Fermented Tea Market Growth & Trends

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 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