North America Sour Cream Industry

North America Sour Cream Market Analysis

The North America Sour Cream Market is expected to register a CAGR of 3.5% during the forecast period.

The sudden outbreak of the COVID-19 pandemic has led to the implementation of strict lockdowns across several nations resulting in slight disruptions in the import and export activities of Sour Cream. Nevertheless, the pandemic has had a positive impact on the dairy industry. With consumers now focusing on dairy products, the demand for dairy is stabilizing at a higher level than pre-pandemic. For instance, According to Organisation for Economic Co-operation and Development, Sour Cream had a 17% increase, with sales up 26% during COVID compared to 2019. Sour cream contains beneficial bacteria, which support 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.

Due to the rising lactose-intolerant and vegan population in the country, there is an increase in the demand for non-dairy sour creams. The region has witnessed an increasing demand for sour cream with clean label claims, such as gluten-free and fat-free. These demands are supported by manufacturers focusing on introducing innovative products, thereby driving the growth of the market studied.

North America Sour Cream Market Trends

Growing Demand for Lactose-Free Sour Cream

The prevalence of lactose intolerance, majorly in North American countries, has created a burgeoning demand for lactose-free sour cream. The demand for lactose-free organic sour cream is primarily driven by the increasing consumption of baked products and savory products that provide lightening properties. The increased launch of lactose-free dairy products and their acceptance among consumers represent substantial opportunities for dairy alternative manufacturers. For instance, Klondike Cheese Co. launched Adelphos® Reduced Fat Sour Cream. The product has 40% less fat than the traditional sour cream. The product has only 25 calories per serving, while other leading brands of sour cream products contain an average of 64 calories per serving. 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.

United States is the Largest Market

The United States is the largest consumer of sour cream, followed by Canada and Mexico. Consumers in the country are aggressively demanding various flavors, such as spicy, roasted, and exotic combinations in sour cream. Brands, such as Heluva Good (the United States specializing in cheeses, chip dips, sour cream, and condiments), 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 such as dip, toppings or mixed with other ingredients to use as a spread. Savory and spice are the most preferred flavors by consumers as it perfectly combines with salty snacks.

North America Sour Cream Industry Overview

The North America Sour Cream market is concentrated among a few major players. New product launches in various formats, such as dip, exotic flavored sour cream, and new convenient packaging, are the key strategies adopted by the companies. Major players include- Kraft Foods, Daisy Brand LLC, Saputo Inc., and others. 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 others like 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 their consumer base.

North America Sour Cream Market Leaders

North America Sour Cream Market News

• In September 2021, Only Plant-Based! launched vegan mayo, sour cream, and dressings at retailers nationwide. The plant-based brand uses ingredients including rapeseed oil, spirit vinegar, vegetables, and spices to craft their condiments, which come in varieties such as garlic mayo, chipotle mayo, ranch, and sour cream.
• In August 2021, Websterville, Vt.-based Vermont Creameryintroduced the brand's first cultured sour cream, which is available in dairy cases in September 2021.
• In November 2021, Prairie Farms Dairy announced the expansion of its product lineup to include squeezable pouches of all-natural sour cream.