Kombucha Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)
The global kombucha market is projected to register a CAGR of 17.50% during the forecast period.
During the COVID-19 pandemic, the demand for functional beverages increased considerably, resulting in the increasing demand for kombucha in the global market, primarily due to its fiber-rich prebiotics content that aids in boosting immunity. This factor promoted its sales during the pandemic.
The global consumption of the kombucha market is driven by the consumer's inclination toward nutritional drinks. Consumers have started to prefer functional drinks over fruit juices and carbonated drinks. The market is competitive and driven by an increase in the trend of “health and wellness” and the growing consumer demand for all-natural ingredients.
Kombucha Breweries International (KBI) caters to the increasing need for the product by providing common resources and testing standards. As the identification of the alcohol content of kombucha is imperative, companies employ a standardized method to test and control.
The availability of alternatives and regulatory issues associated with kombucha, be it the sugar or alcohol content of the product, is expected to challenge the growth of the market. The presence of nutritionally equivalent alternatives affects consumer behavior and restrains the purchase of kombucha beverages.
Key Market TrendsIncreasing Demand for Flavored Kombucha DrinksFlavored drinks are expected to occupy the major market share in the kombucha market during the forecast period. The segment experienced tremendous growth from the past 3-4 years, as the companies developed traditional drinks with added exotic flavors to attract consumers. Moreover, fruit-flavored drinks are expected to dominate the kombucha market in the coming years due to their added nutritional profile. GT’s Living Foods announced its new limited-edition offering for springtime, named Bloom, on April 16, 2018. The product portfolio includes a light, crisp, and floral flavor, combining fresh Elderflower, Jasmine, and Violet. The trend of natural, clean-label, and organic beverages is driving the market. However, the growing awareness about the kombucha drink and kombucha buzz among weight management foods are expected to lead to an exponential growth rate.
Asia-Pacific is the Fastest Growing RegionAsia-Pacific is the fastest-growing region in the kombucha market. China is one of the leading markets for kombucha in Asia-Pacific. The popularity of packaged kombucha drinks in China remains attributed to their perceived health benefits. In India, the population suffering from joint health problems, like arthritis, is attracted more toward kombucha, which is expected to drive the growth of the kombucha market over the forecast period. The rise in urbanization in the region, with the easy availability of kombucha on local retail shelves, especially in countries, like Australia, China, and Japan, are driving the growth of the kombucha market in the region. Predominantly, kombucha is a native drink from Japan. Japanese consumers prefer it to be mild brownish and fermented using kelp-based tea. In other countries, it is a lightly carbonated and sweet fermented tea. Consumers in Japan prefer light tasted with umami flavored kombucha. The Japanese kombucha market has begun to gain traction among consumers due to high product innovation and the increasing penetration of brands.
Competitive LandscapeGT Living Foods, Kevita, Brew Dr, Kombucha, Health-Ade, Humm Kombucha LLC, and Suja are the prominent players in the kombucha market. The market is fragmented, with the presence of numerous private label brands that have been expanding a variety of kombucha drinks in their product portfolios at a competitive price and attractive packaging, compared to global players. This has intensified the competition among players in the kombucha market. The key strategies that aid the key players with a prominent market share are new product launches and expansions.
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