Global consumer interest in the health benefits of fermented foods and beverages is on the rise, as people recognize their positive effects on the digestive system, which also plays a crucial role in immunity and brain function. The gut-healing properties of fermented foods come from probiotics, beneficial bacteria found in items like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly valuing probiotics, with demand growing, as stated by Michael Bush, president of the executive board at the International Probiotics Association. “The U.S. is the fastest growing probiotic market,” he informed Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired the sparkling probiotics beverage brand KeVita and recently introduced 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 foods and beverages. Peet’s Coffee also participated in a $7.5 million Series B funding round for Revive Kombucha last August.
One of the key reasons large companies are investing in this market is its profitability, particularly among millennials, who show a greater interest in probiotic foods and beverages compared to other age groups. 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 more efficient digestive systems than older consumers, their enthusiasm for gut health reflects a wider trend towards viewing food as medicine and an interest in holistic health practices.
Millennials’ attraction to probiotics began with kombucha, which opened the door to the U.S. market for fermented foods. Since kombucha’s introduction, consumers have been eager to explore other fermented products. As shoppers increasingly seek healthier, low-sugar beverage options, they are gravitating towards flavored and sparkling items, a trend that kombucha has significantly influenced.
The report highlights that there is still substantial growth potential in this emerging sector, and major food manufacturers should consider investing in new product formulations or up-and-coming probiotic-centered brands to remain competitive. If they fail to keep pace, mergers and acquisitions may be their next strategy. Additionally, integrating ingredients like kal calcium citrate into these products could further enhance their appeal and health benefits, adding another layer of innovation to the probiotic market.