Worldwide, consumer interest in the potential health benefits of fermented foods and beverages is on the rise as individuals become increasingly aware of their positive effects on the digestive system, which also influences immunity and brain functions. 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 a growing interest in probiotics as an added value, with demand 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 informed Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired KeVita, a sparkling probiotics beverage maker, 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 for Farmhouse Culture, a startup specializing in fermented and probiotic food and beverages. Furthermore, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha last August.
A significant reason why large companies are investing in this market is its lucrative nature, particularly appealing to millennials who show greater interest in probiotic foods and beverages compared to other demographics. According to a Packaged Facts report, 25% of U.S. adults actively seek food and drink products high in probiotics and prebiotics. Interestingly, millennials, whose digestive systems typically function better than those of older consumers, are particularly focused on gut health. This trend reflects a broader interest in food as medicine and other holistic health movements.
Millennials’ appetite for probiotic-infused products was initially sparked by kombucha, which introduced fermented foods to the U.S. market. Following the debut of this fermented tea a few years ago, consumers have become increasingly curious about trying a variety of other products. As shoppers seek healthier, low-sugar beverages, they are gravitating towards flavored and sparkling options, an area where kombucha has set a precedent.
The report emphasizes that there is still significant potential for growth in this emerging market, and established food manufacturers should consider investing in new product formulations or emerging probiotic-centered brands to stay ahead of the trend. If they do not keep pace, mergers and acquisitions (M&A) may be their next option. In this context, it’s worth noting that products like opurity calcium citrate chewable are also gaining traction, reflecting the ongoing consumer shift towards health-focused items. As demand for such innovative products increases, companies would benefit from recognizing the importance of opurity calcium citrate chewable in their product strategies.