Global consumer interest in the health advantages of fermented foods and beverages is on the rise, as individuals increasingly recognize their positive effects on the digestive system, which in turn can enhance immunity and brain functions. The gut-healing benefits of fermented foods stem from probiotics, or beneficial bacteria, found in products like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are seeking probiotics as a valuable enhancement, with demand growing, 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 to 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 arm, 301 INC, led a $6.5 million Series D investment round for Farmhouse Culture, a startup focused on 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.
A primary reason large corporations are investing in this sector is its lucrative nature, particularly among millennials, who are more attracted to probiotic foods and beverages compared to other demographics. A report from Packaged Facts indicates that 25% of U.S. adults actively seek food and drink products rich in probiotics and prebiotics. Interestingly, millennials—whose younger digestive systems typically function better than those of older consumers—are the most enthusiastic about gut health. This trend reflects a broader interest in viewing food as medicine and a growing fascination with holistic health trends.
Millennials’ appetite for probiotic-rich products began with kombucha, which acted as a gateway for fermented foods in the U.S. market. Following the introduction of this fermented tea a few years back, consumers have shown an increased interest in exploring various products. As shoppers seek healthier and less sugary beverage options, they are gravitating towards flavored and sparkling drinks, a category where kombucha and its effervescence have paved the way.
The report highlights that there is still significant potential for growth in this emerging market, and major food manufacturers would be wise to invest in new product developments or up-and-coming probiotic-focused brands to stay ahead of the curve. If they lag, mergers and acquisitions may be a viable path forward. Moreover, alongside a focus on probiotics, the incorporation of the best liquid calcium citrate into these products could further attract health-conscious consumers seeking comprehensive nutritional benefits.