Kombucha Market Trends

Growth Drivers

• The proactive health management: The single most driving factor for the market is the scientific validation of gut health to ensure well-being, which includes mental and immunity health. According to an article published by the Frontiers Organization in September 2022, the human gut microbiota usually carries almost 150 times more genes in comparison to the overall human genome. Therefore, global customers are increasingly seeking functional probiotics, and kombucha is considered an accessible and palatable delivery system, thereby making it suitable for the market’s enhancement.
• Mainstream retail incorporation: The market is no longer confined to health food stores, but its placement has been expanded in aisles of major convenience stores, club stores, and supermarkets. As per the January 2022 MDPI article, kombucha is typically prepared by readily fermenting sweetened green or black tea, along with tea broth, with a consistency rate of 10% to 20%. This is the most suitable production process, after which kombucha beverages are easily distributed through channels, such as health and convenience stores, as well as online retailers.
• Focus on digitalized first brand building: The presence of social media platforms, especially TikTok and Instagram, is considered instrumental in educating new potential consumers. These platforms readily showcase brand authenticity, as well as drive viral trends for the market’s upliftment. In addition, brands that are successful effectively utilize digitalized storytelling to successfully demystify fermentation, along with building a loyal community. As stated in the February 2022 NLM article, commercial kombucha products, such as Better Booch Ginger Boost, Canned Brew Dr. Ginger Lemon, Kevita Master Brew Ginger Kombucha, and others, constitute approximately 86% of commercial kombucha sales, particularly in the U.S., thereby suitable for the market’s exposure.

Fermented Milk Products 2023 Export and Import Driving the Kombucha Market

Source: OEC

Challenges

• Intense market saturation and competition: The low actual gap to entry has resulted in saturation in the market with different small and regional kombucha brewers. This has created intensified competition for restricted shelf space in retail stores, which drives squeezed margins and slotting fees. Besides, brands in the market are currently competing not only with each other but also with adjacent categories, such as hard seltzers, probiotic shots, and functional sparkling waters. This saturation has pressured organizations to readily invest in brand differentiation through exclusive flavors, compelling brands, and sleek packaging to combat commoditization.
• Cold chain logistics and perishability: As an unpasteurized, raw, and live-culture product, kombucha has a restricted shelf life and needs to be refrigerated from production to point of sale. This cold-chain demand tends to complicate logistics and create a surge in expenses in comparison to shelf-stable beverages, which causes a hindrance in the kombucha market globally. This usually limits distribution reach to locations with dependable refrigeration and diminishes flexibility for retailers. Besides, any breakage in the cold chain can escalate fermentation, change the flavor, and effectively spoil the product, resulting in lost and wasted revenue.