KEFIR MARKET ANALYSIS

The global kefir market is facing significant challenge due to the presence of close substitute dairy products like yogurt and buttermilk. Both yogurt and buttermilk are widely sold and marketed products across various regions of the world. Yogurt market is especially highly competitive due to strong marketing and distribution network of major yogurt manufacturers. Both yogurt and buttermilk provide similar functional benefits to gut health and probiotics as kefir. The taste profile of these substitutes is also relatively universal which makes them appealing to mass market. Many consumers are unable to distinguish the difference in product attributes and nutrition composition between kefir and other substitutes. This has restricted kefir to remain a niche product consumed by only health conscious population. The challenge for kefir producers is to position their brand differently and create broader awareness about unique features of kefir to outperform strong competition from substitute products.

Market Opportunity - Untapped markets in developing regions

The global kefir market has potential growth opportunity in numerous developing regions which are yet to witness the wider availability and consumption of kefir. While yogurt and buttermilk markets in these regions are getting saturated steadily, kefir remains largely unknown to mass population. Countries across the Middle East, Africa, Latin America, and parts of Asia Pacific represent very low penetration levels of kefir currently. These untapped emerging markets bear high prospects for kefir producers to focus their expansion strategies. With increasing health and wellness trends, improved cold chain logistics and rising disposable incomes, consumers in developing regions are likely to get exposed to kefir in the coming years. Early mover advantage through innovative market entry models and localized branding can help players gain substantial market shares in the long run. Partnerships with local distributors may also facilitate faster availability of kefir to tap into development targets.