Europe Kombucha Market Size to Grow At 15.17% CAGR From 2024 to 2030.

Europe Kombucha Market Size (2024 - 2030)

As per our research report, the Europe Kombucha Market size is estimated to be growing at a CAGR of 15.17% from 2024 to 2030.

Kombucha is a fermented tea drink generally made from black or green tea, which is sweetened to enhance its flavor. This beverage undergoes fermentation through a symbiotic culture of bacteria and yeast, referred to as SCOBY, resulting in a lightly carbonated tea with a natural alcohol content of about 0.5%. Kombucha is acknowledged for its potential probiotic properties, offering several health benefits, including the promotion of beneficial gut bacteria, contributing to overall health, and potentially reducing the risk of cardiovascular issues. The growing consumer awareness of these health benefits is expected to propel market growth.

The prevalence of chronic diseases remains significantly high. As health awareness continues to rise, consumers are increasingly adopting healthier lifestyles and seeking out functional foods and beverages. There is a growing preference for fortified, minimally processed food and drink options that retain their health benefits. Fermented beverages are recognized for their potential to combat conditions such as cancer, arthritis, and other degenerative diseases. Kombucha, rich in enzymes and bacterial acids, is noted for its ability to boost energy, enhance immune function, detoxify the body, rebuild connective tissues, relieve headaches, and assist in weight management.

The COVID-19 pandemic resulted in the temporary closure of numerous factories and warehouses globally due to government-mandated social distancing and lockdown measures designed to contain the virus. Despite these challenges, the kombucha market experienced a modest increase, as convenience stores and health-focused retailers remained open to provide essential health products. A 2020 study by the National Center for Biotechnology Information (NCBI) indicated that kombucha supports the immune system through its antioxidant, anti-inflammatory, and cholesterol-lowering properties. In response to heightened demand for immunity-boosting beverages during the pandemic, many probiotic drink manufacturers expanded their production capabilities.

Various regulatory agencies closely monitor the alcohol content in beverages due to potential public health risks. Elevated alcohol levels can interfere with medications and lead to other health concerns. Additionally, alcohol content may fluctuate during transportation from manufacturer to retailer due to secondary fermentation, and the addition of flavorings can also impact these levels. To mitigate these issues, regulatory bodies enforce stringent regulations regarding alcohol content in beverages.

The increasing popularity of refreshing beverages and their availability in ready-to-drink formats has accelerated this trend. Consumers, particularly millennials and Gen Z, are adopting healthier

lifestyles, which has spurred a preference for low or non-alcoholic drinks and healthier alternatives to traditional alcoholic beverages. The expanded availability of non-alcoholic options, along with a broader online selection and a decline in alcohol purchases, has shifted consumer preferences towards products like kombucha. Furthermore, the introduction of innovative flavor variations is expected to further stimulate market growth in the upcoming period.

Consumers seeking lighter-flavored hard kombucha are increasingly exploring creative options, such as green tea-based kombucha sweetened with honey, mint, mango, and other fruit flavors, all featuring relatively lower alcohol content. These new offerings are contributing to the growth of this market segment.

KEY MARKET INSIGHTS:

• Based on the Type, The flavored segment holds a substantial share of the market, fueled by consumers' growing interest in novel and innovative beverages. This trend creates numerous opportunities for manufacturers to incorporate natural flavoring agents and botanicals, especially as consumer awareness regarding the negative effects of synthetic flavors increases. The shift in consumer preferences towards probiotic beverages and a readiness to explore diverse flavors is expected to drive market expansion. Furthermore, the ongoing introduction of new flavors by various manufacturers is likely to further accelerate growth in this sector.

• Based on the Distribution Channel, Mass merchandisers, including supermarkets and hypermarkets, are broadening their selection of probiotic and functional beverages to meet a wide array of consumer preferences. These retailers are actively filling their refrigerators and chillers with a variety of flavorful options across multiple price points and brands. To draw in consumers, they employ strategies such as offering substantial discounts, dedicating specific aisles to these products, and providing bundling deals. In contrast, health stores and online retail platforms are experiencing significant growth, largely due to the extensive product information and guidance provided by sellers. This detailed information empowers consumers to make informed choices and boosts the popularity of these retail channels.

• Based on the region, Kombucha manufacturers in the United Kingdom are responding to a growing trend of changing lifestyles, an increased demand for fortified foods and beverages, and heightened health awareness among consumers. As a result, the UK kombucha market is anticipated to see substantial growth, characterized by a strong compound annual growth rate (CAGR) during the forecast period. Within the region, the UK, France, and Spain are identified as the most lucrative markets for fortified beverages. However, Russia is expected to exhibit the highest growth in the kombucha market during this period, fueled by the rising popularity of kombucha drinks. In Italy, the fast-paced lifestyle has contributed to a surge in stress-related health issues, such as hyperacidity, slow digestion, and gastrointestinal disorders, which in turn has increased kombucha sales in the country.