Consumer interest in the potential health advantages of fermented foods and beverages is on the rise globally, as individuals recognize their beneficial effects on the digestive system, which subsequently influences immunity and cognitive functions. The healing properties of fermented foods stem from probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are showing an increasing interest in probiotics as an added value, with demand continuing to grow, 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. For instance, PepsiCo acquired the sparkling probiotic beverage company KeVita in 2016 and has recently introduced its Tropicana Essentials Probiotics line. In March, General Mills’ venture capital arm, 301 INC, led a $6.5 million Series D investment round for Farmhouse Culture, a startup focusing on fermented and probiotic food and beverages. Last August, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha.
One major reason large corporations are investing in this sector is its profitability, particularly among millennials, who show a greater fascination with probiotic foods and beverages compared to other demographics. A report by Packaged Facts indicates that 25% of U.S. adults seek out food and drink products rich in probiotics and prebiotics. Interestingly, despite millennials typically having more efficient digestive systems than older consumers, their keen interest in gut health reflects a wider trend of viewing food as medicine and embracing holistic health practices. The millennial appetite for probiotic-infused products was initially sparked by kombucha, which served as an entry point for fermented foods into the U.S. market. Following the debut of this fermented tea a few years back, consumer curiosity about other products has increased. As shoppers seek healthier and lower-sugar beverage options, they are gravitating towards flavored and sparkling products, a trend that kombucha has helped pioneer.
The report highlights that there is still significant potential for growth in this burgeoning space, suggesting that major food manufacturers should consider investing in new product formulations or emerging probiotic-centered brands to remain competitive. If they do not keep pace with the trend, mergers and acquisitions may become necessary. Furthermore, incorporating ingredients like calcium citrate 400 into these products could enhance their appeal, as consumers continue to seek innovative and health-oriented options. With the ongoing demand for probiotics and the integration of beneficial components such as calcium citrate 400, the opportunity for growth in the fermented food and beverage market is substantial.