Fermented Foods and Beverages - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Fermented Foods and Beverages Market are segmented by Type (Probiotic Food, Probiotic Drink, Alcoholic Beverage, and Other Types), Distribution Channel (Supermarket/Hypermarket, Specialty Retail Store, Convenience Store, Online Channel, and Other Distribution Channels), and Geography (North America, Europe, South America, Asia Pacific, and Middle East & Africa). The report offers the market size and forecast for Fermented Foods and Beverages in value (in USD million) for all the above segments..

Market Snapshot

fermented foods beverages market
Study Period: 2016-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 6.35 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

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

COVID- 19 pandemics have had an impact on the fermented food and beverage industry by increasing the consumption of health supplements due to the health benefits they provide. The pandemic has created an opportunity for fermented food and beverage products due to the increased demand for probiotics. This 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 growth of the market and the increased health consciousness among the 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 further boost the market demand for fermented foods.

The increasing prevalence of health problems among the growing population is expected to drive the demand of 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.

Scope of the Report

Fermented foods are foods and beverages that have undergone controlled microbial growth and fermentation. Fermentation is an anaerobic process in which microorganisms like yeast and bacteria break down food components (e.g. sugars such as glucose) into other products (e.g. organic acids, gases, or alcohol). The scope of the report includes fermented foods and beverages which are segmented as a probiotic food, probiotic drink, alcoholic beverage, and other types. By distribution channel, the market is segmented as supermarket/hypermarket, specialty retail store, convenience store, online channel, and others. By geography, the market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa. For each segment, the market sizing and forecasts have been provided based on value in USD million.

By Type
Probiotic Food
Probiotic Drink
Alcoholic Beverages
By Distribution Channel
Supermarket/Hypermarket
Convenience Store
Online Channel
Other Sales Channels
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Russia
Italy
Spain
Rest of Europe
Asia Pacific
India
China
Australia
Japan
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
United Arab Emirates
South Africa
Rest of Middle East & Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Rising Awareness About the Health Benefits of Fermented Food and Beverages

The fermented foods and beverages market is driven by the robust demand for probiotic drinks by health-conscious consumers, 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 classes of products that witnessed enhanced sales in the past few years, boosting the overall growth of the fermented drinks market. Asian countries tend to favor dairy-based functional beverages, whereas the United States and Europe favor cereal-based and RTD tea functional beverages.

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 improved 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.

Fermented Foods & Beverages Market2

Asia-Pacific Holds a Prominent Market Share

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 further boost the market studied in the region. In China, the growing demand for fermented dairy products, such as Liberte Kefir is likely to 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, as well as 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 becoming 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.

Trend2

Competitive Landscape

The global fermented foods and beverages market witnessed dominance from the giants, Nestle. SA, Danone SA, and Yakult. Some of the 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, Treasury Wine Estates. The leading companies are focused on launching innovative, low-calorie, and natural ingredient-based products which are also good in taste. 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.

Recent Developments

  • In 2021, Pepsico has launched Soulboost, a new functional sparkling water brand infused with ingredients L-theanine and Panax ginseng, targeting wellness-focused consumers and the USD 11.3 billion global enhanced water category.
  • In November 2019, Nayosa expanded its product portfolio with the launch of vegan Kimchi. The company claims that the new product is 100% vegan, gluten-free, and more convenient.
  • In June 2020, BioGaia, one of the major probiotics manufacturers, launched biogaia.es, a new website in Spanish-speaking countries that will increase awareness about the use of probiotics in the treatment of COVID to strengthen the immune system and thus health. Furthermore, the company claims that its probiotics strain L. reuteri DSM 17938 is effective in treating common colds in children.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Probiotic Food

      2. 5.1.2 Probiotic Drink

      3. 5.1.3 Alcoholic Beverages

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarket/Hypermarket

      2. 5.2.2 Convenience Store

      3. 5.2.3 Online Channel

      4. 5.2.4 Other Sales Channels

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Spain

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia Pacific

        1. 5.3.3.1 India

        2. 5.3.3.2 China

        3. 5.3.3.3 Australia

        4. 5.3.3.4 Japan

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Key Strategies Adopted

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Fonterra Co-operative Group Limited

      2. 6.4.2 Constellation Brands Inc

      3. 6.4.3 Groupe Danone Sa

      4. 6.4.4 Pepsico Inc. Kevita

      5. 6.4.5 Anheuser-busch Inbev

      6. 6.4.6 Yakult Honsha Co. Ltd

      7. 6.4.7 Nestle S.A.

      8. 6.4.8 Heineken N.V.

      9. 6.4.9 The Boston Beer Company

      10. 6.4.10 BioGaia

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Fermented Foods and Beverages Market market is studied from 2016 - 2027.

The Fermented Foods and Beverages Market is growing at a CAGR of 6.35% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Constellation Brands, Inc., Danone, Yakult Honsha Co., Ltd, Pepsico Inc., Fonterra Co-operative Group are the major companies operating in Fermented Foods and Beverages Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!