Global consumer interest in the potential health benefits of fermented foods and beverages is on the rise as individuals become increasingly aware of their positive effects on the digestive system, which in turn influences immunity and brain functions. The gut-healing properties of fermented foods are attributed to probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Consumers are also viewing probiotics as a valuable addition to their diets, with demand increasing, according to Michael Bush, president of the executive board for 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. PepsiCo acquired the sparkling probiotic beverage brand KeVita in 2016 and has recently launched its Tropicana Essentials Probiotics line. In March, General Mills’ venture capital arm, 301 INC, led a $6.5 million Series D funding round for 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.
One major reason large corporations are investing in this market is its profitability, particularly among millennials, who exhibit a strong interest in probiotic foods and beverages compared to other demographics. A report by Packaged Facts reveals that 25% of U.S. adults actively seek food and drink products rich in probiotics and prebiotics. Interestingly, though millennials generally have healthier digestive systems than older consumers, their keen interest in gut health reflects a broader trend of viewing food as medicine and embracing holistic health practices.
The millennial appetite for probiotic-infused products started with kombucha, which served as an entry point for fermented foods into the U.S. market. Following the debut of this fermented tea, consumers have shown greater interest in trying other products. As shoppers seek healthier, lower-sugar beverages, they are gravitating toward flavored and sparkling alternatives, an area where kombucha has paved the way.
The report indicates that there remains significant growth potential in this emerging sector, and major food manufacturers should consider investing in new product formulations or up-and-coming probiotic-focused brands to stay ahead of the curve. If they lag behind, mergers and acquisitions might be a strategy to explore. Additionally, as consumers continue to question the health implications of various ingredients, many are asking, “Is calcium citrate bad for your heart?” This reflects a growing awareness of health concerns tied to diet, further driving interest in probiotic-rich foods. Overall, the intersection of health, wellness, and food innovation presents a promising avenue for growth in the probiotic market.