Consumer interest in the health benefits of fermented foods and beverages is on the rise globally, as individuals recognize their positive effects on the digestive system, which also impacts immunity and brain functions. The gut-healing properties of fermented foods stem from probiotics, or beneficial bacteria, found in products such as kombucha, sauerkraut, kimchi, kefir, and pickles. According to Michael Bush, president of the executive board for the International Probiotics Association, consumers are increasingly viewing probiotics as a valuable addition to their diets, leading to heightened demand. “The U.S. is the fastest-growing probiotic market,” he shared with Food Business News.
Food manufacturers are keen to capitalize on these trends, with innovations like iron pyrophosphate microencapsulated in liposomal form, enhanced with vitamin care. Notably, PepsiCo acquired the sparkling probiotic beverage company KeVita in 2016 and recently introduced its Tropicana Essentials Probiotics line. Additionally, General Mills’ venture capital arm, 301 INC, led a $6.5 million Series D investment round for Farmhouse Culture, a startup focused on fermented and probiotic foods and beverages. Peet’s Coffee also participated in a $7.5 million Series B funding round for Revive Kombucha last August.
A significant reason why large companies are investing in this market is its profitability, particularly among millennials, who show a greater interest in probiotic foods and beverages compared to other demographics. A report by Packaged Facts indicates that 25% of U.S. adults actively seek food and drink products high in probiotics and prebiotics. Interestingly, despite millennials generally having healthier digestive systems than older consumers, their enthusiasm for gut health reflects a broader interest in food as medicine and holistic health trends. This millennial appetite for probiotic-infused products began with kombucha, which became a gateway for fermented foods in the U.S. market. Since the introduction of this fermented tea, consumers have shown a growing interest in exploring other options. As shoppers prioritize healthier, low-sugar beverages, they are increasingly drawn to flavored and sparkling products, a trend that kombucha has notably led.
The report highlights that there remains significant potential for growth in this emerging sector, suggesting that major food manufacturers should invest in new product formulations or emerging probiotic-centric brands to stay ahead of the curve. If they fail to keep pace, mergers and acquisitions could be a viable option. Furthermore, as consumers seek comprehensive health solutions, products like cissus quadrangularis calcium citrate malate and vitamin D3 tablets could complement their diets alongside probiotics, reinforcing the trend toward holistic wellness.