Kombucha Market

• An increasing preference for innovative non-alcoholic beverages is driving the market growth

The World Health Organization (WHO) estimates that harmful alcohol consumption causes almost 3 million deaths annually, accounting for 5.3% of all fatalities.  As a result, consumer tastes for fermented tea and other low- or non-alcoholic beverages have changed ly.  This transformation has been made possible by the rising popularity of refreshing beverages and the availability of these beverages in ready-to-drink formats.  Consumers, particularly millennials and members of Generation Z, are adopting better lives, causing them to prefer low- or no-alcohol beverages and healthier alternatives to alcoholic beverages more and more.  In 2020, the increased accessibility of non-alcoholic beverages, their expanded online range, and a decline in alcohol consumption will have shifted consumer preferences towards kombucha, according to a research paper published in BioMed Central.  During the forecast period, the market’s growth is also expected to be aided by the introduction of novel flavor variants.

The new craft beer trend boosted the rise in popularity of kombucha among young people.

The aluminum can format has been lifted into the premium category due to the craft beer boom, which began with beer but has now expanded to include non-alcoholic beverages.  Now Kombucha products can benefit from this.  The Brewers Association reports that craft beer's market share has increased by 13.6%.  Craft beer accounts for 29.3 billion USD of the 116 billion USD market share of the beer industry.  Greenbelt Craft Beverages introduced four flavors of Greenbelt Craft Kombucha in a novel format: Peach Blossom White Tea, Strawberry Fields Roibos Tea, Blood Orange Yerba Mate, and Hibiscus Berry Black Tea.

They exclusively utilize the highest quality premium teas to make effervescent, probiotic, raw, non-genetically modified organisms, and vegan Kombucha without sugar after fermentation.

Kombucha is widely taken for digestive health and as an immunity booster because it is high in vitamin B12 and may balance fruitarian and vegetarian diets.  The popularity of kombucha, a low-sugar beverage made by fermenting sugar and green tea with a starter culture or Scoby (a symbiotic colony of bacteria and yeast necessary for fermentation) and low levels of alcohol (less than 0.5%), is rising significantly among people with diabetes and the general public.  For example, according to the American Diabetes Association's most recent data, about 35% of Americans have been projected to have been diagnosed with diabetes, which affects 37.3 million Americans, or 11.3% of the population, including 283,000 Americans under the age of 20.  These numbers represent an increase in the prevalence of diabetes among Americans, which is driving the growth of the kombucha industry revenue.

Manufacturers have taken the kombucha beverage to the next level by merging convenience, various flavors, innovation, and health.  As customers turn away from sugary drinks and choose healthy substitutes, the relatively new competitor, kombucha soda, is rising and posing a challenge to the normal soda market.  These reasons drive the market of kombucha and the revenue growth is expected to continue over the forecast period.

The rise of e-commerce platforms is reshaping the landscape of the Global Kombucha Market Industry. With the convenience of online shopping, consumers are more inclined to explore and purchase kombucha products from various brands. This trend is particularly pronounced among younger demographics who favor digital shopping experiences. E-commerce not only facilitates access to a wider range of products but also enables brands to reach consumers in regions where physical availability may be limited. As the Global Kombucha Market Industry continues to evolve, the integration of e-commerce strategies may play a pivotal role in driving sales and expanding market reach.

The growing awareness of health and wellness among consumers appears to be a primary driver of the Global Kombucha Market Industry. As individuals increasingly seek beverages that offer health benefits, kombucha, known for its probiotic content and potential digestive advantages, gains traction. This trend is particularly evident in regions where consumers prioritize natural and organic products. The Global Kombucha Market Industry is projected to reach 2.57 USD Billion in 2024, reflecting a shift towards healthier beverage options. This inclination towards wellness-oriented products suggests that kombucha's appeal will likely continue to expand as consumers become more discerning about their dietary choices.

Sustainability is becoming increasingly relevant in the beverage industry, and the Global Kombucha Market Industry is no exception. Consumers are gravitating towards brands that prioritize eco-friendly practices, such as sustainable sourcing and environmentally friendly packaging. This shift is indicative of a broader societal movement towards responsible consumption. Companies that align their operations with these values may find themselves at a competitive advantage. As sustainability continues to shape consumer choices, the Global Kombucha Market Industry could experience accelerated growth, potentially capitalizing on the increasing demand for products that reflect ethical and sustainable practices.

The increasing awareness of the health benefits associated with kombucha consumption is a notable driver in the Global Kombucha Market Industry. Research suggests that kombucha may offer various health advantages, including improved gut health and enhanced immune function. As consumers become more informed about these potential benefits, they are more likely to incorporate kombucha into their diets. This trend is further supported by the rise of health-focused marketing campaigns that emphasize the functional attributes of kombucha. Consequently, the Global Kombucha Market Industry is poised for growth, as health-conscious consumers actively seek out products that align with their wellness goals.

The Global Kombucha Market Industry is projected to experience substantial growth, with estimates indicating a rise from 2.57 USD Billion in 2024 to 14.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 16.86% from 2025 to 2035. Such projections highlight the increasing consumer demand for kombucha and the beverage's potential to capture a larger share of the overall beverage market. Factors contributing to this growth include rising health consciousness, innovative product offerings, and the expansion of distribution channels. The anticipated market growth underscores the evolving landscape of the Global Kombucha Market Industry.

The introduction of diverse flavors and innovative formulations is significantly influencing the Global Kombucha Market Industry. Manufacturers are experimenting with unique ingredients, such as exotic fruits and herbs, to cater to evolving consumer preferences. This trend not only enhances the sensory experience but also attracts a broader audience, including those who may not have previously considered kombucha. As a result, the market is witnessing a surge in product offerings, which could contribute to its anticipated growth. By 2035, the Global Kombucha Market Industry is expected to reach 14.3 USD Billion, indicating that flavor innovation plays a crucial role in driving consumer interest and market expansion.

By Region, the study offers market insights into North America, Europe, Asia-Pacific and the Rest of the World.  The North American region is expected to lead the Kombucha market throughout the forecast period.  The rise of the market of kombucha in North America is being driven by various factors, including consumers' changing lifestyles, shifting dietary choices, and a rising number of people concerned with their fitness.  The market for kombucha, a popular alcohol replacement, has grown due to the surge in alcoholic beverage consumption.  Major developments are also a result of significant market participants like KeVita.com, Humm Kombucha, and GT's Living Foods.

Furthermore, the major countries covered in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: KOMBUCHA MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Kombucha market is expected to hold the second-largest market share during the forecast period.  The use of probiotic beverages and other functional beverages is on the rise, which has increased demand in the region.  Further, the German Kombucha held the largest market share, and the UK Kombucha industry was the fastest-growing market in the European region.

The Asia-Pacific Kombucha Market is expected to grow at the fastest CAGR from 2023 to 2032.  This is due to several factors, including a steady rise in health consciousness, its expanding social media presence and the popularity of phrases like probiotic and gut health among local communities.  Over the past few years, kombucha has begun to gain popularity as a healthier alternative to sugary beverages in the Asian Pacific region.  Moreover, China’s market of kombucha held the largest market share, and the Indian Kombucha industry was the fastest-growing market in the Asia-Pacific region.

The major market players are investing heavily in R&D to expand their product lines, which will contribute to the expansion of the kombucha market.  Significant market developments include introducing new products, contracts, mergers and acquisitions, increased investment, and cooperation with other organizations.  The Kombucha industry must provide affordable products in order to survive and thrive in a more competitive and dynamic market.

Producers in the kombucha industry use an essential business approach to serve clients and broaden the market sector: manufacturing domestically to reduce operational costs.  Recent years have seen some of the strongest growth in the kombucha sector.  Major Key players in the Kombucha market, including Kevita, Inc. (Canada), Kombucha Wonder Drink (U.S.), Gt’s Kombucha (U.S.), Nesalla Kombucha (U.S.), Reed’s Inc. (U.S.), Buchi Kombucha (U.S.), and others, are trying to surge market demand by spending in research and development operations.

GT's Living Foods handcrafts living foods with active probiotics for the living body to promote happiness and wellness.  The fermented products in GT's Living Foods line are made with raw and organic ingredients to energize the body, enlighten the intellect, and uplift the spirit.  GT's Living Foods' #1-selling Kombucha recipes, an industry leader and innovator, are wholly vegan, gluten-free, and non-GMO.  Each bottle contains billions of live probiotics that can help maintain a robust immune system and a healthy gut.  GT's Kombucha, Synergy, CocoKefir, CocoYo, Alive, and VeggieKefir are all produced by GT's Living Foods.  The flavor options for Synergy Kombucha were increased in 2021 by a business called "GT's Living Foods." The "California Citrus" and "Lemon Berry" flavors, two new summery types, have stimulated interest among potential customers and helped grow the clientele.

Remedy Drinks Pty Ltd, an independently owned local business, makes and sells health beverages to generate funding.  With its headquarters in Carrum Downs, Victoria, the company employs about 150 people and conducts business in Australia.  Remedy Drinks Pty Ltd is the manufacturer and retailer of Kombucha, a health beverage.  The business uses the following categories to sell its goods: Kombucha, liquor, whisky, soda, and Switchel ACV.  In February 2022, Remedy Drinks added a product with a wild berry flavor to its inventory in the United Kingdom.  The "Remedy Kombucha Wild Berry" beverage's first availability may be limited to Tesco stores.  The retail titan also plans to release "Remedy Kombucha Mango Passion" and treble the distribution of its currently offered flavors (raspberry lemonade and ginger lemon) to increase sales of healthy goods.