The fermented drinks market is projected to grow steadily during the forecast period. Fermented beverages have emerged as one of the most commonly consumed beverages around the world. Over the past few years with gradual improvements in fermenting techniques along with increased investments in research and development in other processing technologies have led to their subsequent implementation not only to ensure the growing demand for fermented beverages are met but also are devoid of synthetic ingredients, chemical and nutritious at the same time. The primary reason behind the surge in the demand for fermented beverages are the health benefits such as improved food digestibility, increased concentrations of vitamins and bioactive compounds, better shelf life, etc. associated with their consumption. The growing health awareness amongst consumers worldwide will contribute to the market growth during the forecast period.
Moreover, in the past few years, fermented beverages have been increasingly fortified with nutraceutical ingredients with the rationale of improving human health and wellness. Owing to the fast pace of life and changing food habits, there is an increased emphasis on health and longevity which have are being largely prioritized by consumers. Further, the increasing urbanization, rising disposable income, and growing purchasing power of the consumers have encouraged consumers to shift towards fermented beverages over traditional ones which will strengthen the market growth during the forecast period. Geographically, the North American region is estimated to hold a dominant market due to the wide target base of consumers and the surging demand for alcoholic and non-alcoholic beverages by the consumers in the region.
Alcoholic fermented drinks are expected to hold a significant share in the market.
By type, the fermented drinks market is segmented into alcoholic beverages and non-alcoholic beverages. The growth of alcoholic fermented beverages can be prescribed to the increasing disposable income and lifestyle changes. As the purchasing power rises, the demand for luxury goods like premium beers and aged wines is on the increasing trend. The inclination towards low alcohol content drinks is also stimulating the growth of the market. Innovations led by several breweries with flavor-infused products like flavored beers such as lemon, peach, chocolates, strawberries, etc are aiding the spread of the market. Also, in recent years, there has been a growing search for the development of new beverages elaborated from the most varied substrates
Fermented beverages containing ethanol have been consumed by humans since the Neolithic period and consist of wines, beers, spirits, and other products. According to the World Bank data, total alcohol consumption per capita (+ 15 years of age) stood at 6.18 liters in 2018. These data are skewed from region to region. Belarus, Germany, Czech Republic lie on top of the consumption list. The production of these beverages is increasing exponentially as demand fuels around the globe.
However, with the advent of the Covid-19 pandemic, the demand for consumption of alcoholic beverages slowed down. The COVID-19 pandemic and its associated government measures to limit mobility impacted patterns and places of alcohol consumption. Harmful alcohol consumption damages health causes diseases and injuries, weakens response to COVID-19, and leads to significant economic and societal costs. During the COVID-19 pandemic, people have significantly changed drinking habits, shifting places of consumption from bars and restaurants to home. For many people, alcohol is part of their social life, a life that has been significantly disrupted by COVID-19.
Online channel of sales is growing at an exponential rate.
By distribution, the fermented drinks market is segmented into offline and online channels. The online channels showcase promising markets. This growth can be attributed to the massive growth of the online retail industry as well as the proliferation of several D2C brands all around the world. Rising internet penetration as well as the constantly improving customer experience of online retail channels is expected to be the major factor contributing to the growth of the online retail industry, which subsequently, is also expected to open up new sales avenues for emerging product categories such as that of fermented drinks. The shift of consumer preference to online channels is evident from the U.S. Department of Commerce’s May 2021 report, according to which, e-commerce sales reached $196.66 billion in Q1 of 2021, up 39.0% year over year from $141.52 billion in the same quarter of 2020 with nearly $1 in every $5 spent on retail purchases coming from digital orders.
|Growth Rate||CAGR of during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Source, Distribution Channel, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Matsutani Chemical Industry Co. Ltd., Tate & Lyle PLC, CJ Cheil Jedang, Bonumose LLC, Cargill Inc., Ingredion Incorporated, Samyang Corporation, Anderson Global Group|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for the fermented drinks market?
A1. The fermented drinks market is projected to grow steadily during the forecast period.
Q2. How is the global fermented drinks market segmented?
A2. The global fermented drinks market has been segmented by type, source, distribution channel, and geography.
Q3. Who are the major players in the fermented drinks market?
A3. Prominent key market players in the fermented drinks market include Matsutani Chemical Industry Co. Ltd., Tate & Lyle PLC, CJ Cheil Jedang, Bonumose LLC, Cargill Inc., Ingredion Incorporated, among others.
Q4. Which region holds the maximum market share of the fermented drinks market?
A4. Geographically, the North American region is estimated to hold a dominant share in the fermented drinks market due to the wide target base of consumers and the surging demand for alcoholic and non-alcoholic beverages by the consumers in the region.
Q5. What factors are anticipated to drive the fermented drinks market growth?
A5. The primary reason behind the surge in the demand for fermented drinks are the health benefits such as improved food digestibility, increased concentrations of vitamins and bioactive compounds, better shelf life, etc. associated with their consumption.