Global Sheep Milk Yogurt Market Size, Share Analysis Report By Product Type (Plain, Flavored), By Application (Food and Beverages, Nutritional Supplements, Pharmaceuticals, Others), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Online Stores, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Sheep Milk Yogurt Market size is expected to be worth around USD 3.7 Billion by 2034, from USD 1.7 Billion in 2024, growing at a CAGR of 8.2% during the forecast period from 2025 to 2034. In 2024, Europe held a dominant market position, capturing more than a 48.4% share, holding USD 0.8 billion in revenue.

The sheep milk yogurt concentrate industry is experiencing significant growth, driven by increasing consumer demand for premium, functional dairy products. Sheep milk, known for its higher fat and protein content compared to cow’s milk, offers enhanced nutritional benefits, including higher levels of calcium, zinc, and B vitamins. These attributes make sheep milk yogurt an attractive alternative for health-conscious consumers seeking nutrient-dense options.

Government initiatives are playing a pivotal role in supporting the expansion of the sheep milk industry. For instance, the New Zealand government announced a NZ$19.94 million program to scale up the dairy sheep sector, aiming to establish a primary industry worth more than NZ$750 million in annual export receipts by 2035. Such initiatives provide financial incentives and infrastructure support, fostering industry growth and innovation.

For instance, India’s milk production is forecast by USDA (FAS New Delhi) to rise to 216.5 million metric tons in 2025, up from 211.7 MMT in 2024, fuelled by government financial and technical support for dairy farmers, credit access, and herd expansions. Although specific subsidies for sheep milk yogurt concentrate are not detailed, broader dairy sector support under schemes such as Operation Flood and support via the National Dairy Development Board contribute to the enabling environment

Government initiatives are also playing a significant role in supporting the growth of the sheep milk industry. For instance, the U.S. Department of Agriculture (USDA) has allocated $300,000 for the Sheep Production and Marketing Grant Program (SPMGP) in 2025. This funding aims to enhance the sustainability and infrastructure of the U.S. sheep industry, including projects focused on sheep milk production and marketing .

In the EU, total raw milk output in 2023 reached 160.8 million tonnes, of which approximately 11.5 million tonnes came from ewes and goats—with Spain producing 1.1 million tonnes and Greece 0.9 million tonnes. Organic sheep milk production in the EU amounted to approximately 40,900 tons in 2020, increasing by 9.1 % over 2019—77 % of that output occurring in France, 14% in Spain—and organic sheep milk yogurt output grew by 7.5% over that 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.
• The market is expected to 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.

By Product Type Analysis

Plain Sheep Milk Yogurt Dominates with 67.1% Share Due to Popular Demand

In 2024, Plain sheep milk yogurt held a dominant market position, capturing more than a 67.1% share of the market. The simplicity and natural flavor of plain yogurt continue to appeal to a broad range of consumers. Its popularity is driven by its versatility as a base for both savory and sweet dishes, as well as its perceived health benefits. The high protein content and digestibility of sheep milk make plain yogurt an attractive option for consumers looking for nutritious dairy alternatives.

The growth of plain sheep milk yogurt is supported by the increasing consumer demand for natural and minimally processed food products. It is favored by health-conscious individuals seeking high-quality, lactose-friendly options, which enhances its presence in the market. Furthermore, plain sheep milk yogurt’s widespread availability in both retail and foodservice channels helps maintain its strong market position.

In the coming years, the plain variant is expected to maintain its dominance, driven by its consistent consumer preference and the continued interest in healthy, organic dairy alternatives. The simplicity of plain yogurt, combined with its nutritional profile, will likely continue to solidify its leading position in the market.

By Application Analysis

Food and Beverages Dominates Sheep Milk Yogurt Market with 56.2% Share

In 2024, Food and Beverages held a dominant market position, capturing more than a 56.2% share of the sheep milk yogurt market. The application of sheep milk yogurt in food and beverages is primarily driven by its nutritional benefits, versatility, and consumer demand for healthy, natural products. The rising popularity of dairy-based beverages and snacks, including smoothies, parfaits, and yogurts, has propelled this segment’s growth. Sheep milk yogurt is particularly valued for its high protein and calcium content, which appeals to health-conscious consumers.

The expanding trend of functional foods and beverages that offer added health benefits is also contributing to the market’s dominance. As more consumers seek products that promote gut health, digestion, and overall wellness, sheep milk yogurt’s application in food and beverage products continues to grow. Additionally, its use in premium, organic, and lactose-friendly food products has strengthened its position in this segment.

By Distribution Channel Analysis

Supermarkets/Hypermarkets Lead Sheep Milk Yogurt Market with 44.6% Share

In 2024, Supermarkets/Hypermarkets held a dominant market position, capturing more than a 44.6% share of the sheep milk yogurt market. This distribution channel remains the primary avenue for consumers to access sheep milk yogurt, driven by the wide variety of dairy products available in these large retail spaces. Supermarkets and hypermarkets benefit from their broad reach and convenience, making them ideal for consumers who seek a diverse range of food products, including premium and specialty dairy options like sheep milk yogurt.

The growth of this segment is fueled by the increasing demand for organic, lactose-free, and health-conscious food options. As consumer awareness about the benefits of sheep milk yogurt rises, these retail outlets continue to expand their offerings to meet consumer preferences. Furthermore, the frequent promotions, discounts, and attractive packaging in supermarkets and hypermarkets are key drivers in maintaining their strong market share.

Key Market Segments

By Product Type

• Plain
• Flavored

By Application

• Food and Beverages
• Nutritional Supplements
• Pharmaceuticals
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Online Stores
• Others

Emerging Trends

Premiumization and Ethical Consumerism

A notable trend shaping the sheep milk yogurt market is the growing consumer demand for ethically produced, premium-quality dairy products. This shift is driven by increasing awareness of animal welfare, sustainability, and the nutritional benefits of alternative dairy sources. Sheep milk yogurt, known for its rich protein content and digestibility, aligns well with these consumer preferences.

Research indicates that consumers are willing to pay a premium for products that adhere to higher animal welfare standards. A study conducted in Switzerland found that a one-point increase in the animal welfare score (on a scale from 1 to 5) corresponds to a 16.4% price increase, with dairy products like yogurt experiencing the most significant impact at 25.3%. This trend suggests that consumers are not only seeking healthier alternatives but are also considering the ethical implications of their food choices.

Government initiatives are also supporting this trend by promoting sustainable and ethical farming practices. For instance, the European Union’s Common Agricultural Policy (CAP) includes measures that encourage environmentally friendly and animal welfare-conscious farming, which benefits the sheep dairy industry. Such policies help create a favorable environment for the production and consumption of ethically produced sheep milk yogurt.

The convergence of consumer demand for ethically produced, premium-quality dairy products and supportive government policies presents a significant growth opportunity for the sheep milk yogurt market. Producers who align their practices with these trends can tap into a niche market of conscious consumers willing to invest in products that reflect their values.

Drivers

Rising Consumer Preference for Dairy Alternatives

One of the significant driving factors in the growth of the sheep milk yogurt market is the increasing consumer preference for dairy alternatives. With a growing awareness of the health benefits and nutritional advantages of alternative dairy products, more consumers are opting for sheep milk yogurt over traditional cow milk yogurt. Sheep milk is known for its rich nutrient profile, being higher in protein, fat, and essential vitamins and minerals compared to cow milk. It is also naturally lactose-free, making it an ideal option for individuals who are lactose intolerant or have dairy sensitivities.

• According to the U.S. Department of Agriculture (USDA), sheep milk contains up to 25% more protein and 50% more fat than cow’s milk, making it a valuable source of energy and nutrition. Furthermore, it is rich in calcium, which is essential for maintaining bone health, and it contains significant amounts of vitamins B and D, which are crucial for immune function.

Government initiatives are also contributing to the rise of dairy alternatives. In the European Union, subsidies and promotional programs for organic and sustainable farming practices are supporting the production of sheep milk and its derivatives. For example, the EU’s Common Agricultural Policy (CAP) has increasingly favored environmentally friendly and animal welfare-conscious farming practices, benefiting the sheep milk industry. These initiatives are making sheep milk yogurt more accessible and appealing to a broader consumer base.

As more people seek to improve their diets with healthier, more sustainable food options, sheep milk yogurt’s position in the dairy alternative market continues to strengthen. The industry’s expansion is driven by both changing consumer preferences and government policies that support the production and marketing of sustainable dairy alternatives. The global dairy alternatives market is projected to grow at a steady pace, with sheep milk yogurt being a key player in this growth trajectory.

Restraints

High Cost of Production

A major restraining factor in the growth of the sheep milk yogurt market is the high cost of production. Sheep milk is generally more expensive to produce than cow’s milk, as sheep typically yield less milk and require more resources for their care and maintenance. According to the Food and Agriculture Organization (FAO), sheep typically produce 10-15 liters of milk per day, which is significantly lower than the 30-35 liters produced by cows. This lower yield, coupled with the need for specialized care, drives up the cost of sheep milk.

The production process for sheep milk yogurt also incurs additional costs. The milk needs to be processed and stored at a lower temperature to maintain its quality, which involves more energy and logistics costs. Moreover, sheep farming is often associated with more labor-intensive practices, as sheep are more sensitive to environmental factors than cows, requiring better pasture management and disease prevention.

While the benefits of sheep milk yogurt are clear, its higher production costs make it a premium product, limiting its accessibility to a broader market. This restricts its growth potential in price-sensitive regions, where consumers may opt for cheaper dairy alternatives. For example, in Europe, while the sheep milk yogurt market is gaining momentum, it still accounts for a relatively small portion of the overall dairy market. According to the European Commission’s report on dairy market trends, sheep milk accounts for just 3.5% of total milk production in Europe, compared to 80% for cow’s milk.

Government initiatives to support sheep milk production, such as grants and subsidies for small-scale farmers, can alleviate some of the cost burden. However, the high cost of production remains a significant barrier for wider market penetration, especially in lower-income regions.

Opportunity

Expansion in Health-Conscious Consumer Markets

One of the major growth opportunities for the sheep milk yogurt market lies in the increasing demand from health-conscious consumers. As people become more aware of the nutritional benefits of natural, organic, and probiotic-rich foods, sheep milk yogurt is gaining popularity due to its superior nutritional profile. Compared to cow’s milk, sheep milk is rich in proteins, healthy fats, and essential vitamins like A, B12, and D, making it a great alternative for those looking to enhance their diet with nutrient-dense foods.

• According to the U.S. Department of Agriculture (USDA), sheep milk contains approximately 25% more protein than cow’s milk and is naturally higher in omega-3 fatty acids, which are beneficial for heart health.

Government-backed initiatives promoting healthy eating habits are also paving the way for growth in this sector. For instance, in many countries, including the U.S., the government is actively encouraging the consumption of dairy alternatives to reduce the consumption of saturated fats and promote overall wellness. The U.S. Department of Health and Human Services, through its Dietary Guidelines for Americans, advocates for the inclusion of dairy alternatives like sheep milk yogurt in balanced diets, particularly for individuals with lactose intolerance or other dietary restrictions.

Additionally, the global push for sustainable and eco-friendly food options is creating a strong demand for sheep milk yogurt, as sheep farming is often considered more environmentally sustainable compared to large-scale cow dairy operations. The European Union, for example, has rolled out several subsidies and policies under the Common Agricultural Policy (CAP) to support sustainable farming practices, including sheep dairy production.

Regional Insights

In 2024, Europe held a dominant position, commanding 48.4% of the global sheep milk yogurt market, with a value of USD 0.8 billion. This leading share reflects the deep-rooted tradition of sheep milk-based dairy in southern European countries, especially Greece, Spain, France, and Italy, where sheep dairy farming is well established and culturally significant.

Sheep and goat milk account for a significant portion of milk delivered to dairies in Mediterranean EU Member States; in Greece, for instance, ewe and goat milk combined constituted approximately 58.4% of all milk deliveries in 2023, while in Cyprus this figure stood near 21.5%, demonstrating a strong regional reliance on small ruminants for dairy production. This supply base supports artisanal and industrial yogurt production, particularly traditional strained yogurts made from sheep milk. Consumer awareness of health benefits—including higher protein and calcium content—further boosts demand in these markets

Europe’s dairy governance framework supports quality through labeling schemes such as Protected Designation of Origin (PDO), which help preserve regional authenticity in sheep milk products and reinforce consumer trust. Meanwhile, under the European Union’s Common Agricultural Policy (CAP), support is provided indirectly to small ruminant farmers via subsidies that encourage diversified and sustainable dairy farming—thus helping stabilize supply and maintain quality standards.

Key Regions and Countries Insights

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Mevgal, a prominent Greek dairy company, is a significant player in the European sheep milk yogurt market. Known for its traditional Greek yogurt made from 100% sheep milk, the company has a strong domestic and export presence. In 2024, Mevgal leveraged its heritage in Mediterranean dairy to grow in international markets such as Germany and the U.K. With modern processing facilities and adherence to EU food safety standards, Mevgal continues to meet growing global demand for high-protein, authentic yogurt.

Meredith Dairy, based in Victoria, Australia, is a key producer of sheep milk yogurt and cheese, with a vertically integrated model from farm to product. The company is renowned for its natural, preservative-free sheep milk yogurts, distributed across major Australian supermarkets and exported to over 15 countries. In 2024, Meredith Dairy focused on sustainable farming and expanding into Asian markets. Its reputation for animal welfare and clean processing reinforces its leadership in the premium sheep dairy segment.

Negranti Creamery, located in California, specializes in small-batch sheep milk yogurts and frozen desserts. Their products are made without artificial stabilizers or preservatives, highlighting clean-label appeal. The company sources milk from its own sheep farm, ensuring quality control and traceability. In 2024, Negranti focused on expanding regional distribution in the western U.S. and increasing online direct-to-consumer sales. Its commitment to handcrafted dairy and artisanal processing makes it a standout in the American specialty yogurt segment.

Top Key Players Outlook

• Bellwether Farms
• Negranti Creamery
• Mevgal
• Meredith Dairy
• Krinos
• Shepherds Gourmet Dairy
• Delamere Dairy

Recent Industry Developments

In 2024 Meredith Dairy, it managed a herd of approximately 3,500 milking sheep alongside 12,000 milking goats, producing yogurt and cheese with a sustainability-focused approach.

In 2024 Mevgal, exports accounted for roughly 35% of total company turnover, with one in five Greek yogurt export units produced by Mevgal.

Report Scope