Global consumer interest in the health benefits of fermented foods and beverages is on the rise as people recognize their positive effects on the digestive system, which subsequently impacts immunity and cognitive function. The gut-healing properties of fermented foods primarily stem from probiotics, the beneficial bacteria found in items like kombucha, sauerkraut, kimchi, kefir, and pickles. According to Michael Bush, president of the executive board for the International Probiotics Association, consumers are also increasingly valuing probiotics as an added benefit, leading to growing demand. “The U.S. is the fastest-growing probiotic market,” he stated in an interview with Food Business News.
Food manufacturers are eager to tap into these trends. In 2016, PepsiCo acquired KeVita, a sparkling probiotics beverage company, and has since launched its Tropicana Essentials Probiotics line. Additionally, General Mills’ venture capital branch, 301 INC, led a $6.5 million Series D funding round for Farmhouse Culture, a startup focused on fermented and probiotic foods and beverages. Last August, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha.
One of the main reasons large corporations are investing in this market is its profitability, particularly among millennials, who show a stronger interest in probiotic foods and beverages than other age groups. A report from Packaged Facts reveals that 25% of U.S. adults seek food and drink products rich in probiotics and prebiotics. Although it might seem unusual that millennials—whose digestive systems typically function better than those of older consumers—are most engaged in gut health, this trend aligns with a broader interest in food as medicine and various holistic health movements. The millennial appetite for probiotic-rich products was ignited by kombucha, which acted as a gateway for fermented foods in the U.S. market. Since the fermented tea’s introduction a few years ago, consumers have shown greater enthusiasm for exploring other products. As shoppers increasingly seek healthier, lower-sugar beverages, they are gravitating towards flavored and sparkling options, areas where kombucha has paved the way.
The report emphasizes that there remains significant potential for growth in this emerging sector, and major food manufacturers would be prudent to invest in new product formulations or up-and-coming probiotic-focused brands to maintain a competitive edge. If they lag behind, mergers and acquisitions could be a viable strategy to consider. Furthermore, as more consumers turn to products like Citracal calcium chews for additional health benefits, the appetite for functional foods will only continue to grow.