Korean flavors are becoming more mainstream. Already popular with American diners are two Korean staples: kimchi and natto. But food experts predict two less common Korean favorites will soon become a part of American’s diets. Gochujang (fermented red pepper chili sauce) and doenjang-jigae (stew made with fermented soybean paste) will be 2021’s next food trend.
Read more (Forbes)
Kimchi, fermented sauces and tempeh are driving growth in the fermented food and beverage category, a $9.2 billion industry that’s grown 4% in the last year.
“We’re excited about the growth potential for fermented food. While fermented food represents about 1.4% of the market today, there are segments that are tracking well above the growth of food and beverage [overall] that are poised for disruption in the future,” says Perteet Spencer, vice president of strategic solutions at SPINS. Spencer shared this information in a recent webinar hosted by The Fermentation Association. “There’s a ton of opportunity to scale and increase the footprint of these products.”
SPINS spent weeks working with TFA to define the fermentation industry’s sales, drilling into 10 fermented product categories and 57 product types. Wine, beer and cheese sales were excluded from the data — those categories are very large, and would obscure trends in smaller categories. (All three are also well-represented by other organizations.)
Pickles and fermented vegetables “is a space that’s seen [a] pretty explosive uptick in growth over the past year,” Spencer says. Every segment is growing — kimchi, sauerkraut, beets, carrots, green beans, sliced and speared pickles and all other vegetables — with pickles the largest, nearly 60% of the category.
The biggest growth, though, is coming from products other than pickled cucumbers. Kimchi is at the center of numerous consumer retail trends. Consumers are purchasing healthier food made with fewer ingredients, and they want food with international flavors. Kimchi makes up only 7% of the category, but sales are increasing at an explosive 90% growth rate.
More people are experimenting with fermenting while they’re at home during the coronavirus pandemic, but these kitchen DIYers do not appear to be detracting from sales.
“The more people make fermented foods, they appreciate what’s available in the store that maybe didn’t exist five or 10 years ago,” notes Alex Lewin, author and TFA advisory board member who moderated the webinar. “Anyone who has made kimchi knows it takes a lot, it makes a big mess, you get red pepper powder stuck under your fingernails and onion in your eyes. I can make kimchi (at home), and then once I’ve made kimchi, I’m like ‘Ok, maybe next time I’ll buy it.’”
Fermented sauces are also growing, up 24% in 2020. The largest segment in sauces is, of course, soy sauce, almost 85% of the category. But gochujang, less than 2% of the category, is increasing at over a 56% growth rate.
Versatility is helping sauces, pickles and fermented vegetables, Spencer says. Any food product with multiple uses is selling well. The condiments and sauces can be used as a topping on eggs, hamburgers or pizza, or mixed-in a salad, rice dish or soup.
Sake, plant-based meat alternatives and miso had combined annual growth of $75 million in 2020. Sake grew 16%, and both plant-based meat alternatives and miso each grew 26%.
Yogurt and kombucha still dominate the fermented food and beverage market. Yogurt is 81% of the market; if yogurt is removed, kombucha is 51% of the remainder.. Both have experienced slowdowns in sales from their peaks. Kombucha sales have slowed recently, as grab-n-go opportunities have shrunk during the pandemic.
Yogurt giant brands Chobani, Yoplait and Dannon still dominate the category, as do GT Kombucha, Health-Ade and Kevita reign for kombucha.
Spencer notes the 4% growth rate of fermented products overall would be higher without yogurt. It’s a large category that — despite an uptick in 2020 during the pandemic – has been fairly flat in recent years. Core (traditional) yogurt has been growing at a 1.6% rate; Greek yogurt, at about twice that pace. Those two segments account for roughly 80% of the category.
“This is an opportunity for disruption for emerging brands,” Spencer says. “We’re already seeing some of the legacy segments start to get disrupted by new innovation, so I’m excited to see the evolution of that innovation and where that goes and kind of what opportunities peek out of that.”
“Overall, we’re seeing historically small segments gaining traction in the marketplace,” Spencer adds. “The pandemic has brought a renewed consumer focus on the fermented space.”
Though fermented products have an added healthy benefit, customers are looking for delicious flavor first.
“In these fermented categories we covered today, taste first is always really important. I think people are going to these categories for different taste experiences,” Spencer says. “If you can level up with a functional benefit, that’s fantastic, but we have to balance the taste first. If it’s highly functional but doesn’t taste good, it just doesn’t have the same success.”
Fermentation is more than just a food processing technique. Sandor Katz, today’s “godfather of fermentation,” expounds on the metaphorical significance of fermentation in his new book “Fermentation as Metaphor.”
“Fermentation is such a fascinating lens through which to look at the world and the incredible practicality of traditional cultural wisdom,” says Katz, fermentation author and educator, during a webinar hosted by The Fermentation Association. “In the English language, there’s a long tradition of describing things as fermenting that are not foods and beverages. We talk about a period of great musical fermentation, artistic fermentation, political fermentation, culture fermentation, we’ve applied it very widely. This book is really an exploration of that and a reflection of that.”
Katz spoke with his friend Mara King, chef and food professional, and they shared thoughts on how fermentation can be an unstoppable force for change.
“Fermentation is really teaching the world to embrace weird and funky things,” King says. “Take natural wines as an example. There’s a big movement in the world of wine making for using older techniques, using less chemical filtration and clarification methods. What you’re left with is a product that changes year to year and a product that has subtle notes of animal or leather, things you wouldn’t find before. We’re realizing a little bit of horrible is quite wonderful.”
Until the 19th Century, all wine was natural, Katz points out. Winemakers relied on organisms on the skins of the grapes for the flavor. Beer used to be a similarly natural product, but that’s changed as brewers today add yeast strains.
“It’s so much more interesting and complex of a flavor than the mass-produced beer where just a single organism is introduced. Fermentation really encourages people to expand their palates,” Katz says. “Funk is good. Funk makes things interesting. Funk is complexity. What I’ve learned by working with fermented tofu in food, working with natto in food, working with sumbala, the West African condiments that are natto-like, working with fish sauce, is [these ingredients on their own] might taste awful to you, but a little bit can introduce this je ne sais quoi into the flavor of a dish. Complexity is good and even flavors on their own that people might find scary or intimidating.”
The photography featured in “Fermentation as Metaphor” is unique — magnified microbes used in the creation of fermented food and drink. The images, captured with a scanning electron microscope, show the complexity of these microorganisms. Each structure is supported by a smaller structure, with membranes that are highly permeable.
“There continues to be a magic to fermentation, maybe in some ways even more so as fewer people have direct contact with their food. As there’s less wine making, cheese making, [or] baking in our lives that people actually see, these processes become more and more mysterious. [Mystery] has always been an aspect of fermentation because, until very recent times, there was never a clear, rational scientific understanding of what is going on. They were always seen as divine processes with lots of ceremony and ritual attached to them,” Katz adds. “Fermentation takes this neutral, plain food and gives it this really discernable, compelling flavor.”
Katz is already working on his next book, a fermentation travelogue book highlighting what he’s learning about fermentation in his worldwide travels. Katz and King previously filmed a series “The People’s Republic of Fermentation,” sharing the fermentation traditions of southwest China. They were supposed to travel to Taiwan and eastern China earlier this year, but the trip was cancelled due to the coronavirus pandemic. Next on Katz’s “to do” list — exploring the fermented cuisine of West Africa.
In a matter of days, the novel coronavirus outbreak dramatically changed grocery shopping. Empty grocery store shelves have become a ubiquitous symbol globally of home quarantine.
Sales exploded for pantry staples like dried beans (62.9%), powdered milk (126.3%) and rice (57.5%). But another grocery quarantine must-have item is emerging – fermented food and drink. Sales are up for kombucha (10.1%), natto is selling out in Japan, yogurt is selling out in Europe and pickle and sauerkraut sales in Russia are up 79%. Fermentation brands are reporting some of their biggest sales during the month of March, as much of the nation was forced into self-isolation to prevent the spread of COVID-19.
“For fermented food, it’s an interesting time. We’re an immune boosting type of food, so our sales are skyrocketing. We’ve had the best month we’ve ever had in business,” says Drew Anderson, CEO of Cleveland Kitchen and TFA board member. Cleveland Kitchen makes sauerkraut and fermented dressings and marinades. “It is bittersweet. Obviously, we want this virus to go away. But we’re seeing the fermentation industry as a whole, the one benefit is it’s driving a lot of trial. People say ‘I heard fermented food is supposed to be good for you, I’m cooking more, why not grab a pack of kraut.’”
Though sales are high, brands are changing their operation model. Rather than running two shifts of processing at Cleveland Kitchen, they’re down to one. Employees must take daily temperature readings before work, stop for mandatory handwashing breaks and use new Purell hand sanitizing stations.
“Sales are up overall, but we have had to implement our emergency sanitation protocols to continue production,” says Meg Chamberlain, CEO of Fermenti, LLC. The North Carolina-based brand sells a variety of vegetable ferments, teaches fermenting workshops and hosts annual the annual WNC Fermenting Festival. Their staff is under voluntary home quarantine – which means staff only goes from work to home. “Overall our company is proving resilient and we are hopeful to continue to provide Fermenti to our community.”
Because food production is considered essential business, licensed fermentation companies have not been forced to stop working during the coronavirus outbreak.
Aneta Lundquist, CEO of 221 B.C. Kombucha, has been posting videos to her Instagram stories of the Florida based kombucha processing facility. Lundquist says employees are working overtime to deliver orders.
“Our orders during the global pandemic have spiked. Consumers have gone full blown ‘healthy’ food during this health crisis,” she says. “Now is the time to make a switch from over-processed and denaturalized pseudo foods to real, natural and unprocessed foods that nourish our body, mind and spirit and help building a strong immunity.”
Lundquist adds customers need to “think of kombucha, kimchi, sauerkraut and other fermented fruits and vegetables as microbiome rock stars!…Always choose wildly fermented foods.”
“Remember it is about diversity and the quality of microorganisms, not just quantity. You can only achieve this by fermenting traditionally.”
Keenan Smith, CEO of Goodwolf Kefir in Portland, agrees. He says: “The probiotic and fermented space will increase as people have an increase in health awareness and want a better functioning immune system.” They are home delivering their kefir, and donating a
Brands are getting creative with their marketing, too. Goodwolf Kefir is home delivering kefir to the Portland area and donating a proceed of sales to their local food bank. Cultured South and Golda Kombucha have setup a pick-up fridge at their Atlanta location where customers can prepay for an order online, get a secret code to unlock the fridge and grab fermented food and drinks. Wild Kombucha in Baltimore is offering free, local, “no human touch” home delivery for their 12 pack bottles. 28 Mile Vodka & Distillery in Illinois have converted their distillery to make hand sanitizer that they call “Fool’s Gin.” The CEOs of Miyoko’s Creamery and Lifeway Kefir are both using the brands Instagram accounts to share recipes using their product.
Outside the U.S., though, different government rules are restricting fermentation brands from operating during the global outbreak. In India, Mountain Bee Kombucha has halted operations during a 21-day lockdown.
“There is no question that our business is impacted immensely, one for the fact that we are still quite small-scale which supplies directly to a handful of local grocery stores. Currently those grocery stores have been working at limited capacity and/or temporarily shut,” said founder and head brewer Honey Islam. “Another reason for lesser business in these times is due to the lack of awareness in the Indian market about fermented foods, especially kombucha. We are engaged in educating our customers as well as spreading awareness in the community via workshops, classes, 101 sessions, pop-ups, all these channels are education are currently disrupted which stalled our efforts in bringing kombucha awareness to the masses.”
Mountain Bee Kombucha is focusing on educating through Instagram videos and YouTube tutorials.
As the coronavirus outbreak continues to put health on the forefront of consumer’s minds, the sales of probiotic products are rising. GlobalData, an analytics company tracking grocery sales, notes that natto (fermented soybeans) were out of stock in Japan consistently since the outbreak. Sales of yogurt are also increasing.
“Consumers are more actively buying probiotic products. There will not be natto panic buying in Europe, but probiotic products claiming to improve the immune system are likely to grab consumers’ eye,” said Mitsue Konishi, senior innovation analyst at GlobalData.
Probiotics are good for the bones, a new study finds. Older women who took probiotics had less bone weakening than women who did not take probiotics. Fermented foods rich in probiotics include pickled veggies (sauerkraut, pickles, kimchi), yogurt, kefir, kvass and natto.
Read more (New York Times)
While Mirai Nagasu was nailing her historic triple axle during the Winter Olympics, her parents were finishing dinner service at Kiyosuzu, their Japanese restaurant in Arcadia, California. Mirai credits her creativity to her father, who makes imaginative sushi rolls. The fried natto (fermented soybeans) and the Mirai roll are customer favorites!