Market Size of Fermented Foods and Beverages Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.70 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Fermented Foods and Beverages Market Analysis
The fermented foods and beverages market size is expected to grow from USD 1.83 trillion in the current year and is projected to register a CAGR of 6.70% over the next five years.
- 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 enhanced antioxidant activity were found in fermented milk, cereals, fruit and vegetables, meat, and fish. Due to this, market players have been incorporating fermented fruits and vegetables into their products. The increased health consciousness among consumers has led to a demand for functional beverages. The rising trend of veganism and the inclination of people towards plant-based diets is anticipated to boost 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 rising innovations and launches of newly enhanced products by emerging and key market players will drive the market in the forecasted period. Additionally, an increase in retail and e-commerce sales is also driving the market. Consumers have a variety of products available on e-commerce sites.
- Convenience and the availability of multiple products are also driving the market to grow. For instance, in February 2022, Remedy, a United Kingdom kombucha brand, announced the addition of a new flavor to its lineup. Remedy Kombucha Wild Berry will be available exclusively at Tesco in a multipack (4 x 330 ml) format initially (RRP: GBP 5). Remedy Kombucha Mango Passion will also be introduced by the retail giant.
Fermented Foods and Beverages Industry Segmentation
Fermented foods and beverages have undergone controlled microbial growth and fermentation.
The fermented food and beverage market is segmented by type, distribution channels, and geography. By type, the market is segmented into fermented food and fermented beverages. Furthermore, fermented foods are segmented into yogurt, tofu, tempeh, sauerkraut/fermented veggies & pickles, cheese, and others. By fermented beverages, the market is segmented into yogurt drinks/smoothies, kombucha, kefir, and others. The distribution channel market is segmented into supermarkets, hypermarkets, convenience stores, online retail stores, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
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Fermented Foods and Beverages Market Size Summary
The fermented food and beverage market is experiencing significant growth, driven by increasing consumer awareness of health benefits and the rising trend of plant-based diets. The process of fermentation enhances the nutritional properties of various foods, leading to products with improved bioactive molecules and antioxidant activities. This has prompted market players to incorporate fermented fruits and vegetables into their offerings. The demand for functional beverages is on the rise, fueled by health-conscious consumers and the growing prevalence of health issues such as obesity and diabetes. Innovations and new product launches by key market players, along with the convenience of e-commerce, are further propelling market expansion. Dairy-based fermented foods currently hold a major share, with plant-based options gaining popularity due to their health benefits and appeal to vegan consumers.
In the Asia-Pacific region, the fermented food and beverage market is witnessing robust growth due to increasing urbanization, higher purchasing power, and evolving consumer habits. The demand for fermented products is bolstered by their nutritional benefits, such as improved gut and mental health. Products like tofu and tempeh are widely consumed in Southeast Asian countries, and market players are continuously innovating to meet consumer demands. Prominent companies such as Nestlé S.A., Danone S.A., and Yakult H.S. dominate the market, focusing on launching innovative products with natural ingredients. The alcoholic beverage segment is also led by major players like AB InBev and Heineken. The market's growth is supported by substantial investments in research and development to create products that cater to specific health needs, ensuring a promising outlook for the fermented foods and beverages industry.
Fermented Foods and Beverages Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Inclination Towards Health-based Food Products
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1.1.2 Increasing Vegan Food Consumption
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1.2 Market Restraints
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1.2.1 The Risk of Contamination of Food is High
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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 Fermented Food
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2.1.1.1 Yogurt
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2.1.1.2 Tofu
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2.1.1.3 Tempeh
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2.1.1.4 Sauerkraut / Fermented Veggies and Pickles
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2.1.1.5 Cheese
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2.1.1.6 Other Fermented Food
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2.1.2 Fermented Beverages
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2.1.2.1 Yogurt Drink/Smoothies
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2.1.2.2 Kombucha
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2.1.2.3 Kefir
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2.1.2.4 Other Fermented Beverages
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2.2 Distribution Channel
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2.2.1 Supermarket/Hypermarket
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2.2.2 Convenience Store
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2.2.3 Online Retail Stores
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2.2.4 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 Australia
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2.3.3.4 Japan
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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 United Arab Emirates
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle-East and Africa
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Fermented Foods and Beverages Market Size FAQs
What is the current Fermented Foods and Beverages Market size?
The Fermented Foods and Beverages Market is projected to register a CAGR of 6.70% during the forecast period (2024-2029)
Who are the key players in Fermented Foods and Beverages Market?
Fonterra Co-operative Group Limited, Constellation Brands, Inc., Yakult Honsha Co. Ltd, Danone S.A. and PepsiCo, Inc. are the major companies operating in the Fermented Foods and Beverages Market.
