US Kombucha Market Trends

• Growing demand for functional beverages is driving the market growth

The market's interest in and demand for drinks like kombucha has positively increased due to consumers' growing preference for functional beverages that can have additional health benefits. In the United States, for instance, functional beverages accounted for 76.4% of the total beverage market in 2017, according to the Institute of Food Technologists (IFT). Typically, fermented milk products like kefir and yogurt are used to make probiotic drinks. The fact that this is made by fermenting sweetened tea gives it a clear advantage over other probiotic drinks because it may be ingested by those with celiac disease and lactose sensitivity.

Since this is a probiotic drink, the market CAGR is likely to profit from the probiotic supplements industry, which was valued at USD 4 billion in 2015, according to the International Probiotics Association. This market is also expected to develop fairly. Moreover, the incorporation of the beverage into regular diets has greatly enhanced the market's expansion.

Furthermore, the US’s increased disposable income, developing consciousness, and hectic lifestyle are driving up demand for fermented ready-to-eat food and beverage items, such as health drinks that include a full complement of nutrients. thereby contributing to the market's expansion. Kombucha is among the fermented beverages that is expanding the fastest on store shelves in the United States. This is due to its many health advantages, which include improved energy levels, improved digestion and intestinal health, immune system stimulation, and joint health.

America's favorite beverage in recent years, kombucha has made the transition from the natural foods aisle to the mainstream, mostly due to the growing interest in and study into gut health. Moreover, the beverage is still among the fastest-growing health drinks in the country and is easily accessible at many convenience stores. For instance, Superfoods Company introduced a "instant kombucha formula" in February 2022. It comes in multiple flavors. The product, according to the manufacturer, is rich in polyphenols, flavonoids, and prebiotics to enhance gastrointestinal health and metabolism. It is created with hand-picked black tea.

Therefore, the market is expanding due to consumers' increasing demands for preventative healthcare and the benefits of probiotic bacteria on health. Thus, driving the kombucha market revenue.

With consumers looking for a high-quality, healthier substitute for soft drinks, the beverage's market share in the US has grown quickly. The market for products has been boosted by Americans' desire for an ethical, environmentally friendly, and low-sugar lifestyle. This nation has seen an increase in demand for the product as a health product that is becoming more widely available in stores. It has acquired appeal as a signature drink that contains probiotics and fermented foods that may have health advantages.

Additionally, American consumers are increasingly seeking out organic kombuchas due to the USDA's certification of many of the ingredients utilized in these beverages as safe to eat. Furthermore, the popularity of functional beverages is growing among consumers. Glanbia Nutritionals Inc. estimates that the size of the U.S. functional beverage market was USD 39 billion in 2018 and is projected to expand at an exponential rate in the years to come.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the kombucha market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, kombucha industry must offer cost-effective items.