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The Fermented Food and Drinks market size is forecast to increase by USD 846.73 billion. is estimated to grow at a CAGR of 7.16% between 2022 and 2027. The market's growth hinges on several factors, notably advances in packaging methods, heightened marketing initiatives, and diverse market strategies employed by companies. These elements collectively drive innovation, enhance product visibility, and expand consumer reach. Innovations in packaging methods ensure product freshness, convenience, and appeal, thereby influencing consumer purchasing decisions. Meanwhile, increasing marketing initiatives, coupled with strategic maneuvers by companies, bolster brand recognition and market penetration. Such concerted efforts contribute to the market's expansion, fostering competitiveness and driving overall industry growth.
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In today's health-conscious society, consumer interest in wellness and culinary experiences has sparked a surge in the popularity of fermented foods and drinks. The intricate fermentation procedure not only enhances flavor and texture but also enriches the nutritional content and extends the shelf life of products, aligning perfectly with evolving consumer preferences. Probiotic food and drinks play a crucial role in promoting digestive health, aiding in the digestion process and supporting weight management and obesity prevention. These products boast enticing sensory attributes while delivering significant nutritive value and optimal digestibility. With their high bioactive molecule content and potent antioxidant activity, fermented beverages emerge as sought-after functional beverages addressing various health problems. They are readily available through retail and e-commerce sales, with brands like Remedy Kombucha and Tesco leading the charge in offering solutions for common digestive disorders through probiotic foods and drinks.
The fermented food and drinks market is witnessing a surge in popularity due to a growing emphasis on healthy eating habits and natural, less processed foods. Consumers are increasingly drawn to fermented products for their numerous health benefits, particularly in enhancing immunity and promoting gut health. Awareness of the probiotic content in fermented foods has heightened consumer health consciousness, leading to the introduction of new products catering to wider consumer bases. Additionally, environmental sustainability is a key focus, with smart packaging techniques minimizing environmental impact while preserving products. From kefir culture to sauerkraut, fermented foods offer a diverse range of flavors and nutritional benefits, driving the expansion of this market across various retail channels, including supermarkets, hypermarkets, and online portals. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the market's key drivers, trends, and challenges. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
The advances in packaging methods are the key factor driving the global market growth. Companies make distinctive choices with their packaging of and use stand-up pouches to protect and publicize their products. Stand-up pouches are much easier to carry than a jar. Lightweight, portable containers are significantly easier to travel with, which makes customers likely to purchase and consume the product. The chances of becoming a staple grocery item increase if the containers are lightweight. Also, advances in the packaging of have made it more convenient for producers to ship them at lower logistics costs than would otherwise be required with heavy packaging.
Many manufacturers, such as Lifeway Foods, are choosing environment-friendly alternatives such as green polyethylene made from sugarcane, a renewable resource. New green polyethylene bottles made from organic kefir from Lifeway Foods are recyclable and use plant-based material rather than fossil-fuel-based plastics. These packaging innovations are helping to broaden the appeal of such products among retailers and consumers. Thus, it is expected that more players will launch products with innovative packaging to entice consumers during the forecast period.
The rise in popularity of probiotics will fuel the global market growth. Probiotic food is prepared through the process of fermentation. Cultured or fermented dairy products such as yogurt, kefir, whey, raw cheese, and raw milk not only provide vitamins and minerals but also balance the gut flora. Vegetables such as cabbage, cucumber, beetroot, carrot, and pepper are also preserved through Lacto-fermentation.
Probiotics can improve the functioning of the immune system by reducing respiratory infections in consumers, thereby lowering the need for antibiotics. The regular inclusion of probiotics in a child's diet reduces the risk of acquiring influenza and falling sick frequently. The inherent benefits of probiotics have also encouraged physicians and pharmacists to recommend the consumption of probiotic food in one's daily diet. Such factors will drive the growth of the market during the forecast period.
The presence of substitute products is a major challenge to the global market growth. The presence of various substitute products in the market is another challenge faced by the market. The market has various types of substitutes, such as baked goods, biscuits, confectionery, sauces, soups, and dairy products, which can serve as substitutes for in various culinary applications.
Many varieties of these substitutes are being launched in the market currently, which can hinder the growth of the market during the forecast period. Thus, the presence of alternative products and the increasing number of new product launches and innovations can hinder the growth of the global market during the forecast period.
Our analysis of the life cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
Chobani - The company offers such as Chobani Probiotics. Also, The company offers a wide range of yogurt products under the Chobani brand name. These products largely include oat-based meals and probiotics.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market Companies , including :
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
This report extensively covers market segmentation by product (fermented alcoholic and non-alcoholic, fermented dairy food and drinks, fermented bakery food, and others), distribution channel (hypermarkets and supermarkets, independent retailers and convenience stores, speciality food stores, and online retailers), and geography (APAC, North America, Europe, Middle East, and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. The market caters to diverse consumer interests by offering culinary experiences that blend health, wellness, and exceptional taste. Utilizing fermentation procedures, products emphasize rich flavors, textures, and nutritional content while extending shelf life to meet consumer preferences. Probiotic food and drinks promote digestive health and aid in weight management and obesity prevention. With a focus on sensory attributes and nutritive value, these products boast high digestibility and bioactive molecule content, providing antioxidant activity. Innovations in the market drive retail and e-commerce sales, with brands like Remedy Kombucha and Tesco meeting the demand for natural solutions to digestive disorders through fermented offerings.
The market share growth by the fermented alcoholic and non-alcoholic drinks segment will be significant during the forecast period. Fermented alcoholic and non-alcoholic drinks include wine, beer, cider, and kombucha. Wine is an alcoholic drink that is produced by the fermentation of grapes or other fruits. It is one of the largest segments of the global alcoholic drinks market.
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The fermented alcoholic and non-alcoholic drinks segment showed a gradual increase in market share with USD 1,459 billion in 2017 and continued to grow by 2021. The wine market is mature in regions like Europe, especially in countries such as Germany, France, and Italy. However, the market in APAC exhibits the highest growth potential for manufacturers and is currently growing at a rapid rate as consumers in the region are increasingly getting inspired by Western culture. To meet the high demand for wine, players have increased wine production around the globe, which is expected to continue during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption of , which is driven by an increase in the global demand for the Industry.
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APAC is projected to contribute 44% of market growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is one of the fastest-growing markets for cheddar cheese and cream cheese, owing to the rise in disposable income, which has resulted in consumers eating out more frequently. Western dietary influences and the boom in organized retail have also spurred the demand for cheddar cheese and cream cheese in this region.
The modern consumer landscape is witnessing a profound shift towards natural and less processed foods, driven by an increasing awareness of health benefits. This trend is supported by a growing preference for anti-inflammatory, antifungal, and anti-atherosclerotic foods, alongside the rising popularity of prebiotics and natural compounds. Specialty stores and online platforms play pivotal roles in facilitating access to these products, which boast minimal environmental impact and prioritize preservation techniques. From fermented foods like kimchi and tempeh to dairy-based options and plant-based alternatives, the market reflects evolving consumer preferences towards culinary experiences that promote wellness and cater to individual health needs. With a focus on nutritional quality, food safety, and the promotion of gut health through probiotic content, the industry continues to innovate, offering consumers a diverse range of options to support their healthy eating habits and overall well-being.
In today's health-conscious era, dietary supplements have become increasingly popular, offering individuals convenient ways to boost their nutritional intake. With a focus on preserving the integrity of products, techniques such as fermentation, utilizing live microbes like kefir grains, are gaining traction. While meat remains a staple for many, there's a rising interest in veganism and plant-based diets, driven by health and ethical considerations. As health and wellness trends continue to evolve, companies like Evolve Biosystems, Inc. and Horizons Ventures are expanding their offerings, including infant probiotics products, to meet the growing demand. However, it's crucial to mitigate contamination risks and toxicity, especially in fermented alcoholic beverages, ensuring consumer safety remains paramount.
Our market research report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, distribution channel, and region.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.16% |
Market growth 2023-2027 |
USD 846.73 billion |
Market structure |
Fragmented |
YoY growth (%) |
6.12 |
Regional analysis |
APAC, Europe, North America, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key consumer countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
Anheuser Busch InBev SA, Carlsberg AS, Chobani Global Holdings LLC, Chr Hansen Holding AS, COFCO Corp., Constellation Brands Inc., Danone, DuPont de Nemours Inc., Fonterra Cooperative Group Ltd., General Mills Inc., Heineken NV, Koninklijke DSM NV, Lifeway Foods Inc., Nestle SA, PepsiCo Inc., Suntory Beverage and Food Ltd., The Coca Cola Co., The Kraft Heinz Co., Treasury Wine Estates Ltd., and Yakult Honsha Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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