Global consumer interest in the health benefits of fermented foods and beverages is on the rise, as more people recognize their positive effects on the digestive system, which also impacts immunity and brain function. The gut-healing properties of fermented foods primarily come from probiotics, or beneficial bacteria, found in products such as kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly seeking probiotics as a value-added ingredient, with demand continuing to grow, according to Michael Bush, president of the executive board for the International Probiotics Association. “The U.S. is the fastest-growing probiotic market,” he stated in an interview with Food Business News.
Food manufacturers are eager to capitalize on these trends. For instance, PepsiCo acquired the sparkling probiotics beverage brand KeVita in 2016 and has recently introduced its Tropicana Essentials Probiotics line. In March, the venture capital arm of General Mills, 301 INC, led a $6.5 million Series D investment round for Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages. Last August, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha.
A significant factor driving large companies to invest in this market is its lucrative nature, particularly appealing to millennials, who show greater interest in probiotic foods and beverages compared to other age groups. A report from Packaged Facts indicates that 25% of U.S. adults actively seek out food and drink products rich in probiotics and prebiotics. While it might seem unusual that millennials—whose digestive systems typically function better than those of older consumers—are leading the charge for gut health, this demand reflects a broader interest in food as medicine and holistic health trends. The millennial appetite for probiotic-infused products began with kombucha, which has acted as a gateway for fermented foods in the U.S. market. Since the debut of this fermented tea a few years ago, consumers have been increasingly open to exploring other options. As shoppers seek healthier, less sugary beverages, they are gravitating towards flavored and sparkling products, an area where kombucha has pioneered growth.
The report highlighted that there is still ample opportunity for expansion in this emerging market, and major food manufacturers would do well to invest in new product formulations or up-and-coming probiotic-centered brands to maintain their competitive edge. Should they lag behind, mergers and acquisitions (M&A) could be a viable strategy. Moreover, incorporating ingredients like calcium citrate natural into new formulations could enhance the appeal of these probiotic products, further aligning with consumer health trends.