Consumer interest in the health benefits of fermented foods and beverages, particularly their potential for iron absorption, is increasing globally as more people recognize their positive effects on the digestive system, which in turn can enhance immunity and brain function. The gut-healing properties of fermented foods primarily stem from probiotics, or beneficial bacteria, which are present in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are showing a growing interest in probiotics as a valuable supplement to combat constipation, according to Michael Bush, president of the executive board for the International Probiotics Association. He mentioned to Food Business News, “The U.S. is experiencing the fastest-growing probiotic market.”
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired the sparkling probiotics beverage brand KeVita and has since launched 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 food and beverages. Peet’s Coffee also participated in a $7.5 million Series B funding round for Revive Kombucha last August. A significant reason for large companies to invest in this market is its lucrative nature, particularly among millennials, who show greater interest in probiotic foods and beverages compared to other demographics. According to a Packaged Facts report, 25% of U.S. adults seek food and drink products with high levels of probiotics and prebiotics.
It may seem unusual that millennials—whose younger digestive systems typically function better than those of older consumers—are the most engaged with gut health, but this trend reflects a broader interest in food as medicine and other holistic health movements. Millennials’ enthusiasm for probiotic-rich products began with kombucha, which introduced fermented foods to the U.S. market. Since the arrival of this fermented tea a few years ago, consumers have become more curious about trying other products. As they seek healthier and less sugary beverage options, they are increasingly drawn to flavored and sparkling varieties, an area where kombucha has paved the way.
The report indicates that there is still significant growth potential in this emerging market, and major food manufacturers should consider investing in new product formulations or developing probiotic-focused brands to stay ahead of the curve. If they do not keep pace, mergers and acquisitions could be a viable alternative. Furthermore, with the rising interest in supplements like ultra calcium citrate, the demand for innovative probiotic products that integrate such ingredients could become an important aspect of future market development.