Innovation and Ingredient Formulation for Gut Health Continue to Surge
From kombucha market growth to live culture probiotic labels, food and beverage marketers identify opportunities to connect consumers to products that address immunity
Booming Kombucha Market to Nearly Double by 2029
In 2024, the market was estimated at $2.4 billion, and is projected to reach $5.9 billion in five years
Kombucha is a type of fermented tea that has gained popularity for its potential health benefits. It is made by fermenting sweetened tea with a symbiotic culture of bacteria and yeast (SCOBY). During the fermentation process, the SCOBY consumes the sugars in the tea, producing various acids and enzymes. This results in a tangy, slightly effervescent beverage with a unique flavor profile. The global kombucha market is estimated at $2.4 billion in 2024 and is projected to reach $5.9 billion by 2029, at a CAGR of 19.4% during the forecast period.
Kombucha is often consumed for its probiotic properties, which may support gut health, although scientific research on its benefits is ongoing. Additionally, kombucha can be flavored with fruits, herbs, or spices to create different taste variations.
Key Players in Kombucha Market:
- GT's Living Foods (US)
- Brew Dr. (US)
- SYSTM Foods Inc. (US)
- Health-Ade LLC (US)
- Tropicana Brands Group (US)
- MOMO Kombucha (UK)
- GO Kombucha (UK)
- Harris Freeman (US)
- Kosmic Kombucha (US)
- Equinox Kombucha (UK)
- Remedy Drinks (Australia)
- Soulfresh Global Pty Ltd (Australia)
- Conventional Kombucha Leads the Charge, Backed by Perceived Health Benefits
The conventional kombucha segment holds the largest market share, capitalizing on the widely recognized health benefits associated with the fermentation process. Kombucha's rich composition of polyphenols, organic acids, and vitamins positions it as a natural and nutrient-rich option for health-conscious consumers.
The flavored kombucha segment is poised for the fastest growth rate. This segment caters to a wider audience by offering a variety of exciting taste profiles, from fruity and floral to spicy and tangy. Flavored kombucha not only broadens consumer choice but also serves as an entry point for those new to the beverage. Additionally, the inclusion of flavors like hibiscus and ginger enhances the drink's nutritional value by incorporating specific health benefits associated with each ingredient.
The online retail segment is experiencing explosive growth within the kombucha market. This surge is primarily driven by the convenience and ease of access offered by e-commerce platforms. Online retailers provide a vast selection of kombucha products, catering to a variety of dietary needs and health preferences. Furthermore, detailed product descriptions, customer reviews, and doorstep delivery options further enhance the online buying experience.
The North American region currently holds the largest market share for kombucha. This dominance can be attributed to the increasing health consciousness among consumers, particularly regarding gut health and overall well-being. The growing demand for natural and organic products further strengthens the market for organic kombucha, offering a healthier alternative to sugary sodas and artificially flavored drinks.
Pure Culture Organics New Kefir Line
Pure Culture is 100% lactose free, free of stabilizers, coloring agents, thickening powders and gums
Introducing Pure Culture Organics Kefir: Designed and tested with millennials in mind and loaded with 12 unique probiotic strains and more than 50 billion CFUs per serving, Pure Culture is a sustainable offering, with a clean label, and less ingredients. Stripped down to its basic essential components and using newer processing and formulation techniques, Pure Culture is 100% lactose free, free of stabilizers, coloring agents, thickening powders and gums, and is gluten and GMO-free. Additionally, Pure Culture Kefir has eliminated the lactose sugars found in traditional dairy, and converted it into naturally occurring sweeteners, thereby enhancing the sweetness perception, without adding unwanted sugars.
Pure Culture Organics Kefir will be available for distribution in September 2024 in flavors including Low Fat Unsweetened, Strawberries n' Cream; Peach/Vanilla; Wild Blueberry, Tart Summer Cherry, and Whole Milk Unsweetened in 32oz sizes, suggested SRP of $5.99 per quart.
Additionally, PCO Inc. will also have available its Kefir+Collagen, and Pineberry flavor this fall/winter.
IDFA Relaunches Live and Active Cultures Seal for Yogurt and Cultured Dairy Product Makers
IDFA’s LAC Seal is a widely recognized, independent verification of live and active yogurt cultures in the marketplace
To help consumers better identify yogurt, frozen yogurt, and other cultured dairy products containing live and active yogurt cultures, the International Dairy Foods Association (IDFA) relaunched its Live & Active Cultures (LAC) Seal for manufacturers. IDFA’s LAC Seal is the only widely recognized, independent verification that a dairy product contains significant levels of live and active yogurt cultures. Recently, IDFA updated the policies and guidelines around use of the LAC Seal and is broadening the availability of the logo to the full yogurt and cultured dairy products industry.
The LAC Seal is a voluntary certification available to all manufacturers of yogurt and cultured dairy products whose products contain at least 100 million cultures per gram, which is 10 times higher than the minimum levels required by the US Food and Drug Administration (FDA). The LAC Seal can also be used for frozen yogurt that contains at least 10 million cultures per gram at the time of manufacture.
As a dairy trade association representing America’s yogurt and cultured dairy product makers, IDFA understands consumers are demanding new and innovative health, wellness, and nutrition attributes in their food and beverage options. When it comes to yogurt and similar cultured dairy products, the words "live and active cultures" are persuasive. Two-thirds (67%) of those who have at least heard of live and active cultures believe that a product containing them is better for them, according to a 2021 survey of consumers by the International Food Information Council, or IFIC.
Gut health and nutrition rank among the top drivers for consumers who purchase yogurt and similar cultured dairy products. According to the same IFIC survey, one in four consumers (25%) said digestive and gut health was their most desired benefit and 24% chose general health and wellness. Live and active cultures refer to the living organisms—in this case the bacteria, Lactobacillus bulgaricus and Streptococcus thermophilus—that convert pasteurized milk into yogurt through fermentation. This fermentation process is what gives yogurt its unique taste, texture, and healthful attributes. Live and active cultures also help break down lactose in milk, assisting people who have trouble breaking down lactose so they can eat yogurt without digestive discomfort.
SunSip by Health-Ade Sodas with Benefits
The prebiotic sodas contain 5g of sugar, fruit juice, monk fruit, and cane sugar
Health-Ade, makers of bubbly beverages with gut health benefits, launched a new beverage brand called SunSip by Health-Ade, a prebiotic soda with benefits that are available nationwide. Known for kombucha, this move positions the brand to become a meaningful part of the rapidly expanding functional beverage industry, which is estimated to reach $62B in 2027, according to the company.
SunSip delivers nostalgic soda flavors while staying true to Health-Ade's mission to make gut health more accessible. The brand touts "Life's Sweeter When You Sip Better," inspiring consumers to ditch the sugary sodas for this better-for-you upgrade, jam-packed with flavor, while delivering prebiotics, vitamins, and minerals.
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