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Sep 20, 2019 4:00 AM ET

Kombucha Market | 19.34% CAGR | Strategic Analysis | 2019-2025 | OGAnalysis


iCrowd Newswire - Sep 20, 2019

Kombucha Market size progresses towards growth phase through 2025 with 19.34% CAGR

 Kombucha Market growth rate, through 2025

Consumption trends towards healthy drinks are offering strong drive to the Kombucha Market growth, specifically with global majors such as Starbucks, Yocha, Dr. Kombucha and others are investing in marketing new brands.

Increased customer awareness towards the health benefits of Kombucha such as weight management, antioxidant, reduced heart disease risk and others are propelling Kombucha market growth.

Non-alcoholic beverage manufacturing companies are marketing Kombucha brands in emerged markets. Among countries, Kombucha market has attained high attention in United States owing to presence of large number of key players and increasing consumer health awareness.

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However, the market growth is facing restrains over stringent regulation of alcohol content, negative perception on the consumption of Kombucha products, followed by litigations faced by companies over misleading and wrong advertising claims.

Growing acceptance for fermented beverages drives market growth

Fermented beverages are quickly gaining popularity among the millennial with advantages of natural soda, abundance in micronutrients and probiotics, and conventional preservative techniques. Following this, shift witnessed towards natural and healthy beverages to lessen risks and complications associated with soda significantly drives the Kombucha Market.

Organic Kombucha is amidst the major market trend driven by health benefits

Growing awareness about the use of organic products and high usage of organic products especially in the Europe, Japan, Australia, US, and other developed countries remains a major driver. Easy approval of organic products from USDA is encouraging the new Kombucha product launches into the market.

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In 2018, organic segment accounted for over 90% of the global Kombucha market sales.  High nutrient content and freshness of these organic foods and beverages in comparison to non-organic has resulted in off the shelf availability for the consumers.  Increasing demand for healthy and nutritious drinks is one of the factors driving the growth of the Kombucha market.

Supermarkets are emerge as major market share holder

Amid distribution channels, supermarkets play an important role in Kombucha market with Wal-Mart and other retailers signing agreements with brewers for the distribution of Kombucha drinks. Kombucha is increasingly becoming an option which is widely available in cafes and restaurants and in emerging markets.

Wide range of super markets marketing Kombucha is helping to attract more consumers in US and Canada. These retail outlets allow both planned and impulse purchases of Kombucha products. Players like GT’s Kombucha, Kevita, and Health-Ade are popular worldwide.

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North America leads the global Kombucha market growth through estimated period

Consumer perception for the Kombucha drink across Americas is offering potential market opportunity across major manufacturers resulting in huge investments to develop new products and expand the market size.

Kombucha is a primordial American drink, which has gained eminence owing to its health benefits. The rising awareness of the Kombucha has converted the household labors into commercial product manufacturers.

However, regulatory challenges by US Alcohol and Tobacco Tax and Trade Bureau (TTB) due to alcohol content in Kombucha restrains market growth. To overcome, key producers such as Aqua ViTea is extracting alcohol content from Kombucha after fermentation.

New product launches and strategic partnerships driving market growth

Key acquisitions and strategic partnerships across major market players are significantly impacting the overall Kombucha market growth along with new product offerings. In 2019, Brew Dr. Kombucha joined with Oregon-based drinks makers Rogue Ales & Spirits to produce a new kombucha beer, Kulture Clash Clear Mind.

 

A significant number of companies are emphasizing on expanding their business into new markets to increase their customer base. For instance, PepsiCo has acquired KeVita in 2016, one of the major companies in the Kombucha market. Further, American Brewing Company acquired búcha live Kombucha, a brand of certified organic sparkling Kombucha drinks, in 2015.

Development of new products with improved taste and flavors are encouraging product innovations across Kombucha Market. Key producers are offering variety of flavors such as ginger, turmeric as well as herbs, fruits, and vegetables.

The major players operating in global Kombucha market are Hain Celestial Group Inc, Live Soda LLC, Brew Dr. Kombucha, Starbucks Corporation, PepsiCo, Inc., GT’S Living Foods, Health Ade, Revive Kombucha, Kombucha Wonder Drink, and Nessalla Kombucha.

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