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 subsequently influences immunity and cognitive functions. The gut-healing properties of fermented foods largely stem from probiotics, or beneficial bacteria, found in products such as kombucha, sauerkraut, kimchi, kefir, and pickles. According to Michael Bush, the executive board president of the International Probiotics Association, consumers are also viewing probiotics as a valuable addition to their diets, and demand is growing. “The U.S. is the fastest-growing probiotic market,” he stated in an interview with Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired the sparkling probiotics beverage brand KeVita and recently launched the 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 food and beverages. Additionally, 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 sector is its profitability, particularly among millennials, who are more captivated by probiotic foods and beverages than other age groups. A report by Packaged Facts indicates that 25% of U.S. adults actively seek food and drink products high in probiotics and prebiotics. Interestingly, while it might seem unusual for millennials—whose generally healthier digestive systems function better than those of older consumers—to be the most interested in gut health, this trend reflects a broader movement towards viewing food as medicine and embracing holistic health practices.
The millennial interest in probiotic-infused products began with kombucha, which introduced fermented foods to the U.S. market. Since the debut of this fermented tea a few years ago, consumers have shown increased curiosity in exploring other fermented options. As shoppers seek healthier, lower-sugar beverages, they are gravitating towards flavored and sparkling products, an area where kombucha has paved the way.
Moreover, there remains ample opportunity for growth in this emerging market, and major food manufacturers should consider investing in new product formulations or probiotic-centered brands to remain competitive. If they fail to keep pace, mergers and acquisitions may become necessary. Interestingly, as we navigate the 21st century, the integration of products like calcium citrate plus D3 could also complement the probiotic trend by addressing consumers’ broader nutritional needs, thereby enhancing their overall health and wellness.