Europe fermented food and beverages market 2025: Industry Developments, Future Growth, Share & Industry Insights | AB InBev, Müller Group, Danone, LACTALIS, Lesaffre, Chr. Hansen A/S, Nestlé, Heineken

Europe fermented food and beverages market reached US$102.97 billion in 2024 and is expected to reach US$161.31 billion by 2032, growing at a CAGR of 6.6% during the forecast period 2025-2032.

According to DataM Intelligence Comprehensive Report has released its latest report on the "Europe Fermented food and beverages Market Size 2025," providing a detailed analysis of market trends, key growth drivers, competitive landscape, and regional insights. The report includes market size (value and volume), CAGR projections, and emerging opportunities that help businesses identify growth areas and build effective strategies. Backed by data-driven insights and future outlook, this study serves as a valuable resource for companies looking to stay competitive and capitalize on market potential.

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Industry Developments:

✅ 2025-01-30 - IPA Europe held a Brussels event and launched an industry manifesto pushing for clearer EU probiotics rules (policy/regulatory development affecting fermented foods & beverages).

✅ 2025-02-12 - Ella Mills (Deliciously Ella/Plants) acquired the Allplants brand/assets out of administration to combine with her Plants business (UK plant-based/fermented-adjacent category consolidation).

✅ 2025-03-19 - Lipton (Carlsberg Britvic) launched a new Lipton Kombucha range in the UK (three fruit-flavoured, low-sugar kombucha SKUs).

✅ 2025-05-28 - Britvic/Lipton ran a marketing push for Lipton Kombucha including a collaboration with singer Wes Nelson to promote the new range.

✅ 2025-06-11 - ALDI UK launched a new own-label kombucha range in stores (330 ml SKUs: Passionfruit, Ginger & Lemon, Wild Berry).

✅ 2025-07-07 - Alpro (Danone) introduced a fortified plant-based drinks & yogurt range for children across UK retailers (new product rollout in Europe).

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Key Segments:

By Product Type - Fermented Dairy Products, Fermented Vegetables, Fermented Meat Products, Fermented Beverages, Others

By Source - Plant-based, Animal-based

By Microorganism Type - Bacteria-based Fermentation, Yeast-based Fermentation, Mold-based Fermentation

By Distribution Channel - Supermarkets & Hypermarkets, Specialty Stores, Online Retail, HoReCa, Others

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Geographical Share Analysis:

✅ Germany holds the largest share of the European fermented food and beverages market, supported by a strong tradition of fermented foods such as sauerkraut, kefir, and beer. The country's focus on clean-label, organic, and probiotic-rich foods has further boosted market penetration. Major dairy cooperatives and beverage manufacturers are expanding their probiotic and plant-based fermented product portfolios to meet consumer demand.

✅ France follows closely, driven by its well-established dairy industry and premium fermented beverages segment. The popularity of yogurt, cheese, and kefir products-along with innovation in functional drinks-has positioned France as a major contributor to regional market growth.

✅ The United Kingdom is witnessing rapid adoption of fermented beverages, especially kombucha and functional dairy alternatives. The country's wellness-oriented consumers and expanding health-food retail channels are supporting steady growth.

Key Market Drivers:

✅ Rising Health and Wellness Awareness:
Growing knowledge of the benefits of probiotics and gut-friendly diets has driven demand for fermented products that support immunity, digestion, and metabolic health.

✅ Shift Toward Natural and Clean-Label Products:
Consumers are increasingly avoiding artificial preservatives and additives, turning instead toward naturally fermented foods as part of a broader clean-label movement.

✅ Growth in Plant-Based and Non-Dairy Alternatives:
Lactose-intolerant and vegan consumers are fueling innovation in fermented soy, oat, and coconut-based beverages and yogurts.

✅ Culinary Tradition and Cultural Acceptance:
Europe's long history of fermenting foods-ranging from German sauerkraut to French cheese provides a cultural foundation that supports both traditional and modern product acceptance.

✅ Functional Food Trends:
The integration of fermented ingredients into functional food categories such as snacks, bakery, and beverages is expanding the market's reach beyond conventional dairy products.

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Major Key Player: Danone, LACTALIS, Lesaffre, Chr. Hansen A/S, Nestlé, Heineken, PepsiCo, The Coca-Cola Company, AB InBev and Müller Group.

✅ Danone: A leading European dairy & fermented-products player (yogurts, kefirs, specialized probiotic drinks), centrally positioned in functional/health-focused fermented categories and showing steady like-for-like growth in recent annual reporting.

✅ LACTALIS: One of Europe's largest dairy manufacturers with very large European sales (group revenue ~€30+ billion in 2024), making Lactalis a dominant supplier across cheeses and other fermented dairy segments.

✅ Lesaffre: Global yeast & fermentation specialist whose European yeast, baking- and culture-businesses make it a backbone supplier to fermented-food producers (baking, taste & nutrition ingredient solutions).

✅ Chr. Hansen A/S: A leading supplier of microbial cultures, probiotics and enzymes used by yoghurt, cheese and fermented-beverage producers across Europe - critical B2B player enabling product development and consistency.

✅ Heineken: Major brewer across Europe (and therefore a primary fermented-beverage incumbent), investing in portfolio diversification (low-/no-alcohol and functional drinks) to capture shifting consumer preferences.

✅ AB InBev: Europe's (and the world's) largest brewer by scale a primary player in conventional fermented beverages (beer) and increasingly active in innovation (low-alcohol, craft and functional variants).

✅ Müller Group: Major European dairy player with strong regional share in retail dairy/fermented dairy (yogurts, desserts); significant supermarket/retail reach across key European markets.

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