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Kombucha Market to register a high value CAGR of 16.6% during 2018 - 2027

Author: Vijay Kundekar
by Vijay Kundekar
Posted: Jan 25, 2019

In 2019, North America and Europe are projected for a cumulative share of nearly 50% in globalkombucha landscape.

Estimated to display robust year on year revenue growth at a just-under 15%, the global kombucha market is likely to exceed the value of US$ 1.8 Bn in 2019.

Prominently driven by rising awareness about its health benefits and originality of taste, kombucha reserves impressive growth in the consumption volume over next few years, according to a new Future Market Insights’ intelligence study. Riding on the thriving trend of organic and natural foods and beverages, kombucha is lately witnessing promising growing consumption worldwide – especially in developed regional markets.

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More Sales Channels Are Embracing Kombucha

Other than food and drink specialty stores that account for a dominant share of kombucha market value at present, the report forecasts growing sales of kombucha through grocery stores, C-stores, health foods stores, and across national grocery chains. As kombucha is gradually solidifying its position within the beverages category, industry experts are projecting that kombucha might appear on the restaurant and bar menus eventually.

Starbucks Corporation stepped in the kombucha game this year, under a new brand name - Evolution Juice. Currently, Starbucks’ offering covers six flavors of kombucha.

By packaging, glass bottles remain a favored format, making up for more than 70% share of the kombucha market value. However, the report offers a positive revenue growth outlook for kombucha cans in the near future.

Innovative kombucha packaging formats are emerging to appeal more to consumers, which is further fueling its popularity across a wider customer base, through retail convenience stores and online channels.

Flavor Innovations Are Shaping Strategic Developments

The global landscape of kombucha is more collaborative rather than competitive, and customers are more likely to shop local brands. Key players operating in the kombucha landscape are strategizing investments in more effective product promotions and marketing. Besides targeting new consumer markets for enhanced penetration, flavor innovations is also a key developmental strategy adopted by leading manufacturers of kombucha, as indicated by the report.

According to the report, flavored kombucha accounts for around 1/4th of the total market value, of which herbs, spices, and berries have been the most popular kombucha flavors over the years.

Canada-based Rise that has recently executed the expansion in the Northeastern US is currently planning the release of a new range of kombucha flavors the next year.

Experimenting on the various popular ingredients and flavors, beverage brands are indulging more in innovating flavors such as lemon, berries, fruits, coffee, green tea, ginger, and others.

  • While alcohol content has been a major concern for kombucha producers over the recent past, market leaders such as Rise are prudently focusing on addressing the issue with a flavor-forward approach that enables brands to innovate kombucha in mainstream flavors - keeping the perceived health benefits intact.

  • The company considers consumer and buyer perception as an important parameter for designing the developmental strategy, reports the FMI analyst.

  • GT’s Kombucha recently launched three brand new flavors, including watermelon, basil, and coffee.

  • Capturing a rapidly growing trend of kombucha, Poland-based Brothers & Sisters recently launched a distinct product offering to Polish consumers. Lemongrass plus kefir, ginger, and classic sencha are the currently available flavor combination offerings in this line.

  • A strategic interplay of innovation and advent of technology is likely to push the growth of kombucha manufacturers in next few years. Companies are thus considering investments in advanced technology fermenters and bottlers to overcome the challenges of time inefficiency,” explains a senior analyst at the company. Adding further, “Market leaders are acquiring smaller players in a strategic effort to update their kombucha flavor inventories and in return provide them with technological assistance for kombucha processing,” says the analyst.

Developed Regions Are Covering Nearly 50% Market Share

With a collective share of over half of the total value of kombucha market, North America and Europe remain the most significant regions targeted by manufacturers and other stakeholders for penetration.

The former however is projected to maintain a slightly higher revenue share over the latter, which is clearly attributed to impressive revenue growth prospects for kombucha in the high potential markets for health and nutrition beverages. According to Kombucha Brewers International (Colorado, US), the yearly kombucha consumption across the US alone surpassed a value worth US$ 500 million this year.

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A growing inclination of millennial generation towards consuming energy drinks also provides a strong impetus to the expansion of kombucha market across these developed regions, reports FMI. However, the report identifies maximum attractiveness across APEJ, as the region is witnessing a dramatically growing trend of functional beverages in recent years.

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Author: Vijay Kundekar

Vijay Kundekar

Member since: Jul 25, 2018
Published articles: 510

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