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.”
The world’s most famous fermentation restaurant is serving diners once again during the coronavirus pandemic. But Noma’s reservation-only tables and $400-500 world-class meal has radically changed. Noma is now serving wine and burgers in a walk-up, outdoor patio.
“It’s definitely new territory,” says Rene Redzepi, Noma founder. “I like this thing that it’s doing to us. We’ve become this place where you book, you plan your travels six months ahead of time. The spontaneity of going to a restaurant has completely disappeared for us. I like that people now can say ‘Let’s go to Noma for a glass of wine.’ So who knows, maybe this is part of our future in the long run.”
Redzepi spoke with Denmark-based food bloggers Anders Husa and Kaitlin Orr on Noma’s reopening.
The Noma burger is either a meat patty made with beef ferment, beef garum and smoked beef fat or a veggie burger made with quinoa tempeh patty with fermentation liquids.
Noma’s Nordic cuisine features fermented and foraged food that have earned Noma the World’s Best Restaurant award four times. Noma has been closed since March 14 because of the coronavirus.
Redzepi is one of the first chefs of his caliber to reopen a fine-dining restaurant during the coronavirus pandemic. The burger and wine menu is intended to transition Noma to the July summer season, when the restaurant hopes to again serve diners in the restaurant.
When the coronavirus first shutdown countries all over the globe, Redzepi said “it was really, really scary.” Would Noma have to wait six months to open? A year? About 3-4 weeks in, though, the atmosphere turned.
“There was a little positivity coming through,” Redzepi said. “I started asking myself ‘What do I want to do? What am I missing in my life?’ And the funny thing is I wasn’t at all missing going to a fine-dining restaurant, sitting for 3-4 hours. That was not on my mind at first. I wanted to be with people, I want to be out. … So when you have that feeling, it was just like, there was no way we can open Noma as it was before COVID-19.”
It’s an unusual sight at the exclusive restaurant – Noma is serving burgers in paper wrappers and chefs are wearing disposable gloves.
A burger was picked because Redzepi says: “I have yet to meet anybody that doesn’t like a burger.” In the future, Noma will add a deep-fried chicken burger to the menu as well as oysters and shrimp.
As tourism is still closed in Denmark, Redzepi envisions the new Noma bar as a place where Copenhagen locals can eat and visit with friends again.
“It’s not about us showing what we can do, it’s just about cooking the best we can so people feel great and feel alive again.”
Civil Eats declares: “Tempeh, the ‘OG of Fermented Foods,’ Is Having a Moment.” More artisanal tempeh producers are selling around the country, and restaurants are beginning to sell tempeh-based dishes. The founder of Tofurky (Seth Tibbott) says tempeh is one of the company’s fastest-growing product lines, increasing 17% from 2017 to 2018. Pictured is Tibbot in front of his first tempeh incubator, in 1980.
Read more (Civil Eats)
Western North Carolina is becoming “a hot spot for fermented goods” thanks to female entrepreneurs. These fermented product brand leaders credit the health-conscious culture of Asheville, N.C. with helping their businesses thrive in “Ferment City.” Sara Schomber of the Buchi Mamas tells Asheville’s Mountain Xpress: “Fermentation is all about the alchemy of ingredients normally found in the hearth and home where, for centuries, women have been the keepers. We believe fermentation is the expression of a natural tendency, the human spirit’s way of giving itself permission to heal and inviting all of us to extend beyond our own immediate mortality. It’s normal and natural for humans to want to preserve, put away and celebrate.” Local brands featured include: Shanti Elixirs Jun, Smiling Hara Tempeh, Yoga Bucha kombucha, Buchi Kombucha, Sister of Mother Earth cider and honey, Serotonin ferments ferments and Fermenti Foods ferments.
Read more (Mountain Xpress) http://bit.ly/2B61p0Q
Dietician Lisa Valente writes in Eating Well the seven must-eat fermented foods for a healthy gut. Her list features: sauerkraut, kimchi, kefir, kombucha, miso, tempeh and yogurt. She writes: “Fermented foods are a hot health topic—and for good reasons. These good bacteria—particularly those in our gut—may improve digestion, boost immunity and help us maintain a healthy weight. Research is still emerging on just how important these mighty microbes might be for our health, but the early results are promising. Take care of your gut, and in turn, it will take help take care of you.”
Read more (Eating Well)