Europe Fermented Food and Beverages Market - 2025-2032

The Europe fermented food and beverages market reached US$102.97 billion in 2024 and is expected to reach US$161.31 billion by 2032, growing at a CAGR of 6.6% during the forecast period 2025-2032.

The fermented foods and beverages market is witnessing remarkable growth, driven by increasing consumer awareness of gut health and its role in overall well-being. While fermentation has been a traditional practice in many cultures, its modern resurgence is fueled by the rising demand for functional and health-enhancing foods. European consumers, in particular, are embracing fermented products such as kombucha, kefir and sourdough, reflecting a broader shift toward natural and probiotic-rich nutrition.

A key driver of this expansion is the growing emphasis on preventive healthcare. Consumers are integrating fermented foods into their diets, recognizing their role in digestive health and immune support. Scientific advancements continue to highlight the gut microbiome’s connection to overall wellness, increasing demand for live-culture products. Additionally, the COVID-19 pandemic heightened awareness of gut-friendly diets, accelerating the adoption of fermented dairy, plant-based and grain-based products.

The industry is undergoing rapid product diversification and innovation. Precision fermentation is gaining traction, allowing manufacturers to enhance product efficacy and functional benefits. Leading brands are scaling up fermentation technologies to ensure a steady pipeline of high-quality, innovative offerings. The growing influence of international flavors has also introduced consumers to a wider variety of fermented foods, expanding market opportunities.

Dynamics

Growing Consumer Awareness of Gut Health

Consumer awareness of gut health is rapidly increasing in Europe, with 80% of consumers expressing concern about their digestive well-being. The increased awareness is driving demand for functional food and beverage solutions that support digestive health, particularly those enriched with fiber, prebiotics and probiotics.

Additionally, 71% of consumers recognize the connection between gut health and overall well-being, reinforcing the importance of digestive-friendly products in daily nutrition. As a result, brands that highlight gut health benefits in their product positioning and marketing strategies are gaining stronger consumer engagement and market traction.

Despite this interest, a knowledge gap remains, as 86% of consumers are unaware of the recommended daily fiber intake, though 49% believe they consume enough fiber. Meanwhile, two-thirds of consumers express interest in prebiotics, associating them with digestive health (47%), immunity (32%) and mental well-being (21%). The growing demand is fueling innovation in fiber- and prebiotic-rich functional foods.

Sugar reduction trends further influence purchasing decisions, with 43% of consumers aiming to cut sugar intake and 54% actively seeking lower-sugar options. Given that 89% read packaging labels, brands emphasizing gut health benefits with transparent, clean-label formulations, particularly in fermented foods and beverages, are well-positioned to capture market growth.

Demand for Natural & Functional Foods

The market for European fermented foods and beverages is rapidly expanding, driven by consumer demand for natural, functional and clean-label products. The COVID-19 pandemic has further accelerated interest in gut health and immunity, leading to increased sales of probiotic yogurts, kombucha and fermented plant-based beverages. The trend is creating significant opportunities for natural food additives that improve product quality while adhering to clean-label standards.

According to Ingredion’s ATLAS research, 78% of global consumers are willing to pay more for natural or all-natural products and 40% more consumers now seek packaged food with natural ingredients compared to 2020. In Europe, 87% of food and beverage manufacturers are using clean-label ingredients, with projections indicating 71% of their portfolios will be clean-label by 2026. The shift is positively impacting the fermented food sector, where natural perception and functional benefits align with consumer expectations.

As clean-label adoption increases, manufacturers focusing on sustainable, minimally processed and health-driven formulations will gain a competitive advantage in the high-growth fermented foods and beverages market.

High Production Costs & Limited Scalability

The Europe fermented foods and beverages market is growing due to rising consumer demand for functional foods and digestive health benefits. However, high production costs and limited scalability are key restraints hindering market expansion. The fermentation process requires specialized equipment, high-quality raw materials and skilled labor, making production cost-intensive.

Stringent EFSA regulations further add to operational costs, requiring mandatory testing, certifications and scientific validation of health claims. Compliance with safety and labeling standards increases expenses, creating entry barriers for new market players. Additionally, the short shelf life and cold chain logistics of fermented products like kefir, probiotic yogurt and kimchi increase costs due to the need for refrigeration and specialized packaging.

Scaling up production is challenging as fermentation relies on live microbial cultures and specific environmental conditions, leading to variability in product quality and consistency. Additionally, limited access to specialized ingredients, including starter cultures and organic raw materials, restricts supply chain efficiency. Dependence on imported strains and premium-quality inputs further escalates costs.

Market penetration remains constrained by premium pricing, limited retail shelf space and consumer skepticism regarding taste and texture. To address these challenges, companies are investing in advanced fermentation technologies, automation and strategic supplier partnerships to enhance efficiency and reduce costs. Consumer education initiatives highlighting the health and sustainability benefits of fermented foods can further drive market growth.

Segment Analysis

The Europe fermented food and beverages market is segmented based on product type, source, microorganism type and distribution channel.

Growing Consumer Interest in Highly Stable and Resistant to Fermented Dairy Products

The European fermented beverages market is growing rapidly, driven by rising consumer awareness of gut health, demand for functional drinks and a shift toward natural, minimally processed products. Consumers are increasingly opting for probiotic-rich beverages as alternatives to sugary soft drinks and dairy-based products.

The popularity of kombucha and kvass is rising due to their probiotic content and health benefits. Kvass, a traditional Eastern European fermented drink made from rye bread, barley, or beets, is gaining traction. While still a niche product, social media mentions of kvass increased by 35% in the past year, reflecting growing consumer interest. Companies like All Star Beverages are expanding distribution, indicating potential market growth.

Flavored and functional formulations, including adaptogens and superfoods, are boosting product differentiation. The market is witnessing increased availability in ready-to-drink (RTD) formats, catering to convenience-focused consumers. E-commerce is also emerging as a key distribution channel for fermented beverages.

Competitive Landscape

The major players in the market include Danone, LACTALIS, Lesaffre, Chr. Hansen A/S, Nestlé, Heineken, PepsiCo, The Coca-Cola Company, AB InBev and Müller Group.

Recent Developments

● In April 2023, Latvian startup Fermentful launched a plant-based kefir made from green buckwheat, an allergen-free, antioxidant-rich ingredient. Positioned in the functional beverage market, this innovative product supports physical and mental well-being.

● In March 2023, leading precision fermentation companies launched Food Fermentation Europe (FFE) to advance sustainable, animal-free foods in the EU. Representing the sector, FFE aims to advocate for clear regulations, align policies with the Green New Deal and accelerate market access. It warns that slow and unclear approval processes risk Europe falling behind in food innovation.

● In September 2023, Willicroft launched its fermented plant-based butter, replicating dairy butter’s taste and functionality through precision fermentation. Made from European soybeans, it offers lower saturated fats while maintaining spreadability and meltability. Backed by a €350,000 investment, it will debut in Dutch and German retail and foodservice markets.

By Product Type

● Fermented Dairy Products
Yogurt
Kefir
Cheese
Others

● Fermented Vegetables
Sauerkraut
Kimchi
Others

● Fermented Meat Products
Sausages
Others

● Fermented Beverages
Alcoholic

 Beer

 Cider

 Others
Non-Alcoholic

 kombucha

 Kvass

 Others

● Others

By Source

● Plant-based

● Animal-based

By Microorganism Type

● Bacteria-based Fermentation

● Yeast-based Fermentation

● Mold-based Fermentation

By Distribution Channel

● Supermarkets & Hypermarkets

● Specialty Stores

● Online Retail

● HoReCa

● Others

By Region

● Europe
Germany
UK
France
Italy
Spain
Rest of Europe

Why Purchase the Report?

● To visualize the Europe fermented food and beverages market segmentation based on product type, source, microorganism type and distribution channel.

● Identify commercial opportunities by analyzing trends and co-development.

● Excel data sheet with numerous data points at the Europe fermented food and beverages market level for 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 Europe fermented food and beverages market report would provide approximately 42 tables, 34 figures and 205 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies