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Kombucha Market Size to Grow at a CAGR of 16.8% During the Forecast Period 2020–2025
Kombucha Market Size to Grow at a CAGR of 16.8% During the Forecast Period 2020–2025
With the Benefits of Kombucha Over an Artificial Sweetened Beverage, Lead to a Rise in the Demand for the Global Kombucha Market.

"With the Benefits of Kombucha Over an Artificial Sweetened Beverage, Lead to a Rise in the Demand for the Global Kombucha Market."

 

Kombucha Market size was valued at $1.9 billion in 2019 and is poised to grow at a CAGR of 16.8 % during the forecast period 2020-2025. Kombucha is a fermented tea, also referred to as a functional beverage prepared by the fermentation cultures of yeast, bacteria, and enzymes, it improves the health as a high probiotic drink. It is slightly alcoholic fermented lightly bright, sweet, sweet-sour, green, or black tea drink manufactured with the symbiotic colony of bacteria and yeast (SCOBY).
Acetic acid nourishes the drink with enhanced probiotic content making it putative health benefits drink. Its consumption is increasing owing to its detoxifying capabilities, help to reduce cholesterol and blood pressure levels, and promotes gut health. It also contains vitamin B, which supports energy, metabolism, cell proliferation, and growth beneficial for hair, skin, and nails.

By Type - Segment Analysis

The global Kombucha Market based on type has organic and pasteurized. Organic is classified based on yeasts, bacteria, and others. Organic type Kombucha has been the most preferred beverage for decades since it aids digestion, boosts immune health, and prevent bacterial and fungal infections. High glucaric acid levels also help in preventing symptoms of stomach cancer, reduce pancreatic load, and ease the burden on the liver.
By flavor segment, unflavored/regular Kombucha is poised to account for a lower market share compared to flavored Kombucha owing to the gaining popularity owing innovative tastes and flavors. Flavored Kombucha is poised to account for a greater share of spending compared to unflavored. The herbs & spices flavor segment of Kombucha is set to grow at the fastest CAGR of 21.8% over the forecast period (2020-2025), followed by the berries flavor segment.

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By Distribution Channel - Segment Analysis

The distribution channel of Kombucha Market has supermarkets/hypermarkets, specialty stores, convenience stores, online channels, and others. The supermarket segment had the highest market share and revenue proposition compared to others in 2019 and is poised to grow during the forecast period (2020-2025). The reasons owing to the growth are ease of accessibility. The consumer is more prone to know about new products through on-shelf retail marketing, attractive packaging, and marketing events held at major supermarkets for consumer awareness by companies.

By Geography - Segment Analysis

The global Kombucha Market by geography had the dominant share in North America, in terms of revenue in 2019. North America hold major share of 38.6% in 2019 owing to changing consumer preferences, along with the rising middle-class population, which is acting as the main driver for this growth. The regional growth here is primarily owing to the increased demand and supply of non-carbonated and low-calorie beverages, such as original and flavored Kombucha.
Following North America, Europe is set to expand at the highest CAGR during the forecast period 2020-2025. The reasons are increasing demand for sports and energy nutrition products among working professionals in Europe for maintaining muscle strength.

Drivers – Kombucha Market

Increased health awareness

Globally every consumer believes in health attributes in the foods and their importance. Consumers also afford to pay more if it has health benefits. With the increase in lifestyle disorders owing to junk and fast food, has created health problems among people all over the world and this, in turn, has led to the increased dependency on wonder drugs and switching over to different health food and beverage products. With the benefits of Kombucha over an artificial sweetened beverage, lead to a rise in the demand for the global Kombucha market in the forecast period 2020-2025.

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Challenges – Kombucha Market

Increasing Regulations

With an increase in consumption of natural and chemical-free beverages like Kombucha, concerns for the risk and safety issues related to it are also gaining potential and a standardized production method. Besides, approved regulations for raw material, unit operations, quality control, packaging, storage, serving criteria, intake range, etc. are increasing to have control of such drinks. These factors are the major challenges for the global Kombucha market.

Kombucha Industry outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Kombucha Market. Key companies of this market are The Hain Celestial Group, Inc., PepsiCo, Inc. (KeVita), GT’s Living Foods LLC, LIVE Soda, LLC, Health-Ade, LLC, Humm Kombucha LLC, Kosmic Kombucha, Cell-Nique Corporation (Physicians Capital Corporation), Revive Kombucha (Peet’s Coffee), and Townshend’s Tea Company.

Acquisitions/Product Launches:

February 2020 - Humm launches Zero sugar kombucha, the latest sugar-free line from the Oregon-based kombucha brand, which is scheduled to be introduced in selected markets and on Amazon.

On 5th March 2019, Revive Kombucha announced the launch of Revive Sparkling Kombucha, a traditionally fermented, organic, and shelf-stable craft brew. This drink is available in 12-ounce cans with a variety of flavors such as Mango Orange, Cherry Hibiscus, Strawberry Lemon, and Citrus Ginger. This product was launched in order to attract the health-conscious customers.

In 2018, Starbucks Corporation started offering Kombucha under its brand Evolution Juice. The company is offering Kombucha in six different flavors.

In 2017, GT added three new flavors including basil, watermelon, and coffee lovers to its beverage product line. The new product additions are raw, organic, kosher and gluten-free offers attract coffee connoisseurs to the expanding offerings of leading manufacturers.

Key Takeaways

Geographically, The North American region, followed by Europe, has the highest revenue in the year 2019, and are poised to provide significant growth to the global Kombucha market for the forecast period 2020-2025.

Manufacturers are being innovative in producing multiple options in Kombucha flavors by playing around with ingredients or adding flavors such as berries, lemon, ginger, coffee, fruit, and many others owing to increase the market demand.

Globally, the multiple functions of Kombucha helped to enhance the quality of the food products. Besides, the demand is set to continue owing to the functionality in the forecast period (2020-2025).

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