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Kombucha Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global kombucha products market was valued at USD 6.1 billion in 2021 and is projected to expand at a CAGR of 10.2% from 2022 to 2030. Kombucha is a fermented beverage made of tea and sugar, and is gaining popularity due to its health benefits. It contains probiotics, which are known to improve digestion, reduce inflammation, and boost the immune system. The increasing demand for healthy beverages among consumers is driving the growth of the kombucha products market.
Consumers are increasingly opting for healthier alternatives to carbonated beverages. For instance, in April 2021, PepsiCo launched the new “Pure Leaf” brand of kombucha, targeting the health-conscious consumers. The product range includes flavors such as ginger and cucumber, hibiscus and lavender, and peach and honey. Furthermore, the rising popularity of cold-brewed tea is driving the growth of the market. In addition, the increasing demand for organic and natural products with no preservatives, artificial sweeteners, or other additives is propelling the demand for kombucha products.
The convenience of the ready-to-drink (RTD) format is making the product popular among the consumers. Major companies are expanding their product lines to include RTD kombucha, due to its convenience and portability. For instance, in March 2021, DRY Soda Co., a maker of natural sodas, announced the launch of a new line of RTD kombucha drinks. The product line includes four flavors such as mint, lemon, and ginger. Furthermore, the rising demand for non-alcoholic beverages is driving the growth of the kombucha products market.
Key players in the market are launching new products to cater to the changing consumer needs and preferences. For instance, in August 2021, Kombucha Wonder Drink, a manufacturer of kombucha products, launched a new range of organic kombucha drinks. The product range includes flavors such as ginger, hibiscus, and lemon. Additionally, the increasing number of product launches are expected to drive the growth of the market in the coming years. For instance, in October 2021, Health-Ade Kombucha launched a new range of RTD kombucha drinks with flavors of blueberry, ginger, and pomegranate.
Product Insights
The flavored kombucha segment is anticipated to expand at a CAGR of 8.2% from 2021 to 2028. Increasing consumer preference for flavored drinks, rising inclination towards health and wellness, and surging demand for functional drinks are some of the key factors driving the segment’s growth. According to an article published by Beverage Industry, in April 2020, flavored kombucha beverages are fast gaining popularity among millennials. Furthermore, easy availability of various flavors of kombucha such as ginger, turmeric, and lemon is propelling the market growth.
The organic kombucha segment is expected to expand at the highest CAGR over the forecast period. Increasing consumer preference for organic and natural products, growing health consciousness, and rising disposable income of consumers are some of the key factors driving the segment’s growth. According to an article published by Food Business News, in June 2021, organic kombucha sales are expected to reach USD 7 billion by 2023. Furthermore, increasing demand for low-sugar and non-alcoholic beverages is another factor driving the market growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the highest share of the kombucha products market in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards these stores as the primary source to purchase kombucha products. According to a study by FashionNetwork.com in 2020, consumers are more likely to buy kombucha products after touch and feel the experience in supermarkets & hypermarkets as they provide a reasonable selection of products and assist customers in making rapid purchasing decisions.
The online segment is anticipated to expand at the highest CAGR of 12.9% over the forecast period. E-commerce development in the kombucha industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in December 2022, Kombucha Company launched an online platform dedicated to kombucha products. The website will offer brands across categories like organic kombucha, flavored kombucha, and kombucha drinks. In addition, it will also offer the best brands and products for kombucha along with expert advice and opinions on choosing the best product.
Type Insights
The ready-to-drink (RTD) segment accounted for the largest revenue share of 72.7% in the year 2022. The convenience offered by these products, coupled with the increasing demand for healthy beverages, is the major drivers of this segment. Furthermore, key players in the market such as PepsiCo and Red Bull are investing in the development of new flavors and packaging styles to increase the product portfolio. For instance, in December 2020, PepsiCo introduced ‘Kombucha by PepsiCo’, a ready-to-drink kombucha beverage with flavors such as ginger lemon, pineapple, and wild berry.
The concentrate segment is anticipated to expand at the highest CAGR of 11.8% over the forecast period. The increasing consumer preference for concentrate products due to their low cost and extended shelf-life will fuel the growth of the segment. In addition, the increasing consumer awareness regarding the health benefits of kombucha is also driving the demand for concentrates. For instance, in April 2021, Health-Ade, a producer of organic kombucha beverages, launched Health-Ade Concentrates, which are loaded with probiotics, antioxidants, and organic acids.
Regional Insights
Europe dominated the global kombucha products market and accounted for the largest revenue share of over 44.3% in 2022. The growth of the market in the region is driven by the increasing adoption of kombucha products as a healthier, natural alternative to sugary drinks. In addition, the increasing awareness of the health benefits associated with kombucha products is driving the growth of the market in the region. For instance, in April 2021, PepsiCo acquired the U.K.-based beverage company, Swoon Kombucha, which offers a range of kombucha drinks.
North America is expected to witness the second-fastest growth during the forecast period. The growing popularity of kombucha products on account of rising health consciousness among consumers is driving the growth of the market in the region. The presence of several large-scale producers and distributors in the region is also contributing to the growth of the market. For instance, in November 2021, Reed’s Inc., a U.S.-based producer of craft brewed kombucha, launched its new line of kombucha drinks.
Financial Projections
In this part of the kombucha products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your kombucha business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a kombucha business comes from the sales of kombucha products. Additionally, other sources of income may include the sale of merchandise, food and beverage, and fundraising.
Projecting Expenses
In this section, all the regular expenses related to keeping the kombucha business running will be described. The list of operating expenses includes ingredients and supplies, packaging, wages, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the kombucha products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, GT’s Living Foods launched its new line of organic kombucha beverages.
– In September 2022, Health-Ade launched its new line of organic, non-GMO kombucha drinks.
– In October 2022, Kevita launched its new line of kombucha drinks with added probiotic cultures.
Some of the prominent players in the kombucha products market include:
– GT’s Living Foods
– Health-Ade
– Kevita
– Humm Kombucha
– Aqua Vitea Kombucha
– Red Bull GmbH
– Kombucha Wonder Drink
– GT Dave’s
– Redwood Hill Farm
– Brew Dr. Kombucha
Global Kombucha Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global kombucha products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Kombucha Drinks
– Kombucha Syrups
– Kombucha Concentrates
– Kombucha Powders
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Flavored
– Unflavored
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Current Trends in Kombucha Products?
[A]: Consumers are increasingly embracing kombucha as a healthy and natural alternative to sugary and carbonated drinks. This is leading to the emergence of new flavors and varieties of kombucha products. In addition, kombucha has also become more widely available in food retail stores and restaurants. This has further contributed to its growing popularity.
[Q]: What are the Key Drivers of Growth in the Kombucha Products Market?
[A]: The growing health consciousness among consumers and the increasing awareness of the health benefits associated with kombucha are the key drivers of growth in this market. The rise in the demand for organic products, the increasing number of health-conscious consumers, and the increasing preference for functional beverages are also driving the growth of the market.
[Q]: Who are the Major Players in the Kombucha Products Market?
[A]: Major players in the market include PepsiCo, Inc., The Coca-Cola Company, KeVita, Inc., GT’s Living Foods, LLC, Health-Ade, LLC, Red Bull GmbH, Kombrewcha, LLC, and others.
[Q]: What are the Key Regions for Kombucha Products?
[A]: North America is expected to be the largest regional market for kombucha products, followed by Europe and Asia-Pacific. The increasing demand for organic and functional beverages, the presence of a large number of producers and suppliers, and the availability of a variety of flavors are driving market growth in these regions.
[Q]: What are the Opportunities for Kombucha Products?
[A]: Growing health consciousness among consumers and the increasing awareness of the health benefits associated with kombucha are expected to create significant opportunities for the kombucha products market. The entry of new players and the launch of new flavors and varieties of kombucha products are expected to further fuel market growth.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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