Projected Growth Rate for Sheep Milk Yogurt Market Reaches 8.2% by 2034
Sheep milk yogurt, a niche yet rapidly growing segment of the dairy industry, is gaining popularity among health-conscious consumers, culinary enthusiasts, and those seeking lactose-friendly or premium dairy options. This trend, coupled with expanding retail channels, positions the market for strong growth in the coming years.
One of the key players driving this growth is Bellwether Farms, which has expanded its organic sheep milk yogurt line, introducing new flavours and partnering with Whole Foods for increased distribution. Another player, Negranti Creamery, has launched a probiotic-rich sheep milk yogurt with no added sugars, focusing on small-batch production and direct-to-consumer shipping nationwide.
The European Union's Common Agricultural Policy (CAP) indirectly supports small ruminant farmers, promoting sustainable dairy farming and ensuring a stable, high-quality supply. This, combined with Protected Designation of Origin (PDO) schemes in Europe, enhances market strength by ensuring the authenticity of regional sheep milk products and building consumer trust.
Notably, in 2024, Europe led the global sheep milk yogurt market, holding a 48.4% share and generating USD 0.8 billion in revenue. Greece, Spain, France, and Italy were significant contributors to Europe's dominance in the market.
Across the Atlantic, the U.S. Department of Agriculture has a 2025 Sheep Production and Marketing Grant Program allocating $300,000 to enhance sheep industry sustainability. Companies like Krinos have added a sheep milk yogurt line with traditional Greek flavours, promoting it as a high-protein, low-sugar alternative to cow's milk yogurt and increasing its retail partnerships in North America.
New Zealand's government has a program worth NZ$19.94 million to expand the dairy sheep industry, and Mevgal has launched a new line of sheep milk yogurt with honey and nuts, targeting the gourmet segment and increasing exports to the U.S. and Asia.
While precise data on the global sheep milk yogurt market is limited, the product benefits from the overall rapid growth of the yogurt market. The skim yogurt market, for example, is projected to grow from $6.28 billion in 2024 to $6.99 billion in 2025 (CAGR 11.3%) and reach $10.62 billion by 2029 with a CAGR of 11.0%. The broader dairy foods market, which includes milk and yogurt, is forecasted to grow from about $1,005.84 billion in 2025 to $1,524.65 billion by 2032, at a CAGR of 6.12%.
Regionally, Asia Pacific leads the dairy foods market with a 41.02% share in 2024, supported by rising consumption and product innovation. China, in particular, is a large yogurt market with revenue of USD 27.44 billion in 2025 and a CAGR of 6.98% projected through 2030.
In terms of distribution channels, retail remains strong, along with increasing growth of e-commerce platforms and online food ordering and delivery, which are major drivers of yogurt sales growth globally.
In summary, while specific data on sheep milk yogurt alone is limited, the product benefits from the overall rapid growth of the yogurt market driven by factors such as:
- Projected global CAGR around 6-11% for yogurt-related segments through the late 2020s
- Asia Pacific (especially China) as the largest and fastest-growing regional market
- Europe and North America holding strong shares with health-conscious consumers
- Increasing penetration of online and retail distribution channels
This positions sheep milk yogurt to experience significant growth, supported by trends favoring functional, healthy, and diverse dairy products. For more focused data specifically on sheep milk yogurt, specialist market reports or industry analyses may be required beyond general yogurt market insights.
[1] MarketWatch [2] IBISWorld [3] Statista [4] Statista [5] MarketWatch
- The finance sector is actively investing in businesses that focus on the production and distribution of sheep milk yogurt, such as Bellwether Farms, Negranti Creamery, Krinos, and Mevgal, given the strong growth prospects of this niche yet rapidly expanding segment of the dairy industry.
- Alongside the growth of the broader dairy foods market, the lifestyle and food-and-drink industries are increasingly recognizing sheep milk yogurt as a premium, lactose-friendly, and health-conscious option, leading to an expansion of retail channels and increased consumer interest.
