Fermented Foods and Beverages - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The global fermented foods & beverages market is projected to grow at a CAGR 4.6% during the forecast period (2021-2026).

COVID- 19 pandemics have had an impact on the fermented food and beverage industry by increasing the consumption of health supplements due to the health benefits they provide. The pandemic has created an opportunity for fermented food and beverage products due to the increased demand for probiotics. This is primarily due to increased health awareness and concern for maintaining immunity and thus health well-being.

Consumer preference for healthy food has been a crucial factor driving the growth of the market and the increased health consciousness among the consumers has led to the demand for functional beverages. The rising trend of veganism and the inclination of people towards plant-based diets is anticipated to further boost the market demand for fermented foods.

The increasing prevalence of health problems among the growing population is expected to drive the demand of fermented foods. Moreover the increasing innovations and launch of newly enhanced products by emerging and key market players will drive the market in the forecasted period.

Key Market Trends

Growing Demand for Functional Beverages to Drive the Market Growth

The fermented foods and beverages market is driven by the robust demand for probiotic drinks by health-conscious consumers, especially the younger generations, globally. Probiotics are part of functional foods and beverages and help improve gut functionality. Dairy-based probiotics hold the major share in the segment, followed by fruit-based probiotic drinks. Kefir and drinking yogurts are the leading classes of products that witnessed enhanced sales in the past few years, boosting the overall growth of the fermented drinks market. Asian countries tend to favour dairy-based functional beverages, whereas the United States and Europe favour cereal-based and RTD tea functional beverages.

Asia-Pacific Holds a Prominent Market Share

The Asia-Pacific fermented foods and beverages market is driven by the increasing awareness and growing interest in a healthy diet, development in technology, media coverage, and consumer demand. The rising awareness of fermented drinks in China and India is expected to further boost the market studied in the region. In China, the growing demand for fermented dairy products, such as Liberte Kefir is likely to support market growth in the upcoming years. The rising urbanization and the increasing purchasing power of consumers have evolved eating habits, which has fueled the demand for processed foods and beverages and increased the utilization of fermented ingredients for their production.

Competitive Landscape

The global fermented foods and beverages market witnessed dominance from the giants, Nestle. SA, Danone SA, and Yakult. Some of the other prominent players include Fonterra, PepsiCo Kevita, Bright Dairy (Bright Food Group Co. Ltd), Chobani Inc., China Mengniu Dairy Company Limited, and Lifeway Foods Inc., among others. The alcoholic beverage segment in the fermented foods and beverages market is dominated by major players, such as AB InBEV, Heineken, CarlsBerg, Constellation Brands, Treasury Wine Estates. The leading companies are focused on launching innovative, low-calorie, and natural ingredient-based products which are also good in taste. Huge investments have been made in R&D to develop products for specific needs.

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