Asia Pacific Fermented Drinks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia Pacific Fermented Drinks Market is projected to register a CAGR of 5%, during the forecast period, 2020-2025.

Key Highlights

• Consumer preference for healthy food has been a crucial factor in driving the growth of the market. Increased health consciousness among consumers has led to the demand for functional beverages. ​
• The availability of alternatives and regulatory issues associated with fermented food and drinks, such as yogurt and kombucha, because of the sugar or alcohol content of the product, acts as challenges to the market. The presence of nutritionally equivalent alternatives affects consumer behavior and refrains the purchase of fermented beverages

Key Market Trends

Increase in Demand for Functional Beverages

Functional beverage, which has its origin in Japan, has now become an integral part of the beverage market across the globe. This is due to specific nutritional benefits that are available in functional beverages that can positively affect the consumers’ health, which may be difficult to obtain through a regular diet. Increasing consumer focus on health and wellness, intense research activities carried by key players on diet-related disease-prevention methods, and improving the ingredients technology are the key factors driving the functional beverage market.​ Furthermore, Asian countries tend to favor dairy-based functional beverages, whereas the United States and Europe favor cereal-based and RTD tea functional beverages.​

Japan holds the Largest Market Share

Japanese consumers have been very conscious for replenishing the bacterial flora in their gut on a regular basis and perceive probiotic bacteria to be the best solution, which is driving the market studied, in the country. The country has one of the largest fermented dairy companies, such as Yakult Honsha, Meiji, and Morinaga, which have been continuously seeking to expand their presence in countries, like India and the United States, particularly owing to saturation in the overall Japanese fermented drinks market. The companies in the countries market are more experimenting in the fermented drinks category, owing to a relatively higher understanding of different types and styles of beverages. The pace of consumer packed fermented foods is also faster in the country, which is supporting the market growth in the country.

Competitive Landscape

The fermented drinks market in the Asia Pacific region is dominated by leading players such as Nestle, Danone, and Anheuser-Busch InBev. Some of the other prominent players include ASAHI GROUP HOLDINGS, LTD, PepsiCo Kevita, and Heineken NV among others. competition levels have recently increased due to the influx of small-scale and domestic players in the fermented beverage industry.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support