How yogurt market is ruling the QSR pie?
Rising disposable income and high health consciousness among consumers have stimulated demand for the Yogurt Production industry.BY Shipra Srivastava | Jul 04, 2017 | comments ( 0 ) |
Yogurt, also known as 'Dahi” in India, is an indispensable part of Indian platter, with home-made dahi consumed daily. Over the years yogurt category has evolved immensely with so many variants coming up including Frozen, Greek, flavored and many more. In fact, now yogurt is also available in ‘Drinkable’ range. As per the Technopak report, the Indian yogurt market is valued at an estimated Rs. 1000 crore(USD 182 million) comprising organized, packaged yogurt and its varieties, packaged drinks, etc., and also the frozen yogurt service market. This market is expected to grow at a CAGR of 20-25% with the expectation that it will double itself in the next three years.
Growing trend of flavored yogurt
Amongst the others variants Frozen and Greek are ruling the market as they can easily be substituted for an ice cream and an absolute delight for the kids. To tap the potential of this growing market there are many players who have ventured this market in last couple of years, including Red Mango, YOYO Frozen Yogurts, Yogurberry, Kiwi Kiss, Epigamia( Greek) and many more.
Speaking on journey, Rahul Kumar, CEO Red Mango India, said,”Red Mango is now synonymous with healthy eating and we launched in India in 2012 keeping that in mind. We’ve created brand and are the leaders in frozen yogurt market. The idea was to allow people to walk in at the Red Mango cafe and enjoy a complete meal which is healthy, delicious and with an experience with our DIY (Do it yourself concept) we are wholesome foundation for a healthy treat.”Presently, Red Mango is running seven cafes spread across Delhi and Chandigarh.
Likewise, the advent of Greek-style yogurt over the past five years has opened a niche market in an otherwise saturated industry, aiding industry growth. Since 2005, demand for Greek-style yogurt has increased at an astronomical rate. Continued economic recovery, rising disposable incomes and increased per capita consumption of yogurt are expected to support overall industry growth through 2021.
Speaking on same, Rohan Mirchandani, Co-founder and CEO, Drums Food International (Epigamia) said, “We established the Greek yogurt category in India two years ago and while we don’t have exact data regarding our share of the market, key clients inform us that we are leading in sales.” Presently, Epigamia is retailed via 4000 distribution points across India, with the widest distribution in Delhi NCR, Bangalore, Mumbai, Hyderabad and Chennai. Epigamia is also retailed via other online retailers including Big Basket, Reliance, Grofers, Nature’s Basket and Gourmet Delight.
“In the next five years, we plan to increase our point of sales from 4,000 to 40,000 and to expand and solidify our presence to 15 cities, “informed Mirchandani. Rising disposable income and high health consciousness among consumers have stimulated demand for the Yogurt Production industry. While the production of most dairy products has stagnated or experienced marginal growth during the five-year period, yogurt production has sharply increased.
How ‘Frozen’ is becoming the rage
Speaking on same, Prasad Parab, Chef Architect, Dishkiyaoon said, “When I was growing up, frozen yogurt was somewhat considered ice cream’s younger, less popular version. Trust me the things have completely changed now .I am meeting at least two diners every day enquiring about frozen yogurt. Some of the factors driving the market include increased yogurt consumption in developing regions and health benefits as it supports healthy digestion, increase bone density to prevent osteoporosis supports weight loss, reduces cholesterol and reduces risk of diabetes. In addition, advertising of the products by big players is further influencing the market growth. However, regulatory constraints and rising cost of research and development are hindering the market.”
The frozen yogurt industry offers a dynamic array of flavours and experiences and is a sought-after dessert treat in its own right. In fact according to a recent survey by Statistic Brain, nearly 80% of American consumers prefer frozen yogurt to ice cream, gelato and other popular frozen treats. India is also gaining popularity in frozen yogurt day by day. Business has been booming for the past five years in India, driven by strong consumer interest in healthier dessert alternatives and innovative product offerings.
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