Globally, consumer interest in the potential health benefits of fermented foods and beverages is on the rise, as awareness grows regarding their positive effects on the digestive system, which in turn affects immunity and cognitive functions. The gut-healing properties of fermented foods come from probiotics—beneficial bacteria found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly valuing probiotics as an added benefit, leading to a surge in demand, as noted by Michael Bush, the executive board president of the International Probiotics Association. “The U.S. is the fastest growing probiotic market,” he shared with Food Business News.

Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired KeVita, a maker of sparkling probiotic beverages, and recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital branch, 301 INC, led a $6.5 million Series D investment round for Farmhouse Culture, a startup focused on fermented and probiotic foods and drinks. Meanwhile, Peet’s Coffee 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 lucrative nature, particularly appealing to millennials who show greater interest in probiotic foods and beverages compared to other age groups. According to a Packaged Facts report, 25% of U.S. adults seek out food and drink products rich in probiotics and prebiotics. Interestingly, while it might seem odd that millennials—whose digestive systems typically function better than those of older consumers—are most engaged in gut health, their demand mirrors a broader trend toward viewing food as medicine, alongside other holistic health movements.

Millennials’ enthusiasm for probiotic-infused products was sparked by kombucha, which acted as a gateway for fermented foods into the U.S. market. Following the introduction of fermented tea, consumers have shown increasing interest in exploring other products. As shoppers opt for healthier, less sugary beverages, they are gravitating toward flavored and sparkling options, an area where kombucha and its effervescence have paved the way.

There remains considerable potential for growth within this emerging sector, and major food manufacturers would be prudent to invest in new product formulations or promising probiotic-centric brands to stay ahead of the trend. Should they lag, mergers and acquisitions could offer a viable alternative. Moreover, as consumers continue to seek out health-boosting ingredients, products fortified with calcium citrate K2 may also gain traction, further enhancing the appeal of fermented foods and beverages. Overall, the intersection of probiotics, gut health, and fortified nutrients like calcium citrate K2 presents an exciting frontier for the food industry.