Fermented Tea Market Size Worth $12.6 Billion By 2028
Fermented Tea Industry Overview
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.
Fermented Tea Market Segmentation
Grand View Research has segmented the global fermented tea market based on product, distribution channel, and region:
Based on the Product, the market is segmented into Kombucha, Pu-Erh Tea, and Other Dark Teas.
- The kombucha segment dominated the market and accounted for the largest revenue share of 59.9% in 2020. The segment held the majority of the share owing to the rising demand for RTD drinks and teas. Kombucha manufacturers are increasingly partnering with retail stores such as Costco and Whole Foods to distribute their products.
- Additionally, the emergence of e-commerceis acting as a major tool for companies to increase their presence in the fermented tea market. Factors such as aging, diet, and stress are leading to digestive ailments, bloating, and other issues regarding immunity. There is increasing awareness regarding the health benefits possessed by probiotic foods. The rise in ailments overconsumption of artificial beverages is also promoting the overall market growth.
Based on the Distribution Channel, the market is segmented into Online, and Offline.
- The offline channel segment dominated the fermented tea market and accounted for the largest revenue share of 77.3% in 2020. Distribution channels such as retail stores, supermarkets, and other small stores offer consumers the products at a lower price owing to purchasing power. In addition, the availability of fermented tea in various flavors and brands at local stores and supermarkets is driving the offline segment.
- The online segment is expected to witness the highest CAGR over the forecast period. The advent of online shopping and e-commerce has helped several companies during the pandemic to shift their presence. Younger consumers and millennials are keen to try different kinds of complex flavors. The presence of e-commerce channels and online tea factories provide consumers with a wide range of fermented teas from several regions.
Key Companies & Market Share Insights
Key companies in the industry face high competition owing to the growing consumer demand for fermented teas. Key players are focusing on the improvement of kombucha products and teas and are increasingly partnering with social media and e-commerce channels to gain significant market share. Some of the prominent players in the global fermented tea market are :
- 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.
Order a free sample PDF of the Fermented Tea Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: sales@grandviewresearch.com
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