The sour cream market is forecast to register a CAGR of 2.4% during the forecast period 2020-2025.
- Sour cream contains beneficial bacteria, which supports digestive health, thus, rising in demand. Increased demand for low-fat sour cream, convenient packaging format, consumption of toppings, organic whipped cream, and low-fat cream has fueled the sour cream market growth across the world.
- Consumers are increasingly demanding various flavors, such as spicy, roasted, and exotic combinations, in sour cream. Heluva Good! 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, topping, or mixed with other ingredients to use as a spread. Savory and spice are the most preferred flavor by consumers as it combines perfectly with salty snacks.
Key Market Trends
Growing Demand For Lactose Free Sour Cream
The prevalence of lactose, majorly in North American and European countries, have 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, savory products as it provides lightening properties to these products. The increased launch of lactose-free dairy products and its acceptance among the consumers represents a substantial opportunity for dairy alternative manufacturers. 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.
Europe Holds A Significant Market Share
Growing incidences of lactose intolerance and the availability of dairy alternatives has driven the European dairy alternative market and continues to do so. For the consumers having concerns regarding lactose intolerance, the manufactures in the region are even introducing lactose-free sour creams, which is expected to drive the market growth in the coming years. For instance, companies, like Follow Your Heart are formulating sour cream, which is thick and creamy and is claimed to taste like the old cream, which is extremely preferred by the consumers recently. In the European region, sour cream is comparably popular to the yogurt category and is well-positioned in the European market as wonderfully fermented products. Also, it is being widely used as an ingredient in cakes, cookies, biscuits, donuts, and scones. Speeding upmarket of dairy alternatives in the European region has shifted the consumer preference and industrial applications incorporate dairy-free sour cream.
The market studied is a competitive market with the existence of both local as well as global players. New product launches in various formats, such as dip, exotic flavored sour cream, and new convenient packaging are the key strategy adopted by the companies. Private label brands provide tough competition to the existing players with their flavored product offerings. 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 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.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support