Fermented Food Market

Global Fermented Food Market Size (2024 to 2029)

Global Fermented Food Market size was valued at USD 643.31 billion in 2024. The Fermented Food market share value is expected to grow at a CAGR of 5.7% during the forecast period 2024-2029 to reach USD 848.78 billion by 2029. 

Fermented foods are the result of an anaerobic process where natural bacteria are applied to foods, breaking down starch and sugar to produce lactic acid. This process has a historical presence across various food categories such as meat, fish, dairy, vegetables, legumes, grains, and fruits. The production of lactic acid serves to preserve these foods, extending their shelf life. Fermented foods are rich in essential enzymes, Omega-3 fatty acids, probiotics, and vitamin B, enhancing their nutritional value and promoting healthiness. These fermented foods encompass a wide range of products, including dairy items, vegetables, health beverages, desserts, confectionery, and more. The fermented foods market has carved out a unique niche by offering distinct flavors and tastes that have influenced Western palates. This market introduces a multitude of novel foods and flavors, thereby influencing consumer food preferences. The global fermented foods market is poised for substantial growth in the foreseeable future, primarily driven by product innovation, flavor enhancements, and increasing consumer awareness of healthy dietary choices.

There are ample opportunities for fermented food products in regions where the market for bakery and cereals, as well as dairy and soy foods with probiotics and added prebiotics, was valued at USD 11.7 billion in 2022. Imported pickles have served as a representation of culinary traditions from various cultures. This cultural exchange has resulted in increased awareness and fascination with fermented foods from the Asia Pacific region. 

Global Fermented Food Market Drivers:

The Fermented Food market is primarily driven by several key factors. One significant driver is the increasing popularity of the plant-based trend within the fermented food market. As this trend gains momentum, we can expect further growth in the production of plant-based fermented food products. Additionally, convenience and availability are playing a crucial role in the market's expansion. Fermented foods have become more readily accessible, and consumers are actively seeking convenient, ready-to-eat options. Many fermented foods are now easily found in both supermarkets and online stores, ensuring accessibility for customers. Furthermore, concerns about sustainability and environmental impact are contributing to the growth of the fermented food market. Consumers are increasingly focused on their health and are seeking nourishing and wholesome food options. Fermented foods are often perceived as healthier choices due to their improved digestibility, probiotic content, and potential to enhance nutrient absorption. Many consumers are also looking for foods with transparent ingredient lists, free from artificial additives and preservatives. Fermented foods typically consist of simple, recognizable ingredients, aligning with the clean-label trend. 

Global Fermented Food Market Restraints:

Several factors have the potential to hamper the growth of the Fermented Food Market, with allergen concerns and safety issues being prominent among them. Allergies related to certain foods can range from mild discomfort to severe, life-threatening conditions like anaphylaxis. Fermented foods containing allergens have allergic reactions in susceptible individuals, posing health risks and potential legal liabilities for manufacturers. The production of fermented foods often involves shared equipment and facilities. Without proper allergen management practices, cross-contamination can occur, leading to the presence of allergen traces in food products that are not supposed to contain them. This presents a significant risk to consumers with allergies. Accurate and transparent allergen labeling is crucial for these individuals to identify foods they can safely consume. Inadequate labeling of fermented foods may force individuals with allergies to avoid these products altogether due to the fear of potential allergen exposure. This has, in turn, led to decreased demand for such products and the potential demolishing of a brand's reputation, thereby restraining the growth of the Fermented Food Market.

Impact of COVID-19 on the Fermented Food Market:

Global availability of fermented foods was impacted by raw material shortages and supply chain disruptions due to country-specific import and export restrictions. However, the food and beverage sector experienced a significant surge in demand during and after the pandemic, driven by consumers seeking natural and organic food products. The fermented food market is expected to grow in the forecast period due to increased interest in health supplements spurred by the COVID-19 pandemic. This trend is fueled by a growing focus on health, immunity, and well-being. Fermented foods, with their unique flavors and functional benefits, offer advantages in supporting the immune system, particularly in Asia, where they have been used for ages in food preservation.

REPORT COVERAGE: 

This research report on the Global Fermented Food Market has been segmented and sub-segmented based on type, category, fermentation process, distribution channel and region.   

Global Fermented Food Market - By Type:

Fermented Food

• Vegetables
• Dairy products
• Meat
• Others (Fish, and Other) 

Fermented Beverages

• Alcoholic
• Non-alcoholic

Based on product type, the Fermented Food Market is poised for substantial growth, with fermented dairy-based products expected to play a prominent role during the forecast period. Dairy fermentation has a rich history spanning centuries across various global cultures. Iconic products like yogurt and cheese hold significant historical and cultural importance and are deeply ingrained in traditional diets. Several fermented dairy products, including yogurt and kefir, serve as abundant sources of probiotics—beneficial live microorganisms that support gut health. Probiotics have the potential to enhance digestion and strengthen the immune system. Fermented dairy products offer a plethora of significant health advantages. The fermented beverages segment is also likely to grow at a faster rate due to increasing demand for vegan food products and inclination towards a healthy lifestyle.

Global Fermented Food Market - By Category:

•  Organic
•  Conventional

Based on the category, the organic segment is expected to dominate the Fermented Food Market during the forecast period. This dominance is because organic fermented foods are crafted from ingredients that have not been exposed to chemical pesticides or fertilizers, in contrast to traditional fermented foods that may contain these additives. The organic category has witnessed a rising demand as more people seek natural and sustainably cultivated food options. 

However, conventional fermented foods continue to dominate the market due to their affordability and broader accessibility.

Global Fermented Food Market - By Fermentation Process:

• Batch
• Continuous
• Aerobic
• Anaerobic

Based on the fermentation process, a continuous process is expected to dominate the Fermented Food market during the forecast period. Continuous fermentation allows for a more consistent and continuous production flow compared to batch fermentation, which produces products in discrete batches. Aerobic fermentation requires the presence of oxygen, while anaerobic fermentation does not depend on oxygen. The outcome of the fermentation process can impact the flavor, appearance, and nutritional content of the final product. Each method, with its respective advantages and disadvantages, can be chosen based on specific production requirements and capabilities.

Global Fermented Food Market - By Distribution Channel:

• Supermarkets and hypermarkets
• Convenience Stores
• Online
• Others 

Based on the distribution channel, the supermarkets and hypermarkets are expected to dominate the Fermented Food Market during the forecast period. The primary distribution channels for fermented food products are supermarkets and hypermarkets. Convenience stores cater to customers seeking quick purchases, while online channels have gained popularity due to their convenience and home delivery options. The choice of distribution channel is often influenced by factors such as the target market, product type, and location.

Global Fermented Food Market – By Region:

• North America
• Europe
• Asia Pacific
• Middle East
• Latin America

Based on region, the Asia Pacific region has held the largest share of the Fermented Food Market and is projected to maintain its leadership throughout the forecast period. Growing awareness among consumers about the link between gut health and overall well-being has led to a rising demand for foods that promote digestive health. Fermented foods are well-known for containing probiotics and other beneficial compounds that support gut health, aligning with the increasing interest in health-conscious diets. Probiotics, which are live microorganisms with proven health benefits when consumed in appropriate quantities, are naturally present in fermented foods. The surging popularity of probiotics for digestive health is a key driver of growth in the fermented food market. For instance, Indonesia, in particular, boasts a wealth of traditional fermented foods. Given the increasing demand for fermented foods, the Indonesian food safety agency has recently introduced new regulations to govern the production and marketing of these products. These regulations are expected to aid local manufacturers in expanding the market for traditional Indonesian fermented foods and beverages, both domestically and in neighboring developing economies within the Asia-Pacific region.

In Europe and North American region, growth is subjected to an increase in health awareness and benefits of fermented foods.

KEY MARKET PLAYERS:

Key Market players of Fermented Food Market are Unilever(Netherlands), Danane (France),  The Coca-Cola Company (US) , Nestle (Switzerland) , PepsiCo(US),  Anheuser-Busch InBev (Belgium), Heineken ( Netherlands), Mondelez International( US), Holdings( Japan), Kraft Heinz (US), Fonterra Co-operative Group( New Zealand) , Suntory Holdings( Japan), General Mills (US), Lactalis Group( France), Kirin Yakult Honsha Co., Ltd.(Japan)

RECENT HAPPENINGS IN THE MARKET:

• In Sep 2023, General Mills is allocating $48 million for the expansion of its frozen dough facility in Joplin, Missouri, USA. This endeavor is anticipated to result in the creation of 47 new job opportunities. The expansion aims to bolster General Mills' production and packaging capabilities to cater to the escalating demand and promote product innovation, particularly for the company's food service clientele.
• In June 2023, A significant dairy expansion is unfolding in Chicago as France's Groupe Lactalis, the largest dairy company globally, continues to grow its presence. This expansion follows a prior $3.2 billion agreement made in 2020 with Kraft Heinz Co. to acquire their cheese brands, as reported by Bloomberg.