Global Fermented Beverages Market - 2023-2030

Overview

Global Fermented Beverages Market reached US$ 4.0 million in 2022 and is expected to reach US$ 6.5 million by 2030, growing with a CAGR of 5.8% during the forecast period 2023-2030.

Fermented beverages includes diverse offerings such as kombucha, kefir, craft beer and conventional fermented drinks. The fermented beverages market is witnessing consistent expansion, propelled by increasing consumer demand for probiotics and distinctive tastes. The market's growth is fueled by health-conscious patterns and a rising inclination toward authentic and handmade options, driving its global prevalence.

Kombucha, ginger beer, kvass and kefir beverages may retain residual alcohol from the fermentation process. The Australia New Zealand Food Standards Code mandates that beverages surpassing 0.5% ABV must indicate alcohol content on labels. Specifically, in New South Wales (NSW), products with alcohol levels exceeding 1.15% ABV are classified as alcoholic beverages. These guidelines guarantee transparency and enable consumers to make informed decisions about the alcohol content in these widely consumed fermented drinks.

North America accounted for almost 2/5th of the global fermented beverages market, a prominent growth driver for the region's growth and progress is the increasing consumer demand for gut-healthy and probiotic-rich options. Notably, within the broader market, alcoholic beverages hold a dominant share of 65%, showcasing consumers' inclination towards fermented alcoholic choices. This preference for alcoholic variants is indicative of the market's strong association with traditions and diverse flavor profiles.

Dynamics

Paradigm Shift in Health and Wellness Trend

The fermented beverages market is driven by a growing consumer focus on health and wellness, propelling demand for probiotic-rich drinks. As consumers seek functional beverages offering gut health benefits, products such as kombucha and kefir have gained popularity, thereby causing market expansion.

With increasing awareness of the link between gut health and overall well-being, the fermented beverages market share is projected to witness substantial growth. As a result, key industry players are innovating to offer a diverse range of flavorful options that cater to evolving consumer preferences, further amplifying the market size.

Growing Attraction Towards Craftsmanship and Artisanal Production Methods

The fermented beverages Market is driven by a preference for authenticity and craftsmanship, spurring the demand for artisanal offerings. Consumers are increasingly drawn to handcrafted beverages, such as small-batch craft beer and traditional fermented concoctions, seeking unique flavors and experiences. The respective shift in consumer preference has led to a notable increase in the market share.

Artisanal production methods and a focus on quality ingredients are pivotal in capturing market growth. As consumers continue to prioritize distinct and premium options, the fermented beverages market size is anticipated to expand, creating opportunities for both established and emerging players in the industry.

Stringent Regulations and Regulatory Complexities

The fermented beverages market share is susceptible to the influence of stringent regulatory requirements, which can impede market growth. Compliance with varying health and safety regulations, labeling standards and alcohol content limits can present barriers for both established and emerging players. Navigating these intricate regulations often requires substantial resources and expertise, potentially limiting market entry and expansion.

As regulatory complexities continue to evolve, the fermented beverages market size is affected by the uncertainty and costs associated with ensuring legal compliance. Industry participants must proactively address these challenges to sustain growth, ensure product integrity and secure a competitive edge in this dynamic and evolving market landscape.

Segment Analysis

The global fermented beverages market is segmented based on type, source, distribution channel and region.

Availability Of Distinct Flavors and Characteristics

The fermented alcoholic beverages segment holds a 65% market share within the fermented beverages market, it involves the transformation of sugars into ethanol and carbon dioxide through the fermentation process. The intricate conversion is driven by microorganisms, primarily yeast, which play a pivotal role in breaking down sugars into alcohol.

Alcoholic beverages segment encompasses a diverse range of products, including beer, wine and spirits, each offering distinct flavors and characteristics due to variations in fermentation techniques. The Alcoholic Beverages segment significantly contributes to the overall fermented beverages market size and share, attracting a significant consumer base with its wide array of options and cultural significance. Yeast-driven fermentation remains a cornerstone of this segment, shaping the market's offerings and growth trajectory.

Geographical Penetration

Strong Emphasis on Natural Products and Availability of Probiotic-Rich Options

North America dominates the fermented beverages market with a strong emphasis on natural, probiotic-rich options like kombucha. The region's consumers are increasingly drawn to these craft beverages due to their health benefits attributed to beneficial bacteria. Kombucha, a prominent player, aligns with the growing demand for gut-friendly choices, offering a natural source of probiotics.

The market's expansion in the region is fueled by a robust preference for artisanal products that prioritize authenticity and taste. Further, the North American market is at the forefront of innovation, leveraging the potential of bacterial fermentation to create beverages that resonate with health-conscious individuals seeking flavorful, wholesome alternatives. The region's commitment to fostering unique and healthful options cements its dominance in the global fermented beverages market.

Competitive Landscape

The major global players include: PepsiCo, Inc, Reeds Inc., Raw Kombucha, Dohler GmbH, Anheuser Busch Inc., Fresh Harvest Inc., Rasa, Carlsberg Breweries A/S, E. & J. Gallo Winery, and Treasury Wine Estates Ltd.

COVID-19 Impact Analysis

The COVID-19 pandemic exerted a multifaceted impact on the fermented beverages market. Lockdowns and supply chain disruptions hindered production and distribution, leading to a temporary decline in consumer access. On-premises consumption, a significant segment, suffered due to the closures of restaurants and cafes. However, the pandemic catalyzed a shift towards health and wellness, with consumers seeking products that boost immunity and gut health.

This shift, combined with the rise of e-commerce, bolstered demand for fermented beverages, enabling producers to reach consumers directly. As restrictions eased, the market exhibited resilience, adapting with convenience-oriented offerings and immune-boosting attributes. Overall, while the pandemic posed initial challenges, the fermented beverages market showcased its capacity to evolve and align with changing consumer preferences.

Russia- Ukraine War Impact

The Russia-Ukraine war has created uncertainties that ripple through the fermented beverages market. Trade disruptions, economic instability and geopolitical tensions impact supply chains, potentially leading to ingredient shortages and price fluctuations. Export and import challenges could hinder the distribution of these products, affecting market access and availability.

Further, consumer spending patterns has also shifted due to economic concerns, influencing consumption habits. Additionally, market dynamics are altered due to shifting priorities, trade restrictions and changing consumer sentiments. Nonetheless, the ongoing conflict's wide-ranging implications introduce a level of unpredictability, potentially influencing the production, distribution and consumption of fermented beverages in the region.

By Type

• Alcoholic
• Non-Alcoholic

By Source

• Grains
• Fruits
• Dairy
• Tea
• Vegetables
• Others

By Distribution Channel

• Supermarkets/ Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Other

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On July 01, 2021, PepsiCo-owned fermented beverage brand, KeVita, is launched a new range of on-the-go prebiotic shots that aim to help support digestive health. Containing 3g of prebiotic fiber, KeVita's new 2oz shots are fermented with water kefir culture.
• On November 01, 2022, Arla Foods Ingredients launched a whey-based solution that enables the creation of clear and protein-enriched fermented drinks. Due to the high demand for ready-to-drink beverages, Arla's new ingredient is said to offer new ways to give fermented beverages a twist.
• On August 10, 2021, The Boston Beer Company and PepsiCo announced plans to enter a business collaboration to produce HARD MTN DEW alcoholic beverages. The partnership unites Boston Beer's expertise in alcoholic drinks with one of PepsiCo's most iconic and beloved brands.

Why Purchase the Report?

• To visualize the global fermented beverages market segmentation based on type, source, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of fermented beverages market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global fermented beverages market report would provide approximately 61 tables, 61 figures and 181 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies