Fermented Drinks Market Size
| 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 |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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 Market Trends
Rising Demand for Probiotic and Prebiotic Food and Beverages
Consumers are searching for products that contain health-enhancing ingredients. The prevalence of the COVID-19 pandemic further boosted this trend. The market is primarily driven by factors such as the rising demand for probiotic drinks from health-conscious consumers. Additionally, the growing trend of veganism is increasing the demand for plant-based functional beverages. According to the International Food Council's (IFC) 2021 Food and Health Survey, four in 10 shoppers claim plant-based food and beverages as healthier.
The demand for drinkable yogurt has increased over the past few years owing to its unique taste and functional properties over other dairy-based beverages. In addition, these drinks provide essential nutrients such as calcium, potassium, and vitamins D and A to consumers. The availability of numerous flavors and packaging variants fuels the market. The growing consumer demand for exotic flavors has boosted significant investments by manufacturers like Nestle, General Mills, and Danone SA. For instance, in June 2022, Danone North America launched the Activia+ multi-benefit probiotic yogurt drink, which includes billions of active and live probiotics to support gut health. In addition, the product is a good source of zinc and vitamin D and C.
Thus, the rise in young and urban consumers with modern tastes and preferences toward functional beverages and an improvement in consumer lifestyle create an opportunity for manufacturers to leverage the rising consumer demand.
Asia-Pacific is Projected to Be the Fastest-growing Market
The increasing awareness and growing interest in a healthy diet, technological development, media influence, and consumer demand drive the Asia-Pacific fermented drinks market. The market for fermented beverages has seen tremendous growth over the past few years due to several factors, including rising disposable incomes and health awareness in the region, coupled with increasing preference for naturally healthy, packaged foods and beverages linked to fortified/functional, organic, or better-for-you products because they are believed to offer essential natural nourishment. According to the Annual Report of Yakult Honsha Co. Ltd, the sales of food and beverages, including the fermented milk drink Yakult, in Asia and the Oceanic region rose by 11.5% in 2021 compared to 2020.
According to a report by Financial Express, 2020, India has 12 million retail outlets in convenient spots, such as close to residential colonies, so that the products are easily available to nearby residents. Convenience stores have increasingly revamped their shelves by designating separate aisles that attract healthy consumers, becoming the choice of impulsive purchase decisions of consumers visiting such stores. Convenience stores witnessed an increase in the sales of energy drink options at the expense of indulgent ones, a trend that is set to boost the market sentiments for fermented beverages from such distribution networks. Hence, several players are collaborating with leading convenience stores like VinMart, 7-Eleven, and others and launching their products in the market.
Fermented Drinks Industry Overview
The fermented drinks market is fragmented and dominated by leading players such as Nestle, Danone, and Anheuser-Busch InBev. Other prominent players include Suja Life LLC, PepsiCo Kevita, and Bright Food (Group) Co. Limited. Competition levels have recently increased due to the influx of small-scale and domestic players in the fermented beverage industry. Developing new products to enhance the product portfolio and capture the untapped markets has led to the growth of the global fermented drinks market.
Fermented Drinks Market Leaders
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Yakult Honsha Co. Ltd
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Nestlé S.A.
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Danone S.A.
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Anheuser-Busch InBev SA/NV
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Paine Schwartz Partners (Suja Life LLC)
*Disclaimer: Major Players sorted in no particular order
Fermented Drinks Market News
- In March 2022, Nestlé USA stated that it would invest USD 675 million in the construction of a new beverage factory in Glendale, Arizona. Nestlé's investment increases its market position and improves its manufacturing capacity to satisfy rising customer demand for its goods as one of the top producers in the creamer and flavored milk categories.
- In August 2021, The Boston Beer Company and PepsiCo announced plans to enter a business collaboration to produce HARD MTN DEW alcoholic beverages. The partnership unites Boston Beer's expertise in alcoholic drinks with one of PepsiCo's most iconic and beloved brands.
- In July 2021, Beam Suntory and The Boston Beer Company formed a long-term, strategic partnership to extend select iconic brands into some of the fastest-growing beverage alcohol segments.
- In Jule 2021, Remedy, a leading beverage brand in Australia, launched its line of live-cultured beverages, including kombucha, in the United States. The line is sugar-free and packed with healthy ingredients, including live active cultures, organic acids, and antioxidants. The company has made the beverage available in different flavors, including Ginger Lemon Kombucha, Peach Kombucha, Mixed Berry Kombucha, and Raspberry Lemonade Kombucha.
Fermented Drinks Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables and Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Alcoholic Beverages
- 5.1.2 Non-alcoholic Beverages
- 5.1.2.1 Kombucha
- 5.1.2.2 Kefir
- 5.1.2.3 Other Types
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5.2 By Distribution Channel
- 5.2.1 On-trade
- 5.2.2 Off-trade
- 5.2.2.1 Supermarkets/Hypermarkets
- 5.2.2.2 Convenience Stores/Grocery Stores
- 5.2.2.3 Specialty Stores
- 5.2.2.4 Online Retail Stores
- 5.2.2.5 Other Distribution Channels
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Russia
- 5.3.2.5 Italy
- 5.3.2.6 Spain
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 India
- 5.3.3.2 China
- 5.3.3.3 Japan
- 5.3.3.4 Australia
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle East and Africa
- 5.3.5.1 South Africa
- 5.3.5.2 Saudi Arabia
- 5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Paine Schwartz Partners (Suja Life LLC)
- 6.3.2 Anheuser-Busch InBev SA/NV
- 6.3.3 Nestle SA
- 6.3.4 Danone SA
- 6.3.5 Yakult Honsha Co. Ltd
- 6.3.6 The Boston Beer Company
- 6.3.7 GTs Living Food
- 6.3.8 Bright Food (Group) Co. Limited
- 6.3.9 Schreiber Foods Inc.
- 6.3.10 Bio-tiful Dairy Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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.
| Type | Alcoholic Beverages | |
| Non-alcoholic Beverages | Kombucha | |
| Kefir | ||
| Other Types | ||
| By Distribution Channel | On-trade | |
| Off-trade | Supermarkets/Hypermarkets | |
| Convenience Stores/Grocery Stores | ||
| Specialty Stores | ||
| Online Retail Stores | ||
| Other Distribution Channels | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | India |
| China | ||
| Japan | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East and Africa | South Africa |
| Saudi Arabia | ||
| Rest of Middle East and Africa |
Fermented Drinks Market Research 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.
Who are the key players in Fermented Drinks Market?
Yakult Honsha Co. Ltd, Nestlé S.A., Danone S.A., Anheuser-Busch InBev SA/NV and Paine Schwartz Partners (Suja Life LLC) are the major companies operating in the Fermented Drinks Market.
Which is the fastest growing region in Fermented Drinks Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fermented Drinks Market?
In 2024, the North America accounts for the largest market share in Fermented Drinks Market.
What years does this Fermented Drinks Market cover, and what was the market size in 2023?
In 2023, the Fermented Drinks Market size was estimated at USD 2.14 trillion. The report covers the Fermented Drinks Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fermented Drinks Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fermented Drinks Industry Report
Statistics for the 2024 Fermented Drinks market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fermented Drinks analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
