Fermented Foods and Beverages Market by Product (Fermented Foods {Dairy Products [Yogurt, Kefir], Tofu, Vegetables}, Fermented Beverages {Alcoholic, Non-alcoholic}), Distribution Channel (Convenience Stores, E-commerce) and Geography - Global Forecast to 2030

The Fermented Foods and Beverages Market is projected to reach $1,001.58 billion by 2030, at a CAGR of 6.3% during the forecast period 2024–2030. The growth of this market is mainly driven by the increasing consumer awareness regarding the health benefits of fermented foods and beverages, rising consumer preference for healthy food, and the increasing popularity of probiotic food and beverages among consumers. Moreover, the growing vegan population and rising consumer preference for plant-based foods are expected to support the growth of this market.

Stringent regulations on the fermentation of food and beverage products are a challenge for the market’s growth. Also, the risk of contamination and the possibility of health risks due to fermentation are factors hindering the growth of this market.

Key Players

The key players operating in the fermented foods and beverages market include Anheuser-Busch InBev NV/SA (Belgium), Constellation Brands, Inc. (U.S.), Cosmos Food Co., Inc. (U.S.), Danone S.A. (France), Fonterra Co-operative Group Limited (New Zealand), Groupe Lactalis S.A. (France), Lifeway Foods, Inc.(U.S.), Heineken N.V. (Netherlands), Chobani, LLC (U.S.), Nestle S.A. (Switzerland), PepsiCo, Inc. (U.S.), Fermented Food Holdings, Inc (U.S.), and Yakult Honsha Co., Ltd. (Japan), among others.

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The Impact of COVID-19 on the Fermented Foods and Beverages Market

The COVID-19 pandemic adversely hit many economies around the globe. Complete lockdowns and quarantine restrictions imposed to fight COVID-19 adversely impacted many industries globally, including the food & beverage industry. The fermented foods and beverages market registered a slowdown in sales in the first quarter of 2020, mainly due to disruptions in logistics and transportation.

However, the COVID-19 pandemic positively impacted the fermented foods and beverages market due to increased consumer awareness regarding health and high immunity. According to international scientific research, fermented foods support the immune system in fighting against Viruses such as COVID-19. As a result, people started buying nutritional products in bulk quantities. The demand for fermented food and beverage products containing probiotics, vitamins, organic acids, and amino acids soared due to customers' increased willingness to buy products in bulk during the lockdowns. This fueled the launch of numerous products to cater to the rising demand. Furthermore, manufacturers encouraged people to buy their products from online platforms to ensure consumers’ safety.

However, social distancing, self-isolation, and city-wide lockdowns forced many establishments to close in several countries. In the U.K., the U.S., and Australia, supermarket chains started to enforce new rules to curb panic buying, while suppliers and factory workers took additional health and safety measures to keep consumers safe. Moreover, the manufacturers of fermented beverage products face significantly reduced consumption and disrupted supply chains. The food & beverage industry witnessed a slight decline due to the lockdowns imposed across various countries. All these factors restricted the demand for fermented foods and beverages.

Therefore, disruptions in the transportation and logistics industry and reduced production in some countries due to lockdowns adversely affected the fermented foods and beverages market in terms of sales volume in 2020 and 2021.

Increasing Consumer Awareness Regarding the Health Benefits of Fermented Foods and Beverages to Fuel Market Growth

Nowadays, consumers’ growing health consciousness is driving the demand for fermented products. The beneficial bacteria in fermented foods and beverages offer several health benefits. Fermented foods/drinks such as probiotics help improve gut functionality. The high prevalence of digestive disorders, obesity, and diabetes are the main concerns for consumers. As a result, they have become more conscious of their food habits and preferences. In addition, the demand for probiotic foods and drinks is growing due to their easy availability and health benefits. Probiotics are part of functional foods and beverages and help improve gut functionality.

Fermented food and beverage products also help prevent metabolic health disorders and improve overall health. Furthermore, fermented food products, like sauerkraut, kombucha, and kefir, are also gaining popularity among consumers due to their anti-inflammatory, antioxidant, anti-diabetic, and anti-fungal properties. In addition, consumers prefer fermented beverages like Kvass (a fermented cereal-based non-alcoholic beverage) due to the need for beverages that are nutritious, natural, delicious, and fit their healthy lifestyles. Furthermore, in September 2022, the Ministry of Agriculture and Food Security of France launched the $48.9 million (EUR 48.3 million) publicly funded “Ferments du Futur” initiative for the agri-food sector to develop natural fermentation techniques that will accelerate the agricultural and food revolution. Therefore, all these factors are expected to drive the growth of this market during the forecast period.

Key Findings in the Fermented Foods and Beverages Market Study:

The Fermented Foods Segment to Dominate the Overall Fermented Foods and Beverages Market in 2024

Based on product, the market is primarily segmented into fermented foods and fermented beverages. In 2024, the fermented foods segment is expected to account for the larger share of the fermented foods and beverages market. The large market share of this segment is mainly attributed to the growing demand for fermented food products due to their various health benefits such as antioxidant, anti-fungal, anti-inflammatory, anti-microbial, and anti-atherosclerotic properties; rising consumer spending; the growing global food industry, and consumer inclination toward healthy foods. In addition, the fermented foods market is further segmented into dairy products, bakery and confectionery products, tofu, vegetables, tempeh, meat and seafood, and other fermented foods. The dairy products segment is expected to account for the largest share of the fermented foods market in 2024 due to the growing demand for dairy products across the globe. In addition, consumers who are intolerant to lactose prefer fermented dairy products as they are easy to digest compared to unfermented milk.

However, the fermented beverages segment is projected to register the higher CAGR during the forecast period 2024–2030 owing to the rising preference for fermented beverages such as Kvass, Kombucha, and Kefir due to their health benefits, the growing demand for alcoholic beverages, and increased consumer health consciousness. In addition, the growing demand for alcoholic beverages such as wine and beer is further expected to support the growth of this market during the forecast period.

The Supermarkets & Hypermarkets Segment to Dominate the Overall Fermented Foods and Beverages Market in 2024

Based on distribution channel, the fermented foods and beverages market is segmented into supermarkets & hypermarkets, convenience stores, specialty stores, E-commerce, and other distribution channels. In 2024, the supermarkets & hypermarkets segment is expected to account for the largest share of the fermented foods and beverages market. The large market share of this segment is mainly attributed to the increased sales of healthy food in well-established supermarket & hypermarket chains, consumers’ preference for shopping from brick-and-mortar grocers due to easy access and availability, the growing urban population, the availability of a diverse range of products, and the increasing consumer spending on healthy food products. In addition, the arrangement of distinct shelves for fermented foods and drinks, along with ease of buying, is further expected to support increased sales of fermented food and beverage products through supermarkets/hypermarkets during the forecast period.

However, the E-commerce segment is projected to register the highest CAGR during the forecast period 2024–2030. The high growth of this segment is driven by the benefits of the E-commerce sales channel, such as the availability of a wide range of products, ease of access and affordability, higher discounts than offline stores, and home delivery services.

Asia-Pacific to be the Largest Regional Market for Fermented Foods and Beverages

Based on geography, the fermented foods and beverages market is segmented into five major geographies—North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of the fermented foods and beverages market, followed by Europe, North America, Latin America, and the Middle East & Africa. The large market share of Asia-Pacific is attributed to growing innovations and new product development in the fermented foods and beverages industry, increasing disposable incomes, growing population and rapid urbanization, changing food consumption patterns, and increasing consumer preference for nutritional food and beverages. Also, growing consumer awareness about the health benefits of fermented foods & beverages and increasing adoption of convenience food products further support the growth of this market in the region.

However, the market in North America is poised to register the fastest growth during the forecast period 2024–2030, owing to the growing vegan population and rising consumer preference for plant-based foods. Moreover, the rising demand for probiotic-rich food and drinks, rising awareness about the health benefits of consuming fermented vegetables, technological advancements in food fermentation, and the growing trend of plant-based snacking among consumers are expected to boost the demand for fermented food and beverage products in the region during the forecast period.

Scope of the Report:

Fermented Foods and Beverages Market, by Product

• Fermented Foods
  • Dairy Products
    • Yogurt
    • Kefir
    • Cheese
    • Sour Cream
    • Other Fermented Dairy Products
  • Bakery and Confectionery Products
    • Breads
    • Cakes
    • Other Bakery and Confectionery Products
  • Tofu
  • Vegetables
  • Tempeh
  • Meat and Seafood
  • Other Fermented Foods
• Fermented Beverages
  • Alcoholic Beverages
  • Non-alcoholic Beverages

Fermented Foods and Beverages Market, by Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Specialty Stores
• E-commerce
• Other Distribution Channels

Fermented Foods and Beverages Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • U.K.
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of APAC (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (RoLATAM)
• Middle East & Africa

Key questions answered in the report: