Health Trends and Innovations are Set to Drive the Indian Fermented Drinks Market in 2025

By Garvit Vyas , 25 August, 2025

The market for fermented beverages in urban areas of India is expected to grow tremendously by the end of 2025. This increase is attributed to the growing interest in health and wellness, shifting towards more functional drinks, and fermented products.

The overall scope of Indian fermented food and beverage is likely to hit USD 41.92 billion by 2033, experiencing a significant growth starting from 2025. Awareness of health is driving the demand from the urban population for probiotic drinks, such as Kombucha, Kefir, and fermented juices, which are known to support gut health and immunity. This growth is also complementing the growth in the functional beverages segment, which is expected to experience rapid expansion by the end of 2033.

In 2025, key participants are focusing on portfolio diversification to capture emerging opportunities. In August 2024, Tata Consumer Products launched Tetley Kombucha with Ginger, Lemon, and Peach flavors, targeting urban health-conscious consumers. Likewise, iD Fresh Foods introduced new variants of its idli-dosa batter in January 2025, including protein-rich and millet-based ones, to cater to the rising demand for traditional foods with a nutritious twist.

New technology is expected to have a significant impact on the market in 2025. Businesses are investing in AI-powered fermentation monitoring and sustainable upcycling of agricultural by-product production systems. These innovations are focused on enhancing product quality and meeting the increasing demand for environmentally friendly products. Policies are changing to foster this growth over the last few years. The Food Safety and Standards Authority of India (FSSAI) actively promotes the development of fortified and functional foods while ensuring the standardization and safety of these products. This type of support is crucial and beneficial as the market expands and becomes more diverse.

Consumers are less aware of the benefits of fermented drinks in promoting gut health. Hence, it is essential to educate consumers about the benefits of fermented beverages to facilitate growth. Moreover, maintaining uniform product quality and managing regulatory issues will be critical for the industry stakeholders in 2025. Moreover, 2025 is expected to be a year of change for the fermented drinks market in urban India, propelled by innovation, fundamental shifts in consumer preferences toward health, and methods attained from traditional practices.