Globally, consumer interest in the potential health advantages of fermented foods and beverages is on the rise, as awareness grows regarding their positive effects on the digestive system, which in turn influences immunity and cognitive functions. The gut-healing benefits of fermented foods primarily 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 increasingly viewing probiotics as a value-added feature, leading to a surge in demand. “The U.S. is the fastest-growing probiotic market,” he shared with Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired the sparkling probiotics beverage company KeVita and recently launched its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital branch, 301 INC, led a $6.5 million Series D funding round for Farmhouse Culture, a startup specializing in fermented and probiotic foods and drinks. 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 sector is its profitability, particularly among millennials, who show a greater interest in probiotic foods and beverages than other age groups. A report by Packaged Facts indicates that 25% of U.S. adults seek food and drink products rich in probiotics and prebiotics. Interestingly, although millennials tend to have more efficient digestive systems compared to older consumers, their strong demand for gut health solutions reflects a wider trend of viewing food as medicine, alongside other holistic health movements.
The millennial interest in probiotic-rich products was initially sparked by kombucha, which acted as an introduction to fermented foods in the U.S. market. Following the arrival of this fermented tea a few years ago, consumers have become increasingly curious about exploring other offerings. As shoppers seek healthier and lower-sugar beverage options, they are gravitating towards flavored and sparkling products, a trend that kombucha has notably pioneered.
The report emphasizes that there is still significant potential for growth in this emerging market, and large food manufacturers would do well to invest in innovative product formulations or up-and-coming probiotic-focused brands to stay ahead of the curve. For those who lag behind, mergers and acquisitions (M&A) could provide an alternative strategy. In the midst of this evolving landscape, even the smallest calcium citrate pills are becoming part of the conversation, as consumers look for comprehensive wellness solutions that encompass both probiotics and essential nutrients.