|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The fermented foods & beverages market is projected to grow at a CAGR of 6.35% during the forecast period (2022-2027).
COVID- 19 pandemics have impacted the fermented food and beverage industry by increasing the consumption of health supplements due to their benefits. The pandemic has created an opportunity for fermented food and beverage products due to the increased demand for probiotics. This trend 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 market's growth. The increased health consciousness among 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 boost the 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 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 and beverages 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 report's scope includes fermented foods and beverages 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 the value in USD million.
|By Distribution Channel|
|Other Sales Channels|
Key Market Trends
Rising Awareness About the Health Benefits of Fermented Food and Beverages
The fermented foods and beverages market is driven by health-conscious consumers' robust demand for probiotic drinks, 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 products that witnessed enhanced sales in the past few years, boosting the overall growth of the fermented drinks market. Asian countries favor dairy-based functional beverages, whereas the United States and Europe favor cereal-based and RTD tea.
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 enhanced 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.
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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 boost the market in the region. In China, the growing demand for fermented dairy products, such as Liberte Kefir, will likely 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 and 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 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.
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The fermented foods and beverages market witnessed dominance from Nestle SA, Danone SA, and Yakult. 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, and Treasury Wine Estates. The leading companies are focused 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 launch of newly enhanced products by emerging and key market players will drive the market in the forecasted period.
Constellation Brands, Inc.
Yakult Honsha Co., Ltd
Fonterra Co-operative Group
· In 2021, Pepsico launched Soulboost, a new functional sparkling water brand infused with L-theanine and Panax ginseng ingredients, targeting wellness-focused consumers and the USD 11.3 billion global enhanced water category.
· In November 2019, Nayosa expanded its product portfolio by launching vegan Kimchi. The company claims 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 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
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
5.1 By Type
5.1.1 Probiotic Food
5.1.2 Probiotic Drink
5.1.3 Alcoholic Beverages
5.2 By Distribution Channel
5.2.2 Convenience Store
5.2.3 Online Channel
5.2.4 Other Sales Channels
5.3.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.3.3 Asia Pacific
184.108.40.206 Rest of Asia-Pacific
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 United Arab Emirates
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Key Strategies Adopted
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Fonterra Co-operative Group Limited
6.4.2 Constellation Brands Inc
6.4.3 Groupe Danone Sa
6.4.4 Pepsico Inc. Kevita
6.4.5 Anheuser-busch Inbev
6.4.6 Yakult Honsha Co. Ltd
6.4.7 Nestle S.A.
6.4.8 Heineken N.V.
6.4.9 The Boston Beer Company
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Frequently Asked Questions
What is the study period of this market?
The Fermented Foods and Beverages Market market is studied from 2016 - 2027.
What is the growth rate of Fermented Foods and Beverages Market?
The Fermented Foods and Beverages Market is growing at a CAGR of 6.35% over the next 5 years.
Which region has highest growth rate in Fermented Foods and Beverages Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Fermented Foods and Beverages Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Fermented Foods and Beverages Market?
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.