Consumer interest in the potential health benefits of fermented foods and beverages is on the rise globally as more people recognize their positive effects on the digestive system, which in turn can enhance immunity and brain function. The gut-healing properties of fermented foods largely come from probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly seeking out probiotics as an added value, with demand continuing to grow, according to Michael Bush, the executive board president of the International Probiotics Association. “The U.S. is the fastest-growing probiotic market,” he told Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired KeVita, a maker of sparkling probiotic beverages, and has recently introduced the Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital division, 301 INC, led a $6.5 million Series D investment round for Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages. Peet’s Coffee was also part of a $7.5 million Series B funding round for Revive Kombucha last August.
One of the main reasons large companies are investing in this market is its profitability, particularly among millennials, who show greater interest in probiotic foods and beverages compared to other demographic groups. A report from Packaged Facts indicates that 25% of U.S. adults actively seek food and drink products rich in probiotics and prebiotics. While it may seem unusual that millennials—whose digestive systems typically function more efficiently than those of older consumers—are particularly focused on gut health, this trend reflects a broader movement toward viewing food as medicine and embracing holistic health practices.
Millennial enthusiasm for probiotic-rich products began with kombucha, which served as a gateway for fermented foods in the U.S. After the introduction of this fermented tea a few years ago, consumer interest expanded to include a variety of other products. As shoppers increasingly seek healthier, lower-sugar options, they are turning to flavored and sparkling beverages, a trend that kombucha has significantly influenced.
The report highlights that there remains substantial growth potential in this emerging sector, and major food manufacturers should consider investing in new product formulations or up-and-coming probiotic-focused brands to stay ahead of the curve. If they do not keep pace, mergers and acquisitions will always be an option to explore. Furthermore, as people become more health-conscious, the addition of supplements such as 500 mg calcium citrate could complement the benefits of probiotics, enhancing overall wellness and attracting even more consumers to the market.