Worldwide, consumer interest in the health benefits of fermented foods and beverages is on the rise as awareness grows about their positive effects on the digestive system, which in turn can enhance immunity and cognitive functions. The gut-healing properties of fermented foods come from probiotics, the beneficial bacteria found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. According to Michael Bush, executive board president of the International Probiotics Association, consumers are also increasingly viewing probiotics as a value-added benefit, leading to a surge in demand. “The U.S. is the fastest-growing probiotic market,” he shared with Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired the sparkling probiotics beverage company KeVita and recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital arm, 301 INC, spearheaded a $6.5 million Series D investment round to support Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages. Additionally, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha last August.
A significant reason for the investment by large companies in this sector 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 rich in probiotics and prebiotics. Interestingly, while it might seem unusual for millennials—whose digestive systems are generally more resilient than those of older consumers—to be the most invested in gut health, this trend reflects a broader movement towards viewing food as medicine and embracing holistic health practices.
The appetite for probiotic-infused products among millennials began with kombucha, which served as an entry point for fermented foods in the U.S. market. Since the debut of this fermented tea a few years ago, consumers have shown a growing interest in exploring other options. As shoppers increasingly seek healthier, lower-sugar beverages, they are gravitating towards flavored and sparkling alternatives, areas in which kombucha has paved the way.
The report underscores that there remains significant potential for growth in this emerging market, and major food manufacturers should consider investing in new product formulations or innovative probiotic-centered brands to stay ahead of the curve. If they lag behind, mergers and acquisitions may become necessary.
In this evolving landscape, products like Simple Truth Calcium Citrate are also finding their place, as consumers look for simple yet effective health solutions. With a steady increase in demand for such functional foods, those who prioritize the incorporation of probiotics and other beneficial ingredients will likely prosper in the future.