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Global Kombucha Tea Market to Grow at a CAGR of 20.6% between 2020-2025.

According to a new report by EMR titled, ‘Global Kombucha Tea Market Report and Forecast 2020-2025’, the kombucha tea market attained a value of USD 1.85 billion by 2019, growing robustly at a CAGR of 23% between 2015-2019. The market is further expected to grow at a CAGR of 20.6% in the forecast period of 2020-2025, reaching USD 5.6 billion by 2025.

Kombucha tea has seen the fastest growth among any functional beverages in the past few years. The primary reason for the robust growth of the kombucha tea market has been its numerous health benefits combined with a rising demand among health-conscious consumers, and an increasing disposable income. The health benefits of the drink, which ranges from helping in the detoxification of the body and maintaining a healthy metabolism to contributing to the strengthening of the immune system, has earned it the moniker of the ‘tea of immortality’.

Kombucha, which is also often called tea mushroom, is made by fermenting tea and sugar with SCOBY (Symbiotic Culture of Bacteria and Yeast). The resulting drink is somewhat alcoholic and has a slight vinegar-like taste. The functional beverage derives its name from the Japanese language and is said to have originated in China. While traditionally consumed in China and Japan, it became commercially available widely thanks to GT’s Living Food, which was the first company in the US to produce Kombucha for commercial purposes. Even today the company accounts for half the US kombucha market by value. While the initial resurgence of kombucha tea was led by the western markets, in countries which had not historically consumed the drink, however, in the recent years there has been a growing demand in emerging markets like Middle East, Eastern Europe, and South East Asia, among others. Driven by a rise in urbanisation and increasing disposable incomes among consumers, Latin America and Asia Pacific regions are the fastest growing markets for the tea.

Along with retail stores and supermarkets, kombucha is increasingly becoming an option which is widely available in cafes and restaurants in both mature and emerging markets. In August 2018, Starbucks, the coffee chain giant, announced that it will soon start offering six varieties of kombucha under its juice brand, Evolution. While it is not yet being sold in Starbucks stores, the company expects the beverage to be seen as a healthy alternative to its usual sugar drinks like Frappuccino. This step is driven by large sections of consumers seeking healthier alternatives to the sugar-loaded beverages available.

Market Analysis by Types, Flavours, Distribution Channels and Regions:

  • Kombucha tea is broadly divided as organic and non-organic kombucha tea.
  • By flavour, the kombucha tea market can be divided into regular/original, fruits, herbs and spices, and flowers, among others.
  • Kombucha is usually brewed with green, black or oolong tea, among others.
  • The tea is packaged in glass, aluminium, PET bottles, and other such packaging materials.
  • The beverage is available in supermarkets, convenience stores, health stores, and through online retailers, among other options.
  • The kombucha tea market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa regions.

Key Findings of the Report: 

  • Due to an increasing occurrence of lifestyle and chronic diseases, there has been a growing health concern among consumers, which is driving the market for kombucha tea as a functional drink.
  • Consumer perception of kombucha tea as a healthy probiotic beverage is aiding the market growth.
  • Consumer acceptance of the drink in significant market is providing a further impetus to the market, especially with major manufacturers taking note.
  • Ease of availability of kombucha tea in convenience stores and supermarkets is a key driving factor of the market.

Key Offerings of the Report:

  • The report by EMR provides a region-wise historical (2015-2019) and forecasted (2020-2025) market information for the global kombucha tea market.
  • The report looks in-depth into the kombucha tea market based on its type, packaging, distribution channels, flavours, and by teas used to brew the drink by giving their market breakup for the periods 2015-2019 and 2020-2025.
  • It also analyses the historical (2015-2019) and future (2020-2025) market of the functional beverage based on the age and gender of the consumers.

GT’s Living Foods, KeVita, Inc., Remedy Kombucha Pty Ltd., Brew Dr. Kombucha, LLC, Carpe Diem, Humm Kombucha, LLC, Kombucha Wonder Drink, Reeds, Inc., Buchi Kombucha, and Equinox Kombucha are the major players in the global kombucha market analyzed by EMR. The report by EMR provides a detailed insight into the market share, capacity and latest developments like plant turnarounds, expansions of capacity, and mergers and acquisitions of these key players.

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Expert Market Research (EMR) is a leading market research and business intelligence company, ensuring its clients remain at the vanguard of their industries by providing them with exhaustive and actionable market data through its syndicated and custom market reports, covering over 15 major industry domains. The company's expansive and ever-growing database of reports, which are constantly updated, includes reports from industry verticals like chemicals and materials, food and beverages, energy and mining, technology and media, consumer goods, pharmaceuticals, agriculture, and packaging.

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