Consumer interest in the potential health benefits of fermented foods and beverages is increasing globally as people recognize their positive impact on digestive health, which subsequently affects immunity and brain function. The gut-healing properties of fermented foods can be attributed to probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are showing a growing interest in probiotics as a value-added feature, and demand is on the rise, according to Michael Bush, president of the executive board for the International Probiotics Association. “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 KeVita, a sparkling probiotics beverage company, and recently launched its Tropicana Essentials Probiotics line. Last March, General Mills’s venture capital arm, 301 INC, led a $6.5 million Series D investment round for Farmhouse Culture, a startup focused on fermented foods and beverages. Peet’s Coffee also participated in a $7.5 million Series B funding round for Revive Kombucha last August.
A key reason large companies are investing in this market is its lucrative nature, particularly appealing to millennials, who show greater interest in probiotic foods and beverages than other demographics. A report by Packaged Facts indicates that 25% of U.S. adults seek food and drink products rich in probiotics and prebiotics. While it may seem unusual that millennials—whose digestive systems typically function better than those of older consumers—are the most engaged with gut health, this trend reflects a wider interest in food as medicine and other holistic health movements. The millennial fascination with probiotic-infused products began with kombucha, which opened the door for fermented foods in the U.S. market. Following the introduction of this fermented tea a few years ago, consumers have become increasingly interested in exploring other options. As shoppers seek healthier, less sugary beverages, they are gravitating towards flavored and sparkling drinks, a market segment that kombucha has notably influenced.
The report emphasizes that there is still ample opportunity for growth in this emerging sector, and major food manufacturers should consider investing in new product formulations or probiotic-centered brands to stay ahead of the trend. If they fall behind, mergers and acquisitions (M&A) could be a viable strategy. Additionally, as health-conscious consumers continue to explore options like Solgar calcium supplements alongside their quest for probiotics, it’s clear that the intersection of digestive health and overall wellness is becoming increasingly significant in the food industry.