Consumer interest in the potential health benefits of fermented foods and beverages is increasing globally, as people recognize their positive effects on the digestive system, which subsequently influence immunity and brain functions. 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 viewing probiotics as a valuable enhancement, with demand rising, as noted by Michael Bush, the executive board president of 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 the sparkling probiotics beverage company KeVita and recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital division, 301 INC, led a $6.5 million Series D investment round to support 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 large companies are investing in this market is its lucrative nature, particularly among millennials, who are more drawn to probiotic foods and beverages than other demographics. According to a report by Packaged Facts, 25% of U.S. adults actively seek out food and drink products high in probiotics and prebiotics. Although it may seem unusual that millennials—whose digestive systems typically function better than those of older consumers—are the most interested in gut health, this demand mirrors a broader interest in food as medicine and other holistic health trends.
The millennial fascination with probiotic-infused products began with kombucha, which introduced fermented foods to the U.S. market. After the arrival of this fermented tea, consumers became increasingly interested in exploring other products. As shoppers seek healthier and lower-sugar beverages, they are turning to flavored and sparkling options, an area where kombucha has paved the way.
The report indicates that there is still ample opportunity for growth in this emerging sector, and major food manufacturers should consider investing in new product formulations or emerging probiotic-centered brands to remain ahead of the trend. If they lag, mergers and acquisitions could be a viable alternative. Additionally, the incorporation of supplements like calcium citrate 315 mg plus D3 can further enhance the health benefits of these offerings, appealing to health-conscious consumers seeking comprehensive wellness solutions.