The North American sour cream market is forecasted to grow at a CAGR of 2.8% during the forecast period 2020 - 2025.
- North America is expected to attain a strong growth during the forecast period, due to the high demand for cultured dairy products. Sour cream contains beneficial bacteria, which support digestive health, resulting in rising demand for the product.
- Increased demand for low-fat sour cream, convenient packaging format, consumption of toppings, growing demand for organic whipped cream, and low-fat cream has fueled the sour cream market across the region.
- Due to the rising lactose-intolerant and vegan population in the country, there is an increase in the demand for non-dairy sour creams. The region has witnessed an increasing demand for sour cream with clean label claims, such as gluten-free and fat-free. These demands are supported by manufacturers focusing on introducing innovative products, thereby driving the growth of the market studied.
Key Market Trends
Growing Demand for Lactose-Free Sour Cream
The prevalence of lactose intolerance, majorly in North American countries, has created a burgeoning demand for lactose-free sour cream. The demand for lactose-free organic sour cream is primarily driven by increasing consumption of baked products and savory products that provide lightening properties. The increased launch of lactose-free dairy products and its acceptance among the consumers represents a substantial opportunity for dairy alternative manufacturers. For instance, in September 2017, Klondike Cheese Co. launched Adelphos® Reduced Fat Sour Cream. The product has 40% less fat than the traditional sour cream. The product has only 25 calories per serving, while other leading brands of sour cream products contain an average of 64 calories per serving. Also, the growing cholesterol problem among consumers has paved the demand for fat-free, low fat, and other sour cream products. Thus such products are expected to boost the market for sour cream during the forecast period
United States Is the Largest Market
The United States is the largest consumer of sour cream followed by Canada and Mexico, with a volume consumption that was surpassed by 40 million kg in 2016. Consumers in the country are aggressively demanding for various flavors, such as spicy, roasted, and exotic combinations in sour cream. Brands, such as Heluva Good (the United States specializing in cheeses, chip dips, sour cream, and condiments), launched sour cream beer-battered onion ring dip, which is made with fried sweet yellow onions, lager, and sour cream. Sour cream is mostly consumed with snacks as a dip, toppings, or mixed with other ingredients to use as a spread. Savory and spice are the most preferred flavors by consumers as it perfectly combines with salty snacks.
North America Sour Cream market is concentrated among a few major players. New product launches in various formats, such as dip, exotic flavored sour cream, and new convenient packaging, are the key strategies adopted by the companies. Major players include- Kraft Foods, Daisy Brand LLC, Saputo Inc., and others. The prime factors determining the market players and their position in the concerned market are the continuous launch of new products with various claims, such as low fat, lactose-free, and others, like high quality. Companies are considerably active in investing in the target segments. Thus, the key players are embarking on expansion as one of their key strategies to achieve consolidation, optimize their offerings, and increase consumer base.
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