Kvass Global Market Report 2024

The kvass market has grown rapidly in recent years. It will grow from $2.94 billion in 2023 to $3.27 billion in 2024 at a compound annual growth rate (CAGR) of 11.3%. The expansion observed in the historical period can be attributed to factors such as cultural heritage, local brewing traditions, the consumption of traditional beverages during festivals, the rise of the artisanal and craft movement, the growing global interest in culinary exploration, and effective marketing and branding efforts.

The kvass market is expected to see rapid growth in the next few years. It will grow to $4.82 billion in 2028 at a compound annual growth rate (CAGR) of 10.2%. The anticipated growth in the forecast period can be attributed to the globalization of ethnic foods, a health-conscious consumer base, the diversification of distribution channels, retail expansion, and a wide range of flavor varieties. Key trends expected in the forecast period include the adoption of innovative brewing techniques, the use of eco-friendly packaging, culinary innovation in mixology, increased focus on digital marketing, and collaborative efforts through product partnerships.

The upward trend in the consumption of functional beverages is set to propel the kvass market in the foreseeable future. Functional beverages, characterized by non-alcoholic drinks containing ingredients such as herbs, vitamins, minerals, amino acids, or other raw fruits and vegetables, offer health benefits such as immune system reinforcement, blood cleansing, and digestive ailment treatment. Notably, kvass stands out as a functional beverage contributing to these health benefits. The Institute of Food Technologists (IFT) reported that the sales of functional foods and beverages in the United States reached $83 billion in 2021. A survey by Advantage Solutions, a US-based sales, marketing, and technology solutions company, revealed that 60% of 1000 US adults surveyed purchased nutritional supplements, with one-third having bought functional beverages in the past three months. The survey also indicated a growing inclination among respondents to purchase beverages with dietary claims in the coming months, underscoring the increasing consumption of functional beverages as a driving force for the kvass market.

The surge in sales on online platforms is anticipated to fuel the growth of the kvass market in the coming years. Online platforms, encompassing digital environments or websites facilitating various activities and interactions over the internet, present an opportunity for kvass producers to expand market presence, connect with a broader audience, and enhance overall business performance. According to the United States Census Bureau, e-commerce estimates for the second quarter of 2023 increased by 7.5%, with online stores accounting for 15.4% of all sales. This shift toward online sales is indicative of the increasing importance of online platforms in driving the growth of the kvass market.

Product innovations emerge as a significant trend gaining traction in the kvass market, with major companies introducing novel products to sustain their market positions. For example, Funky Monkey, a Russia-based beverages manufacturer, introduced Kolo-Cola, a cola-flavored kvass drink, in June 2022. The distinctive design of the bottle, featuring a Christian symbol, and the consecration of each batch by the Russian Orthodox Church add uniqueness to the product, reflecting the trend of innovative offerings in the kvass market.

Major companies operating in the kvass market are strategically focusing on baking accessories to boost revenues. Offering new flavors to make baking enjoyable and convenient, companies such as Wild About Bread, an Australia-based provider of home-baked bread, launched single-pack flavors and baking accessories in November 2021. The introduction of these products, including a silicone baking pan, spatula, and thermometer, aims to simplify the baking experience for busy consumers, aligning with the trend of baking-related offerings in the kvass market.

In February 2023, OC Flavors, a US-based manufacturer of liquid and powdered flavors, acquired Novotaste Corporation Inc., a Canada-based provider of natural and organic flavor solutions. This strategic acquisition positions OC Flavors for future growth in both Canada and the Northeastern United States, leveraging the expanded expertise and resources gained from Novotaste Corporation Inc. The acquisition underscores the importance of such partnerships in driving the growth and expansion of companies within the kvass market.

Major companies operating in the kvass market report are All Stars Beverages Inc., Bryanskpivo OAO, Carlsberg Group A/S, The Coca-Cola Company, Gubernija AB, Kvass Beverages LLC, Ochakovo Company, PepsiCo Inc., Piebalgas alus, Deka Company, The Kvas Company LLC, Lidski kvass, Krinitsa Brewery, Nomas Group, Biotic Ferments OÜ, Wuliangye Group Qiulin Beverage Co. Ltd., Hangzhou Wahaha Group Co. Ltd., Bochkarev Brewery, Borjomi Brewery, Efes Rus, Heineken N.V, Hlebny Dar, Kvassovaya Lavka, Lukoil-Neftekhim, Multon, Omsky Pivzavod, Petrovsky Brewery, Syktyvkarsky Pivzavod, Olimp Imperial Open Joint Stock Company, Baltika Brewery.

Europe was the largest region in the kvass market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global kvass market during the forecast period. The regions covered in the kvass market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the kvass market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of Kvass encompass bread flavor, milk flavor, and others. Bread flavor Kvass is a traditional fermented beverage resulting from the fermentation of rye bread, lending it a distinctively sour and tangy taste. These beverages are available in various packaging types, including bottles, cans, and others, and are priced at both premium and mass market levels. Distribution channels for Kvass include supermarkets, convenience stores, e-commerce platforms, food service outlets, and others.

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The kvass market consists of sales of mass-produced kvass and homemade kvass drink. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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