The global market for fermented and cultured dairy beverages, including drinkable yogurt and kefir, is expected to expand steadily through the next decade. Consumers increasingly seek foods associated with digestive and gut health.
According to multiple international market research firms, demand for value-added dairy products with live cultures is driving growth beyond traditional milk consumption, particularly in beverage formats.
In the Philippines, industry and government data show that drinkable yogurt and cultured milk products are among the fastest-growing dairy segments, supported by shifting consumer preferences and expanding retail distribution.
This growth is occurring despite the country’s continued reliance on imported dairy supply, which accounts for nearly all domestic consumption.
Analysts say the convergence of health awareness, functional food marketing, and convenience is positioning fermented dairy beverages as a durable nutrition trend rather than a short-term fad.
Global market outlook anchored on functional nutrition
Globally, fermented dairy products are gaining market share. Consumers increasingly associate them with digestive wellness, immune support, and overall health.
According to Straits Research, the global fermented milk market—which includes yogurt, kefir, cultured buttermilk, and related products—was valued at over US$350 billion in 2024. It is projected to grow steadily through 2033, driven by rising demand for functional foods and beverages.
Meanwhile, Research Intelo projects that the narrower cultured dairy beverages segment will post sustained annual growth into the early 2030s as manufacturers expand drinkable formats and fortification strategies.
While exact market values vary depending on methodology and scope, analysts broadly agree that growth is being driven less by population expansion and more by product premiumization.
Industry reports indicate that consumers are shifting from plain dairy toward products marketed with added value, including probiotics, protein enhancement, and digestive-health positioning. As a result, drinkable yogurts and cultured dairy beverages have become central to innovation strategies among global dairy producers.
What qualifies as fermented or probiotic dairy
Fermented dairy beverages are produced through the controlled fermentation of milk using specific microorganisms that convert lactose into lactic acid, creating characteristic textures, flavors, and acidity.
Under the Codex Alimentarius Standard for Fermented Milks, established by the Food and Agriculture Organization and the World Health Organization, fermented milk products must be made using suitable microorganisms and, unless heat-treated after fermentation, should contain viable and active starter cultures up to the date of minimum durability.
Codex also recognizes that some fermented dairy products undergo heat treatment after fermentation for shelf stability, in which case live microorganisms may no longer be present.
As a result, not all fermented dairy beverages qualify as probiotic foods.
According to the International Scientific Association for Probiotics and Prebiotics (ISAPP) and the World Health Organization, probiotics are defined as “live microorganisms that, when administered in adequate amounts, confer a health benefit on the host.”
This distinction is important: while many fermented foods are nutritious, only those containing specific strains at sufficient viable levels can legitimately support probiotic health claims.
Scientific evidence and limits of probiotic claims
Scientific authorities consistently emphasize that probiotic benefits are strain-specific and outcome-specific.
According to the U.S. National Institutes of Health Office of Dietary Supplements, evidence supporting probiotics varies widely depending on the microorganism strain, dosage, and health condition being studied. While certain strains have shown benefits for digestive health, immune response, and selected gastrointestinal conditions, these effects cannot be generalized across all fermented foods or products labeled “with probiotics.”
Experts also stress the importance of microbial viability throughout a product’s shelf life.
ISAPP notes that probiotic counts can decline during storage, particularly in products exposed to heat or prolonged shelf conditions. Consequently, accurate labeling and appropriate manufacturing practices are essential to ensure that probiotic claims remain scientifically valid.
Philippine dairy market shaped by imports and changing consumption
In the Philippines, the expansion of fermented dairy beverages is taking place within a structurally import-dependent dairy sector.
Data from the U.S. Department of Agriculture–Foreign Agricultural Service (USDA-FAS) indicate that the Philippines imports approximately 99 percent of its total dairy requirement, as domestic milk production remains insufficient to meet demand. USDA-FAS projections also point to continued growth in dairy consumption, driven by population growth, urbanization, and changing dietary patterns.
Despite this reliance on imports, the local dairy market continues to expand.
According to Expert Market Research, the Philippine dairy market is projected to grow steadily over the next decade as consumer purchasing power rises and retail distribution improves.
Industry analysts further report that processed and value-added dairy products—particularly drinkable yogurt and cultured milk drinks—are capturing a growing share of consumer spending within the category.
Drinkable yogurt emerges as a category driver
Market intelligence consistently identifies drinkable yogurt as a key growth driver within the Philippine yogurt and sour-milk segment.
Regional research firm 6Wresearch reports that yogurt and probiotic drinks in the Philippines are projected to grow steadily due to increasing health awareness, improved product availability, and convenience. Supermarkets remain the primary distribution channel, while convenience stores and e-commerce platforms continue to expand access to single-serve and multi-pack options.
Major dairy and probiotic brands operating locally have also invested in production capacity, cold-chain logistics, and marketing campaigns centered on digestive health and daily wellness routines. Analysts view these investments as indicators of long-term confidence in the segment rather than short-term trend following.
READ: How To Make Your Gut Healthy
Local research reflects growing awareness
Philippine academic research likewise points to increasing consumer familiarity with probiotic dairy products.
A 2025 study published in the Philippine Journal of Veterinary and Animal Sciences surveyed 367 milk consumers in Oriental Mindoro to assess awareness, attitudes, and consumption behavior related to probiotic dairy products. The study found that a majority of respondents associated probiotic dairy with digestive health benefits and expressed willingness to purchase such products when available.
While the authors noted that the study was geographically limited and not nationally representative, it nevertheless provides peer-reviewed evidence that awareness of probiotic dairy beverages is extending beyond major urban centers. This suggests that local consumer interest aligns with broader national and global market trends.
Seasonal wellness and consumer behavior
Seasonal factors may further reinforce demand. Although the Philippines does not experience winter in the temperate sense, cooler months are often associated with heightened attention to health, immunity, and dietary routines.
Industry analysts note that fermented dairy beverages are frequently marketed during these periods as part of “daily wellness” habits, combining comfort with functional positioning.
Globally, food-trend analyses continue to highlight fermented foods as part of broader wellness narratives. Digestive health remains one of the strongest drivers of food and beverage innovation worldwide, spanning dairy, supplements, and functional drinks.
Regulation, labeling, and consumer protection
In the Philippines, dairy products and health-related food claims fall under the regulatory authority of the Food and Drug Administration Philippines, which enforces food safety standards, labeling rules, and prohibitions against misleading claims.
Probiotic foods are regulated as foods rather than medicines, but manufacturers are required to ensure that labels are truthful, accurate, and not deceptive.
Internationally, Codex standards remain the reference framework for fermented milk definitions and compositional requirements. Alignment with Codex guidance and scientific evidence is therefore central to maintaining consumer trust as the market expands.
Growth with scrutiny
Looking ahead, fermented and cultured dairy beverages are expected to remain on a growth trajectory globally and in the Philippines, supported by sustained demand for functional nutrition and convenient formats.
Market researchers anticipate continued innovation in flavors, fortification, and packaging—particularly in drinkable formats that fit everyday routines.
However, experts emphasize that the category’s long-term success will depend on scientific credibility and regulatory compliance. As gut-health and probiotic claims become more prominent, scrutiny from regulators, researchers, and consumers is expected to intensify.
For Filipino consumers navigating an import-dependent dairy market, fermented dairy beverages present both opportunity and complexity. As the category grows, informed choices grounded in evidence rather than hype will play a key role in determining how these products ultimately fit into everyday nutrition.
Photo by Mateusz Feliksik on Unsplash
