Nobody knows exactly where kombucha actually comes from. It’s been consumed for at least two millennia, with China, Korea, Japan and Russia among the contenders for claiming it as their “invention.” But although kombucha’s origins may be disputed, its rampant rise in popularity around the globe most certainly isn’t.
A decade ago, outside of Asia and Eastern Europe, where the drink was traditionally consumed, only self-professed health nuts would have tried this strange fermented cold tea beverage. Back then, consumers, by and large, still preferred to stick to safe ready-to-drink (‘ice’) tea, juices, functional waters and, of course, coconut water when searching for a healthy alternative to conventional carbonates. This article looks at some key aspects of today’s global kombucha market, like which are the top brands and what types of claims are most important in different markets. It also discusses the need to address new target audiences, like young males and mature consumers.
Kombucha – a growth market
According to Marketwatch, the global kombucha market was worth US$0.74 billion in 2016 and is expected to reach just just under US$5 billion by 2025. Data captured by Lumina Intelligence in 2020 on the kombucha market included 210 brand variants and 121 global brand owners across 22 countries, as illustrated by the graph below.
Number of Captured Kombucha Products by Country, Jan 2020
According to the data collected by Lumina, the top 10 manufacturers by number of distinct brand variants are as follows:
- Kombucha Wonder Drink (10)
- Yogi Tea Gmbh (8)
- The Brew Crew (7)
- B-Tea Beverage (7)
- GT’s Living Foods (6)
- Strappa (6)
- Kelleripanimo (5)
- Pronatura Inc (5)
- Equinox Kombucha (4)
- La Semilla Colectivo (4)
Top 5 brands include
- Yogi Tea
- Notabeer Organic Kombucha
- Equinox Kombucha
- Carpe Diem
- Strappa Live Kombucha
- Kombucha La Semilla Colectivo
- Kombucha Wonder Drink
Asia (Japan, China, Vietnam, Malaysia, Taiwan, Indonesia, India, Australia and South Korea):
- Kombucha Wonder Drink
- Heal Probiotics
What is so special about kombucha?
Before moving on to discuss why consumers are buying kombucha and how purchase motivation tends to differ between markets, let’s first look at the basic characteristics, which give this beverage the edge.
Kombucha is made by fermenting a complex conglomerate of bacterial and yeast cultures, which coalesce into a disc-like shape often referred to as the kombucha mushroom (also known as “scoby”) in a base of black or green tea mixed with sugar.
Once the fermentation process is completed, you end up with a liquid that is rich in vitamins, enzymes, amino acids, organic acids and other substances, which have barely been identified, never mind studied in detail. This is very much part of kombucha’s mystique that gave rise to its reputation as a panacea for all kinds of ailments, e.g. allergies, chronic fatigue, digestive complaints, high blood pressure and even cancer.
At this point, it is probably worth mentioning that kombucha au naturel is somewhat of an acquired taste. However, manufacturers’ efforts to create and bring to market a huge variety of great tasting offerings have converted kombucha from a niche medicinal brew of the ultra-health conscious to a well-established segment of health and wellness beverages aimed at the mass market.
It is common for kombucha products to be featuring health claims and Lumina Intelligence research shows that of those that do, 98% pertained to general wellness followed by digestion (23%) and immunity (15%). This roughly mirrors the health claims distribution across probiotic products, which is hardly surprising, since kombucha counts as a probiotic drink. As long as it has not been heated, the filtered product still contains live bacterial cultures.
Kombucha – product positioning by top 3 health benefits, 2020
Also, bacterial cultures are essential for making kombucha in the first place rather than being added at a later stage, as is the case for most probiotic food and beverage products. This makes kombucha a “natural” probiotic drink and this is something which appeals greatly to Millennials, who are increasingly suspicious of any kind of “unnecessary” additive.
Kombucha market trends: Clean label
This brings us to another one of today’s top trends, namely clean label. Within the kombucha category, it is interesting to observe that there are significant disparities when it comes to the type and frequency with which clean label feature on products distributed in different markets and geographies.
Lumina Intelligence research reveals, for instance, that Italy and Spain are the countries with the highest average number of clean label claims with 3 per kombucha product, followed by Germany with 2.5 and France with 2.3. By contrast, there were no clean label claims on kombucha products sold in Vietnam.
Spain and the UK had the highest average of free-from claims with 1 per product. In the US, where an estimated 75% of processed foods contain genetically modified ingredients according to the Center For Food Safety, 29% of kombucha products were labelled “no GMOs”. 93% were certified organic, while 60% featured a “no preservatives” claim.
In Australia, which has a very highly developed health and wellness market, 29% were labelled organic. China trailed behind on clean label claims, and none of their kombucha products captured by us were certified organic. However, the “no GMOs” claim still appeared on 77% of the kombucha products on sale in China.
Kombucha by Clean Label claims, January 2020
The power of online reviews
Although, as already mentioned, clean label claims were sparse on kombucha products sold in the Chinese market and free-from claims virtually absent, China surpassed all other markets in one aspect: Chinese kombucha consumers were by far the most active in terms of bashing out online reviews (see chart below).
Online reviews are becoming increasingly important in consumers’ purchase decision-making processes, especially in the realm of health-positioned products. After all, it’s not just about taste – consumers want to know whether other people who purchased a product have experienced any health benefits or not. For this reason, online product reviews are a key focus in Lumina Intelligence’s market research.
Kombucha, Online Reviews by Country, 22 Countries, Jan 2020
In the case of China, not only was it the market where consumer reviews of kombucha products were most prolific, but the average score was an appreciable 4.8 out of 5. Only four of the markets surveyed by us – Vietnam, Indonesia, Mexico and Malaysia – managed to achieve higher review scores, as evident from the chart below. (Note: China has been excluded from the following charts in order to present the rest of the data more clearly.)
Kombucha, Reviews and Average Star Rating by Country, 21 Countries, Jan 2020
Kombucha, Reviews and Average Brand Star Rating of Top 10 Brands, 21 Countries, Jan 2020
Kombucha in search of new target markets
There are a number of factors, which are set to boost the uptake of kombucha for the foreseeable future. First of all, fermented products are right on trend. Besides the health benefits associated with consuming fermented foods and beverages, Millennials, in particular, are known to favour traditional processing methods, and fermentation is probably as traditional as it gets. Also, Millennials are irredeemably attracted to everything “ethnic” and kombucha’s long consumption history across Asia and eastern Europe affords lends credibility, which brand owners can tap into.
And then there is the craft beverages trend, which started in beer but which has by now embraced non-alcoholic beverages, including kombucha. A recent launch example is Greenbelt Craft Kombucha, launched by Greenbelt Craft Beverages in four flavours in June: Peach Blossom White Tea, Strawberry Fields Roibos Tea, Blood Orange Yerba Mate and Hibiscus Berry Black Tea.
The craft beer trend has elevated the aluminium can format into the premium realm and kombucha products are evidently capable of taking advantage of this. The can format may also serve to popularise the drink among the young male demographic, e.g. by employing an immunity-boosting, sports drink alternative positioning.
At present, the core target population for kombucha in most markets is younger consumers, but there is no reason why it should remain limited to that. Kombucha is both a natural and a functional beverage, which addresses many of the health concerns of older people, including cardiovascular health, digestive issues, arthritis and other inflammatory conditions. Instead of popping more pills, seniors would much rather eat and drink health-giving products, as long as their taste preferences are being respected, and kombucha is nothing if not versatile in this regard.
Kombucha market growth is very encouraging and the category certainly has the potential of rivalling coconut-water-based beverages, especially if it manages to capture new target audiences.
Lumina Intelligence’s Kombucha product data
Lumina is an insights service for high-growth food and nutrition markets. Kombucha is included as part of our probiotics market coverage, and is split in the following ways:
- Brand Name
- Brand Variant
- Brand Owner
- Average review score (by brand owners, brand and brand variant)
- Target population
- Number of strains (if applicable)
- Clean label claims
- Free from claims
- Health benefit