Fermented Drinks Market by Type (Alcoholic Beverages and Non-alcoholic Beverages), Distribution Channel (Supermarkets, Convenience Stores, Specialty Stores, and Others), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
Fermented Drinks Market Outlook 2031
The global fermented drinks market size was valued at USD 3.7 Billion in 2022 and is projected to reach USD 6.17 Billion by 2031, expanding at a CAGR of 5.80% during the forecast period, 2023–2031. The growth of the market is attributed to increasing health consciousness and rising preference for probiotics among consumers.
Fermented beverages such as healthy kombucha, kefir, kvass, and cultured beverages are becoming increasingly preferred among consumers and beverage manufacturers. Fermented soda and fermented tea are also gaining high traction in the food and beverage industry due to the great nutritional value they provide to consumers.
- The International Food Information Council 2021 states that around 54% of probiotics and 38% of prebiotics consumer prefers having yogurt or kefir for gut health.
The fermented beverages market is growing due to consumer awareness about the health benefits of these beverages. Beneficial microorganisms found in fermented beverages provide health benefits to the body. Furthermore, companies are increasingly offering probiotic drinks as the demand for probiotic-based beverages is growing around the world.
The market report finds that the COVID-19 pandemic has positively impacted the market as fermented foods help boost the immune system. Food made from fermentation ingredients helps in lessening the impact of COVID-19 and boosts antioxidants by improving digestion. Even though there were disruptions in the supply chain, import and export of goods, and less labor, the demand for fermented drinks was boosted owing to their immense health benefits.
Fermented Drinks Market Dynamics
Major Drivers
Increasing demand for low-alcohol beverages is expected to provide opportunities for the industry players during the forecast period. According to research, low-alcohol beverages accounted for nearly 86.8% market share. The rising awareness of health is boosting segment growth as people nowadays find lighter options to drink when it comes to alcohol. The growing trend of drinking less alcoholic content while maintaining health and wellness further boosts the segment.
Moreover, the increasing demand for craft beer is driving the market growth. Craft beers are rich in antioxidants and help contain vitamin B. Furthermore,
- According to the data from the Brewers Association, in 2022 craft brewer volume sales remained the same as in 2021, raising small and independent brewers’ share of the U.S. beer market by volume to nearly 13.2%.
Thus, with the growing demand for craft beers, the market is set to witness an uplift in the forecast period.
Existing Restraints
High manufacturing costs can hinder the growth of the market in the projected timeline. The manufacturing process and time of the fermented drink kombucha takes several days, thus, it has a high manufacturing cost. Moreover, smaller warehouse storage and less transportation services further restrain the market.
Emerging Opportunities
Growing demand for probiotics and plant-based fermented drinks is expected to create lucrative opportunities for the market players. Plant-based fermented drinks offer a positive impact on the gastrointestinal tract. These drinks offer natural enzymes and probiotics for gut health.
- A survey from the International Food Information Council 2022 states that the new Generation Z is more expected to purchase products labeled as “Small carbon footprint/carbon neutral” and “Plant-based.” Moreover, 18% of people report consuming milk/yogurt and 23% reported consuming other plant-based dairy alternatives.
Additionally, new launches and developments for plant-based fermented drinks are further creating opportunities for the market.
- For instance, in April 2023, DSM, a global, science-based company, introduced an extensive, functional ingredients toolkit for plant-based fermented products. The new concepts show the process of running the toolkit for developing new plant-based fermented products. DSM’s Plant Power Toolkit empowers producers by removing the complexity of formulating plant-based fermented products which helps them to bring quality products to market faster.
Scope of Fermented Drinks Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes |
Details |
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Report Title |
Fermented Drinks - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2022 |
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Historic Data |
2016–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
Type (Alcoholic Beverages and Non-alcoholic Beverages) and Distribution Channel (Supermarkets, Convenience Stores, Specialty Stores, and Others) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
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Key Players Covered in the Report |
Nestlé; Anheuser-Busch Companies LLC,; Danone US, LLC; Suja Life, LLC.; PepsiCo; DSM; Bright Food (Group) Co., Ltd.; Yakult Honsha Co., Ltd.; Arla Foods Ingredients Group; PAINE SCHWARTZ PARTNERS, LLC.; Sula Vineyards; Lifeway Foods, Inc.; Heineken; Wormtown Brewery.; The Coca‑Cola Company.; and Döhler GmbH |
Fermented Drinks Market Segment Insights
Type Segment Analysis
Based on type, the global fermented drinks market is segregated into alcoholic beverages and non-alcoholic beverages. An alcoholic beverage contains ethanol, a type of alcohol produced through the fermentation of grains, fruits, or other sugar sources. In many cultures, alcohol consumption plays an important social role. Moreover, the emerging brands in the industry are boosting the market.
- For instance, In June 2023, the first commercially-produced alcoholic brand tepache was introduced in the US. It is a fermented beverage similar to kombucha created with a fermented fruit base at 7 percent ABV.
The non-alcoholic beverage segment is anticipated to exhibit a robust CAGR during the forecast period. Rising awareness about the negative impacts of alcoholic beverages and increasing health consciousness are driving the market segment growth.
Distribution Channel Segment Analysis
On the basis of distribution Channel, the fermented drinks market is segregated into supermarkets, convenience stores, specialty stores, and others. The convenience stores segment is anticipated to account for a significant market share in the projected timeline. Convenience stores provide a broad range of fermented drinks to consumers. The growing number of convenience stores is further contributing to the segment.
- According to the National Association of Convenience Stores (NACS) magazine 2023, nearly 150,174 convenience stores are operating in the US, which is 1.5% up from December 2021.
- A report published in INFORMS PubsOnline, states that the retail market contributes to 10% of GDP in India. It further states that convenience stores accounted for a share of around 43% in 2021.
Regional Analysis
In terms of region, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific holds the largest share of the market, however, due to the rise in demand for maintaining gut health and other related issues the market in North America is expected to exhibit a high CAGR during the forecast period.
The market in Asia Pacific is expanding owing to the growing preference for fermented beverages in China and India drives the regional market. The growth of the regional market depends on detoxifying health naturally. The growth rate in China is nearly 12% YoY for intestinal health, and cleansing (78.2%). Moreover, the increasing usage of healthy kombucha in India further contributes to the market.
The market in North America is anticipated to exhibit a high CAGR of the market owing to the increasing penetration of probiotic drinks. Probiotic drinks help in maintaining gut health. According to a survey, in 2021, around 32% of Americans are actively consuming probiotics and more are adopting them. Thus, increasing demand for yogurt, kefir, and others is contributing to the regional market.
- For instance, In March 2022, Danone North America launched the new Activia+ Multi-Benefit Probiotic Yogurt Drinks, packed with billions of live and active probiotics that help support gut health. It is an excellent source of Vitamins C, D, and Zinc to support the immune system.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Fermented Drinks Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Fermented Drinks Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Fermented Drinks Market - Supply Chain
4.5. Global Fermented Drinks Market Forecast
4.5.1. Fermented Drinks Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Fermented Drinks Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Fermented Drinks Market Absolute $ Opportunity
5. Global Fermented Drinks Market Analysis and Forecast by Region
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Region
5.2.2. Y-o-Y Growth Projections by Region
5.3. Fermented Drinks Market Size and Volume Forecast by Region
5.3.1. North America
5.3.2. Latin America
5.3.3. Europe
5.3.4. Asia Pacific
5.3.5. Middle East and Africa (MEA)
5.4. Absolute $ Opportunity Assessment by Region
5.5. Market Attractiveness/Growth Potential Analysis by Region
5.6. Global Fermented Drinks Demand Share Forecast, 2019-2026
6. North America Fermented Drinks Market Analysis and Forecast
6.1. Introduction
6.1.1. Basis Point Share (BPS) Analysis by Country
6.1.2. Y-o-Y Growth Projections by Country
6.2. North America Fermented Drinks Market Size and Volume Forecast by Country
6.2.1. U.S.
6.2.2. Canada
6.3. Absolute $ Opportunity Assessment by Country
6.4. Market Attractiveness/Growth Potential Analysis
6.4.1. By Country
6.4.2. By Product Type
6.4.3. By Application
6.5. North America Fermented Drinks Demand Share Forecast, 2019-2026
7. Latin America Fermented Drinks Market Analysis and Forecast
7.1. Introduction
7.1.1. Basis Point Share (BPS) Analysis by Country
7.1.2. Y-o-Y Growth Projections by Country
7.1.3. Latin America Average Pricing Analysis
7.2. Latin America Fermented Drinks Market Size and Volume Forecast by Country
7.2.1. Brazil
7.2.2. Mexico
7.2.3. Rest of Latin America
7.3. Absolute $ Opportunity Assessment by Country
7.4. Market Attractiveness/Growth Potential Analysis
7.4.1. By Country
7.4.2. By Product Type
7.4.3. By Application
7.5. Latin America Fermented Drinks Demand Share Forecast, 2019-2026
8. Europe Fermented Drinks Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.1.3. Europe Average Pricing Analysis
8.2. Europe Fermented Drinks Market Size and Volume Forecast by Country
8.2.1. Germany
8.2.2. France
8.2.3. Italy
8.2.4. U.K.
8.2.5. Spain
8.2.6. Russia
8.2.7. Rest of Europe
8.3. Absolute $ Opportunity Assessment by Country
8.4. Market Attractiveness/Growth Potential Analysis
8.4.1. By Country
8.4.2. By Product Type
8.4.3. By Application
8.5. Europe Fermented Drinks Demand Share Forecast, 2019-2026
9. Asia Pacific Fermented Drinks Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Asia Pacific Average Pricing Analysis
9.2. Asia Pacific Fermented Drinks Market Size and Volume Forecast by Country
9.2.1. China
9.2.2. Japan
9.2.3. South Korea
9.2.4. India
9.2.5. Australia
9.2.6. Rest of Asia Pacific (APAC)
9.3. Absolute $ Opportunity Assessment by Country
9.4. Market Attractiveness/Growth Potential Analysis
9.4.1. By Country
9.4.2. By Product Type
9.4.3. By Application
9.5. Asia Pacific Fermented Drinks Demand Share Forecast, 2019-2026
10. Middle East & Africa Fermented Drinks Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Middle East & Africa Average Pricing Analysis
10.2. Middle East & Africa Fermented Drinks Market Size and Volume Forecast by Country
10.2.1. Saudi Arabia
10.2.2. South Africa
10.2.3. UAE
10.2.4. Rest of Middle East & Africa (MEA)
10.3. Absolute $ Opportunity Assessment by Country
10.4. Market Attractiveness/Growth Potential Analysis
10.4.1. By Country
10.4.2. By Product Type
10.4.3. By Application
10.5. Middle East & Africa Fermented Drinks Demand Share Forecast, 2019-2026
11. Competition Landscape
11.1. Global Fermented Drinks Market: Market Share Analysis
11.2. Fermented Drinks Distributors and Customers
11.3. Fermented Drinks Market: Competitive Dashboard
11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
11.4.1. Nestlé Anheuser-Busch Companies LLC, Danone Suja Life, LLC. PepsiCo DSM Bright Food (Group) Co., Ltd. Yakult Honsha Co., Ltd. Arla Foods Ingredients Group PAINE SCHWARTZ PARTNERS, LLC. Sula Vineyards Lifeway Foods, Inc. Heineken Wormtown Brewery. The Coca‑Cola Company. Döhler GmbH