Fermented Tea Market Expands with Rising Consumer Interest in Probiotic Beverages

The global fermented tea market size is expected to reach USD 12.6 billion by 2028, based on a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 15.8% from 2021 to 2028. The presence of online channels for purchasing sparkling drinks and fermented teas is a major factor driving the demand for fermented teas. Companies in the market are increasingly utilizing social media platforms to stay afloat during the pandemic.

The pandemic has disrupted the supply chain in several industries due to the difficulty in obtaining raw materials. The closure of several businesses and cafes has decreased the sales revenue for companies in the industry. However, the pandemic has shifted the focus of customers towards healthier lifestyles and increased consumption of immunity-rich food and beverages which is acting as an opportunity for the players in the industry.

During the pandemic, several businesses turned towards online retail channels to run their business. Factors such as high consumer engagement and the ability to penetrate several demographics are boosting the sales of fermented tea. Consumers may seek organic products which are free of any artificial ingredients thereby encouraging key players in the industry to launch newer flavors using raw ingredients. Additionally, the spike in sales for hard kombucha and exotic teas such as pu-erh and heicha among younger consumers is facilitating the market growth.

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Fermented Tea Market Report Highlights

• Based on product, the market is categorized into kombucha, pu-erh, and other dark teas. The kombucha segment held a majority of the revenue share in 2020 due to the wide availability of emerging brands for kombucha in the market

• Based on distribution channel, the market is characterized into online and offline channels. The offline segment held the majority of the revenue share in 2020. Supermarkets and local stores offer customers a wide range of brands and flavors. For example, Whole Foods in New York has collaborated with local sellers for providing flavors such as watermelon basil kombucha on tap

• In 2020, Asia Pacific held a majority of the revenue share owing to an increase in middle-class population and growing demand for probiotic foods and beverages in the region

• Asia Pacific is anticipated to witness the fastest growth over the forecast period from 2021 to 2028. Increasing awareness about health benefits and concerns about ingredients present in the products are driving the market. Additionally, the rise in internet penetration is also garnering demand for healthy beverages in the region

Regional Insights

Asia Pacific dominated the market for fermented tea and accounted for the largest revenue share of 29.6% in 2020. The rise in disposable income and rising populace are serving as major opportunities for the key players in the market. Regions such as India, Sri Lanka, and other regions are attracting key players to expand their operations in these markets. Additionally, the rise in consumption of fermented foods such as kimchi, kefir, probiotic shots is also favoring the demand for fermented teas in the region. Growing awareness regarding the health benefits of the ingredients present in the tea is driving product demand in the region.

On the other hand, North America is anticipated to witness the fastest CAGR over the forecast period owing to the presence of several key players in the region. Growing health awareness among individuals, growing demand for probiotic products, and changing lifestyles are driving demand for fermented tea in the region. In addition, the growing inclination towards innovative non-alcoholic beverages is expected to propel market growth in the region. Companies in the region are constantly innovating and launching new products which include natural ingredients. In 2021, GT’s Living Foods inaugurated a science advisory board for driving awareness towards fermented foods during the pandemic.

List of Key Players of Fermented Tea Market

• Buddha Teas
• KeVita
• Live Soda LLC
• Humm Kombucha
• GT’s Living Foods
• Mandala Tea
• Menghai Tea Factory
• Born Teas
• Hunan Provincial Baishaxi Tea Industry Co., Ltd.

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