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Fermented Processed Food Market Size - By Product Type (Dairy Products, Bread and Bakery Products, Vegetables, Condiments, Beverages), Microorganism Type (Bacteria, Yeast, Mold), & Forecast, 2024-2032

  • Report ID: GMI10091
  • Published Date: Jul 2024
  • Report Format: PDF

Fermented Processed Food Market

Fermented Processed Food Market size was valued at USD 105.8 billion in 2023 and is anticipated to register a CAGR of over 6.6% between 2024 and 2032. Fermented foods such as yogurt, kefir, sauerkraut, and kimchi contain beneficial bacteria (probiotics) that support gut health and digestion. With increasing awareness of gut health's importance to overall well-being, there's a growing consumer demand for these foods.

Fermented Processed Food Market

Fermentation is a natural preservation method that extends the shelf life of foods without the need for artificial preservatives. This appeals to consumers looking for minimally processed and natural food options. Fermentation enhances flavors, creating unique tastes and textures in foods. This appeals to consumers seeking diverse culinary experiences and adventurous palates. Furthermore, many fermented foods are integral parts of traditional diets in various cultures. As global culinary trends evolve and consumers become more interested in exploring international cuisines, fermented foods are gaining popularity.

Fermented foods often have a shorter shelf life compared to non-fermented products. Proper storage conditions, such as refrigeration, are necessary to maintain product quality, which can add logistical complexities and increase costs. Furthermore, non-fermented products that claim similar health benefits or offer convenience may compete directly with fermented foods in the market. This competition can constrain market growth for fermented products.

Fermented Processed Food Market Trends

Consumer interest in gut health continues to drive the demand for fermented foods rich in probiotics. Products are increasingly marketed for their digestive health benefits, including improved gut flora balance and immune system support. There is a growing diversity of fermented foods available, including traditional options like yogurt, kefir, sauerkraut, and kimchi, as well as newer innovations such as kombucha, tempeh, and fermented plant-based alternatives to dairy and meat products.

Furthermore, as vegan and vegetarian diets gain popularity, there is a rising demand for plant-based fermented foods. Fermented plant-based alternatives to dairy products (e.g., almond yogurt, coconut kefir) and meat substitutes (e.g., tempeh, fermented plant-based proteins) are seeing significant growth.

Manufacturers are incorporating functional ingredients into fermented foods to enhance their nutritional profile. This includes adding superfoods like turmeric or chia seeds, which offer additional health benefits beyond traditional fermentation. There is a growing market for convenient, single-serve fermented products such as drinkable yogurts, probiotic shots, and grab-and-go fermented snacks. These products cater to busy lifestyles and on-the-go consumption.

Fermented Processed Food Market Analysis

Fermented Processed Food Market, By Product Type, 2021 - 2032 (USD Billion)

Based on product type, the market is divided into dairy products, bread and bakery products, vegetables, condiments, and beverages. The dairy products segment held the dominant market value of USD 38.2 billion in 2023 and expected to reach around USD 68.5 billion in 2032. The dairy product segment in the fermented processed food market is experiencing growth due to several factors driving demand and adoption.

Dairy products such as yogurt, kefir, and some cheeses are rich in probiotics, which are beneficial bacteria known to promote gut health. Probiotics support digestion, boost immunity, and other health benefits, driving consumer demand for these products. There is a growing awareness among consumers about the importance of gut health and the role of probiotics in maintaining overall well-being. As a result, there is increasing demand for dairy products that contain live and active cultures.

Fermented Processed Food Market Share, By Micro-organism Type, (2023)

Based on microorganism type, the fermented processed food market is categorized into bacteria, mold and yeast. The bacteria segment holds the dominant market value of USD 62.6 million in 2023 and set to cross around 112.6 billion in 2032. Bacteria, especially probiotics found in fermented foods, offer numerous health benefits such as improved digestion, enhanced gut health, strengthened immune function, and potential benefits for mental health.

Increasing consumer awareness of these benefits is driving demand for products that contain beneficial bacteria. There is a growing focus on gut health as research continues to uncover the link between gut microbiota and overall well-being. Consumers are increasingly seeking foods that support a healthy balance of gut bacteria, leading to greater interest in fermented foods rich in probiotics.

Furthermore, fermented foods are perceived as natural and minimally processed, which resonates with consumers seeking clean label products free from artificial additives and preservatives. The bacteria present in fermented foods are a natural byproduct of the fermentation process, further enhancing their appeal.

North America Fermented Processed Food Market Size, 2024 - 2032 (USD Billion)

North America fermented processed food market generated a revenue of USD 36.2 billion in 2023 and poised to surpass USD 65.7 billion in 2032. Consumers in North America are becoming more health-conscious and are seeking foods that offer functional benefits such as improved digestion and gut health. Fermented foods, rich in probiotics and other beneficial compounds, align well with these health trends. There is a growing preference for natural, minimally processed foods with clean labels (free from artificial additives and preservatives).

Fermented foods are perceived as natural products due to their traditional production methods, which appeal to health-conscious consumers. Furthermore, there has been an expansion of fermented food options available in North American markets. Traditional products like yogurt, kefir, and sauerkraut are widely available, and there is also increasing availability of newer products such as kombucha, kimchi, and fermented plant-based alternatives.

In addition, fermented foods are increasingly available in mainstream grocery stores, health food stores, specialty markets, and online platforms across North America. This increased accessibility has contributed to market growth by making these products more visible and convenient for consumers.

The U.S. fermented processed food market offers a wide range of fermented processed foods beyond traditional options like yogurt and sauerkraut. Products such as kombucha, kefir, artisanal cheeses, and fermented plant-based alternatives are gaining popularity. These diverse offerings cater to varied consumer preferences and dietary needs, further driving growth in the premium segment. U.S. consumers are increasingly embracing global culinary influences, including fermented foods from various cultures such as Korean kimchi, Japanese miso, and Middle Eastern fermented dairy products. This cultural diversity contributes to the expansion of specialty and premium fermented food options in the market.

Furthermore, premium fermented products are often available through specialty food stores, health food stores, gourmet markets, and online platforms. These distribution channels cater to consumers seeking unique and high-quality food experiences, contributing to the growth of the above-market segment. Moreover, companies in the U.S. are innovating with new flavors, ingredients, and packaging formats to differentiate their products in the competitive market. Premium brands may focus on sustainable practices, clean label ingredients, or unique fermentation techniques to attract discerning consumers willing to pay more for premium offerings.

Fermented Processed Food Market Share

Fermented Processed Food Market, By Product Type, 2021 - 2032 (USD Billion)

The competitive landscape of the Fermented processed food industry is characterized by several key players vying for market share and differentiation. Companies operating in this space include Nestlé, Danone, The Coca-Cola Company, PepsiCo among others. These firms compete on various fronts such as product quality, pricing, distribution network, technological innovation, and customer service.

To navigate this competitive landscape effectively, companies must adopt a strategic approach that focuses on several key areas. Firstly, maintaining a strong emphasis on product quality and reliability is essential to establish trust and credibility among customers. Additionally, developing a robust distribution network ensures timely delivery of Fermented processed food to customers across different regions.

Moreover, investing in research and development to innovate and improve product can lead to cost efficiencies and product enhancements, providing a competitive edge. Embracing sustainability practices in production and distribution can also be a strategic differentiator in response to increasing environmental regulations and customer preferences.

Furthermore, forming strategic partnerships or alliances with suppliers, distributors, or technology providers can enhance market reach and capabilities. Lastly, maintaining a customer-centric approach by offering tailored solutions, responsive customer support, and value-added services can foster long-term relationships and customer loyalty in this competitive market landscape. Overall, a comprehensive strategic approach encompassing quality, innovation, sustainability, partnerships, and customer focus is vital for success in the market.

Fermented Processed Food Market Companies

Major players operating in the fermented processed food industry include:

  • Nestlé
  • Danone
  • The Coca-Cola Company
  • PepsiCo
  • Anheuser-Busch InBev
  • Heineken
  • Mondelez International
  • Kraft Heinz
  • Unilever
  • Fonterra Co-operative Group

Fermented Processed Food Industry News

  • In 2022, Nestle Health Science’s probiotics brand Garden of Life has launched two new probiotics targeted at kids’ growth and immune health on China’s offline retail market. Both new products, which come in the form of solid beverages, are sold as general foods. Garden of Life was introduced into China via the cross-border e-commerce channel in 2019.
  • In 2022, Danone introduces new drinkable yogurt to promote better gut health and immunity. It announced its innovation hitting grocery coolers, Activia+ Multi-Benefit Probiotic Yogurt Drinks. Packed with billions of live and active probiotics that help support one’s gut health, Activia+ also is an excellent source (20% DV) of vitamins C, D and zinc to support the immune system.

The fermented processed food market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Billion) (Kilo Tons) from 2021 to 2032, for the following segments:

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Market, By Product Type

  • Dairy Products
    • Yogurt
    • Cheese
    • Buttermilk
    • Kefir
  • Bread and Bakery Products
    • Sourdough bread
    • Fermented pastries
  • Vegetables
    • Sauerkraut
    • Kimchi
    • Fermented pickles
  • Condiments
    • Soy sauce
    • Miso
    • Fish sauce
    • Fermented chili pastes
  • Beverages
    • Kombucha
    • Wine
    • Beer
    • Cider

Market, By Microorganism Type

  • Bacteria
    • Lactic acid bacteria 
    • Acetobacter aceti
  • Yeast
    • Saccharomyces cerevisiae
    • Wild yeasts
  • Mold
    • Aspergillus oryzae
    • Penicillium

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA


Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of fermented processed food reached USD 105.8 billion in 2023 and is set to witness over 6.6% CAGR between 2024 and 2032, owing to the rising vegan and vegetarian population.

The bacteria segment generated USD 62.6 million in 2023 and is expected to reach USD 112.6 billion by 2032, as they offer numerous health benefits, such as improved digestion, enhanced gut health, and strengthened immune function.

North America market size dominated around USD 36.2 billion in 2023 and may reach USD 65.7 billion by 2032, due to the growing preference for natural, minimally processed foods with clean labels.

Nestlé, Danone, The Coca-Cola Company, PepsiCo, Anheuser-Busch InBev, Heineken, Mondelez International, Kraft Heinz, Unileve, and Fonterra Co-operative Group

Fermented Processed Food Market Scope

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 10
  • Tables & Figures: 155
  • Countries covered: 19
  • Pages: 210
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