Fermented Foods Sales Market Outlook

According to recent market analyses, the global fermented foods market is valued at approximately USD 735 billion in 2023 and is projected to exhibit a compound annual growth rate (CAGR) of around 8.5% from 2025 to 2035. The increasing consumer focus on health and wellness, coupled with a growing awareness of the benefits of probiotics and fermented products, is driving this growth. Additionally, the rising trend of plant-based diets and the demand for natural and organic food products are contributing to a robust market expansion. The diverse applications of fermented foods across various sectors such as food and beverage, dietary supplements, and pharmaceuticals further enhance market opportunities. Moreover, innovations in product offerings, including alternative protein sources and new flavors, are expected to bolster the market's positive trajectory.

Growth Factor of the Market

The growth of the fermented foods market can be attributed to several factors that are reshaping consumer habits and preferences. Firstly, the increasing awareness of gut health and the role of probiotics in enhancing digestive health is causing consumers to include fermented foods like yogurt and kefir in their diets. Secondly, the rise of veganism and vegetarianism has led to a demand for plant-based fermented products, such as kimchi and tempeh, which cater to these dietary preferences. Additionally, the trend toward clean label products is pushing manufacturers to create organic and minimally processed fermented options, further appealing to health-conscious consumers. The convenience of ready-to-eat and ready-to-drink fermented products is also a significant driver, as busy lifestyles lead consumers to seek healthier, on-the-go options. Finally, the increasing penetration of e-commerce platforms is making it easier for consumers to access a variety of fermented foods, thereby expanding the market reach.

Key Highlights of the Market

• The global fermented foods market is projected to grow at a CAGR of approximately 8.5% during the forecast period from 2025 to 2035.
• North America and Europe are currently the largest markets, driven by high consumer awareness and demand for probiotic-rich foods.
• Yogurt remains one of the most popular product types, with significant growth in organic and plant-based variants.
• Online retail channels are experiencing an uptick in sales, offering consumers a wider range of fermented products.
• The trend toward healthier eating habits and increased consumption of fermented foods is expected to create new market opportunities in emerging economies.

By Product Type

Kimchi :

Kimchi, a traditional Korean fermented vegetable dish, is gaining popularity across the globe due to its unique flavors and health benefits. It is primarily made from napa cabbage, radishes, and a variety of seasonings, including chili powder, garlic, and ginger. The fermentation process not only enhances the taste but also increases the bioavailability of essential nutrients, making it a favored choice for health-conscious consumers. In recent years, the demand for kimchi has expanded beyond its traditional roots as more consumers appreciate the probiotic benefits associated with fermented foods. Additionally, innovations in flavor profiles and the introduction of vegan kimchi variants are attracting a broader audience, further enhancing the market's growth potential for this product type.

Kombucha :

Kombucha, a fizzy, fermented tea drink, has surged in popularity due to its refreshing taste and purported health benefits, including improved digestion and enhanced immune function. The fermentation process involves a symbiotic culture of bacteria and yeast (SCOBY), which not only ferments the sugars in the tea but also produces beneficial acids and probiotics. This product is particularly favored among millennials and health enthusiasts who are increasingly seeking natural alternatives to sugary beverages. The market for kombucha has expanded significantly, with various flavors and formulations emerging, including low-sugar and functional variants fortified with vitamins and herbal extracts. As consumers continue to prioritize wellness, the demand for kombucha is expected to contribute significantly to the overall growth of the fermented foods market.

Sauerkraut :

Sauerkraut, made from fermented cabbage, is another key product in the fermented foods market. Known for its tangy flavor and high vitamin C content, sauerkraut has been a staple in many diets for centuries. Its simplicity and health benefits, including supporting gut health and boosting immunity, have led to a resurgence in its popularity, particularly among health-conscious consumers. The growing interest in European cuisines has also contributed to increased sauerkraut consumption across different regions. As innovation continues, manufacturers are introducing new variants of sauerkraut that include additional vegetables and spices, catering to evolving consumer tastes. This adaptability positions sauerkraut as a strong contender in the fermented foods market.

Tempeh :

Tempeh, a fermented soybean product originating from Indonesia, is increasingly recognized as a nutritious alternative protein source, particularly within vegetarian and vegan diets. Fermented with a specific mold, tempeh has a firm texture and a nutty flavor that appeals to consumers looking for plant-based options. As the global veganism trend grows, so does the demand for tempeh, which is often used as a meat substitute in various dishes. The health benefits of tempeh, including its high protein content, fiber, and probiotics, further enhance its appeal. Additionally, tempeh products are being innovatively incorporated into a variety of cuisines, leading to a broader acceptance and consumption rate in markets worldwide.

Yogurt :

Yogurt is perhaps the most recognized and widely consumed fermented food, known for its creamy texture and versatility in both sweet and savory dishes. The traditional dairy-based yogurt market continues to thrive, while the demand for plant-based yogurt alternatives is on the rise, reflecting the growing trend of lactose intolerance awareness and veganism. Yogurt is celebrated for its probiotic content, which is linked to numerous health benefits, including improved gut health and enhanced immune function. Furthermore, flavored yogurts and those with functional ingredients, such as added protein or fiber, are gaining traction among consumers. The yogurt segment is expected to remain a significant driver of growth in the fermented foods market, as innovation continues to cater to diverse consumer preferences.

By Application

Food and Beverage :

The food and beverage application segment constitutes the largest share of the fermented foods market. Fermented foods like yogurt, kimchi, and kombucha are incorporated into a variety of culinary applications, providing distinct flavors, textures, and health benefits. The growing trend of incorporating probiotics into everyday diets drives demand for these products, as consumers become more aware of the benefits associated with gut health. Manufacturers are also focusing on developing novel products that cater to diverse culinary cultures, creating fusion dishes that combine traditional fermented foods with contemporary flavors. This application segment is anticipated to witness robust growth as more consumers seek healthier alternatives in food and beverage choices.

Dietary Supplements :

Dietary supplements represent a rapidly growing application for fermented foods, particularly those that are rich in probiotics. Fermented foods such as kefir and certain types of yogurt are being marketed not only for their culinary uses but also for their health benefits. The rising consumer awareness regarding the importance of gut health has led to an increased demand for probiotic supplements derived from fermented sources. These supplements are often presented in convenient forms such as capsules, powders, and functional beverages, making them accessible to a larger audience. As health and wellness continue to be prioritized by consumers, the dietary supplements segment is expected to expand significantly, supported by an increasing number of product launches and innovations.

Animal Feed :

The use of fermented foods in animal feed is a growing application area, as the fermentation process enhances the nutritional value of feed ingredients. Fermented grains and by-products are being utilized to improve digestibility and nutrient absorption in livestock. This application is particularly important in the context of sustainable agriculture, as fermented feeds can reduce the need for chemical additives and antibiotics while promoting animal health. The increasing focus on animal welfare and the demand for natural feed alternatives are likely to drive the growth of this segment. As more research highlights the benefits of fermented ingredients in livestock diets, this application is expected to gain momentum in the coming years.

Pharmaceuticals :

The pharmaceutical application of fermented foods is an emerging segment that focuses on the therapeutic benefits associated with probiotics. Certain fermented foods are being investigated for their potential in preventing and treating various health conditions, from gastrointestinal disorders to mental health issues. The growing body of research supporting the efficacy of probiotics in enhancing health outcomes is leading to increased interest from pharmaceutical companies looking to incorporate these beneficial organisms into their products. As the understanding of the microbiome evolves, the pharmaceutical application of fermented foods is poised for significant developments, potentially paving the way for new therapies and health solutions.

Others :

This category encompasses a variety of applications for fermented foods that do not strictly fall into the aforementioned segments. This includes the use of fermented products in specialty diets, culinary innovations, and emerging trends such as gourmet and artisanal fermented foods. As consumer preferences evolve, the demand for diverse applications of fermented foods is likely to grow, leading to an expansion of product offerings. Moreover, as chefs and food enthusiasts experiment with fermentation techniques, these unique products may gain traction in niche markets, contributing to the overall growth of the fermented foods market.

By Distribution Channel

Supermarkets/Hypermarkets :

Supermarkets and hypermarkets play a crucial role in the distribution of fermented foods, providing consumers with a wide variety of options under one roof. These retail formats often allocate dedicated sections for health food products, including fermented items like yogurt, kimchi, and kombucha, making them easily accessible to consumers. The convenience of shopping in large retail environments, coupled with the ability to purchase organic and specialty fermented products, drives significant sales in this channel. Moreover, supermarkets frequently run promotions and discounts, which can stimulate consumer interest and encourage trial purchases. As consumer preferences shift towards health-oriented foods, this distribution channel is expected to solidify its position as a primary shopping destination.

Convenience Stores :

Convenience stores are increasingly becoming an important distribution channel for fermented foods, particularly as more consumers look for quick, on-the-go options. With busy lifestyles and a demand for healthier snack choices, convenience stores are expanding their offerings to include single-serve fermented products such as yogurts and kombucha. The ability to grab a nutritious snack while shopping or on the way home is appealing to health-conscious consumers. Additionally, convenience stores often cater to local preferences, offering unique fermented foods that resonate with their customer base. The continued growth of the convenience store sector is likely to enhance the availability and consumption of fermented foods.

Online Retail :

The online retail sector for fermented foods has experienced significant growth, driven by the increasing trend of e-commerce shopping. Consumers appreciate the convenience of browsing a wide range of products from the comfort of their homes and the ability to compare prices easily. Online platforms often provide a greater selection of niche and specialty fermented foods that may not be available in local stores. Furthermore, the rise of subscription services for health foods and wellness products has made fermented foods more accessible to consumers seeking regular deliveries of their favorite items. As digital shopping continues to gain popularity, online retail channels are projected to play a crucial role in the growth of the fermented foods market.

Specialty Stores :

Specialty stores that focus on organic, health, and wellness products are vital to the distribution of fermented foods. These retailers often curate a selection of high-quality, artisanal, and innovative fermented products that cater to discerning consumers. Shoppers at specialty stores are searching for unique flavors and quality ingredients, which makes these stores a perfect fit for gourmet fermented items such as handmade sauerkraut, artisan yogurt, and craft kombucha. The knowledgeable staff that often operates in specialty stores can also provide guidance to consumers, enhancing the shopping experience. As consumers seek more personalized and premium products, specialty stores are likely to see continued growth in the fermented foods segment.

Others :

This category includes various other distribution channels such as farmers' markets, food trucks, and direct-to-consumer sales through local producers. Farmers' markets have seen a resurgence in popularity, providing consumers with access to locally produced fermented foods that emphasize freshness and community support. Additionally, food trucks that offer unique fermented food options can attract health-conscious consumers looking for innovative and convenient meal choices. Direct sales from producers allow consumers to develop a connection with the brands they support, fostering loyalty and repeat purchases. While these channels may not contribute the same volume as larger retail formats, their growth reflects a broader trend toward local and sustainable food choices.

By Ingredient Type

Lactic Acid Bacteria :

Lactic acid bacteria (LAB) are central to the fermentation process and are instrumental in producing a variety of fermented foods such as yogurt, kefir, and sauerkraut. These beneficial bacteria convert sugars into lactic acid, contributing to the characteristic tangy flavor and preserving the food. LAB not only enhance the taste and texture of fermented foods but also improve their health benefits, including bolstering the gut microbiome. The demand for LAB-rich products is on the rise as consumers increasingly seek out foods with probiotic properties. As awareness of the health benefits associated with LAB continues to grow, this ingredient type is expected to drive significant growth in the fermented foods market.

Yeast :

Yeast plays an essential role in the fermentation of various foods and beverages, notably in products such as bread, beer, and kombucha. Beneficial yeast strains ferment sugars, producing alcohol and carbon dioxide, which contribute to the flavor and texture of these foods. The growing trend of home fermentation, particularly in the brewing and baking communities, has further popularized the use of yeast in fermented products. Moreover, the rising interest in functional beverages has led to innovations in yeast strains, enhancing their health benefits. As consumers explore new flavors and fermentation techniques, the demand for yeast-based fermented foods is expected to flourish.

Mold :

Mold is a key ingredient in the fermentation of certain specialty products, most notably cheese and traditional Asian fermented foods like tempeh and certain soy sauces. While less commonly associated with mainstream fermented foods, mold contributes to the development of unique flavors, aromas, and textures that are highly sought after among culinary enthusiasts. The use of specific mold strains can enhance the nutritional profile of fermented foods, providing health benefits alongside their distinctive taste. As gourmet food trends continue to rise, mold-based fermented products are likely to capture the attention of consumers seeking artisanal and authentic culinary experiences.

Acetic Acid Bacteria :

Acetic acid bacteria (AAB) are pivotal in the production of vinegar and other fermented condiments. They convert ethanol into acetic acid, imparting a sour flavor that is a hallmark of many fermented products. The versatility of acetic acid bacteria extends beyond vinegar production; they are also utilized in crafting products like kombucha and some probiotic drinks. As the demand for natural and organic condiments increases, the market for AAB-based products is expected to grow significantly. Additionally, the health benefits associated with fermented vinegars, including potential anti-inflammatory properties, are further elevating consumer interest in these products.

Others :

This category encompasses a variety of other ingredients used in the fermentation process, such as fruits, vegetables, and grains. These ingredients can be fermented to produce a wide range of products, including fruit-based drinks, fermented vegetable snacks, and grain-based beverages like beer. The diversity of ingredients in this category allows for endless innovation and creativity in product development, catering to various taste preferences and dietary requirements. As consumers increasingly seek out unique and flavorful fermented foods, the use of diverse ingredients is likely to drive growth in this segment, introducing exciting new products to the market.

By Region

The North American fermented foods market is one of the largest, driven by high consumer awareness and a growing trend towards health and wellness. The increasing popularity of probiotic-rich foods, such as yogurt and kombucha, has led to substantial market growth, with projections indicating a CAGR of approximately 7.5% through the forecast period. The influence of diverse culinary cultures and the availability of organic fermented options further contribute to the strong demand in this region. In addition, the rising trend of e-commerce has made it easier for consumers to access a wide variety of fermented products, bolstering overall sales.

Europe remains a significant market for fermented foods, propelled by a rich tradition of consuming fermented products such as cheese, yogurt, and sauerkraut. The European market is characterized by a strong preference for high-quality, artisanal, and organic fermented foods, with an increasing focus on sustainability and health. The growing popularity of plant-based diets is also influencing the market landscape, with many consumers seeking out vegan fermented options. As consumers continue to prioritize health and wellness, the European fermented foods market is positioned for steady growth, making it an essential area for industry stakeholders.

Opportunities

The fermented foods market presents numerous opportunities for growth, driven by evolving consumer preferences and trends. One of the most significant opportunities lies in product innovation, with manufacturers encouraged to develop new flavors, formulations, and health-focused variants. As consumers seek unique and diverse culinary experiences, companies can capitalize on this demand by introducing fusion products that combine traditional fermentation techniques with modern flavor profiles. Furthermore, the rise of plant-based diets opens up opportunities for the development of innovative vegan fermented products, such as dairy-free yogurts and fermented plant-based drinks. These products can cater to a growing demographic of health-conscious consumers, expanding market reach and creating new revenue streams.

Another promising opportunity for the fermented foods market is the increasing focus on sustainability and environmentally-friendly practices. Consumers are becoming more mindful of their food choices, seeking products that align with their values regarding health, sustainability, and ethical sourcing. By adopting eco-friendly packaging, sourcing organic ingredients, and ensuring transparent supply chains, companies can attract a loyal customer base. Additionally, the growing interest in local and artisanal products can provide opportunities for small and medium-sized enterprises to thrive. This trend towards prioritizing local and sustainable options may not only enhance brand loyalty but also contribute to the overall growth of the fermented foods market.

Threats

Despite the promising growth trajectory of the fermented foods market, several threats could potentially hinder its expansion. One of the primary challenges is the increasing competition from both established brands and new entrants. With the market becoming saturated with a wide range of options, companies may struggle to differentiate their products, leading to price wars that could erode profit margins. Furthermore, consumer preferences can shift rapidly, making it crucial for manufacturers to stay ahead of trends. Failure to innovate or adapt to changing tastes could result in diminished market share for companies that do not proactively address consumer demands.

Another potential threat to the fermented foods market is the regulatory landscape surrounding food safety and labeling. Stricter regulations regarding health claims and product labeling may pose challenges for manufacturers, especially those who rely on specific health benefits to market their products. Compliance with these regulations can lead to increased costs and operational complexities, particularly for small and medium-sized businesses. Additionally, any negative publicity surrounding food safety incidents in the fermented foods category could lead to a decline in consumer trust and demand. Companies must remain vigilant in adhering to regulations and maintaining high quality standards to mitigate these threats and ensure continued growth.

Competitor Outlook

• Danone
• Kraft Heinz Company
• Probi AB
• Yoplait (General Mills)
• GT's Living Foods
• Hain Celestial Group
• Kefir Company
• Nestl├®
• Reed's Inc.
• Lifeway Foods
• Wallaby Organic
• GoodBelly Probiotics
• Stonyfield Farm
• Wildbrine
• Silver Hills Bakery

The competitive landscape of the fermented foods market is characterized by a mix of large multinational corporations and innovative startups that are driving growth through product diversification and strategic partnerships. Major players in the market, such as Danone and Kraft Heinz Company, leverage their expansive distribution networks and brand recognition to dominate the landscape. These companies are continually launching new products and enhancing existing ones to cater to shifting consumer preferences, especially in the health and wellness segment. Additionally, strategic mergers and acquisitions are common as these companies seek to expand their product portfolios and enter new markets, enhancing their competitive advantages.

Small and medium-sized enterprises (SMEs) are also making their mark in the fermented foods market by focusing on niche segments and offering artisanal and organic products that resonate with health-conscious consumers. Companies like GT's Living Foods and Lifeway Foods have successfully established themselves by emphasizing the health benefits of their probiotic-rich offerings, appealing to a growing demographic that prioritizes gut health and natural ingredients. This segment of the market is marked by innovation, as SMEs often experiment with unique flavors and fermentation techniques, fostering a culture of creativity and diversity in product offerings.

Furthermore, the increasing trend of e-commerce is reshaping the competitive landscape, enabling new entrants to reach consumers directly without relying solely on traditional retail channels. As online shopping continues to grow, companies are adapting their strategies to incorporate digital marketing and direct-to-consumer sales models. This shift allows brands to engage with customers more effectively and build brand loyalty. The diversification of distribution channels and the embrace of digital platforms will continue to influence competition in the fermented foods market, creating opportunities for both established and emerging companies to thrive.