Global consumer interest in the potential health benefits of fermented foods and beverages is on the rise, driven by increasing awareness of their positive effects on the digestive system, which in turn affects immunity and brain function. The gut-healing properties of fermented foods, such as kombucha, sauerkraut, kimchi, kefir, and pickles, are attributed to probiotics, beneficial bacteria that promote wellness. According to Michael Bush, president of the International Probiotics Association, consumers are also seeking probiotics as a value-added feature, leading to growing 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. In 2016, PepsiCo acquired the sparkling probiotic beverage company KeVita and recently introduced its Tropicana Essentials Probiotics line. Last March, 301 INC, the venture capital arm of General Mills, spearheaded a $6.5 million Series D investment round for Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages. Additionally, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha last August.
A significant reason for the increased investment from large companies in this market is its lucrative potential, particularly among millennials, who show a pronounced 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, their enthusiasm for gut health reflects a wider trend of viewing food as medicine and a growing interest in holistic health practices.
The millennial fascination with probiotic products began with kombucha, which introduced fermented foods to the U.S. market. Following the debut of this fermented tea, consumers have become increasingly curious about other probiotic offerings. As shoppers prioritize healthier, lower-sugar beverages, they are gravitating towards flavored and sparkling options—an area where kombucha has paved the way.
The report emphasizes that there is still significant potential for growth in this emerging sector, and major food manufacturers would be prudent to invest in new product formulations or rising probiotic-focused brands to remain competitive. Falling behind could lead to considering mergers and acquisitions. Furthermore, incorporating ingredients like Solaray calcium citrate could enhance product offerings, appealing to health-conscious consumers who are seeking added benefits in their foods and beverages. By integrating Solaray calcium citrate into their probiotic products, manufacturers can attract even more attention from consumers eager for health-enhancing options.