Market Size of Fermented Drinks Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.27 Trillion |
| Market Size (2029) | USD 3.06 Trillion |
| CAGR (2024 - 2029) | 6.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Fermented Drinks Market Analysis
The Fermented Drinks Market size is estimated at USD 2.27 trillion in 2024, and is expected to reach USD 3.06 trillion by 2029, growing at a CAGR of 6.20% during the forecast period (2024-2029).
The COVID-19 pandemic impacted the market by increasing awareness about the health benefits of various fermented drinks, such as probiotics, thus creating an opportunity for fermented drinks. It is primarily due to increased health awareness and concern for maintaining immunity and well-being.
Consumers are gravitating toward beverages with functional benefits, majorly influenced by health and wellness trends. As beverages are now associating themselves with health and disease prevention claims, the credibility of claims is becoming increasingly important to consumers. Changing consumer needs from immunity to sustainability with a range of other market trends are contributing to the rise of premium functional beverages.
Fermenting beverages using protein and claiming to provide health benefits are growing in popularity, especially among fitness enthusiasts. Immunity is also surging as a key claim in the market. Digestive health is likely to be the next functional crowd-pleaser, and brands can leverage this opportunity to create products for which consumers can pay high prices. As the fermented beverages market is highly competitive, manufacturers stand out. They must stay in tune with changing consumer needs and deliver innovation with proven scientific benefits of powerful functional ingredients. For instance, in November 2022, Arla Foods Ingredients introduced a fermented protein drink. The company's new beverage is based on 100% whey-based hydrolysates Lacprodan HYDRO.365 and Nutrilac FO-8571, enhancing fermented protein beverages. Also, the whey-based solution enables the production of clear, high-protein fermented beverages as it considerably reduces cloudiness and sedimentation.
Fermented Drinks Industry Segmentation
Fermented beverages include beverages that have undergone bacterial and yeast oxidation, wherein sugars are broken down during fermentation and transformed into various gases and ethanol. All fermented drinks produce beneficial bacteria that enhance intestinal health when consumed raw.
The fermented beverages market is segmented based on type, distribution channel, and geography. By type, the market has been segmented into alcoholic and non-alcoholic beverages. The non-alcoholic drinks are further bifurcated into probiotic drinks such as kombucha, kefir, and others. Based on the distribution channel, the market is segmented into on-trade and off-trade. The off-trade segment comprises supermarkets/hypermarkets, specialty retail stores, convenience stores, and other sales channels. The study also analyzes the market studied in emerging and established geographical regions, covering North America, Europe, Asia-Pacific, South America, Middle East and Africa. The report offers market size and forecasts for the fermented drinks market in value (USD million) for all the above segments.
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Fermented Drinks Market Size Summary
The fermented drinks market is experiencing significant growth, driven by increasing consumer awareness of health benefits associated with these beverages, such as probiotics. This trend has been amplified by the COVID-19 pandemic, which heightened interest in products that support immunity and overall well-being. As consumers increasingly seek beverages with functional benefits, the market is witnessing a shift towards premium functional drinks that offer health and disease prevention claims. The demand for protein-enriched fermented beverages is rising, particularly among fitness enthusiasts, while digestive health is emerging as a promising area for future product development. Manufacturers are focusing on innovation and scientific validation of health claims to differentiate their offerings in a highly competitive market. The growing popularity of plant-based and vegan options is further fueling the demand for plant-based functional beverages, aligning with the broader trend of health-conscious consumer choices.
In the Asia-Pacific region, the fermented drinks market is thriving due to rising disposable incomes, health awareness, and a preference for naturally healthy, fortified, and organic products. The availability of fermented beverages in convenient retail locations, such as convenience stores, is enhancing accessibility and driving sales. The market is characterized by intense competition, with major players like Nestle, Danone, and Anheuser-Busch InBev leading the charge, alongside emerging domestic brands. Strategic collaborations and investments, such as Nestlé's new beverage factory in Arizona and partnerships between The Boston Beer Company and PepsiCo, are expanding production capabilities and market reach. The introduction of innovative products, like Remedy's live-cultured beverages in the United States, highlights the ongoing efforts to capture untapped markets and cater to evolving consumer preferences.
Fermented Drinks Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Alcoholic Beverages
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2.1.2 Non-alcoholic Beverages
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2.1.2.1 Kombucha
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2.1.2.2 Kefir
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2.1.2.3 Other Types
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2.2 By Distribution Channel
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2.2.1 On-trade
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2.2.2 Off-trade
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2.2.2.1 Supermarkets/Hypermarkets
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2.2.2.2 Convenience Stores/Grocery Stores
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2.2.2.3 Specialty Stores
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2.2.2.4 Online Retail Stores
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2.2.2.5 Other Distribution Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Italy
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2.3.2.6 Spain
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle East and Africa
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Fermented Drinks Market Size FAQs
How big is the Fermented Drinks Market?
The Fermented Drinks Market size is expected to reach USD 2.27 trillion in 2024 and grow at a CAGR of 6.20% to reach USD 3.06 trillion by 2029.
What is the current Fermented Drinks Market size?
In 2024, the Fermented Drinks Market size is expected to reach USD 2.27 trillion.
