Year: 2019 and 2027
Market size: $1.67 billion and $7.05 billion, respectively
Sources: “Kombucha Market Size, Share & Trends Analysis Report by Flavor (Original, Flavored), by Distribution Channel (Supermarkets, Health Stores, Online Stores), by Region, and Segment Forecasts, 2020 – 2027,” Grand View Research Report Summary, February 2020 available online here; “Kombucha Market Size Worth $7.05 Billion by 2027 | CAGR: 19.7%: Grand View Research, Inc.,” CISION PR Newswire, February 10, 2020 available online here; “Kombucha,” Wikipedia, May 24, 2020 available online here; “Kombucha FAQ,” Kombucha Brewers International available online here; Laura Zhang, “The Cloudy Origins of Kombucha,” Smithsonian Center for Folklife and Cultural Heritage Magazine, April 15, 2019 available online here; “Sugary Drink Tax,” Wikipedia, May 27, 2020 available online here; “Obesity and Overweight: Key Facts,” World Health Organization, April 1, 2020 available online here; “10 Facts on Obesity,” World Health Organization, October 2017 available online here; Christina Troitino, “Kombucha 101: Demystifying The Past, Present And Future Of The Fermented Tea Drink,” Forbes, February 1, 2017 available online here; “#68 Kombucha: Tea of Immortality,” Food Non-Fiction, June 18, 2018 available online here.
Image source: Tim-Oliver Metz, “Close Up Shot of a Kombucha Fermenting,” Unsplash, March 5, 2020 available online here.
Kombucha is a fizzy, sweet-and-sour, fermented beverage made from tea leaves, sugar, Symbiotic Colony of Bacteria and Yeast (SCOBY), and flavorings. Brewing this beverage involves first steeping tea leaves in hot sugar water. Then, once the sweetened tea is cooled, the leaves are removed and the SCOBY is added. The mixture is poured into a sterilized container with previously fermented kombucha. The container is then covered with a breathable fabric and left to ferment for 10 to 14 days at room temperature. After, the new SCOBY that has formed is removed along with some of the newly fermented tea. The remaining kombucha is strained and bottled for a second fermentation then refrigerated to slow the carbonation and fermentation processes.
Kombucha is thought to have originated in Manchuria, possibly as far back as 221 B.C. Ancient East Asian cultures drank kombucha as a health remedy. Practitioners of traditional Chinese medicine called it the “tea of immortality” or the “elixir of life.” The name “kombucha” may have derived from the combination of the name of a Korean doctor who brought the fermented tea to Japan to treat Emperor Inkyo’s digestive ailments, Dr. Kombu, and “cha”, the Japanese word for tea.
By the late 1800s, the drink was reportedly consumed in Russia and Ukraine. Demand increased in Europe in the mid-20th century. In the early 1990s, the beverage was popular with those with HIV and AIDS who believed that it would help their immune systems and increase their T-cells. Some doctors, however, warned that the beverage was dangerous. Homemade brews may contain aspergillus, a toxin-producing fungus. Pregnant women, the elderly, children, and those with compromised immune systems were discouraged from drinking it. In 1995 the U.S. Centers for Disease Control and Prevention issued a report linking the death of one woman and the illness of another from severe metabolic acidosis to their daily consumption of kombucha. Although not cited as a definitive cause, kombucha consumption declined thereafter.
In the late 1990s, commercially bottled kombucha became available and by the early 2000s, kombucha was back in favor as those following low-carbohydrate diets searched for a healthy drink to replace sugary soda and juices. Kombucha’s popularity also rose as part of the larger probiotic food consumption trend. Probiotic foods contain bacteria which some studies show benefit digestion and improve the immune system. As consumers look for ways to eat healthier and boost their immune system during the COVID-19 pandemic, kombucha consumption is expected to increase even more.
Today’s market size shows global revenues for kombucha in 2019 and projected for 2027. To increase sales companies are investing in new product development and new flavors. They are also increasingly using social media influencers to market their products online. Online sales are expected to exceed $2.4 billion in 2027, or 34% of sales for that year. Supermarket sales claimed the largest share in 2019 due to easy accessibility. Most supermarkets also offer higher discounts and more promotional offers than smaller health food stores due to their ability to buy higher volumes of product. Supermarkets can also stock a greater variety of products.
Worldwide, flavored kombucha constituted nearly 75% of the market in 2019. Brewers are expected to increase their use of natural extracts and flavorings as well as increase their use of exotic flavorings through 2027, contributing to an expected compound annual growth rate (CAGR) of 21.8%. Sales of original flavored kombucha are expected to expand at a CAGR of 20% over this time period.
North America held a 52% share of the global market. An increasing middle-class population and increasing demand for non-carbonated, low-calorie beverages are expected to contribute to higher sales through 2027. The popularity of sports and energy nutrition products among working professionals in Europe is expected to contribute to increased consumption in that region as is more product offerings from large companies such as PepsiCo, The Coca-Cola Co., and Starbucks Coffee Co. Worldwide, the obesity epidemic — obesity has tripled since 1975, contributing to 2.8 million deaths per year — and taxes on sugary beverages are also expected to drive revenue growth for kombucha beverages.The global market is fragmented with many small and medium-sized companies producing kombucha. Some leading producers include GT’s Living Food, PepsiCo; Reed’s Inc., The Hain Celestial Co., KeVita Inc., Buchi Kombucha, LIVE Beverages, and RedBull.