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Industry Insights, Market Size, CAGR, High-Level Analysis: Kombucha MarketThe global kombucha market size was worth USD 1.67 billion in 2019 and is expected to expand at a revenue-based CAGR of 19.7% during the forecast period. Growing consumer preference for functional drinks over carbonated drinks and juices along with awareness regarding the inherent nutritional benefits of the product is expected to fuel the growth. Kombucha is prepared from bacteria and enzyme culture formation upon fermentation of tea and hence it has probiotic properties. Tealeaves, sugar, Symbiotic Colony of Bacteria and Yeast (SCOBY), and flavors are the key raw materials used for making kombucha. It has been found to improve body functioning, digestive health and lift up mood and energy levels. Growing popularity of the product can be attributed to its unique flavor and fizzy taste, making it stand out amongst a wide array of beverages available in the market. Kombucha is also found to be effective for the treatment of cancer, arthritis, and other degenerative diseases along with being useful for body detox, increasing metabolism, rebuilding connective tissues, and controlling headaches. Companies are heavily investing in new product development to cater to the increasing consumer inclination toward healthy drinks and new flavors. Companies are also increasingly investing in marketing of kombucha through social media platforms. It has led to increasing traction through consumer interest toward their product offerings. Innovative packaging along with producing kombucha incorporating flavors and ingredients, such as lemon, ginger, berries, coffee, and other fruits also should bolster demand in the forecast period. The global kombucha market is expected to witness significant growth due to rapid development of production process to improve and optimize fermenters by reducing inefficiencies observed during fermentation. Advanced bottling technology and automated labelling methods can further reduce production time along with reducing manual labor involved in the process and thereby positive influence the market growth. Manufacturers have partnered with various distribution centers, such as supermarkets, online stores, and health stores to boost the market presence of their kombucha products. Supermarkets are the most preferred distribution partners for the manufacturers as it has a direct appeal to customers coming in for shopping, due to its attractive packaging solutions.
Distribution Channel InsightsOn the basis of distribution channel, the kombucha market has been segregated into supermarkets, health stores, and online stores among others. Supermarket accounts for the highest market share in 2019, due to easy accessibility and being an important entity in devising marketing strategy. Consumer are more prone to know about new products through on-shelf retail marketing, attractive packaging and marketing events held at major supermarkets for consumer awareness by companies. Supermarket segment size through product sales accounted for 72 million liters in 2019 and is expected to expand at a CAGR of 26.8% during the forecast period. This growth can be attributed to increasing disposable income scales for middle class population coupled with consciousness regarding leading a healthy life. Most supermarkets offer higher discount rates and promotional offers due to their high stocking capacity, which helps them introduce newer products to the consumers. The overall market size though online shopping sales is anticipated to surpass USD 2.4 billion by 2027. This can be ascribed to attractive marketing campaigns organized by the kombucha brand owners to entice customers to try new products through social media influencers. Companies are also committed to provide safe home delivery services, making it convenient for customers, thus driving the product demand through online distribution channels.
Flavor InsightsKombucha is widely available in two forms, namely, original raw flavor and flavor infused form. Many brewers offer a range of flavors along with the original raw form. Increasing investment in R&D to formulate new exotic flavors should boost product market size over the forecast period. The original flavored kombucha segment was valued at USD 458 million in 2019 and is anticipated to expand at a CAGR of over 20% during the forecast period. This growth is ascertained to consumers prioritizing consumption of kombucha in its original flavor due to its historical and cultural significance. North America original flavor segment emits significant prominence in this regard and is expected to register a CAGR of 17% during forecast period. Increasing use of natural extracts and flavors in functional beverages is projected to further strengthen the market growth in the forthcoming years. Widening application of kombucha in food and beverage applications, such as candies, breakfast meals, ice cream toppings, and other such products is projected to positively influence the market. Furthermore, flavored segment is witnessing remarkable market penetration on account of widespread popularity of these beverages.
Regional Insights of Kombucha MarketNorth America dominated the global market with a revenue share of over 52%, in 2019. Changing consumer preferences along with rising middle-class population is acting as the major driver for this growth. The regional growth is primarily attributed to the increased demand and supply of non-carbonated and low-calorie beverages, such as flavored kombucha. Massive investments commenced in developing blending process is anticipated to surge preference for kombucha-based beverages in the region over the next few years. Europe is set to expand at a CAGR of 19% during the forecast period. Increasing demand for sports and energy nutrition products among working professionals in Europe for maintaining the muscle strength is expected to promote the usage of kombucha. Furthermore, new product developments and attractive internet campaigns by PepsiCo, The Coca-Cola Company, and Starbucks Coffee Company among others are expected to amplify the regional product demand in near future. The market is likely to move toward consolidation, while the market players simultaneously diversifying their product offering and target markets. Also, obesity epidemic in most developed countries, coupled with taxes on sugar products, is acting as a restraining factor for Carbonated Soft Drinks (CSDs) and as a driving factor for the products such as low-calorie kombucha beverages.
Market Share Insights of Kombucha MarketKey market players include GTs Living Food; PepsiCo; Reeds Inc.; The Hain Celestial Company; KeVita Inc.; Buchi Kombucha; LIVE Beverages; and RedBull. Presence of numerous small and medium sized players catering the market deduce a fragmented market scenario. This leads to highly competitive prices and availability of a wide range product offerings. Companies are highly focused on developing new flavors and packaging solutions to meet demand and hence are heavily investing on R&D to understand consumer preferences and patterns. Companies, such as Cell-Nique Corporation and Hain Celestial Group adopted acquisition strategies to gain market share and to enhance their product offerings. Most companies enter into agreements with retail stores, such as Wal-Mart and Whole Foods Market, for effective product distribution. Kombucha beverage manufacturers have also started taking advantage of the growing e-commerce industry, thus making their products available across various countries.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Kombucha Market Research ReportThis report forecasts volume and revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global kombucha market report on the basis of flavor, distribution channel, and region:
Flavor Outlook (Volume, Kilo Liters; Revenue, USD Million, 2019 - 2030)
Distribution Channel Outlook (Volume, Kilo Liters; Revenue, USD Million, 2019 - 2030)
- Health Stores
- Online Stores
Table of Contents Chapter 1. Methodology and Scope 1.1. Market Segmentation & Scope 1.2. Market Definition 1.3. Information Procurement 1.3.1. Purchased Database 1.3.2. GVR’s Internal Database 1.3.3. Secondary Sources & Third-Party Perspectives 1.3.4. Primary Research 1.4. Information Analysis 1.4.1. Data Analysis Models 1.5. Market Formulation & Data Visualization | read more...