Consumer interest in the potential health benefits of fermented foods and beverages is on the rise globally, as awareness grows regarding their positive effects on the digestive system, which in turn influences immunity and brain function. The gut-healing properties of fermented foods come from probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly drawn to probiotics as a value-added feature, with demand steadily increasing, according to Michael Bush, president of the executive board for 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 these trends. PepsiCo acquired the sparkling probiotic beverage brand KeVita in 2016 and has also 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 specializing in fermented and probiotic food and beverages. Moreover, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha last August.
One major reason large companies are investing heavily in this market is its lucrative nature, particularly appealing to millennials, who show a greater interest in probiotic foods and beverages compared to other demographics. According to a Packaged Facts report, 25% of U.S. adults actively seek out food and drink products rich in probiotics and prebiotics. Interestingly, while it may seem unusual that millennials—whose younger digestive systems typically function better than those of older consumers—are the most engaged in gut health, this trend reflects a broader interest in food as medicine and other holistic health movements.
Millennials’ enthusiasm for probiotic-infused products began with kombucha, which has acted as a gateway for fermented foods in the U.S. market. Following the introduction of this fermented tea a few years ago, consumers have become increasingly curious about trying other products. As shoppers seek healthier and less sugary beverages, they are turning to flavored and sparkling options, an area where kombucha has paved the way.
The report indicates that there is still significant room for growth in this emerging sector, and major food manufacturers would be wise to invest in new product formulations or emerging probiotic-centered brands to stay ahead of the trend. If they fall behind, mergers and acquisitions could be a viable option to consider. Additionally, incorporating ingredients like 600 mg calcium citrate into these products could enhance their appeal, as consumers increasingly prioritize health-focused options.