An Incisive, In-depth Analysis on the Kombucha Market
This study offers a comprehensive, 360 degree analysis on the Kombucha market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Kombucha market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Kombucha Market Outlook & Key Findings
- Kombucha market likely to grow at over 16% in 2020, as covid-19 pushed consumption in Europe and US
- Growing consumer interest in fermented drinks a key growth driver
- Small craft brands challenging industry Goliaths, creating opportunities for local kombucha producers
- Newfound kombucha popularity in emerging markets leading to clarion calls for developing Standard of Identity
- Kombucha’s much-hyped ‘alcohol problem’ remains a challenge, as brands struggle to maintain under 0.5% threshold throughout shelf life
Kombucha Market Analysis: An Ethnic Drink in the Mainstream
Fermented food and drinks are currently witnessing a revival, as consumer preference for healthy drinks has intensified during the covid-19 crisis. Although kombucha has traditionally been consumed in Asia for thousands of years, its growing popularity earlier in the US, and now in Europe has led to the creation a multi-billion market place.
These opportunities are not lost on the functional beverage industry, with both Coca-Cola and Pepsi already making a foray into this lucrative market. Global revenues are set to increase by over 16% in 2020, contrasting expectations of a pandemic-induced slowdown. The crisis, in fact, has led to a spike in demand, especially in the US and Europe, as consumers are panic buying products with perceived immunity boosting capabilities.
Little Room for Another Multi-million Kombucha Brand, but Market Wide Open for Local Dominance
The kombucha market place already has a handful of well-known behemoths, including the likes of GT’s Living Foods, Humm Kombucha, and Kevita. Although aspiring kombucha brands have sprung up all over the globe, most of the top manufacturers are US-based.
GT alone owns 40% of US market, but the marketplace is heating up quickly, with $260 million PepsiCo-funded Kevita eyeing market dominance. Considering the existing competitive scenario, scaling up a new brand from scratch remains a tough ask, unless backed by the funding machine of an existing multi-national drinks brand. However, the market is wide open for boutique, homegrown brands who are advantaged by familiarity with local tastes and preferences.
The success of any kombucha brand depends largely on the strength of its supply chain, and its ability to sell at local and regional level. In that sense, kombucha is one of those outliers in the drinks industry where local marketing has been successful. However, creating a strong brand even at a local or region level will entail unique brand positioning, as retailers tend to offer different types of kombucha to provide their consumers a variety of product choices.
Soda’s Loss is Kombucha’s Gain
The soda category has been in contraction since the last decade or so, as a tide of anti-obesity awareness measures have put several brands under scrutiny. The fermented drinks industry has been quick to step in and fill the lucrative vacuum. Soda, once a ubiquitous drink globally, is being quickly replaced by fermented and functional drinks, providing considerable traction to kombucha industry players. Bordering on the risk of exaggeration, kombucha industry believes 2020-2030 to be its decade of reckoning; a careful market analysis reveals that the optimism may not be farther from the truth.
Kombucha Consumption Pattern: Consumers Open to Experimenting with Flavored Variants
Kombucha market players have, and are, launching new products to appeal to the varied tastes and preferences of consumers. Since gaining commercial momentum, regular kombucha was in vogue, however, as more consumers become open to experimentation, sales of flavored kombucha variants have grown substantially. Certain flavors, especially herbs, spices, and berries are witnessing higher demand than citrus, apple, coconut, and flowers. Considering these kombucha market trends, existing and new kombucha players are focusing on expanding their product portfolio.
Kombucha Sales: Specialty Stores, Online, and More
Traditionally, food & beverage specialty stores have accounted for a significant pie of the overall kombucha sales, with hypermarkets/supermarkets & convenience stores among other prominent sales channels. However, the covid-19 crisis has increased online sales, and the status quo is not likely to change in the short-term. The challenge, as well as the opportunity, for online platforms will be to offer a broader range of niche products that consumers usually expect in a specialty store.
Alcohol Content and Clean Labelling: Key Challenges for Kombucha Industry
The alcohol content in kombucha drinks, and transparent labelling remain a key challenge for the industry. Brand have been trying to address the issue through distillation, heat pasteurization, and microfiltration; however, the downside to these techniques is the risk of interfering with the ‘authenticity’ of the drink.
Despite efforts by the kombucha industry to address this longstanding challenge, ombudsmen and industry watchers agree that under-reporting is still rampant in some countries with relatively lax monitoring mechanisms. The industry is also lobbying for passing the Kombucha Act, to increase the alcohol threshold to 1.25%., however, there is no bipartisan support for the Act.
The clean label feature varies according to market and geography, with EU5 among the markets with highest clean label claims per kombucha product. In the US, nearly one-third of all kombucha products available in the market are labelled “no GMOs”. In the world’s major markets, China continues to lag in terms of clean label claims per product.
Kombucha: Region-wise Analysis
US and Western Europe continue to be the most lucrative markets for ready to drink beverages in general, and kombucha in particular. In the US, Oregon continues a key market for kombucha manufacturers, with Portland unofficially the kombucha capital of the country. The US kombucha market has consistently shown double-digit annual growth rates, and the market is set to grow at over 15% in 2020. Europe kombucha market, which accounts for nearly one-third of global kombucha revenues, is also set to witness stellar growth in the future.
Outside of these two lucrative markets, Australia, China, and India represent significant opportunities for kombucha market players. Although the average kombucha consumption in China and India is significantly lower than the US and Europe, the potential to penetrate a geography with over two billion people has led to a scramble among market participants.
Leading suppliers in Kombucha Market
The kombucha market place is witnessing the entry of new players, albeit at a local or regional level. With an estimated 400+ kombucha players, innovative flavors, personalized packaging, clean-label claims, and social media marketing have become key avenues for forging a distinct brand identity. Some of the key players in the kombucha market are,
- GT’s Living Foods
- Humm Kombucha
- Reed’s, Inc.
- Kombucha Wonder Drink
- Strappa Live Kombucha
- Equinox Kombucha
- Carpe Diem
- Yogi Tea
- Heal Probiotics
- Kombucha Wonder Drink
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report
Kombucha: The Way Forward
The long-term outlook on kombucha market remains bullish, with FMI’s analysis estimating revenues to grow at over 15% consistently. Consumer appetite for fermented products isn’t expected to wane anytime soon; in fact, the pandemic has already reaffirmed the case for functional foods. However, within the fermented drinks category, kombucha has an impressive list of peers - kefir, root beer, pulque, and probiotic lemonade – all are competing for consumer attention.
Kombucha brands will need to move beyond their core demographic of millennials and connoisseurs of ‘ethnic’ products to target a wider consumer base. Manufacturers can also promote the health benefits of kombucha to target geriatric population. To increase sales in cost-sensitive, yet lucrative markets, launching an affordable range of products is needed for introducing a new set of consumers to this category.
Kombucha Market: Global Industry Analysis 2015-2019 & Opportunity Assessment 2020-2030
A recent market study published by Future Market Insights on the kombucha market offers global industry analysis for 2015-2019 & opportunity assessment for 2020-2030. The study offers a comprehensive assessment of the most important market dynamics. After conducting a thorough research on the historical and current growth parameters of the kombucha market, the growth prospects for the market are obtained with maximum precision.
The global kombucha market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.
Chapter 01 - Executive Summary
The executive summary of the kombucha market includes the market country analysis, demand-side and supply-side trends, opportunity assessment, and recommendations on the global kombucha market.
Chapter 02 - Market Introduction
Readers can find the detailed segmentation and definition of the kombucha market in this chapter, which will help them understand basic information about the kombucha market. This section also highlights the inclusions and exclusions, which helps the reader understand the scope of the kombucha market report.
Chapter 03 - Market Background
The associated industry assessment of the kombucha market is carried out in this section. The macroeconomic factors affecting growth of the kombucha market is provided in this section and the impact of these macroeconomic indicators on the kombucha market is analyzed. The processing overview and technological advancements in the kombucha market are provided.
Chapter 04 - Market Dynamics
Drivers and restraints impacting the growth of the kombucha market are explained in this chapter. Opportunities and ongoing trends in the kombucha market are also comprehensively discussed.
Chapter 05 - Consumer Sentiment Analysis
In this chapter, the readers can find a detailed analysis of demand and reactions of consumers regarding kombucha available in the market. Customer requirements are described in this section along with a brief segment on social media sentiments. This section also offers suggestions on marketing strategies for maximum coverage and impact.
Chapter 06 - Global Kombucha Market Value Chain
Profit margins at each level of the kombucha market are analyzed and readers can find detailed information on top importers and exporters as well as the value chain of the kombucha market.
Chapter 07 - Pricing Analysis
This section highlights the price point assessment by flavour, average price of different flavours of kombucha in different regions worldwide and its forecast till 2030. Main factors influencing the prices of kombucha are also explained in this section.
Chapter 08 - Global Kombucha Market Analysis and Forecast 2015 - 2030
This chapter includes a detailed analysis of the historical kombucha market (2015-2019), along with an opportunity analysis of the future (2020-2030). Readers can also find the absolute $ opportunity for the current year (2020 - 2021) and incremental opportunity for the forecast period (2020-2030).
Chapter 09 - Global Kombucha Market Analysis 2015-2019 & Forecast 2020-2030, by Flavour
Based on flavour, the kombucha market is segmented into regular, herbs & spices, citrus, berries, apple, coconut & mangoes, flowers and others. In this chapter, readers can find information about key trends and developments in the kombucha market and market attractiveness analysis based on flavour.
Chapter 10 - Global Kombucha Market Analysis 2015-2019 & Forecast 2020-2030, by Sales Channel
Based on sales channel, the kombucha market is segmented into food and drink specialty store, hypermarket/supermarket, convenience store and online retail. This section also offers market attractiveness analysis based on sales channel.
Chapter 11 - Global Kombucha Market Analysis 2015-2019 & Forecast 2020-2030, by Packaging
This chapter provides details about the kombucha market on the basis of packaging, and has been classified into glass bottles and cans. In this chapter, readers can understand market attractive analysis based on packaging.
Chapter 12 - Global Kombucha Market Analysis 2015-2019 & Forecast 2020-2030 by Region
This chapter explains how the kombucha market is projected to grow across various geographic regions such as North America, Latin America, Europe, Asia Pacific Excluding Japan, Japan and Middle East & Africa (MEA).
Chapter 13 - North America Kombucha Market Analysis 2015-2019 & Forecast 2020-2030
This chapter includes a detailed analysis of the growth of the kombucha market in the North America region, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find regional trends, regulations, and market growth based on end users and countries in the North America region.
Chapter 14 - Latin America Kombucha Market Analysis 2015-2019 & Forecast 2020-2030
Readers can find detailed information about several factors, such as the pricing analysis and regional trends, which are impacting growth of the kombucha market in the Latin America region. This chapter also includes growth prospects of the kombucha market in leading LATAM countries such as Brazil, Mexico, Argentina, and the Rest of Latin America.
Chapter 15 - Europe Kombucha Market Analysis 2015-2019 & Forecast 2020-2030
This chapter includes information on the factors driving the kombucha market in Europe. It studies in detail the growth trajectory exhibited by the market in various countries within Europe, including Germany, U.K., France, Italy, Spain, BENELUX, Nordic, Russia, Poland, and the Rest of Europe.
Chapter 16 - Japan Kombucha Market Analysis 2015-2019 & Forecast 2020-2030
This chapter includes a detailed analysis of the growth of the kombucha market in Japan. Readers can also find information on regional trends, regulations, and market growth based on end users and countries in Japan.
Chapter 17 - Asia Pacific Excluding Japan Kombucha Market Analysis 2015-2019 & Forecast 2020-2030
This chapter includes a detailed analysis of the growth exhibited by the kombucha market in Asia Pacific Excluding Japan along with a country-wise assessment that includes China, India ASEAN, Oceania and the Rest of Asia Pacific Excluding Japan. Readers can also find regional trends, regulations, and market growth based on end users and countries in the Asia Pacific Excluding Japan region.
Chapter 18 - The Middle East and Africa Kombucha Market Analysis 2015-2019 & Forecast 2020-2030
This chapter offers insights into how the kombucha market is expected to grow in major countries in the Middle East and Africa (MEA) such as GCC Countries, Turkey, South Africa, and rest of MEA, during the forecast period 2020-2030.
Chapter 19 - Competition Assessment
In this chapter, readers can find detailed information on tier analysis and concentration of the key players in the kombucha market along. The chapter also includes their market presence analysis by region and product portfolio.
Chapter 20- Competition Deep-Dive
In this chapter, readers can find a comprehensive list of leading manufacturers in the kombucha market, along with detailed information about each company, which includes the company overview, revenue shares, strategic overview, and recent company developments. Some of the market players profiled in the report are Makana Beverages LLC., Kombucha Wonder Drink, KeVita LLC, Humm Kombucha LLC., Townshend’s Tea Company, Reed’s Inc., Red Bull GmbH, NessAlla Kombucha, Live Soda LLC, Kosmic Kombucha, Buchi Kombucha, GT’s Living Foods, Hain Celestial and Hudson River Foods
Chapter 21 - Assumptions and Acronyms
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the report on the kombucha market.
Chapter 22 - Research Methodology
This chapter helps readers understand the research methodology followed to obtain various conclusions and important qualitative and quantitative information on the kombucha market.