Kombucha Market End User, Key Players and Witness High Growth Demand During by 2028
As functional foods and beverages catch up with a large section of the population, demand for healthful drinks see an upward rise. And, thus it comes as a surprise to none that the Kombucha market is set to chart significant growth. And, the steady CAGR will not only present players with significant growth opportunities but also improvement in market worth.
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The beverage also known as the tea of immortality is known to have low sugar content and rich vitamin composition. This makes it quite popular among the masses, particularly the millennial demographics and gen Y, who view it as a potent health drink. Besides, this section of the population is one which is discriminative and quite educated regarding ingredients.
Some of the prominent developments that are shaping the future of the global kombucha market are outlined below:
In 2018, the leading coffee chain – Starbucks – introduced kombucha beverage line. It was organic and had six different flavors to catch the imagination of the target population (millenials and Gen Ys specifically).
In the same year, KYLA Hard Kombucha came up with cold brew coffee, infused with kombucha. This not only tells us about how well-versed are players regarding consumer taste but also how experimental and on their toes they are to stay ahead of their game.
This is worth noting that in the same year, Flying Embers joined hands with Reyes Beverage Group to launch Adaptogenic Organic Hard Kombucha – fermented alcohol beverage line. And, then towards the end of 2018, a Kombucha maker called Organic and Raw Trending Co. was acquired by Coca Cola.
Also, owing to high levels of awareness regarding health benefits of Kombucha, North America and Europe will hold a major share of the market.
Kombucha Market – Introduction
Kombucha, the tea of immortality, although lost its way in the past, has made a significant comeback on the back of rising consumer awareness regarding health benefits of kombucha. Well aware of the consumer sentiments, beverage producers are actively engaged in introducing different flavors of kombucha in innovative packaging solutions to meet the evolving consumer demand.
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While new entrants are engaged in the innovation, traditional players in the kombucha market are seeking to maintain the originality of the kombucha tea by maintaining the traditional tea processing and high product quality. As global health drinks consumption is on the rise, demand for kombucha is set to rise during the forecast period. However, uncertainties associated with the kombucha consumption such as development of unrecognized symptoms and lack of scientific studies are likely to restrain the growth of kombucha market in the future.
Kombucha Market – Notable Developments
In August 2018, Starbucks launched an organic kombucha beverage line which includes six different flavors of the mix of fermented tea and cold-pressed juices.
In September 2018, KYLA Hard Kombucha launched a new first-of-its-kind kombucha infused cold brew coffee.
In December 2018, Flying Embers in partnership with Reyes Beverage Group launched the company’s fermented alcohol beverage line – Adaptogenic Organic Hard Kombucha.
Coca-Cola, a soda giant acquired Organic & Raw Trending Co., a kombucha-maker in 2018.
Pepsico also acquired KeVita, a prominent sparkling probiotic drink company in 2018.
Some of the most prominent competitors operating in the competitive landscape of global kombucha market include –
Brew Dr. Kombucha
Kombucha Market Dynamics
Strong Consumer Sentiments for Functional Beverages to Fuel Kombucha Market Growth
Value addition remains a primary focus of not only food producers but modern consumers also. This trend has significantly penetrated in the beverage industry wherein consumers strongly seek beverages with functional benefits. Kombucha is a highly embraced health beverage for its rich vitamin content, and dietary and immunity benefits. In addition, low-sugar content and carbonated drink-like characteristics of kombucha are also highly sought after by consumers. As a health drink, millennials and generation Y are likely to present significant demand for kombucha as they are highly discriminative regarding the ingredients of their food and beverage purchase.
Kombucha Marketplace Marked by Innovations, Traditional Players Engaged in Maintaining Original Flavor
Amid the low-sugar diet trend, a significant population of consumers is turning to healthier options over sugary beverages. Well aware of this trend, kombucha producers have introduced multiple product variants in terms of flavor in the kombucha drink. For instance, consumers can find a range of exotic flavors kombucha on retail aisles such as ginger, rose, mint, coconut, lavender, strawberry and others. Also, innovations in packaging solutions are also prominent among kombucha market players in a bid to win over fierce market competition. Also, organic variants of kombucha are gaining popularity wherein organic business giants Uncle Matt, KÖE and Flying Embers have introduced organic kombucha lines in attractive packaging. Kombucha soda is another relatively new entrant in the kombucha market. While new product introduction has become a common trend in the kombucha market, a traditional manufacturer – GT’s is engaged in maintaining the originality of kombucha drink.
Consumer Bewilderment Associated with Kombucha Consumption
While the number of kombucha consumers continues to rise, the global kombucha landscape is witnessing uncertainties with respect to its exaggerated health benefits and risks of developing unrecognized symptoms. Also, daily consumption quantity of kombucha remains under scrutiny as major commercial kombucha are distributed with excess kombucha concentrations as compared to the CDC recommended daily consumption of 12 ounces.
The kombucha production process is another challenge faced by kombucha producers. While there are food safety guidelines to be followed by kombucha market players, its categorization under dietary supplements and herbal remedies leads to lack of regular USDA and FDA monitoring. These loopholes are known to leave pockets of risk factors wherein consumption of unmonitored kombucha carries the risk of developing potential hazardous health effects.
Kombucha Market – Regional Outlook
North America represents a significant consumption of kombucha owing to greater awareness among consumers and the presence of a strong distribution network. Europe followed by North America is the second most lucrative market, wherein demand remains concentrated in Germany and Russia. Increasing consumption of health drinks including functional beverages in these European countries combined with a strong health trend prevailing in the region will present lucrative opportunities for kombucha market players in the coming years. Developing nations in the Asia Pacific region also presents increasing demand for kombucha and rapid growth of the kombucha market.
Kombucha Market – Segmentation
Kombucha market is segmented on the basis of flavor type and distribution channel.
On the basis of flavor type, the kombucha market is segmented into,
On the basis of distribution channel, the kombucha market is segmented into,
The report offers a comprehensive evaluation of the kombucha market. It does so via in-depth qualitative insights, historical data, and verifiable projections about kombucha market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the kombucha market, including but not limited to: Regional markets, technology, types, and applications.
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