The Hard Kombucha Market size was valued at $40.05 million in 2021, and hard kombucha market forecast to reach $1.7 billion by 2031, growing at a CAGR of 41.9% from 2022 to 2031.
A SCOBY, or symbiotic colony of bacteria and yeast, is added to brewed tea and cane sugar to make kombucha. The mixture is then allowed to ferment for a week to a month. Most kombuchas are then fermented a second time, adding additional flavorings such as fruits and spices. Kombucha naturally produces alcohol as a byproduct of the fermentation process, but the alcohol content of most store-bought kombucha is negligible, typically containing no more than 0.5% alcohol by volume. To make “hard” kombucha, which some alcoholic-kombucha brewers claim has the same health benefits as non-alcoholic kombucha, the tea mixture is fermented a second time with additional yeast and sugar added, resulting in a higher alcohol content.
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During the forecast period, the increasing consumer focus on the consumption of healthy food and beverage products is expected to propel the hard kombucha industry. Furthermore, the health-conscious population seeks to reduce or eliminate alcohol from their diet in order to lose weight and improve sleep. Alcohol-free and low-alcohol products are becoming more widely available to consumers as a lifestyle and societal norm. The alcohol content of hard kombucha ranges from 3 to 11% by volume (ABV). According to IWSR consumer research, 40% of no/low consumers in the UK are ‘Substitutes,’ with LDA Gen Z and millennials (46% and 41%, respectively) more likely to substitute than Boomers (36%). LDA Gen Z and millennials in the UK are also more likely to be ‘Blenders,’ switching between no/low and full strength on the same occasion (20% and 23%, respectively). A similar pattern can be observed in other markets, such as the U.S. Consumers are also making better choices in a variety of opulent food and beverage categories without sacrificing taste or social experiences. As a result, no and low-alcoholic beverages are gaining popularity among consumers, which is expected to drive demand for the hard kombucha market and will further help to boost the hard kombucha market size.
The fermentation of sugared tea with a symbiotic culture of bacteria and yeast results in hard kombucha. In addition, the kombucha is infused with herbs, spices, and fruit additives to enhance its flavor. Kombucha contains live bacteria and yeast, which promotes a healthy digestive system. Furthermore, kombucha has health benefits such as lower blood pressure and cholesterol levels, a lower cancer rate, and improved liver, gastrointestinal tract, and immune system. Kombucha contains polyphenols, and the fermentation process used to make hard kombucha increases the polyphenol content even more. The presence of polyphenols acts as an antioxidant, reducing inflammation, which is the root cause of many diseases. Additionally, hard kombucha contains vitamin B, organic acids such as glucuronic, acetic, and D-Saccharic acids, as well as some essential minerals. The organic acids in hard kombucha have antimicrobial properties that limit the growth of bacteria. Organic acids also assist the liver in getting rid of unwanted compounds that must be processed by promoting detoxification. Thus, the health benefits associated with hard kombucha consumption are expected to boost the market during the forecast period.
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The key companies profiled in hard kombucha industry are Boochcraft, JuneShine, Inc., Jiant, Kombrewcha, KYLA Hard Kombucha, Unity Vibration Kombucha, Dr Hops Kombucha Beer, LLC., Flying Embers, GTs Living Foods LLC., Tailored Beverage Company, Buddha’s Brew, Inc., New Holland Brewing Company, LLC, Wild Tonic, Ummi kombucha, and Odell Brewing. Product launch with quality is the key strategy adopted by well-established players to compete in the market.
According to the hard kombucha market analysis, the market is segmented on the basis of product type, category, distribution channel, and region. By product type, the market is segmented into plain and flavored. On the basis of category, the market is classified into conventional and organic. According to distribution channel, the market is classified into food service and food retail. Food retail sub-segment is divided into store-based and non-store-based. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The flavored segment accounted for the largest hard kombucha market share, in terms of revenue, in 2021 as it is the most popular type of alcoholic alternative preferred among consumers. This segment is projected to dominate during the forecast period, and the market is anticipated to show significant growth in Asia-Pacific, whereas growth will remain steady in Europe.
Organic category segment witnesses a major growth in the market owing to the increasing demand for organic food & beverage products among consumers. Organic products are free from chemical fertilizers and any residues of it. During the entire process of farming from sowing to harvesting biofertilizers such as manure and compost are used to produce the food having highest nutritional content.
Food retail segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 42.1% during the forecast period. Food retail distribution channel is further bifurcated into store-based and non-store-based, among non-store-based distribution channel witnesses highest growth rate. Online stores are widely accepted by consumers in the developed countries of North America and Europe, due to rise in adoption of mobile phones and increase in penetration of internet and is the major contributor in hard kombucha makret trends. Hard kombucha can be conveniently sold through online stores. Rigorous online marketing supplemented with huge options, availability of detailed information, discount & free home delivery offered by various e-commerce platforms have increased the popularity of this distribution channel in the recent years. Furthermore, the industry is witnessing a significant growth in developing economies, owing to increase in internet penetration. Therefore, the online stores segment is expected to grow at the highest rate during the forecast period and is projected to boost the hard kombucha market demand.
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U.S. is one of the largest contributors in the hard kombucha market. Asia-Pacific is expected to witness a CAGR of 45.56% in organic hard kombucha owing to increasing awareness regarding organic products and to create hard kombucha market opportunity. The European and North American hard kombucha markets are expected to offer lucrative growth opportunities during the forecast period. An increase in disposable income among African regions and in Asia-Pacific, and changing dietary patterns among consumers are key drivers for the hard kombucha market growth. The UK and U.S. contributed major revenue share.
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