Kombucha is one of the fastest growing beverage in countries such as US, Canada owing to high growth of natural and specialty product in these countries. Kombucha is a tea-based beverage, which is fermented to get the final product. The main ingredients used in the manufacturing of kombucha are tea, sugar, water, and kombucha culture which include SCOBY, molds, enzymes, and other microbes; SCOBY is a Symbiotic Colony of Bacteria and Yeast. After the fermentation process, Kombucha after fermentation gets a sour apple cider with a mild vinegary taste. Kombucha has numerous beneficial acids, probiotics, amino acids, vitamins, and antioxidants and a variety of flavors such as herbs, berries and flowers can be added to add different tastes to the drink. The global kombucha market is projected to grow at a CAGR of 24.2% during the forecast period (2013–2020), to reach USD 1,766.4 million by 2020.

Note: Percentage figure above the bar represent CAGR for 2015-2020
Source: Secondary Research, and MarketsandMarkets Analysis.

 

Ease of manufacturing to support growth in its consumption

Kombucha is a fermented and sugar sweetened tea with tasty sour tonic beverage that is similar to sparkling apple cider. It was previously consumed in China, and found its way to Russia and other Eastern European countries, where it became famous for its detoxifying and energising properties. The manufacturing process of Kombucha is fairly simple as compared to other functional beverages, and offers health benefits such as detoxifying the blood, reducing cholesterol levels, reducing blood pressure, protecting against diabetes, antibacterial effects, and counteracting ageing associated with its consumption. As it is a natural product obtained by natural fermentation, the demand for Kombucha has surpassed the industry growth of non-alcoholic beverage which was mere 1.2% in 2017. Kombucha can also be manufactured in households, cafes and restaurants which increases its consumption.

Due to its easy manufacturing process, kombucha is manufactured on a large scale by regional and local vendors. The product is gaining immense popularity among the beverage manufacturing industries, which are planning to enter the kombucha market.

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What’s Driving the Growth of Kombucha Market?

• Fast growth of Kombucha in major markets: With the growth of health beverages, and functional drinks, kombucha has crafted its own niche which is focused on fermented, fizzy stuff for the taste and for the gut health. Changing lifestyles of consumers and a shift towards general wellbeing, weight management, digestive health, energy boosting, and endurance are driving the demand for kombucha drinks. People are more inclined towards health benefits associated with rich food & beverage supplements and wellness-related products which is promoting the growth of the kombucha market. US is one of the major market for kombucha products where natural beverage category is the fastest growing category in 2017. In the same year refrigerated kombucha and fermented beverages grew over 37% in the US market.

• Increasing investment and product launches: The key market players are diversifying into the production of new varieties of fortified and enriched beverage products and also entering the kombucha market. There has been significant entrance of kombucha product manufacturers in the market, along with investment from major beverage brands. The existing brands such as GT’s, KeVita, Health Ade, Brew Dr and Live Soda, companies such as Suja, bambucha Kombucha and Sen Zen Tea entered in to Kombucha market in US. Due to high potential of the market companies are investing in kombucha market. For instance, In 2018, Peet’s Coffee invested $7.5 million in Revive Kombucha while in 2016, PepsiCo’s acquired KeVita to enter into Kombucha market.

Competitive Scenario in the Industry

Kombucha is a fragmented market which is currently at nascent stage. It has some of the major beverage companies which are adopting various strategies such as new product launches, acquisitions, expansions, partnerships, mergers, and agreements. New product launches and acquisitions were the key strategies adopted by players to sustain in the competitive market. The major players in the kombucha market include Hain Celestial, Pepsico, GT’s Kombucha, while many new players are entering the market, which is expected to increase the competition and support the growth of Kombucha market.

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