As demand to cut sugar and caffeine intake has grown in the beverage market recently, "zero (0) drinks" are gaining popularity. In this trend, interest in tea is rising, and kombucha is building its presence as an alternative drink.
Kombucha is a beverage made by adding sugar and fermenting with yeast and beneficial bacteria in water infused with black tea or green tea. In effect, it is a fermented tea drink. The industry does not see kombucha's popularity as a passing fad. Why is that?
According to the Korea Disease Control and Prevention Agency's National Health and Nutrition Examination Survey results released last year, over the past five years, intake of sugar-sweetened carbonated drinks fell by 8.8 grams, while intake of low-calorie (zero) carbonated drinks rose by 17.8 grams. During the same period, consumption of unsweetened coffee also increased by 28.2 grams.
According to market research firm Euromonitor on the 31st, the domestic zero drink market, including sugar-free and low-sugar beverages, grew from 163 billion won in 2018 to 1.278 trillion won in 2023, expanding more than about sevenfold. This shows a trend in which beverage consumption is being reorganized to reduce the burden of sugar and caffeine.
Amid this trend, interest in kombucha is growing.
The front-runner in Korea's kombucha market is TEAZEN. Since introducing powdered stick-type kombucha in 2019, TEAZEN's cumulative sales have reached 700 million units. TEAZEN's kombucha exports last year amounted to 10 billion won. In Japan and in Taiwan and Hong Kong, they increased by 200% and 44%, respectively, from a year earlier.
In Korea, kombucha products are expanding mainly in powdered stick formats. Following TEAZEN, Damta and I'm Alive also launched powdered kombucha sticks.
Recently, Dongsuh Foods also introduced a powdered stick product, "Aesabi Kombucha." A Dongsuh Foods official said, "As demand grows for new types of tea beverages, we offered flavors consumers want within the tea lineup," adding, "This is not about expanding a separate new business."
Even so, the industry views Dongsuh Foods' move as significant in the kombucha market. That is because a large company that has led the instant coffee market has additionally launched and expanded kombucha products, which is interpreted as expecting a certain level of demand in this market.
A beverage industry official said, "For now, it is merely an early-stage market formed around specific corporations such as TEAZEN," but added, "Since a large company has entered this market, it cannot be ruled out that kombucha could grow enough to take a pillar in the alternative drinks market."
In the global market, the fermented and probiotic beverage segment, including kombucha, is already growing rapidly. According to market research firm Grand View Research, the global kombucha market is projected to grow from about $4.26 billion (about 6.5097 trillion won) in 2024 to about $9.09 billion (about 13.8867 trillion won) in 2030.
A food and beverage industry official said, "With the healthy pleasure and wellness trends, more consumers are seeking fermented and functional drinks following zero drinks," adding, "As the kombucha market grows, product diversity and brand competition will intensify, and it will establish itself as a major beverage category."
Choi Cheol, a professor in the consumer economics department at Sookmyung Women's University, said, "As consumers' interest in health and well-being rises, demand is growing for beverages that can replace carbonated drinks. The kombucha market is drawing attention within this trend," adding, "Going forward, rather than demand concentrating on a specific product group, the market is likely to form in a structure where a wide variety of options that reflect consumer preferences increase together."