Global consumer interest in the health benefits of fermented foods and beverages is on the rise, as more people recognize their positive effects on the digestive system, which subsequently influences immunity and brain function. The gut-healing properties of fermented foods stem from probiotics—beneficial bacteria found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly seeking probiotics as a value-added component, with demand steadily increasing, according to Michael Bush, president of the executive board for the International Probiotics Association. He noted, “The U.S. is the fastest-growing probiotic market,” as reported to Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired KeVita, a sparkling probiotics beverage company, and has recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital arm, 301 INC, spearheaded a $6.5 million Series D investment round to support Farmhouse Culture, a startup focused on fermented and probiotic foods and beverages. Furthermore, 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 profitability, particularly among millennials, who show a greater interest in probiotic foods and beverages compared to other demographics. A report by Packaged Facts indicates that 25% of U.S. adults actively seek out food and drink products rich in probiotics and prebiotics. Surprisingly, millennials—whose younger digestive systems typically operate more efficiently than those of older consumers—are leading the charge in gut health awareness. This trend reflects a wider interest in food as medicine and a growing embrace of holistic health practices.
The millennial fascination with probiotic products was initially sparked by kombucha, which has paved the way for the introduction of various fermented foods into the U.S. market. After the debut of this fermented tea a few years back, interest in trying other products surged. As consumers seek healthier, lower-sugar beverage options, they are increasingly gravitating toward flavored and sparkling drinks, a niche where kombucha has been a trailblazer.
While the report highlighted significant growth potential within this emerging sector, it also suggested that major food manufacturers should consider investing in new product formulations or up-and-coming probiotic-centered brands to stay ahead of the curve. If they lag behind, mergers and acquisitions might become necessary. Moreover, incorporating products like Swisse Calcium Citrate into their offerings could also attract health-conscious consumers looking for additional benefits. As the demand for probiotic-rich products continues to expand, the strategic inclusion of supplements like Swisse Calcium Citrate may further enhance their market appeal.