The global hard kombucha market size was valued at USD 40.1 million in 2021 and is projected to reach USD 262.78 million by 2030 at a CAGR of 23.23% from 2022 to 2030.
Kombucha is a fermented tea beverage created by adding a symbiotic culture of bacteria and yeast (SCOBY) to a tea and sugar solution. During the week-long (or longer) fermentation process, the cultures metabolize the sugar and tea components to produce a naturally carbonated beverage with a mildly sweet-sour flavor that contains healthy components such as B vitamins, organic acids, antioxidants, and traces of alcohol.
Several basic ingredients, including yeast, bacteria, sugar, and tea, are used to prepare hard Kombucha. All the ingredients were thoroughly combined and allowed to rest at room temperature for several weeks. During this time, the sweetened tea mixture is fermented, resulting in a slightly sweet and carbonated beverage that can make one feel gracious and refreshed. This beverage originated in China two thousand years ago. It has utilized the natural beverage and alcohol industries to create a carbonated beverage. Hard kombucha has gained status and popularity on the global market for a considerable length of time, largely as a result of its potential health benefits, and its delightful flavors are expected to boost demand during the forecast period.
Demand for the product is anticipated to be driven by a shift in consumer preference toward fermented drinks and beverages with a focus on health. These beverages contain probiotic bacteria that aid consumers in overcoming a variety of issues, including digestion and inflammation. As a result, market leaders are introducing products to meet these needs. San Diego-based JuneShine, for example, introduced JuneShine100, a 'healthier' alcoholic beverage with 100 calories, 1 gram of sugar per can, and 4.2 percent alcohol content, in June 2020. The manufacturer asserts that its product is gluten-free, made with real fruit, and contains probiotics and antioxidants.
The increasing consumer preference for multifunctional healthy halo beverages that not only meet their needs but are also compatible with their keto and vegan diets will facilitate market expansion. Numerous manufacturers offer products in this category. For instance, in July 2020, Flying Embers, in collaboration with Stick Figure, released a 7 percent ABV Mango Coconut hard kombucha flavor. The product claims to contain zero sugar and carbohydrates, organic ingredients certified by the USDA, and live probiotics. Additionally, the beverage is gluten-free, vegan, and keto-friendly, taking into account the dietary needs of the consumers.
According to a January 2019 survey conducted by the International Wines and Spirits Record (IWSR), 52 percent of American consumers and 65 percent of British consumers were attempting to reduce their alcohol consumption. Additionally, hard kombucha contains low levels of alcohol, ranging from 1 to 10 percent ABV, and has fewer calories than beer, with the majority of versions containing approximately 100 calories. Therefore, moderate drinkers prefer these products as alternatives to beer. These characteristics are anticipated to increase the product's global sales over the forecast period.
The emergence of the COVID-19 pandemic has drastically altered the consumption pattern of alcoholic beverages, from a high alcohol content to low alcohol content, as a result of consumers' increased health consciousness. During the pandemic, e-commerce channels saw a significant increase in the sale of hard kombucha due to international orders placed from the comfort of one's home. For example, in May 2020, Saba Kombucha, an organic kombucha company based in Dubai, reported a 30 percent increase in online orders as a result of the unavailability of its products in retail stores. In addition, the shift of consumers toward ready-to-drink forms, such as kombucha will complement market expansion over the forecast period.
Preparation of hard kombucha is a costly process because it requires some of the processes like healthy fermentation, which requires large areas because fermentation is done for several weeks. Moreover, the ingredients required for the preparation are unable to work under extreme temperatures because yeast and bacteria may not work under very high or very low temperatures.
Diverse initiatives, such as mergers & acquisitions and investments, by market leaders, will integrate well with the growing trend in the upward direction. Beam Suntory, a beverage company, invested USD 20 million in plant-based hard kombucha Flying Embers in January 2022. To increase the company's market share, a response was made. In addition, the market is anticipated to be supported in the foreseeable future by ongoing product development and a greater understanding of the specific health benefits that regular kombucha consumption provides for consumers.
| Study Period | 2018-2030 | CAGR | 23.23% |
| Historical Period | 2018-2020 | Forecast Period | 2022-2030 |
| Base Year | 2021 | Base Year Market Size | USD 40.1 Million |
| Forecast Year | 2030 | Forecast Year Market Size | USD 262.78 Million |
| Largest Market | North America | Fastest Growing Market | Asia Pacific |
In 2021, more than 45,00 percent of the worldwide revenue was generated in North America. Baby boomers, millennials, and Generation Z consumers have all contributed to the region's increased demand. The leading market participants are promoting their products in inventive ways. In November 2020, for instance, Colony promoted their hard kombucha by developing a brand identity and packaging system that clearly and quickly communicated product attributes. In addition, the mass appeal of these beverages has made them acceptable to both male and female consumers, which will likely lead to an increase in their consumption over the next few years.
From 2022 to 2030, it is anticipated that the Asia-Pacific region will have the fastest-growing market. The increasing product awareness and visibility among consumers in countries such as China, Japan, and Australia are anticipated to stimulate the growth of the market in this region. For example, the Chinese beverage brand Zestea offers hard kombucha in a variety of flavors, such as peach pie, blueberry, strawberry, mint lime mojito, pumpkin spice, and apple cinnamon, and ginger pepper. In addition, the availability of a variety of flavors will increase product penetration and support regional market expansion.
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
This market can be segmented on the basis of ABV Content, Distribution Channel, Competitors, and Region. In 2021, the segment ranging from 6.0 to 10.0 percent ABV dominated the global market and accounted for 64,3 percent of the total revenue. It is anticipated that the segment will maintain its leading position throughout the forecast period. The concept of moderation is a growing trend, particularly in the United States, which is driving segment expansion. Many producers of alcoholic beverages have expanded their product lines to include beverages with an alcohol by volume (ABV) range of 6.0 to 10.0 percent. Boochcraft, an organic hard kombucha, launched its limited-edition flavors in April 2022, for example. The assortment consists of Hibiscus Lemonade (6% ABV), and Passionfruit Blood Orange (7% ABV) made with fruit, natural ingredients, and live cultures.
However, the segment of beverages with an alcohol by volume (ABV) of up to 5.0 percent is anticipated to record the highest CAGR during the forecast period due to the increasing consumer focus on health and wellness. Consumers of all ages are attempting to limit their alcohol consumption, which bodes well for the segment's growth. In April 2021, according to a report published by What's Next Media & Analytics, 25 percent of U.S. consumers was drinking less, while only 22 percent were drinking more. In the past two years, there has been a notable increase in online conversations about low- and no-alcohol drinking and a notable decrease in conversations about casual and heavy drinking occasions, which is anticipated to drive the segment's growth.
In 2021, the off-trade distribution channel segment dominated the market and accounted for 66.0 percent of total revenue. The segment consists of all retail establishments, including hypermarkets, supermarkets, convenience stores, grocery stores, and wine & spirit stores. People prefer these stores because they offer substantial discounts and specials. Moreover, the majority of brands launch their products through large retail chains in order to reach the greatest number of customers. In April 2022, Anheuser-Busch launched Neon Burst (8% ABV) in convenience stores across the United States. Apple, pineapple, passionfruit, orange, raspberry, and cherry flavors are available.
During the forecast period, the on-trade channel segment is anticipated to record the highest growth rate. On-trade establishments include restaurants, bars, nightclubs, hotels, and lounges. The segment's growth will be boosted by the post-pandemic opening of the aforementioned establishments and the addition of a variety of beverages, including hard kombucha, to the menu. Shorebirds, a new hard kombucha brewery, and bar, opened in Rancho Cordova, California, near Sacramento, in May 2022.
