Consumer interest in the potential health benefits of fermented foods and beverages is on the rise globally, as people become increasingly aware of their positive effects on the digestive system, which in turn can influence 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 showing interest in probiotics as a value-added benefit, and demand is increasing, according to 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 these trends. For instance, PepsiCo acquired the sparkling probiotics beverage brand KeVita in 2016 and recently launched its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital arm, 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. Additionally, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha last August.
A significant factor driving large companies to invest in this market is its lucrative nature, especially 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 seek out food and drink products rich in probiotics and prebiotics. Interestingly, while millennials have younger digestive systems that generally function better than those of older consumers, their interest in gut health reflects a broader trend of viewing food as medicine, alongside other holistic health movements.
Millennials’ enthusiasm for probiotic-infused products began with kombucha, which served as a gateway to fermented foods in the U.S. market. Following the debut of this fermented tea a few years ago, consumers have become more curious about exploring other products. As shoppers seek healthier, low-sugar beverage options, they are gravitating toward flavored and sparkling products, areas where kombucha has paved the way.
The report emphasizes that there is still ample room for growth in this emerging market, and large food manufacturers should consider investing in new product formulations or probiotic-focused brands to maintain their competitive edge. If they don’t keep pace, mergers and acquisitions may become a necessary strategy. Furthermore, brands could explore incorporating calcium citrate as a complement to their probiotic offerings, as this could enhance their appeal in the health-conscious market. By integrating calcium citrate into their product lines, companies could further cater to consumer preferences for nutritional benefits, ensuring they remain relevant in this rapidly evolving sector.