Global Fermented Tea Market - 2021-2028
Fermented tea is a type of tea that has been subjected to microbial fermentation for a period ranging from months to years. Dark tea is a term used to describe fermented tea, distinct from black tea. Secondary fermentation is used in the production of this type of tea. The aroma, taste, and look of fermented tea or dark tea leaves alter as they age in the presence of bacteria. Different types of tea are popular in different regions, with Pu-erh cha, Fu Zhuan cha, and Liu An cha being the most popular in China, Japan, Myanmar, Thailand, and southern Yunnan. The market is likely to be driven by rising knowledge of gut health, immunity improvement, increased disposable income and a preference for organic products. The global fermented tea market is valued at USD XX million in 2020 and is forecasted to reach USD XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).
Market Dynamics: Increasing demand for healthy hydration products
Due to stressful schedules and changing lifestyle patterns, lifestyle diseases such as diabetes, obesity, and high blood pressure have steadily increased in recent years. As a result, consumers are adopting proactive steps to mitigate the effects of lifestyle disorders. Because of its qualities, such as high antioxidants, fermented tea is becoming more popular. Consumer impression of post-fermented tea is changing due to soothing properties such as greater antioxidant content in a single cup of fermented tea. The demand for healthy hydration drinks is mostly due to consumer education. The popularity of the healthy hydration movement can be attributed to a growing knowledge of fermented drinks made with natural components and a growing acceptance of probiotic consumption.
One of the key trends is digestive health awareness. Drinks containing pre- and postbiotics are becoming increasingly popular among consumers to improve their gut health. Drinks that include prebiotics and probiotics are becoming increasingly popular. Drinks containing fiber also help to promote digestive health. The growing number of individuals spending time doing things that don't require physical activity, such as watching TV or working on a computer, has led to a shift in the intake of nutritious foods, which has driven the demand for a healthy alternative as a stress reliever even higher. This is where fermented tea has been trending, with customers' preference for simple health goods that fit their lifestyles supplementing the market's expansion.
Market Segmentation: Kombucha segment is anticipated to expand at a CAGR of XX%
In 2020, the kombucha category led the market, accounting for XX percent of total sales. Because of the increased demand for RTD drinks and teas, this category held most of the market share. Retailers like Costco and Whole Foods are increasingly cooperating with kombucha producers to promote their goods. Furthermore, the rise of e-commerce is a powerful tool for enterprises looking to expand their position in the fermented tea sector. Aging, food, and stress can contribute to digestive problems, bloating, and other immune system problems. Probiotic foods are becoming better recognized for their health advantages.
Based on distribution channel, offline held the highest market revenue share of XX% in 2020. Because of their purchasing power, distribution channels such as retail stores, supermarkets, and other small retailers can sell products at a reduced price to consumers. Furthermore, the segment is being driven by the availability of fermented tea in numerous flavors and brands at local stores and supermarkets. For example, whole Foods in New York have teamed up with other vendors to create new varieties like watermelon basil kombucha. Producers are benefiting from the growing influence of social media and e-commerce outlets.
Geographical Penetration: Asia Pacific is expected to be the fastest growing region during the forecast period
In 2020, Asia Pacific dominated the fermented tea market, accounting for XX percent of total sales. The surge in disposable income and population are providing important prospects for the market's leading participants. India, Sri Lanka, and other emerging markets are luring major corporations to expand their operations there. Furthermore, the rising popularity of fermented foods such as kimchi, kefir, and probiotic injections in the region is boosting demand for fermented teas. Growing consumer awareness of the health benefits of the tea's components is driving product demand in the region.
North America, on the other hand, is expected to grow at the fastest rate throughout the projected period due to the presence of numerous significant companies in the region. Individual health awareness is increasing, as is demand for probiotic products, and people's lifestyles are changing, which is driving demand for fermented tea in the region. In addition, the region's market is predicted to rise due to a growing preference for new non-alcoholic beverages. Companies in the region are continually inventing and introducing new natural ingredients-based goods. During the pandemic, GT's Living Foods established a science advisory board in 2021 to raise awareness of fermented foods.
The global fermented tea market is fragmented. The fermented tea market is a competitive market and comprises numerous regional and international competitors. Players are also extensively focusing on providing consumers with innovative offerings while including functional benefits in each of their products. Furthermore, while engaging the consumers with innovation and expansion strategies, key players are capitalizing on the market revenue. In 2018, California-based Buddha Teas ventured into Latin America, expanding its products in Mexico with single herb-tea, cannabidiol blends and ready-to-use drink match beverages.
COVID-19 Impact: Positive impact on the global fermented tea market
As a result of the government's implementation of social distance and lockdowns to limit the spread of the COVID-19 pandemic, several factories and warehouses throughout countries have been forced to shut down. This market, on the other hand, has seen a minor boost as convenience stores and pharmacies have remained open to serve consumers with vital health supplies. The pandemic has sparked a surge in demand for immune-boosting items like fermented tea. According to a study published in 2020 by the National Center for Biotechnology Information (NCBI), kombucha consumption helps to boost the immune system by acting as an antioxidant, anti-inflammatory, and cholesterol-lowering agent. Various probiotic drink manufacturers have increased their manufacturing capacity in response to the pandemic's increased demand for immunity-boosting beverages. In the midst of the pandemic, the Malaysian business WonderBrew, for example, aims to double its sales by growing its e-commerce presence. The company claims that its June sales surpassed those of the previous year, which were USD 48,000. In addition, the desire for functional foods and beverages to enhance customers' overall health has fueled market expansion.
Why Purchase the Report?
Understand the current market scenario and viability of global fermented tea market over the forecast period
Visualize the composition of the global fermented tea market in terms of type, and distribution channel to identify major players, growth potential, and market strategies
Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period
Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market
What we offer?
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study
Excel data sheet with valuable data points of the global fermented tea market – Regional and Country level segmentation
Product mapping in excel for the key products of all major market players
Market Share Analysis covering business revenues ($) and revenue share (%) of key market players
The global fermented tea market report would provide an access to approximately 45 market data tables, 45 figures and 180 pages
Food and Beverage Companies
Education & Research Institutes
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook