Fermented Foods and Beverages Market Size
| 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 Market Trends
Rising Awareness About the Health Benefits of Fermented Food and Beverages
- High prevalences of digestive disorders, obesity, diabetes, and many more diseases are the main concerns of consumers these days. Due to this, they have become more conscious of their food habits and preferences. Demand for probiotic foods and drinks among the young population is growing due to their easy availability and health benefits. Dairy-based fermented foods hold the major share in the segment, followed by plant-based foods.
- Additionally, free-from and vegan products are in demand due to allergies and health aspects. In August 2021, Pillars Yogurt LLC launched a new organic coconut probiotic yogurt. The yogurt is made with less sugar, more protein, functional fats, and a blend of pre-and probiotics, which help support gut health.
- Market participants have been launching more such products in response to consumer demand. Furthermore, fermented food products like sauerkraut, kombucha, kefir, and many more are also gaining popularity among consumers owing to their anti-inflammatory, anti-oxidant, anti-diabetic, and anti-fungal properties. Many businesses use fermentation to extend the shelf life of their products and give them a distinct flavor.
- In August 2022, Yeo Valley Organic launched the Kefir drinks range. The kefir is available in three different flavors, i.e., natural, cherry, mango, and passion fruit.
Asia-Pacific Holds a Prominent Market Share
- Increasing awareness among consumers about healthy diet habits and their demand for natural ingredients in food is driving the fermented food and beverage market in Asia-Pacific. New product developments, availability of products, advertising, and promotions are driving the market to grow. The rising awareness of fermented drinks in China and India is expected to boost the market in the region.
- The rising urbanization and the increasing purchasing power of consumers have evolved eating habits, which have fueled the demand for processed foods and beverages and increased the utilization of fermented ingredients for their production.
- In the Asia-Pacific region, the demand for fermented products is growing owing to their nutritional benefits, like providing gut health and mental health. Additionally, products such as tofu and tempeh and other fermented food products are extensively consumed across Southeast Asian countries such as Vietnam, Indonesia, and others. Moreover, the market players have been innovating new products to cater to consumer demand. For instance, in April 2022, China Dairy Giant Yili launched a solid beverage formulated with probiotics and GABA as the key ingredients in China.
Fermented Foods and Beverages Industry Overview
The fermented foods and beverages market witnessed dominance from Nestlé S.A., Danone S.A., and Yakult H.S. Other prominent players include Fonterra Co-operative Group (Nurture), PepsiCo Inc. (Kevita), Chobani Inc., and BioGaia, among others. The alcoholic beverage segment in the fermented foods and beverages market is dominated by major players, such as AB InBev, Heineken, Constellation Brands, and many others.
The leading companies focus on launching innovative, low-calorie, and natural ingredient-based products that taste good. 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 launches of newly enhanced products by emerging and key market players will drive the market in the forecasted period.
Fermented Foods and Beverages Market Leaders
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Fonterra Co-operative Group Limited
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Constellation Brands, Inc.
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Yakult Honsha Co. Ltd
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Danone S.A.
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PepsiCo, Inc.
*Disclaimer: Major Players sorted in no particular order
Fermented Foods and Beverages Market News
- September 2022: Garden of Life, a Nestle brand, launched two new probiotics for kids' growth and immune health in China. Both products come in the form of solid beverages. The products contain a higher number of live bacteria, probiotics, and vitamin C.
- June 2022: Danone launched the new drinkable yogurt Activa+. Activa+ is a multi-benefit drinkable yogurt made with active probiotic vitamins A, D, and zinc. The product is available in different flavors like raspberry, peach, and strawberry.
- May 2022: Nurture, a Fonterra Co-operative brand, launched its first brand of cultured milk in Singapore. Cultured milk is low-sugar, probiotic-rich, and vitamin A- and D-rich, which provides good health and immunity.
Fermented Foods and Beverages Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definitions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Increasing Inclination Towards Health-based Food Products
- 4.1.2 Increasing Vegan Food Consumption
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4.2 Market Restraints
- 4.2.1 The Risk of Contamination of Food is High
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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 Fermented Food
- 5.1.1.1 Yogurt
- 5.1.1.2 Tofu
- 5.1.1.3 Tempeh
- 5.1.1.4 Sauerkraut / Fermented Veggies and Pickles
- 5.1.1.5 Cheese
- 5.1.1.6 Other Fermented Food
- 5.1.2 Fermented Beverages
- 5.1.2.1 Yogurt Drink/Smoothies
- 5.1.2.2 Kombucha
- 5.1.2.3 Kefir
- 5.1.2.4 Other Fermented Beverages
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5.2 Distribution Channel
- 5.2.1 Supermarket/Hypermarket
- 5.2.2 Convenience Store
- 5.2.3 Online Retail Stores
- 5.2.4 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 Australia
- 5.3.3.4 Japan
- 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 United Arab Emirates
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategies Adopted
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Fonterra Co-operative Group Limited
- 6.3.2 Constellation Brands, Inc.
- 6.3.3 Danone S.A.
- 6.3.4 PepsiCo, Inc.
- 6.3.5 Anheuser-Busch InBev SA/NV
- 6.3.6 Yakult Honsha Co. Ltd
- 6.3.7 Nestlé S.A.
- 6.3.8 Heineken N.V.
- 6.3.9 The Boston Beer Company
- 6.3.10 BioGaia
- 6.3.11 Lactalis Group
- 6.3.12 Chobani Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityFermented 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.
| Type | Fermented Food | Yogurt |
| Tofu | ||
| Tempeh | ||
| Sauerkraut / Fermented Veggies and Pickles | ||
| Cheese | ||
| Other Fermented Food | ||
| Type | Fermented Beverages | Yogurt Drink/Smoothies |
| Kombucha | ||
| Kefir | ||
| Other Fermented Beverages | ||
| Distribution Channel | Supermarket/Hypermarket | |
| Convenience Store | ||
| 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 | ||
| Australia | ||
| Japan | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| South Africa | ||
| Rest of Middle-East and Africa |
Fermented Foods and Beverages Market Research 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.
Which is the fastest growing region in Fermented Foods and Beverages 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 Foods and Beverages Market?
In 2024, the Asia Pacific accounts for the largest market share in Fermented Foods and Beverages Market.
What years does this Fermented Foods and Beverages Market cover?
The report covers the Fermented Foods and Beverages Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fermented Foods and Beverages Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fermented Food Industry Report
Statistics for the 2024 Fermented Food market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fermented Food analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
