Kombucha is the cool kid on the F&B block. Easily blended with a wide range of tastes and packed with the health benefits of live-cultured food, it’s a low-sugar alternative to traditional soft drinks – and it’s gaining popularity as the latest superfood (well, drink).
Future Market Insights reported that in 2023, the kombucha tea market was valued at USD $1.72 billion. It’s projected to be worth $5.4 billion by 2033, growing at a CAGR of 12%.
The first commercial kombucha company launched in the mid-90s – and three decades later, we’re looking at a market worth billions.
It’s a fermented, sweetened tea made from either black or green tea leaves. With so many health benefits (like gut health, immunity, and reduced inflammation) associated with drinking kombucha, it’s also recognised as a functional drink.
It’s made by adding bacteria and yeast together to form a culture called SCOBY (symbiotic culture of bacteria and yeast), which is then added to the already sweetened tea and left to ferment for up to 21 days. Once bottled, it’s left for another 14 days for the carbonation process to occur until refrigerated.
Because of kombucha’s long history, it’s hard to pinpoint exactly when it was first created. It’s likely to have its roots in China as far back as 200 B.C., when it was used as a healing tonic.
When a Korean physician Dr.Kombu brought the fermented drink from Korea to Japan in an effort to help Emperor Inkyo with their poor health, kombucha acquired the name we know today.
And now, you can find bottled kombucha in health stores, food markets and popular grocery chains – ready made for customers to buy as part of their weekly shop.
Yes…and no.
Yes – kombucha is fermented, which we know is good for our gut health. Nutritional advice is to up the amount of fermented food and drinks we consume, because these products feed our gut microbiome, increasing the diversity of microorganisms that support our health*.
(*We wrote about the microbiome here if you want a quick look at what it is and why it matters.)
But also – no.
As Aesop said, “It is possible to have too much of a good thing.”
And as the kombucha craze has taken off, so too have some of the added ingredients that producers are using to create new flavours in a bid to appeal to a broader demographic. Depending on the particular brands they choose, as people start drinking more and more kombucha they may also find that they:
So as tempting as it might be to tuck into litres of the stuff, like most things, it’s better consumed in moderation.
Kombucha has a promising future in F&B – with rising market projections, and opportunities for developing tastier, more functional kombucha products.
The drink is competing in a saturated health market and at a premium price point (averaging $4 per drink); so producers may need to look at their production processes to broaden their affordability demographic.
But while kombucha is currently marketed at adults, there’s potential for broader market reach as brands branch out. One company, TIM TAM TUMMY, has released a range of kombucha drinks for children. They believe children’s health drink selections are often forgotten about, and are as equally as important.
New and interesting flavour profiles that align to customer needs and expectations are taking the lead in the future of kombucha. In an interview with Beverage Industry, Kendra Sepulveda (Director of Kombucha Brewers International) said to “expect an array of innovative flavours, ingredients, and brewing techniques, catering to evolving customer tastes.”
Because as awareness of the product increases in regional markets and consumer preferences evolve, kombucha is ready for growth.
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