Fermented Beverages Market Size - By Type, Packaging, Distribution Channel, Forecast, 2025 - 2034

Fermented Beverages Market Size

The global fermented beverages market was valued at USD 951.2 billion in 2024, with expectations to reach USD 1.7 trillion by 2034, growing at a CAGR of 6.2%.
 

Fermented beverages are drinks produced through controlled microbial growth and enzymatic conversions of food components, resulting in products rich in probiotics, vitamins, and organic acids. This category includes items like kombucha, kefir, and traditional fermented teas, which have gained popularity due to their health benefits and unique flavors.
 

There is an increasing number of consumers looking for nutritionally beneficial product. This creates a high market demand for functional products that contain probiotics and other important components. In turn, manufacturers are creating new products that aim to satisfy the needs of health-sensitive customers by adding new healthier components to them. The overall push towards improving health leads to an even greater need in the health drink market and the fermented beverage is no exception. 
 

The effort towards increasing the offer of natural and organic fermented drinks is yet another driver in the fermented beverages market. A study conducted by the New South Wales Ministry of Health shows that the use of fermented drinks is growing promoted by their health benefits and the use of natural fermentation technology.
 

The increasing negative impacts of chemical food additives and preservatives is shifting consumer focus towards beverages with organic or natural ingredients. Correspondingly, the market for organic beverages is growing due to shifting consumer preferences towards natural and more healthful products. This growing interest amongst consumers has prompted producers to innovate and formulate clean label organic fermented beverages, resulting in the growth of the market.
 

Alongside the product innovation and the addition of new flavors, expansion also occurs regarding the utilization of innovation in marketing fermented beverages. This is not only limited to taste but can include other functional modifications like fortification with a blend of vitamins, minerals and other nutritious substances. These modifications are directed towards the increasing number of people who are vegans or lactose intolerant who need fermented plant-based beverages. Constant fortification not only favors taste of fermented beverages, but also target definite consumers’ tastes, thus boosting the market.
 

Fermented Beverages Market Trends

• Technological innovation in production: Automation and artificial intelligence are revolutionizing the fermented drinks, as new technologies develop and become part of the industry. Fermentation processes are improved through precision fermentation and controlled microbial cultures, which ensure more consistency in products, flavor, and shelf life. Moreover, effective processes through automation and AI enable improved quality of production at reduced costs. Consequently, huge amounts of consumer demand are met without compromising product quality that is desirable for producers of fermented beverages.
   
• Regulatory development and compliance actions: Manufacturers are implementing standard manufacturing practices combined with new labeling limitations, alcohol content, and microbial safety for a wide range of drinks. The US and Asia-Pacific regions are also adopting more stringent sanitation standards for Kombucha and probiotic drinks.
   
• Growing demand for non-alcoholic and functional drinks: The 'sober curious' trend, in addition to enhanced gut health awareness, has driven up demand for non-alcoholic fermented drinks such as kombucha, water kefir, and tea. The market is experiencing increased demand for probiotic drinks due to their immunity enhancement and digestive wellness. Also, functional drinks are gaining acceptance among young people due to their entire array of health advantages. As a reaction, manufacturers create new product variants with vitamins, prebiotics, and plant herbs.
   
• Product Innovation and diversification: Launch of new combinations of flavors and ingredients as well as new modes of fermentation is driving product diversification. There is a clear shift towards the consumption of traditional fermented beverages modernized, for example, sake, mead, and kvass with new innovative flavor additions. In addition, new trends in markets are unfolding as they target vegans and those intolerant to lactose with the launch of dairy-free, plant-based products.
   

Fermented Beverages Market Analysis

The fermented beverages market by type is segmented into alcoholic and non-alcoholic beverages. Alcoholic beverages accounted for 67.4% of the market share in 2024.
 

• Due to their widespread recognition and utilization, alcoholic beverages possess a greater share compared to other beverages in the fermented beverages industry. Globally, beer is one of the highly consumed alcoholics drinks and greatly contributes to the consumption of alcohol around the world.
   
• This is enhancing the craft and premiumization trend, encouraging growth in the segment of beer and wine. Unique flavors and artisanal products locally brewed are largely enhancing the growth in craft beer microbreweries and organic wine production. This is highly evident in North America and Europe, where small-scale wineries and breweries grow.
   
• The introduction of new techniques in fermentation processes, as well as innovative ways of sourcing ingredients, has resulted to the development of hybrid alcoholic drinks like fruit wines, beer aged in barrels, and alcopops infused with botanicals. This addresses the demands of the constantly evolving millennial and Gen Z consumers who go beyond traditional drinking and are looking for new taste sensations.
   
• Wine and beer manufacturers are adopting new fermenting processes in order to fabricate low-ABV beer and wine which still uphold the taste and smell. These measures aim to meet the demand from health-conscious consumers and the sober curious movement.
   
• As per WTO reports, the volume of global exchange of wine and vine products increased almost threefold during the last twenty years.  Exports of wines have been increasing constantly, from USD 17.7 billion in 2000 to more than USD 50 billion in 2021 and in 2022, which indicates increasing world demand for high-quality and craft alcoholic drinks.
   

Based on packaging, the fermented beverages market is segmented into bottles, cans, sachets, cartons and others. Bottles made up 43.3% of the market in 2024.
 

• Bottles, both for alcoholic and non-alcoholic beverages, take the forefront with a dominant share in the fermented beverages market due to their widespread utility. Particularly, glass bottles are most preferred for wine, beer and even premium fermented drinks as they best preserve their flavor, carbonation, and product quality.
   
• Glass packaging is favored by consumers because of its premium look, sustainability, and most importantly, contamination-free nature. This matters a great deal for kombucha and fermented dairy drinks which need a meticulous level of protection to keep the probiotics functional and the flavor tasteful.
   
• Bottle glasses have a strong dominance due to their recyclability features. Governments across the globe have adopted strict sustainable policies which motivate vendors to opt for green packaging. For instance, the European Union’s Circular Economy Action Plan is a good example that encourages the use of glass by promoting high refractive lights standards for products in beverage industry.
   
• Bottled packaging is effective branding and product differentiation. Unique bottle designs serve premium refined products like craft beers, organic wine, and artisan kombucha, serve to differentiating them. This further enhances with labeling and embossed bottles to attract consumers.
   
• Even when competing cartons and cans, bottles are still the most popular option for long-term storage and aging of fermented beverages. As an example, specialty beers and wine now require glass bottles for proper maturation and quality maintenance over time. This is exacerbated by the rapid increase in craft breweries and boutique wineries which enhance market share for this segment.
   

Based on distribution channel, the fermented beverages market is classified into online and offline. Offline segments dominated with 78.2% market in 2024.
 

• Offline channels override all the others in the distribution of fermented drinks because they provide direct buying. Supermarkets, hypermarkets, and convenience stores carry a wide selection of products that allow customers to compare brands, test for freshness, and make impulse purchases.
   
• Specialty premium fermented beverages such as specialty craft beers, artisanal kombucha, and organic wines are relatively less common and therefore more expensive. These stores serve niche markets with quality focused and health focused handpicked selections.
   

U.S. fermented beverages market accounted USD 204.1 billion in 2024.
 

• The U.S. sustained its leading position in the North America fermented beverages market because of customer preference, high level of income, and the existence of brewing and fermentation services. Some government measures like the Craft Beverage Modernization and Tax Reform Act have motivated small and independent producers which has increased the market growth. Moreover, the availability of major market players and ongoing investments in innovation, especially in low-alcohol and probiotic-infused drinks, fuel growth.
   
• Supermarkets, specialty liquor stores, and online retailers are new distribution channels that have strengthened the market in the U.S., as well as broadened consumer access to health and functional beverages, like kombucha and probiotic drinks.
   

Fermented Beverages Market Share

Fermented beverages industry is highly competitive, with leading competitors in the market. - Heineken, Diageo, Danone, PepsiCo, and Yakult Honsha are the leading five companies in the market of fermented beverages. Market competition is fierce among industry players who strive to enhance their market share through product development, mergers, and sustainability efforts. Heineken and Diago capture the market for alcoholic beverages, while Danone and PepsiCo, along with Yakult Honsha, control the market for non-alcoholic fermented beverages. 
 

Product variety, premium products, and health benefits are the defining elements of the fermented beverages industry. Many investments are directed towards developing R&D for drinks with probiotics, drinks with low and no alcohol content, and functional fermented beverages with health benefits. Mergers are critical, such as PepsiCo buying Kevita to diversify probiotics for its drinks.
 

Also, Danone keeps increasing its share of the market for dairy-based fermented beverages using plant protein. Sustainability is also critical nowadays, where many of the leading companies are expected to use green materials for packaging, cut back on carbon emissions, and sustainably source materials and ingredients in response to consumer demand.
 

Fermented Beverages Market Companies

Some of the eminent market participants operating in the fermented beverages industry include:

• Dohler
• Biotiful Dairy
• Chr. Hansen
• Danone
• Diageo
• Heineken
• Kirin Holdings
• Lifeway Foods
• PepsiCo
• Sula Vineyards
• Suntory Holdings Limited
• The Coca-Cola Company
• Yakult Honsha
   

In November 2016, PepsiCo purchased KeVita – a top maker of fermented probiotics and kombucha drinks in North America. This acquisition, the price of which remains confidential, was aimed at increasing PepsiCo’s health and wellness portfolio in the premium iced drink segment. KeVita's lines of products, Sparkling Probiotic Drink, Master Brew Kombucha, and Apple Cider Vinegar Tonic, are certified organic, non-GMO, gluten-free, and vegan. Since the acquisition, KeVita obtained access to the marketing and distribution network of PepsiCo but was permitted to operate independently out of Oxnard, California.
 

Danone is one of the key player in the segment of dairy-based fermented beverages, including probiotic yogurt drinks and plant-based yogurt smoothies. They own Activia and Actimel brands, which are designed to meet the growing popularity of gut-health beverages. Danone has also diversified into plant-based products by purchasing WhiteWave Foods, the maker of Silk, to improve its portfolio of dairy-free fermented drinks. Sustainability is an important area with Danone investing in regenerative agriculture and cutting down on plastic used for packaging to meet the growing consumer need for eco-friendly products.
 

Fermented Beverages Industry News

• In March 2024, Arla Foods Ingredients introduced a new fermented beverage concept designed to assist dairies in waste reduction and yield increase through whey upcycling.
   
• In May 2024, Bühler purchased Esau & Hueber, a company from Germany known to specialize in hygienic process and fermentation engineering. This acquisition enhanced the capabilities of Bühler in its malting, brewing and sustainable protein industries.
   
• In August 2024, Yakult launched a peach flavored fermented milk drink branded as Yakult Plus Peach.
   
• In November 2024, Bliss Body launched India's first millet-fermented functional drinks. The sugar-free beverages, launched in Pineapple, Mango, and Orange variants, were designed to improve gut health, control diabetes, and support well-being with nutrient-dense, ancient ingredients.
   
• In December 2024, Sterling Biotech started building the globe's first precision fermentation dairy protein facility in Bharuch, Gujarat. The 27-acre joint venture of Perfect Day and Zydus Lifesciences will start operations in early 2026.
   

The fermented beverages market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion and volume in terms of Kilo Tons from 2021-2034 for the following segments:

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Market, By Type

• Alcoholic beverages 
  • Beer
  • Wine
  • Cider
  • Wine coolers
  • Alcopops
  • Others
• Non-alcoholic beverages 
  • Fermented tea drinks
  • Fermented dairy-based drinks
  • Fermented fruit-based drinks
  • Fermented cereal-based drinks
  • Others

Market, By Packaging

• Bottles
• Cans
• Sachets
• Cartons
• Others

Market, By Distribution Channel

• Online 
  • Brand websites
  • E-commerce platforms
• Offline 
  • Supermarkets & hypermarkets
  • Convenience stores
  • Specialty stores
  • Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE