Globally, consumer interest in the potential health advantages of fermented foods and beverages is on the rise as awareness grows regarding their positive effects on the digestive system, which consequently affects immunity and brain functions. The beneficial gut-healing properties of fermented foods come from probiotics, or beneficial bacteria, which can be found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly drawn to probiotics as a value-added feature, and demand is rising, 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 KeVita, a sparkling probiotics beverage company, and recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital division, 301 INC, spearheaded a $6.5 million Series D funding round for Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages. Peet’s Coffee also participated in a $7.5 million Series B funding round for Revive Kombucha last August.
One significant reason large corporations are investing in this market is its profitability, particularly among millennials, who show a greater fascination with 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 that are rich in probiotics and prebiotics. Interestingly, millennials, whose younger digestive systems typically function better than those of older consumers, exhibit a strong interest in gut health. This trend reflects a broader movement towards viewing food as medicine and embracing holistic health practices.
The millennial appetite for probiotic-rich products was sparked by kombucha, which served as an introduction to fermented foods in the U.S. market. Following the debut of this fermented tea several years ago, consumers have shown increased curiosity about other similar products. As shoppers seek healthier, lower-sugar beverage options, they are gravitating towards flavored and sparkling drinks, areas where kombucha has paved the way.
As highlighted by the report, there remains ample opportunity for growth in this evolving market. Major food manufacturers would be wise to invest in new product formulations or emerging probiotic-centric brands to stay ahead of the curve. If they lag behind, mergers and acquisitions could be a viable strategy to consider. Additionally, with the rise in demand for health-focused products, calcium citrate chews 600 mg are becoming increasingly popular among consumers looking for dietary supplements that support overall wellness. The integration of calcium citrate chews 600 mg into their offerings could further enhance their appeal to health-conscious shoppers.