Recently, a consumer survey conducted by Kerry found that among global consumers’ reasons for buying healthy lifestyle products, digestive health has risen from fourth to third in 2019. A quarter of consumers said they had consumed products containing probiotics in the past six months, up from 21% in 2019. 44% of consumers said they would consider doing so, compared with 40% in 2019.
A series of factors have promoted the development of the digestive health market. The population structure changes and the health problems caused by the aging of the population continue to increase. At the same time, fast-paced lifestyles and refined eating patterns have increased the prevalence of digestive diseases. The pandemic has accelerated the shift of consumers to a more active and healthy approach. Therefore, consumers expect to see functional ingredients in their favorite food and beverage products.
The demand for functional foods for digestive health is not a new trend, but this trend seems to continue and may accelerate the outbreak. A typical case is that fermented products represented by kefir and kombucha are widely welcomed by consumers, especially in the European and American markets. Among them, Kombucha has an annual growth rate of 30% in natural channels in the United States, and an annual growth rate of 50% in traditional channels. According to Fortune Business Insights market data, the kefir market size in 2019 was 12.3 U.S. dollars and is expected to be 1.84 billion U.S. dollars in 2027.
Fermented beverages have always been popular in the West because the microorganisms they contain can be used for immune health and overall health. Throughout the Eastern countries, especially Asian countries, fermented foods, and beverages have recently received market attention, especially in China, India, and the Philippines. Taking the Chinese market as an example, 9.8% of consumers want to drink naturally fermented beverages and associate them with digestion. The reason why Indian consumers buy fermented beverages is mainly related to the probiotics contained in them.
Recently, Ai Palette released a report on fermented beverages in the Asian market. The specific market trends are as follows:
1 China, India, and the Philippines are the fastest-growing markets for fermented beverages
Although the consumption of fermented beverages is increasing throughout Asia, India, China, and the Philippines are leading the way in the consumption of prebiotics and probiotic beverages. Intestinal health fermented beverages with natural cleansing and probiotic benefits are appearing on the market. It is expected to grow at a significant rate in the next few years. Natural fruit enzymes and immune-enhancing beverages already have a stable market and are expected to grow.
Factors concerning consumers in the rise of fermented beverages in China are as below:
In specific market segments, the rise of fermented beverages in China is mainly related to “natural (annual growth of 37.3%), intestinal health (annual growth of 12%), probiotics (annual growth of 50.7%), and cleanliness (annual growth of 78.2%). Other health attributes are related. The rapid growth of fermented beverages in India is mainly related to “cleanliness (an annual increase of 11.4%), intestinal health (an annual increase of 4.1%), and immunity (an annual increase of 219.2%)”. The market growth in the Philippines is mainly related to the characteristics of “probiotics (annual growth of 41.3%), natural (annual growth of 63.2%), and intestinal health (annual growth of 55.1%).
2 Traditional flavors will once again become the focus of attention
A very important trend that is currently developing is the preference for local tastes over foreign ones. In China, for example, flavored jelly is very popular. Cafes and restaurants pair fermented beverages such as fruit enzymes with jelly to cater to local tastes. In particular, lychee, grape, and lemon are more and more popular flavors.
Similarly, India is increasingly favoring fermented beverage formulas, such as drinkable yogurt. Flavors such as black plum, mango, pineapple, and turmeric (traditional flavors) are back in fashion. In the Philippines, a country known for its love of mangoes in the world, mango-flavored healthy smoothies are expected to become the most popular product. In addition, the Philippine Department of Health recently allocated 500,000 Philippine pesos to purchase vitamin C supplements for school children across the country to improve the overall body’s immunity. This is expected to increase the demand for vitamin C beverage supplements.
The popularity of kombucha in India and the Philippines is 162.2% and 450.3%, respectively. In addition, the emerging and growing flavors of fermented beverages currently match well with dairy products and drinking yogurt, with an annual growth rate of 34.8% in India.
3 Fruit enzymes in the Chinese market are growing rapidly
With the improvement of consumers’ health awareness and the influence of the external environment, especially in the haze weather in winter, consumers’ demand for natural, clean, and healthy beverages continues to increase. Especially organic fruit enzymes are favored by consumers all over the country during breakfast. The following is the expected year-on-year growth rate of China’s prebiotics and probiotic beverages:
4 The obsession with kombucha in the Indian market
In India, the emerging middle class is seeking healthier alternatives to replace them with a refreshing cup of brewed tea at mealtime. The benefits of kombucha have attracted the imagination of Indian consumers. It is the fastest-growing fermented beverage in India today, with a year-on-year increase of 162.2%. The following is the expected year-on-year growth rate of Indian prebiotics and probiotic beverages as shown in the figure below:
5 Consumer health education has become the driving force behind the increasing demand for fermented beverages in the Philippines
The Philippines has shown an unexpected interest in cultural beverages. When it comes to drinks that improve intestinal health, probiotic drinks are their first choice. The most in-demand beverages (expected to continue to maintain high demand) are expected to increase year-on-year growth rate as shown below:
Among the three countries in Asia, the Philippines has shown a strong growth trend of kombucha. For example, Kombucha bubble tea (mango flavor) and Kombucha fresh juice. At the same time, artificial intelligence, machine learning, and natural language processing will be used to predict changing consumer beverage preferences and prepare products for the future.
Overall, the global prebiotic and probiotics market is expected to grow to US$6.65 billion and US$74.3 billion by 2025, respectively. Much of this can be attributed to the growth of the Asian market. But as with anything, changes in consumer tastes will control the results. This is how artificial intelligence and machine learning are used to track the changing tastes of customers and use real-time insights. You can prepare for the market with the right products to ensure rapid success.
