Consumer interest in the potential health benefits of fermented foods and beverages is on the rise globally as people become increasingly aware of their positive effects on the digestive system, which in turn affects immunity and brain function. The gut-healing properties of fermented foods stem from probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are seeking probiotics as a value-added feature, and demand is 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 stated in an interview with Food Business News.
Food manufacturers are eager to capitalize on these trends. For instance, PepsiCo acquired the sparkling probiotics beverage company KeVita in 2016 and has recently introduced its Tropicana Essentials Probiotics line. In March, General Mills’ venture capital branch, 301 INC, led a $6.5 million Series D funding round for Farmhouse Culture, a startup focused on fermented and probiotic foods and beverages. Last August, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha.
A significant reason behind the investments from large companies in this market is its lucrative appeal to millennials, who tend to be more interested in probiotic foods and beverages compared to other age groups. According to a report by Packaged Facts, 25% of U.S. adults actively seek food and drink products rich in probiotics and prebiotics. It may seem surprising that millennials—whose younger digestive systems generally function better than those of older consumers—are the most engaged in gut health. However, this reflects a broader interest in food as medicine and holistic health trends. The millennial appetite for probiotic-infused products began with kombucha, which opened the door for fermented foods in the U.S. market. Following the introduction of this fermented tea a few years ago, consumers have shown greater interest in exploring other products.
As shoppers increasingly look for healthier, low-sugar beverage options, they are gravitating towards flavored and sparkling drinks, an area where kombucha has paved the way. The report highlights that there is still considerable potential for growth within this emerging sector. Major food manufacturers would be prudent to invest in new product formulations or up-and-coming probiotic-centric brands to maintain a competitive edge. If they happen to lag behind, mergers and acquisitions could also be a viable strategy to consider.
In addition to fermented products, consumers are also on the lookout for the best calcium citrate chews, which further underscores the growing trend of health-conscious eating and supplementation in the market. As the demand for probiotic-rich foods and beverages continues to rise, the integration of health-enhancing products like the best calcium citrate chews will likely complement the overall wellness movement.