Sour Cream Market

Global Sour Cream Market Size (2024 to 2029)

The size of the global sour cream market is expected to be worth USD 1.73 billion in 2024 and grow at a CAGR of 2.60% from 2024 to 2029 to achieve USD 1.97 billion by 2029.

Sour cream is a dairy product with a creamy texture and tangy flavor. The process of making it involves thickening and souring cream by fermenting it with certain kinds of lactic acid bacteria. Due to its texture and flavor, it is a versatile ingredient and is used in cooking, baking, and as a topping on various food products. Regular sour cream has a substantial amount of calories and fat and also contains calcium. Hence tacos, baked potatoes, and desserts are all enhanced with the flavor of sour cream. It can be blended into sauces, dips, and soups to give them a creamier texture because of its smooth consistency. Certain types of sour cream contain probiotics to improve the immune system and digestion, while others may help in the body's absorption of fat-soluble vitamins.

Recent Developments in Sour Cream Industry

• In January 2023, in the US, Violife introduced its newly developed dairy-free sour cream. This was aligned with the company's goal to increase its market share in the national dairy-free market. Additionally, this product is offered in about 883 Walmart stores across the United States.
• In October 2022, To meet the growing demand for sour cream in the market, PA Dairy Processor increased their production capacity.

REPORT COVERAGE

Market Drivers

The sour cream market growth is being majorly driven by the potential health benefits of sour cream. Recently more people are opting for healthy and nutritious diets to maintain a good and healthy lifestyle. As it is a source of probiotics that promote intestinal health, also the presence of calcium boosts strong bones, and protein helps the overall body function, sour cream fits a variety of dietary preferences. Also, it is an attractive ingredient in various food preparations with reduced-fat and reduced-calorie sour cream options, which promotes its increased use in salads, bakery products, dips, snacks, etc. This aligns with the growing consumer demand for tasty and nutritious food products, which is boosting the sour cream market demand.

The expanding use of sour cream in the food processing industry is serving as a prominent driver for the market shares. Sour cream is an adaptable ingredient that enhances the taste and consistency of numerous processed foods because of its rich, creamy texture and tangy flavor. It stands out from other dairy products owing to its capacity to add a unique and tempting flavor profile to many dishes right, from dips and salads to baked goods and savory foods. Because of its ability to be used in both savory and sweet applications, sour cream is a popular option among food processors and those who are seeking to create food products with a delicious flavor and texture. Sour cream's use as an essential ingredient continues to grow through its presence in several cuisines and global food trends, which boosts the sour cream market size.

Further, the increasing demand for convenience food is significantly driving market growth. The growing urbanization is leading to busier and hectic lifestyles of people, due to which they are seeking quick and easy meals, snacks, or dinner options. Sour cream can satisfy this growing demand, as it is a ready-to-use ingredient with lots of health benefits. Various flavors of sour cream are available; one can use it according to their choice. It instantly enhances the flavor and texture of various dishes, hence used in pre-packaged salads, microwave-ready food, sandwich, or bread spreads, which makes it convenient for people to consume any time they want. Hence, this attribute promotes the demand for the sour cream market.

Market Restraints

One of the major restraints on the sour cream market growth is the increasing prevalence of lactose intolerance. Traditional dairy-based sour cream is facing challenges as more and more people are getting prone to lactose intolerance and allergies by consuming dairy products. This is leading to changes in the dietary preferences of consumers resulting in an increasing demand for lactose-free and non-dairy alternatives. Hence, other manufacturers are coming up with creative lactose-free and non-dairy alternatives to meet the demands of this changing market which is presenting several challenges for the market to grow as demand for dairy-based sour cream is declining.

Further, the sour cream market demand is severely restricted by the growing competition from healthier substitutes available in the global market. Nowadays, people are shifting their dietary preferences, and for more nutritious diets, they are mainly adopting vegan and plant-based foods. Alternatives like Greek yogurt, low-fat cottage cheese, and plant-based yogurt are becoming very popular among health-conscious consumers as they are demanding higher protein content, reduced fat levels, and probiotics to boost overall health, which is attracting more people toward them and leading to a decrease in the demand for dairy-based sour cream. This attribute is becoming a major restraint for market size expansion.

Market Opportunities

The sour cream market is offering healthier variants and functional ingredients, which is presenting several growth opportunities for the market in the coming years. The manufacturers of sour cream can offer healthier variants of sour cream with reduced fat content, lower sodium levels, and enhanced nutritional content that can attract health-conscious consumers who are seeking functional and healthy food alternatives. Also, adding helpful bacteria like probiotics and extra vitamins or minerals to sour cream can boost the demand because it makes food more functional. In this way, people can enjoy delicious sour cream options with all the health benefits leading to boost the market demand.

Also, introducing new and unique flavors of sour cream provides a significant growth opportunity for the market. There is an increasing demand for various flavors of sour cream, like spicy, roasted, and exotic combinations. As these flavors are widely used in diverse culinary preparations, including snacks and meals, as a topping on pizza, burgers, and sandwiches, and also mixed as an essential ingredient with others to use as a spread. The savory or little spicy flavor can attract a large consumer base as it helps to enhance the taste and texture of food products. Hence, by introducing unique and new flavors of sour cream, the market can grow significantly in the coming years as its increased use in various dishes may attract more people.

Sour Cream Market Segmentation Analysis

By Types

• Organic
• Conventional

By type, the organic segment is ruling the sour cream market share during the anticipated period. Because these days, many consumers prefer organic that is purely natural products without the use of any chemicals or extra ingredients due to increasing health concerns. Hence, there is an increasing demand for the organic sour cream segment in the coming years. At the same time, the conventional segment is expected to grow significantly during the projected period. This segment mainly offers affordable sour cream options with added extra ingredients and chemicals. As many people are price-conscious and seeking more affordable options, it is the best fit for their budgets, leading to a boost in demand for conventional sour cream.

By Applications

• Bakery Products
• Salad Dressing
• Dips
• Snacks
• Sauces
• Ice Cream
• Others

By applications, the bakery products segment is anticipated to dominate the market demand during the forecasted period. Sour cream is widely used in bread, cakes, muffins, biscuits, and other baked goods. As it improves the overall quality of baked goods by providing them with moisture, flavor, and texture, its demand for bakery products is boosting. However, the salad dressing segment is expected to grow at the fastest rate during the projected period. Sour cream serves as a base for creamy salad dressings. It offers a tangy flavor to vegetables and herbs. Sour cream is a popular ingredient for making savory and satisfying salad dressings because of its creamy consistency.

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail Stores
• Other Distribution Channels

By distribution channel, the Supermarkets/Hypermarkets segment is dominating the sour cream market sales during the forecasted period. Customers can physically go to these stores to buy sour cream, allowing them to buy the product of their choice based on the product's availability and appearance. This attribute is contributing to boosting sales of this segment. At the same time, the online retail stores segment is expected to grow at a healthy CAGR during the projected period. Online retailers provide a broad range of options and easy access to many sour cream brands and varieties, making it convenient for consumers to order from home. This can lead to an increase in sour cream sales via the online retail store segment in the coming years.

Regional Analysis

By region, Europe is anticipated to rule the sour cream market share during the forecasted period. Europe is a top player in milk production, and as the availability of milk is essential for making sour cream, this region is significantly influencing the shares of the market. Due to growing awareness about the health benefits of sour cream, there is increased use of it in various culinary preparations in this region, leading to a boost in demand for the market. However, the Asia Pacific region is expected to grow at the fastest CAGR during the projected period, owing to the large population and their growing demand for nutritious and healthy food products like sour cream.

Key Players in the Market

Major Key Players in the Global Sour Cream Market are

• Dean Foods
• Fonterra Co-operative Group Limited
• Kraft Heinz Company
• Green Valley Creamery
• Danone SA