Fermented Drinks Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The fermented drinks market is expected to record a CAGR of 4.5% during the forecast period (2022 - 2027).

The global pandemic scenario raised through COVID-19 impacted the market by knowing the health benefits of various fermented drinks, such as probiotic ones. Due to its increased demand, it has created an opportunity for fermented drink products. This is primarily due to increased health awareness and concern for maintaining immunity and thus health well-being.

Consumer preference for healthy hydration has been a crucial factor in driving the growth of the market. Increased health consciousness among consumers has led to the demand for functional beverages. Consumers' changing preference for plant-based food, such as fermented fruit juices, proteins, and cereal-based drinks, is expected to drive the market worldwide. The fermented beverages sector, especially in regions like the Asia-Pacific region, is on the verge of a boom due to its health and wellness properties, from gut health to immunity boosting, which the consumers are looking out for.

Key Market Trends

Rising Demand for Probiotic and Prebiotic Food and Beverages

The consumer preference for natural and pure products with probiotics is increasing drastically, especially in the wake of COVID-19. It is majorly driven by the inflated demand for convenient digestive supplements. With the option of multiple flavors, consumers now have the benefits of probiotics clubbed with their favorite flavors, which act as a refreshing and revitalizing drink to them rather than being considered medicine. With the ever-rising demand for healthier food products, the manufacturers got a platform to research and develop the most suitable alternatives to conventional products. The paradigm shift of consumers toward healthier food products has also transformed a mass population to turn vegan. Thus, leading the way for innovative dairy-free probiotic fermented drinks.

Asia-Pacific is Projected to Be the Fastest Growing Market

The Asia-Pacific fermented drinks market is driven by the increasing awareness and growing interest in a healthy diet, development in technology, media influence, and consumer demand. The rising awareness of fermented drinks in China and India is expected to further boost the market studied in the region. In China, the growing demand for fermented dairy products, such as Liberte Kefir is likely to support the market growth in the upcoming years. The innovations in the retail chain with new formulations help differentiate the brands and corresponding products. In Southeast Asia, key players in fermented alcoholic beverages, such as Heineken, Carlsberg, and Kirin are aggressively expanding by acquiring dominant domestic brands and each other. For instance, in 2021, Carlsberg disclosed they had acquired the brand rights for American craft brewing giant Brooklyn Brewery across their Asian markets.

Competitive Landscape

The fermented drinks market is a fragmented market dominated by leading players such as Nestle, Danone, and Anheuser-Busch InBev. Some of the other prominent players include Suja Life LLC, PepsiCo Kevita, and Bright Food (Group) Co. Limited among others. Competition levels have recently increased due to the influx of small-scale and domestic players in the fermented beverage industry. The development of new products to enhance the product portfolio and capture the untapped markets has led to the growth of the global fermented drinks market.

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• The market estimate (ME) sheet in Excel format
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