Why Kombucha could be the next big thing in Europe

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If you like to keep an eye on the latest food trends, you've probably come across kombucha - a fermented tea mixed with a dash of bacteria, yeast and sugar, often accompanied by a little fruit juice.

It's a probiotic drink, full of live bacteria that contribute to a healthy gastrointestinal tract.

Bacteria are created during the fermentation process and are safe to eat.

Although it's been around for a long time and has been a staple of the alternative health market, kombucha has recently returned to the spotlight as a social trendsetter, generating US$556 million in chilled beverage sales in 2017 in the US.

And the market expects a steady upward trajectory in the coming years.

The recent launch of a range of kombucha-based drinks by former rugby star Jonny Wilkinson underlines the growing acceptance and publicity for this once unknown drink.

The kombucha craze

It is more likely that a combination of factors, rather than a single source of influence, is behind the rise in popularity of kombucha.

This drink, whose roots in Chinese culture go back more than 2,000 years, was once considered to be the "tea of immortality", according to an ancient myth.

However, it's only recently that the drink has exploded onto the consumer market, with the popularity of probiotics.

Walk into any local supermarket and you're likely to see kombucha in all manner of bottles and flavours on the shelves, alongside similar probiotic foods and drinks such as yoghurt and kimchi.

The drink is particularly popular among teenagers, students and young adults who tend to favour health-conscious alternatives and lifestyle choices over traditional consumer food products.

In an article discussing food trends 2018, Julia Mellentin, Director of New Nutrition Business at Nutraceuticals World an English-language journal, writes:

"The single most powerful trend in today's market is the consumer desire for foods and ingredients that are 'naturally functional'.

This massive trend is the basis for the success of almost everything else.

It's the main driver behind much of the innovation in healthier food and drink, from plant-based food and drink, to the renaissance of full-fat dairy, the rise of green juices, blueberries, almonds, seaweed snacks and much more."

No surprise there.

Functional foods and beverages are experiencing massive growth, especially among millennials.

BevNet reported in 2016 that while carbonated soft drinks are in the midst of a five-year decline, natural and functional beverages should expect $40 % growth in the industry.

Despite the mystifying rise of kombucha and its probiotic cousins, the numbers don't lie.

An analysis of market in 2016 forecast 25 per cent year-on-year growth in the kombucha market up to 2020 - which might have been a modest estimate, given that the market has grown from 41 per cent in 2016 and 37.4 for 2017.

EMEA: growing interest in healthy foods will drive growth

While awareness of healthier alternatives has grown in the US over the last decade, the European market has long outstripped its western neighbour in terms of organic food sales.

In 2016, Europe was one of the biggest markets for kombucha, behind the Americas, Asia and Latin America. United Kingdom, Germany and France being the drivers of the sector's growth.

Although the trend towards probiotic and fermentation foods is gaining momentum in Europe, the craze is not lagging behind in the United States.

Part of the opportunity in the European market can be linked to the response of European retailers to new and trendy concepts such as fermented foods and drinks.

Although food fermentation is on the rise worldwide, Europe was "slow to get going", according to Brian Owens of Rhythm Health, a manufacturer of coconut-based kefir drinks and snacks, but is now catching up fast.

Some speculated that this was because European manufacturers and retailers were slower to respond to consumer demand than other markets.

This real or perceived slowness may be linked to European legislation on probiotics and the history of a difficult regulatory environment for probiotics.

Infrastructure and supply chain problems may also be contributing to the slowdown in growth in some parts of Europe.

The process of fermenting and making kombucha is long and intensive, and some suppliers are unable or unwilling to devote the necessary equipment and resources.

But the list of producers in the UK and Europe is growing.

LA Brewerybased in the UK, makes and bottles its own kombucha and ships it around the country, while Jarr KombuchaThe London-based company has opened the first kombucha tasting room in Europe, as well as stocking its product in local markets.

In Russia, where kombucha was considered a staple food during the Second World War, long before it attracted the attention of American consumers, kombucha is making a comeback.

An exaggerated health trend?

Despite its categorisation as a health product, questions continue to circulate about the health benefits of kombucha.

Since its beginnings in ancient China as a miracle elixir, kombucha has been credited with a number of positive side effects, from providing antioxidants to reducing heart disease and managing diabetes.

While some of these benefits are undisputed, they can be exaggerated when put to the test.

One study found that the benefits of kombucha were not specific to fermented tea itself, highlighting that while kombucha has certain benefits, it is no different to drinking other fermented teas or foods.

In other words, the benefits of kombucha can be obtained by other means if the taste, price or trend do not appeal to the average consumer.

The lack of detailed clinical studies means that declarations of health benefits on packaging under European legislation are limited.

This could be another factor contributing to the slowdown in adoption rates in European countries.

Conclusion

Whatever your opinion of tea or its health benefits, the figures clearly show that the kombucha market is growing fast and has yet to reach its peak.

While the drink is already popular in Europe, projections indicate that the market could be set to follow US consumer trends around probiotic foods and drinks.

According to a 2016 report, the European kombucha market was worth €150m and is estimated to grow at a CAGR (compound annual growth rate) of 24.5 1TP3Q, reaching $467.41m by 2021.

So have a drink and sit back.

Kombucha is here to stay.