Fermented Foods and Beverages - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Fermented Foods and Beverages - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The fermented foods & beverages market is projected to grow at a CAGR of 6.35% during the forecast period (2022-2027).

COVID- 19 pandemics have impacted the fermented food and beverage industry by increasing the consumption of health supplements due to their benefits. The pandemic has created an opportunity for fermented food and beverage products due to the increased demand for probiotics. This trend is primarily due to increased health awareness and concern for maintaining immunity and thus health well-being.

Consumer preference for healthy food has been a crucial factor driving the market's growth. The increased health consciousness among consumers has led to the demand for functional beverages. The rising trend of veganism and the inclination of people towards plant-based diets is anticipated to boost the market demand for fermented foods.

The increasing prevalence of health problems among the growing population is expected to drive the demand for fermented foods. Moreover, the increasing innovations and launch of newly enhanced products by emerging and key market players will drive the market in the forecasted period.

The fermented foods and beverages market is driven by health-conscious consumers' robust demand for probiotic drinks, especially the younger generations globally. Probiotics are part of functional foods and beverages and help improve gut functionality. Dairy-based probiotics hold the major share in the segment, followed by fruit-based probiotic drinks. Kefir and drinking yogurts are the leading products that witnessed enhanced sales in the past few years, boosting the overall growth of the fermented drinks market. Asian countries favor dairy-based functional beverages, whereas United States and Europe favor cereal-based and RTD tea.

In the process of fermentation, several chemical changes occur in the components of the raw matrix, which thus results in products with improved nutritional properties and health effects. A higher bioactive molecule content and an enhanced antioxidant activity were found in fermented milk, cereals, fruit and vegetables, meat, and fish. Anti-hypertensive peptides were detected in fermented milk and cereals. Changes in vitamin content were mainly observed in fermented milk and fruits. Fermented milk and fruit juice were found to have probiotic activity. Other effects such as antidiabetic properties, FODMAP reduction, and changes in fatty acid profile were peculiar to specific food categories. Fermented foods can also influence human well-being.

The Asia-Pacific fermented foods and beverages market is driven by the increasing awareness and growing interest in a healthy diet, development in technology, media coverage, and consumer demand. The rising awareness of fermented drinks in China and India is expected to boost the market in the region. In China, the growing demand for fermented dairy products, such as Liberte Kefir, will likely support market growth in the upcoming years. The rising urbanization and the increasing purchasing power of consumers have evolved eating habits, which has fueled the demand for processed foods and beverages and increased the utilization of fermented ingredients for their production. There has been a steady upsurge in health awareness and the rise of buzzwords like probiotic and gut health among local populations. Kombucha started gaining ground in the Asian Pacific over the past few years as a healthier alternative to sugary beverages.

Asian producers are also attuned to this growing popularity of kombucha tea and have begun to see the fermented health drink as a profitable business opportunity. Many small, local players across Vietnam, Japan, China, and India, among others, are jumping on the kombucha trend.

The fermented foods and beverages market witnessed dominance from Nestle SA, Danone SA, and Yakult. Other prominent players include Fonterra, PepsiCo Kevita, Bright Dairy (Bright Food Group Co. Ltd), Chobani Inc., China Mengniu Dairy Company Limited, and Lifeway Foods Inc., among others. The alcoholic beverage segment in the fermented foods and beverages market is dominated by major players, such as AB InBev, Heineken, Carlsberg, Constellation Brands, and Treasury Wine Estates. The leading companies are focused on launching innovative, low-calorie, and natural ingredient-based products that taste good. Huge investments have been made in R&D to develop products for specific needs. The increasing prevalence of health problems among the growing population is expected to drive the demand for fermented foods. Moreover, the increasing innovations and launch of newly enhanced products by emerging and key market players will drive the market in the forecasted period.

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