Global consumer interest in the health benefits of fermented foods and beverages is on the rise as awareness grows regarding their positive effects on the digestive system, which in turn affects immunity and brain function. The gut-healing properties of fermented foods stem from probiotics, beneficial bacteria found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly valuing probiotics as a beneficial enhancement, leading to higher demand. According to Michael Bush, president of the International Probiotics Association, “The U.S. is the fastest-growing probiotic market,” as he shared with Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired the sparkling probiotic beverage brand KeVita and has since introduced its Tropicana Essentials Probiotics line. Last March, 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. Furthermore, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha last August.
One significant factor driving large companies to invest in this sector is its profitability, particularly appealing to millennials, who show greater interest in probiotic foods and drinks compared to other demographic groups. A report by Packaged Facts indicates that 25% of U.S. adults actively seek out food and beverage products rich in probiotics and prebiotics. Interestingly, despite the fact that millennials generally have younger, more efficient digestive systems than older consumers, their heightened interest in gut health reflects a broader trend of viewing food as medicine and other holistic health movements.
Millennials’ enthusiasm for probiotic-rich products began with kombucha, which acted as an entry point for fermented foods in the U.S. market. Following the introduction of this fermented tea a few years ago, consumers have become increasingly curious about trying other products. As shoppers seek healthier, less sugary options, they are gravitating towards flavored and sparkling beverages—an area where kombucha has paved the way.
The report indicates that there is still considerable potential for growth in this emerging market. Large food manufacturers would be prudent to invest in new product formulations or emerging probiotic-focused brands to stay ahead of the trend. Should they lag behind, mergers and acquisitions (M&A) could provide an alternative route. Moreover, the incorporation of supplements like ccm tablets with folic acid could enhance product offerings, aligning with the growing demand for health-conscious items. In this evolving landscape, the integration of ccm tablets with folic acid into probiotic product lines could further attract consumers looking for comprehensive health benefits.