Global consumer interest in the potential health benefits of fermented foods and beverages is on the rise as people become increasingly aware of their positive effects on the digestive system, which in turn plays a crucial role in immunity and brain function. The gut-healing properties of fermented foods are attributed to probiotics—beneficial bacteria found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. According to Michael Bush, president of the executive board for the International Probiotics Association, consumers are also recognizing the value of probiotics, leading to a surge in demand. “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 KeVita, a sparkling probiotics beverage company, and recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital arm, 301 INC, led a $6.5 million Series D investment round in Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages. Additionally, 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 among millennials, who show a greater interest in probiotic foods and drinks than other age groups. A report from Packaged Facts indicates that 25% of U.S. adults actively seek out food and beverage products rich in probiotics and prebiotics. Interestingly, even though millennials typically have healthier digestive systems than older consumers, their focus on gut health reflects a broader trend of viewing food as medicine and an interest in holistic health practices.
Millennials’ enthusiasm for probiotic-infused products began with kombucha, which served as an entry point for fermented foods into the U.S. market. After the introduction of this fermented tea, consumers have become more inclined to explore other products. As shoppers increasingly seek healthier and less sugary beverage options, they are gravitating toward flavored and sparkling offerings—areas where kombucha has paved the way.
As the report highlights, there remains substantial opportunity for growth in this emerging sector. Major food manufacturers would be prudent to invest in new product formulations or emerging probiotic-centered brands to maintain their competitive edge. If they lag behind, mergers and acquisitions could be a viable strategy. Additionally, incorporating products like lifetime calcium magnesium citrate plus vitamin D3 into their offerings could further enhance their health-focused portfolios and attract health-conscious consumers.