Table of Contents
Overview
New York, NY – August 11, 2025 – The Global Sheep Milk Yogurt Market is projected to reach USD 3.7 billion by 2034, up from USD 1.7 billion in 2024, with a CAGR of 8.2% from 2025 to 2034. Europe led the market in 2024, holding a 48.4% share and generating USD 0.8 billion in revenue.
The sheep milk yogurt industry is growing rapidly due to rising demand for premium, nutrient-rich dairy products. Sheep milk, with its higher fat, protein, calcium, zinc, and B vitamin content compared to cow’s milk, appeals to health-conscious consumers seeking functional foods.
Government initiatives are significantly boosting the sheep milk sector. For example, New Zealand’s NZ$19.94 million program aims to expand the dairy sheep industry, targeting NZ$750 million in annual export revenue by 2035. Similarly, the U.S. Department of Agriculture’s 2025 Sheep Production and Marketing Grant Program allocates $300,000 to enhance sheep industry sustainability, including milk production and marketing.
In India, milk production is expected to reach 216.5 million metric tons in 2025, up from 211.7 MMT in 2024, supported by government programs like Operation Flood and the National Dairy Development Board, which foster dairy sector growth, including sheep milk.
In the EU, 2023 raw milk production totaled 160.8 million tonnes, with 11.5 million tonnes from ewes and goats, led by Spain (1.1 million tonnes) and Greece (0.9 million tonnes). Organic sheep milk production reached 40,900 tons in 2020, up 9.1% from 2019, with France contributing 77% and Spain 14%. Organic sheep milk yogurt production grew by 7.5% during the same period.
Key Takeaways
- The Sheep Milk Yogurt Market is projected to reach USD 3.7 billion by 2034, up from USD 1.7 billion in 2024. grow at a CAGR of 8.2% from 2024 to 2034.
- Plain sheep milk yogurt held a dominant position in 2024, capturing more than 67.1% of the total market share.
- Food and Beverages accounted for the leading application segment, with over 56.2% of the market share in 2024.
- Supermarkets/Hypermarkets led the distribution segment, securing more than 44.6% share of the global market in 2024.
- Europe was the dominant regional market in 2024, commanding 48.4% of the global share, valued at approximately USD 0.8 billion.
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Report Scope
| Market Value (2024) | USD 1.7 Billion |
| Forecast Revenue (2034) | USD 3.7 Billion |
| CAGR (2025-2034) | 8.2% |
| Segments Covered | By Product Type (Plain, Flavored), By Application (Food and Beverages, Nutritional Supplements, Pharmaceuticals, Others), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Online Stores, Others) |
| Competitive Landscape | Bellwether Farms, Negranti Creamery, Mevgal, Meredith Dairy, Krinos, Shepherds Gourmet Dairy, Delamere Dairy |
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Key Market Segments
By Product Type Analysis
In 2024, plain sheep milk yogurt dominated the market, holding a 67.1% share. Its natural flavor and versatility for both savory and sweet dishes drive its widespread appeal. The high protein content and digestibility of sheep milk make plain yogurt a preferred choice for health-conscious consumers seeking nutritious dairy alternatives.
The demand for natural, minimally processed foods further boosts the popularity of plain sheep milk yogurt, particularly among those prioritizing lactose-friendly, high-quality options. Its strong presence in retail and foodservice channels reinforces its market leadership. Moving forward, plain yogurt is expected to maintain its dominance, fueled by consistent consumer preference for healthy, organic dairy alternatives and its superior nutritional profile.
By Application Analysis
In 2024, the food and beverages segment led the sheep milk yogurt market with a 56.2% share. The segment’s growth is driven by the nutritional benefits, versatility, and rising consumer demand for healthy, natural products. Sheep milk yogurt’s high protein and calcium content make it a popular choice for dairy-based beverages and snacks like smoothies, parfaits, and yogurts, appealing to health-focused consumers.
The trend toward functional foods and beverages that support gut health, digestion, and overall wellness further strengthens this segment. The use of sheep milk yogurt in premium, organic, and lactose-friendly products also contributes to its market dominance, with continued growth expected as consumer preferences align with these health-driven trends.
By Distribution Channel Analysis
In 2024, supermarkets and hypermarkets captured a 44.6% share of the sheep milk yogurt market, serving as the primary distribution channel. Their extensive reach, convenience, and diverse product offerings, including premium and specialty dairy like sheep milk yogurt, drive their dominance.
The growing demand for organic, lactose-free, and health-conscious food options fuels this segment’s growth, with supermarkets expanding their offerings to meet consumer needs. Promotions, discounts, and appealing packaging further enhance the appeal of sheep milk yogurt in these retail spaces.
Regional Analysis
In 2024, Europe led the global sheep milk yogurt market, capturing a 48.4% share valued at USD 0.8 billion. This dominance is driven by the strong tradition of sheep milk dairy in southern European countries like Greece, Spain, France, and Italy, where sheep dairy farming is deeply ingrained and culturally significant.
In Mediterranean EU countries, sheep and goat milk form a substantial portion of dairy production. For example, in Greece, ewe and goat milk accounted for 58.4% of milk delivered to dairies in 2023, while in Cyprus, this figure was 21.5%, highlighting the region’s reliance on small ruminants. This robust supply supports both artisanal and industrial production of sheep milk yogurt, particularly traditional strained varieties.
Growing consumer awareness of sheep milk’s higher protein and calcium content further fuels demand. Europe’s dairy regulations enhance market strength through schemes like Protected Designation of Origin (PDO), which ensure the authenticity of regional sheep milk products and build consumer trust. Additionally, the European Union’s Common Agricultural Policy (CAP) indirectly supports small ruminant farmers through subsidies, promoting sustainable dairy farming and ensuring a stable, high-quality supply.
Top Use Cases
- Health-Conscious Diets: Sheep milk yogurt is popular among health-focused consumers due to its high protein, calcium, and vitamin content. It’s easier to digest for those with mild lactose intolerance, making it a great choice for people seeking nutritious, gut-friendly dairy options that support overall wellness and immune health.
- Culinary Applications: Its creamy texture and tangy flavor make sheep milk yogurt a versatile ingredient in cooking and baking. It’s used in smoothies, dressings, desserts, and savory dishes, appealing to home cooks and chefs who want to enhance recipes with a rich, unique taste.
- Premium and Artisanal Products: The yogurt’s distinct flavor and nutritional benefits attract consumers looking for high-quality, gourmet dairy. Artisanal brands use traditional methods to create premium sheep milk yogurt, appealing to foodies and those willing to pay more for unique, small-batch products.
- Lactose-Friendly Alternative: Sheep milk yogurt is a go-to for people with lactose sensitivity. Its lower lactose levels compared to cow’s milk make it easier to digest, offering a tasty and nutritious option for those who struggle with traditional dairy products.
- Functional Foods with Probiotics: Manufacturers add probiotics and superfoods like chia seeds to sheep milk yogurt, boosting its appeal for gut health and immunity. This makes it popular among fitness enthusiasts and consumers seeking functional foods that combine nutrition with convenience.
Recent Developments
1. Bellwether Farms
Bellwether Farms continues to expand its organic sheep milk yogurt line, emphasizing sustainability and regenerative farming. Their yogurt is now available in new flavors, including vanilla bean and strawberry, catering to health-conscious consumers. The company has also partnered with Whole Foods to increase distribution. Bellwether Farms highlights the digestibility and rich nutrient profile of sheep milk yogurt in its marketing campaigns.
2. Negranti Creamery
Negranti Creamery, known for its artisanal sheep milk products, recently introduced a probiotic-rich sheep milk yogurt with no added sugars. The company focuses on small-batch production, ensuring premium quality. They have also expanded e-commerce options, allowing direct-to-consumer shipping nationwide. Negranti emphasizes the creamy texture and high protein content of their yogurt in recent promotions.
3. Mevgal
Mevgal, a Greek dairy leader, has launched a new line of sheep milk yogurt with honey and nuts, targeting the gourmet segment. The company highlights traditional production methods and high calcium content. Mevgal has also increased exports to the U.S. and Asia, capitalizing on growing demand for sheep dairy products. Their yogurt is now available in single-serve cups for convenience.
4. Meredith Dairy
Meredith Dairy has gained popularity for its marinated sheep milk yogurt, now featured in gourmet food subscriptions like Goldbelly. They recently introduced a lactose-free version to cater to sensitive consumers. The company emphasizes the versatility of its yogurt in cooking and desserts. Meredith Dairy has also expanded its presence in U.S. specialty stores.
5. Krinos
Krinos, known for Mediterranean dairy products, has added a sheep milk yogurt line with traditional Greek flavors like fig and orange blossom. The company promotes its yogurt as a high-protein, low-sugar alternative to cow’s milk yogurt. Krinos has also increased its retail partnerships, making products more accessible in North America.
Conclusion
Sheep Milk Yogurt is gaining traction due to its nutritional benefits, unique flavor, and versatility. Its appeal spans health-conscious consumers, culinary enthusiasts, and those seeking lactose-friendly or premium dairy options. With growing demand for alternative dairy and innovative products, the market is poised for strong growth, driven by health trends and expanding retail channels.
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