Global consumer interest in the health benefits of fermented foods and beverages is on the rise as awareness grows about their positive effects on digestive health, which in turn affects immunity and cognitive functions. The gut-healing properties of fermented foods are primarily attributed to probiotics, often referred to as beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly recognizing probiotics as a valuable addition to their diets, leading to heightened demand, as highlighted by Michael Bush, the executive board president of 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 this trend. In 2016, PepsiCo acquired KeVita, a sparkling probiotics beverage company, and recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital arm, 301 INC, spearheaded a $6.5 million Series D funding 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 of the main reasons large companies are investing in this market is its profitability, particularly among millennials who show a greater fascination with probiotic foods and beverages than other age groups. A report from Packaged Facts reveals that 25% of U.S. adults actively seek food and drink products high in probiotics and prebiotics. Interestingly, millennials, whose digestive systems typically function better than those of older consumers, are leading the charge in gut health interest. This trend mirrors a broader movement towards viewing food as medicine and embracing holistic wellness practices.
The millennial enthusiasm for probiotic-rich products was sparked by kombucha, which introduced many consumers to the world of fermented foods in the U.S. Following the introduction of this fermented tea, shoppers have become more open to trying various other products. As consumers increasingly seek healthier, low-sugar beverage options, they are gravitating towards flavored and sparkling drinks, an area where kombucha has paved the way for innovation.
As noted in industry reports, there remains significant growth potential in this emerging market. Major food manufacturers should consider investing in new product formulations or partnering with promising probiotic-focused brands to stay ahead of the curve. If they fall behind, mergers and acquisitions could provide an alternative strategy. Integrating wellness-focused elements, such as calcium citrate 120, into their offerings could further attract health-conscious consumers looking for beneficial ingredients in their diets.