Background, Context or Rationale Brazil is one of the world's five largest milk producers, with the dairy sector accounting for approximately 5.4% of its agricultural gross value added. Despite this productive robustness, the industry faces structural challenges and shifting consumer behaviour, with rising demand for functional foods that promote gut health and systemic well‐being. Dairy matrices, such as yoghurt, cheese and fermented milks, are excellent vehicles for bioactive delivery due to their favourable composition and pH‐buffering properties. Aim(s) This study aimed to provide a comprehensive overview of the Brazilian functional dairy market, exploring the technological incorporation of probiotics and prebiotics, regulatory challenges and market opportunities for product diversification. Methods A narrative analysis was conducted on the topic using original articles and reviews on legislation, probiotics strains (e.g. LGG and Bifidobacterium animalis BB12) and prebiotics agents fructooligosaccharides (FOS), galactooligosaccharides (GOS) and inulin in the Brazilian dairy sector, as well as examining the impact of incorporation technologies, such as microencapsulation and lyophilisation. Major Findings The Brazilian market is consolidated, with traditional brands like Yakult and Activia. Furthermore, while prebiotics like inulin and FOS improve gel stability and texture, rigorous ANVISA regulations require specific strain identification and clinical proof, complicating industrial innovation for smaller enterprises. Scientific or Industrial Implications Future growth depends on integrating advanced encapsulation techniques and utilising regional ingredients to create synbiotic formulations. Strengthening the link between scientific research and industry is vital to delivering safe, regulated and culturally relevant functional dairy solutions to the Brazilian population.
Prudencio et al. (2026) studied this question.