Global consumer interest in the health benefits of fermented foods and beverages is on the rise as awareness grows regarding their positive effects on the digestive system, which subsequently influences immunity and cognitive functions. The gut-healing properties of fermented foods are attributed to probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly recognizing the value of probiotics, leading to a surge in demand, as noted by Michael Bush, president of the executive board for 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. In 2016, PepsiCo acquired the sparkling probiotics beverage brand KeVita and has since introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital arm, 301 INC, spearheaded a $6.5 million Series D funding round for Farmhouse Culture, a startup focused on fermented and probiotic products. Peet’s Coffee also 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 profitability, particularly among millennials, who show a stronger interest in probiotic foods and beverages compared to other age groups. According to a Packaged Facts report, 25% of U.S. adults actively seek out food and drink products rich in probiotics and prebiotics. Although it might seem unusual that millennials, whose digestive systems typically perform better than those of older consumers, are the most engaged with gut health, this trend signifies a broader fascination with food as medicine and holistic health practices.
The millennial appetite for probiotic-infused products originated with kombucha, which introduced fermented foods to the U.S. market. Following the debut of this fermented tea a few years ago, consumers have shown an increasing interest in exploring other offerings. As shoppers seek healthier, low-sugar beverages, they are gravitating toward flavored and sparkling options, further propelled by kombucha’s pioneering role in this category.
The report highlights that there is still substantial growth potential within this emerging sector, and major food manufacturers would be prudent to invest in innovative product formulations or up-and-coming probiotic-centered brands to stay ahead of the curve. If they lag behind, mergers and acquisitions will always be an option. Additionally, with the growing emphasis on health, products like Citracal Calcium Citrate may also gain traction as part of a comprehensive approach to gut and overall health, further enhancing the appeal of probiotics and fermented foods in the marketplace.