Global 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 affects immunity and brain function. The gut-healing properties of fermented foods largely stem from probiotics—beneficial bacteria found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. According to Michael Bush, President of the Executive Board for the International Probiotics Association, consumers are increasingly valuing probiotics, leading to heightened demand. “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 these trends. For instance, PepsiCo acquired the sparkling probiotics beverage brand KeVita in 2016 and recently introduced its Tropicana Essentials Probiotics line. Additionally, General Mills’ venture capital branch, 301 INC, led a $6.5 million Series D investment in Farmhouse Culture, a startup focused on fermented and probiotic foods and beverages. Last August, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha.
A significant factor driving large companies to invest in this market is its profitability, particularly among millennials, who show a greater interest in probiotic foods and beverages compared to other demographics. A report from Packaged Facts indicates that 25% of U.S. adults actively seek food and drink products rich in probiotics and prebiotics. Interestingly, despite millennials generally having healthier digestive systems than older consumers, their interest in gut health reflects a broader trend towards viewing food as medicine and embracing holistic health practices.
The surge in millennial interest in probiotic products began with kombucha, which introduced many to the world of fermented foods in the U.S. Following the debut of this fermented tea, consumers have been increasingly curious about trying other fermented options. As shoppers seek healthier, lower-sugar beverages, they are gravitating toward flavored and sparkling products—areas where kombucha has led the charge.
According to industry reports, there remains ample opportunity for growth in this emerging market, and major food manufacturers would benefit from investing in new product formulations or emerging probiotic-centered brands to stay ahead of the curve. If they lag behind, mergers and acquisitions (M&A) may be a viable strategy to consider. Furthermore, as consumers look for wellness-oriented products, the demand for items like the best calcium citrate gummies could also see a rise, further emphasizing the trend towards health-conscious eating and drinking.