribution into national chains like Whole Foods and Sprouts.

Innovation in Flavored and Fortified Kefir for Experience-Seeking Consumers

Shift: Consumers are actively seeking a wider variety of flavors and nutritionally enhanced kefir options that offer an enriched sensory experience. The naturally sour or tangy taste of plain kefir can limit its appeal to new consumers. This has created demand in the market for kefirs with added flavors (such as berry, vanilla, mango, or matcha) and those fortified with nutrients like protein, fiber, omega-3 fatty acids, or vitamins. This trend is particularly popular among young professionals and health-focused urban consumers who use kefir as a functional food or meal substitute.

Strategic Response: Biotiful Dairy (UK): Biotiful Dairy launched a variety of flavored kefir smoothies and protein-fortified kefir blends designed for convenient on-the-go consumption. Popular flavors include strawberry, mango turmeric, and vanilla chia. The company utilized social media campaigns to target the fitness community, promoting kefir as an optimal post-workout recovery drink. In 2024, the company’s flavored kefir segment saw a 20% increase in sales within the UK and successfully expanded into Germany and the Netherlands, capitalizing on the demand for palatable health products.

Kefir Growth in Growth Markets via Online and Health Channel Retailing

Shift: While historically dominant in North America and Europe, kefir is now experiencing significant growth in emerging markets such as India, Brazil, and Southeast Asia. This expansion is driven by the rising middle class globally, increasing awareness of gut health, and the broader democratization of wellness trends. The growing middle class in these regions is fueling demand through both traditional retail and especially online channels, providing brands direct access to digitally connected consumers in areas with less developed physical retail infrastructure. Social media wellness groups and health influencers are playing a key role in increasing understanding of kefir’s health benefits.

Strategic Response: The Icelandic Milk & Skyr Corporation (Iceland/USA): Known for its Skyr products, the company entered the kefir market under its Siggi’s brand, specifically targeting markets in Asia and Latin America. Through strategic e-commerce collaborations with platforms like Amazon, BigBasket (India), and Mercado Libre (Latin America), Siggi’s introduced promotional kefir package deals and online educational content about probiotics and digestion. In 2024, the company reported a 9% increase in international sales, with kefir products being a primary driver of growth in these new markets.

Country-wise Insights

The following table presents the estimated growth rates of the top five territories projected to exhibit high consumption through 2035.

United States: Health Consciousness and Probiotic Demand Fuel Growth

The kefir market in the United States is expanding rapidly, primarily due to increasing consumer health awareness and a strong demand for probiotic-rich foods. Heightened understanding among the public regarding the advantages of probiotics for digestive health is a significant factor contributing to market expansion. The U.S. market was valued at USD 1.29 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.0% between 2025 and 2035.

The general trend towards functional beverages has also supported kefir’s rise in popularity. Concurrently, manufacturers are introducing a wider variety of flavors and product formulations to satisfy diverse consumer tastes, further stimulating market growth. Additionally, the ‘clean-label’ movement, which emphasizes ingredient transparency and the use of natural, minimally processed components, enhances kefir’s perception as a healthy drink, making it highly appealing to health-focused consumers.

Germany: Traditional Fermented Foods and Organic Preferences Drive Demand

Germany’s robust tradition of consuming fermented foods, combined with a growing preference for organic products, is bolstering market growth. The German market was valued at approximately USD 1.28 billion in 2024 and is expected to reach around USD 2.50 billion by 2035, displaying a CAGR of 4.8% during this forecast period. The established acceptance of traditional fermented items in Germany has paved the way for kefir to be readily adopted as a health-beneficial beverage.

The country’s well-developed market for organic foods also contributes to kefir’s increasing presence, with many products being sold under organic and natural certifications. Furthermore, the strength of the domestic dairy sector and the involvement of several established dairy companies that also produce and market kefir are positively impacting market expansion.

China: Urbanization and Health Trends Accelerate Market Expansion

The kefir market in China is experiencing swift expansion, driven by rapid urbanization and a burgeoning focus on health awareness. The market size in China was estimated to be worth around USD 2.10 billion in 2024 and is projected to reach roughly USD 4.0 billion by 2035, achieving a CAGR of 6.2% during this period. As urban populations increasingly adopt healthier lifestyles, the demand for functional food and beverages, including kefir, is on the rise.

Moreover, governmental initiatives aimed at encouraging dairy consumption and improving public health are also favoring market growth. The entry of international dairy businesses into the market, alongside the promotion of local kefir products made from regional milk sources, is helping to deepen market penetration and address a variety of consumer preferences.

Japan: Aging Population and Functional Beverages Boost Consumption

The growing proportion of elderly individuals, coupled with the significant popularity of functional beverages, further propels the expansion of the kefir market in Japan. The value of the Japanese market was approximately USD 1.55 billion in 2024 and is anticipated to reach around USD 2.45 billion by 2035, indicating a CAGR of 4.5% over the forecast timeframe. Japanese consumers are increasingly health-conscious and actively seek out products that offer specific health advantages.

This demographic pays particular attention to gut health and digestive wellness, which directly correlates with an increase in kefir consumption. The market is also benefiting from the introduction of a broader array of product types and innovative formulations, such as lactose-free and plant-based kefir versions, to meet the needs of consumers with dietary restrictions, including those with lactose intolerance.

Category-Wise Insights

Organic Kefir Gains Ground as Health-Conscious Consumers Demand Transparency

The increasing market share of organic kefir globally is a clear reflection of the growing consumer demand for clean-label and health-focused food products. As consumers prioritize transparency regarding ingredient origins, the availability of non-genetically modified options, and processing methods free from chemicals, organic kefir has become a preferred choice among individuals focused on their health. The organic food movement has achieved considerable popularity, particularly in North America and Europe, leading to a noticeable shift from conventional to organic options in both dairy and plant-based product categories.

The rising interest in organic kefir is also closely tied to heightened public awareness concerning gut health and immune system support. Consumers possess a greater understanding of the benefits probiotics offer, positioning kefir, with its extensive and varied probiotic composition, as an accessible and functional food option for enhancing digestive health and general wellness. The expanding selection of available organic variants provides these health advantages without the inclusion of synthetic additives or agricultural chemicals, thereby giving organic choices a distinct edge in a market with many options.

In response to this trend, leading producers are securing organic certifications, emphasizing their commitment to sustainable and traceable sourcing methods, and expanding their organic kefir product lines. These initiatives are resonating with consumers who associate organic certification with superior nutritional quality and environmental stewardship. Additionally, the premium pricing characteristic of organic kefir helps maintain healthy profit margins, making this segment increasingly appealing for businesses looking to enter or grow within the market.

Milk Kefir Dominates Product Type as Plant-Based Variants Gain Popularity

Milk kefir holds the dominant position in the global kefir market, largely due to its rich probiotic content, smooth texture, and historical significance as a traditional fermented dairy drink. Although historically made from cow, goat, or sheep milk, dairy-based kefir remains widely consumed as a health-promoting beverage across numerous cultures. Its versatility also allows for easy integration into various dishes and drinks, from smoothies, salad dressings, and sauces to baked goods.

However, rising instances of lactose intolerance, specific dietary restrictions, and ethical considerations regarding animal products have facilitated the emergence and growth of non-dairy milk kefir. Made using plant-based milk alternatives including coconut, almond, soy, and oat milk, non-dairy kefir varieties are rapidly gaining traction among consumers who adhere to vegan diets or require options free from lactose. Fermenting these plant-based milks effectively preserves the probiotic benefits found in traditional kefir while accommodating plant-based lifestyles.

Manufacturers are continuously innovating within this segment to improve the taste, texture, and nutritional value of non-dairy kefir. Strategies include adding vitamins and minerals, developing clean-label formulations, and utilizing natural sweeteners to attract a wider consumer base. Furthermore, non-dairy kefir appeals to environmentally conscious consumers, given that plant-based production generally has a lower environmental impact compared to dairy farming.

Competition Outlook

Lifeway Foods, Inc. and The Hain Celestial Group, Inc. are prominent entities well-positioned to increase their market share in the Kefir Market through ongoing product innovation, brand visibility, and product diversification. Both companies have effectively addressed consumer demand for kefir by offering a variety of products, including functional kefir beverages, dairy-free kefir options, and flavored selections. This broad product portfolio not only appeals to health-minded consumers but also enables these brands to compete more effectively against producers of yogurt and other probiotic drinks.

Furthermore, continuous advancements in packaging, such as single-serving containers, portable pouches, and eco-friendly materials, are enhancing consumer convenience and increasing the environmental appeal of kefir products. Through carefully planned alliances, expanding retail presence, and health-focused marketing efforts, the kefir market is poised for significant growth opportunities. Collaborations with health food retailers, wellness influencers, and health-oriented brands have helped kefir companies increase their exposure and benefit from the rising interest in digestive health and immunity-boosting products.

For instance

• Lifeway Foods, Inc. has expanded its range of kefir products to include organic, low-fat, and plant-based varieties made from oat and coconut milk. This expansion targets consumers seeking dairy-free and vegan options, simultaneously growing its customer base within the functional beverages market.
• The Greek Gods brand under The Hain Celestial Group, Inc. has introduced flavored kefir blends, such as honey vanilla and acai blueberry, designed to attract consumers looking for appealing tastes alongside nutritional benefits. Their extensive sales network across natural food stores and major supermarket chains further strengthens their presence in the probiotic beverage sector.

Leading Brands

• Lifeway Foods, Inc
• The Hain Celestial Group, Inc
• Maple Hill Creamery, LLC.
• Nestle
• Danone
• Green Valley
• Fresh Made Dairy
• Red Wood Hill
• Biotiful dairy
• Nihon Kefia co. ltd
• Kefir cultures
• Kefir Lab