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Fermented Beverages Market size is poised to grow with a lucrative CAGR from 2023 to 2032, attributed to the rising demand for alcoholic beverages, the increasing count of health-conscious consumers calling in for natural source-based alcoholic and non-alcoholic fermented drinks and growing consciousness about the advantages of fermented products.
Fermented beverages have been gaining immense popularity due to their intrinsic benefits, including improving the immune systems and enhancing gut health. Besides, their ability to improve the digestive system, owing to the rich probiotic composition, will further bolster the fermented beverages market revenues.
With the ongoing rage in inflation, food and beverage manufacturers globally are expected to pass higher costs onto their consumers in the coming years, as they deal with higher input costs across their businesses. Beverage makers have been consistently facing an uptick in expenses due to heightening aluminum packaging costs. Additionally, the surging transportation, freight, manufacturing costs, and pandemic-related expenditure are further weighing on producers, building pressure from all sides. Companies such as Coca-Cola have announced price hikes in recent weeks and have warned about further hikes that may follow in the later part of the year.
According to the U.S. Department of Labor, on a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers recorded a 0.4% rise in February 2023, following a 0.5% uptick in January 2023. The commendable rise in commodity prices has dramatically changed consumer buying patterns, which may limit the uptake of fermented beverages in the years ahead.
The demand for fermented non-alcoholic beverages is anticipated to rise considerably between 2023 and 2032. Many consumers are now pivoting to non-alcoholic fermented beverages due to increased health consciousness and rapid consumer inclination toward a healthier lifestyle. Kombucha, kefir, and others are some of the highly consumed fermented non-alcoholic drinks that have been gaining major grounds across the fermented beverages market today.
Kombucha boasts of umpteen health benefits, including it acts as a potential source of probiotics, containing antioxidants, killing bacteria, aiding reduction in heart risk, and others. Various kombucha producers are going nine yards to bring forth novel innovations in the space, complementing the market expansion. For example, Remedy Drinks, one of the leading kombucha brands worldwide, recently launched zero-sugar kombucha stateside.
Based on the raw materials, drinks made from fermenting grains are set to accrue significant proceeds through 2032, attributed to their heightening consumption in various developing countries characterized by low nutritional security and the rising prevalence of gut pathogen infections. In fact, Africa and Asia are estimated to emerge as big markets for cereal-based fermented beverages worldwide as these regions have been traditionally involved in processing such drinks. Cereal grains commonly used in these drinks are maize, oats, wheat, rye, millet, barley, and more.
North America fermented beverages market will gain remarkable momentum during the forecast timeline, credited to the surging consumption of alcoholic beverages across several North American economies. In addition, robust economic outlook and improving disposable incomes across the region have boosted consumer expenses on fermented beverages, which will favor the market growth.
Some of the leading companies operating in the fermented beverages market are Dohler GmbH (Döhler), Caldwell Bio Fermentation, PepsiCo Inc., Heineken, Danone S.A (Sofina), Sula Vineyards, and Coca-Cola India Ltd (The Coca-Cola Company, Coca-Cola South Asia Holdings, Inc.). These vendors have been potentially striving to develop new products in the business space. Besides, they have also been participating in various industry practices like acquisitions, mergers, collaborations, etc., to score an edge over rivals.