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Written by Elma Steven | Updated on July, 2024

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Find Out- Is Yogurt Business Profitable?

The profitability of your Yogurt business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Yogurt business. 

Yogurt Industry Prospects

The global yogurt market size reached $120.7 billion in 2023 and is expected to reach $199.7 billion by 2032, growing at a CAGR of 7.1% during 2024-2032 (mordorintelligence). Another source estimates the market to be valued at $105.61 billion in 2024 and it is expected to reach $135.84 billion by 2029, growing at a CAGR of 5.16% during the forecast period (imarcgroup). The US Yogurt Market size is expected to grow from $9.38 billion in 2023 to $10.45 billion by 2028, at a CAGR of 2.18% during the forecast period (2023-2028) (mordorintelligence). The market is projected to register a CAGR of 2.18% during the forecast period (2024-2029).


  • Yogurt Making Equipment: Investment in yogurt machines or dispensers, pasteurizers, homogenizers and other equipment essential for yogurt production.
  • Refrigeration Systems: Commercial refrigeration units for storing ingredients and finished products, including display refrigerators for customer-facing areas.
  • Kitchen Equipment: Additional kitchen equipment like mixers, blenders, sinks, work tables and storage units.
  • Point of Sale (POS) System: Systems for handling sales transactions, which may include cash registers, card readers and software for inventory management.
  • Furniture and Fixtures: Seating arrangements, tables, counters and décor for the customer area.
  • Signage and Branding: Costs for exterior and interior signage, as well as branding materials for the store.
  • Renovation and Interior Design: If leasing a space, costs for remodeling or interior design to suit a yogurt store’s needs.
  • Initial Inventory of Ingredients and Supplies: Bulk purchase of yogurt bases, flavors, toppings, cups, spoons and napkins.
  • Initial Marketing and Advertising: Costs for initial marketing campaigns, including website development, social media setup and promotional materials.
  • Utility Set-Up Costs: For setting up necessary utilities like electricity, water, or gas in your store.
  • Technology and Software: Investment in software for customer relationship management, accounting and possibly digital marketing tools.
  • Security Systems: Installation of security cameras and alarm systems.
  • Legal and Professional Fees: Costs for legal, accounting and consulting services, including business registration and compliance.
  • Training and Development: Costs for training staff in yogurt preparation, customer service and hygiene standards.

Remember, these CapEx items represent significant upfront investments needed to start and equip your yogurt business. It’s important to carefully plan and budget for these expenses to ensure a successful launch of your venture.


  • Yogurt Sales: The primary source of revenue will be from selling different types of yogurt, including traditional, Greek, frozen and flavored varieties. You can offer various sizes and customizable options.
  • Toppings and Extras: Charging additional fees for a range of toppings like fruits, nuts, granola, candy and syrups can significantly boost revenue.
  • Beverages: Offering complementary beverages like coffee, tea, smoothies, or juices can provide an additional revenue stream.
  • Packaged and Bulk Sales: Selling yogurt in larger containers or packages for family consumption or catering to small events.
  • Health and Dietetic Options: Offering special yogurt varieties catering to health-conscious customers, such as low-fat, sugar-free, or probiotic-enhanced options.
  • Yogurt-Based Desserts: Creating and selling yogurt-based desserts like parfaits, yogurt bowls, or smoothie bowls.
  • Merchandise Sales: Selling branded merchandise like reusable cups, t-shirts, or tote bags.
  • Catering Services: Providing catering services for events, parties, or corporate functions.
  • Loyalty Programs: Implementing a loyalty program where customers earn points or rewards for repeated purchases.
  • Seasonal Specials and Promotions: Offering seasonal or limited-time flavors and promotions to attract customers and boost sales.
  • Gift Cards: Selling gift cards, especially during holiday seasons or for special occasions, which can also attract new customers.
  • Online Sales: If applicable, selling your products online and offering delivery or curbside pickup services.

Diversifying your revenue streams can help stabilize your income and make your yogurt business more resilient to market changes. Continuously assessing customer preferences and market trends will help you adapt and find the most lucrative opportunities.

Cost of Goods Sold

  • Yogurt Base and Ingredients: The cost of the yogurt base, which may include various types like regular, Greek, or frozen yogurt mixes. Also, the cost of any additional ingredients used to flavor the yogurt.
  • Toppings: Costs for purchasing toppings offered to customers, such as fruits, nuts, granola, candies, syrups and sauces.
  • Packaging Materials: Expenses for cups, spoons, napkins and any other packaging materials used to serve yogurt to customers.
  • Beverage Costs: If you sell beverages, the cost of coffee, tea, juices, milk and any other ingredients used in making these drinks.
  • Payment Processing Fees: Fees charged by credit card companies or payment processing services for each transaction.
  • Delivery Costs: If you offer delivery services, the cost of packaging and transporting the products to customers.
  • Wastage: Costs associated with any spoilage or waste of yogurt, toppings, or other perishable items.

Efficient management of COGS is crucial for maintaining the profitability of your yogurt business. This involves optimizing your inventory levels to reduce wastage, negotiating favorable prices with suppliers and carefully pricing your products to ensure a healthy margin.

Operating Expenses

  • Rent or Lease Payments: Regular payments for the commercial space where your yogurt business is located.
  • Utilities: Basic utilities like electricity, water, gas and internet services for your store.
  • Insurance: Business insurance costs, which may include liability insurance, property insurance and possibly product liability insurance.
  • Salaries and Wages: Wages for your employees, such as sales staff, kitchen staff and any managerial staff.
  • Marketing and Advertising: Ongoing costs associated with promoting your yogurt business, including digital marketing, social media advertising, print materials and local advertising.
  • Professional Services: Fees for services like accounting, legal advice and consulting.
  • Office Supplies and Equipment: Regular expenses for office supplies and any equipment necessary for running the administrative side of your business.
  • Maintenance and Repairs: Costs for maintaining and repairing equipment, furniture and the facility.
  • Technology and Software Subscriptions: Expenses for software used in managing your business, such as point of sale (POS) systems, inventory management systems and customer relationship management (CRM) software.
  • Depreciation of Assets: This includes the depreciation of long-term assets such as equipment and furniture over their useful life.
  • Taxes and Licenses: Costs for business licenses, permits and any applicable local, state, or federal taxes.
  • Loan Repayments: If you have financed your business or specific equipment, the monthly repayments are considered an operating expense.
  • Miscellaneous Expenses: Other costs such as bank fees, transaction fees, or any unforeseen expenses that arise in the normal course of business.

Efficient management of these operating expenses is crucial for maintaining the financial health of your yogurt business. Regular review and careful budgeting of these costs can help in optimizing operations and improving your business’s profitability.

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