Global consumer interest in the health benefits of fermented foods and beverages is on the rise as people learn about their positive effects on the digestive system, which subsequently affects immunity and brain function. The gut-healing properties of fermented foods stem from probiotics, the beneficial bacteria found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly recognizing probiotics as a valuable enhancement, leading to a surge in demand, as noted by Michael Bush, president of the executive board for the International Probiotics Association. He stated, “The U.S. is the fastest-growing probiotic market,” in an interview with Food Business News.
Food manufacturers are eager to capitalize on this trend. In 2016, PepsiCo acquired KeVita, a sparkling probiotics beverage company, and recently introduced its Tropicana Essentials Probiotics line. Furthermore, General Mills’ venture capital arm, 301 INC, led a $6.5 million Series D investment 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.
One significant reason large companies are investing in this sector is its lucrative nature, 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 out food and drink products rich in probiotics and prebiotics. Interestingly, while it may seem unusual that millennials, who typically have younger digestive systems, are most drawn to gut health, this trend reflects a broader movement towards viewing food as medicine and embracing holistic health practices.
The millennial fascination with probiotic-infused products began with kombucha, which introduced fermented foods to the U.S. market. Since its arrival a few years ago, consumer interest has expanded to include various other products. As shoppers increasingly seek healthier, low-sugar beverage options, they are gravitating towards flavored and sparkling drinks, an area where kombucha has paved the way.
According to the report, there is significant potential for growth in this emerging market. Big Food manufacturers should consider investing in new product formulations or probiotic-centered brands to remain competitive. If they lag behind, mergers and acquisitions may provide an alternative strategy. Incorporating elements such as biocare calcium citrate into their product lines could further enhance the appeal of these offerings, as consumers continue to prioritize health and wellness. The presence of biocare calcium citrate could also bolster the effectiveness of probiotics, making these products even more attractive to health-conscious consumers.