In the “Fourth Wing” book series by Rebecca Yarros, when dragon riders finally gain their powers, they must constantly monitor that power so they do not burn out. For Violet Sorrengail, she imagines the power as a familiar place where she plants her feet, which helps her in being mindful of the power she holds.

Although not magical, consumers recognize that a healthy gut is key to powering through day-to-day life.

Julie Smolyansky, CEO of Lifeway Foods Inc., Morton Grove, Ill., says that gut health has been top of mind for consumers since the height of the pandemic in 2020, even though it was a priority before that time.

“Lifeway has been providing consumers with the best quality kefir and probiotic products for decades, which has increased exponentially over the last four years when the health of our microbiomes and immunity become more apparent to all of us,” she describes. “Our immune systems, mental health, inflammatory pathways and other aspects of our health are dependent on how well our gut functions, and this realization has impacted the way consumers prioritize purchases.”

Both probiotics and prebiotics are at the forefront of everyone’s mind, Smolyansky shares, since consumers know their bodies depend on these two critical components for optimal gut health and function.

“We are proud to be a leader in year-over-year (YoY) growth in this exciting space in the market,” she adds.

Ben Goodwin, co-founder, formulator and CEO of Oakland, Calif.-based OLIPOP, says it’s been exciting to watch the momentum and interest in the probiotic and prebiotic space grow in recent years.

“When I first started OLIPOP, we were introducing something entirely new — a functional soda that was low in sugar, high in fiber and actually delicious for everyday drinking,” he explains. “For a category that’s only been around for five years, it’s amazing to see it reach 28% household penetration. That means nearly one in three American households have tried this category, which is such an exciting milestone.”

Reflecting on the early days formulating OLIPOP, Goodwin says that many people advised him not to create a healthier soda. But he felt strongly about it and truly believed there was a need for it.

“While product-market fit is important, sometimes a unique idea doesn’t always get immediate validation,” Goodwin states. “Looking back now, the response from consumers has shown that sticking to what I believed in was absolutely worth it.”

Interest in gut health 

Mitch Madoff, head of retail partnerships at Keychain, New York, elaborates that gut health knowledge has expanded beyond experts.

“Gut health isn’t just something you hear about from nutritionists — it’s all over social media, with influencers and health advocates sharing their experiences, tips and tricks,” he says. “They’re constantly posting their favorite functional beverages, like OLIPOP or poppi, and sharing their go-to gut-healthy sourdough bread recipes. Whether you want to or not, everyone who consumes media has seen the term ‘gut health’ in recent months.”

This spike in interest, Madoff notes, has benefited brands that already were in the prebiotic and probiotic beverage space, while also pushing those who weren’t to rethink what they’re producing.

“At Keychain, we’ve noticed brands quickly producing new, gut-healthy product lines that resonate with consumers who want quick, effective ways to boost their overall health,” he adds.

Lifeway’s Smolyansky states that the days of associating gut health with digestive health alone are over, noting that, while digestion plays a huge part in overall gut health, there is much more to the microbiome puzzle.

Lifeway has seen firsthand how consumers depend on probiotic-rich, quality products like its kefir, Smolyansky says.

“We make our products the way they have been consumed for many years before us, and we’ve seen firsthand how consumers respond when they tell us how our products have made a difference in their lives,” she explains. “Our expansive growth over the last four years, and even before that time, has been a clear message to us that gut health is a driving contributor to what consumers prioritize each week at the supermarket. The market clearly reflects that in the consumer beverage space, since probiotic beverages like Lifeway Kefir continue to grow each quarter.”

Smolyansky expects that this trend will only increase going forward, and says that Lifeway is prepared to be a leader in the category.

OLIPOP’s Goodwin also notes how consumers’ increased interest in gut health has impacted the market.

“Interest in gut health has become a central focus of modern wellness, and it’s been incredibly exciting to see how much consumer awareness has grown around this vital topic,” Goodwin shares. “This shift has had a significant impact on both consumer behavior and industry trends. We’re witnessing a major shift toward functional sodas. … When I first launched OLIPOP, many retailers weren’t even sure where to place our product on the shelves.

“Fast forward to today, Walmart has introduced a ‘Modern Soda Set’ within the traditional soda aisle,” he continues. “OLIPOP is also now making its way into convenience stores nationwide — a breakthrough for better-for-you (BFY) brands that traditionally couldn’t access this space.”

Goodwin adds that this breakthrough marks a retail shift driven by growing consumer demand and interest in digestive health.

“In just the past year, OLIPOP became the best-selling single-serve soda and surpassed the sales of Pepsi, Diet Coke and A&W at a major national retailer, proving that consumers are actively seeking healthier alternatives to the sodas they know and love,” he notes. “It’s a powerful testament to the fact that people are increasingly prioritizing digestive health and looking for better options that fit seamlessly into their lives.”

Additional interests 

Other consumer trends are contributing to interest in probiotic and prebiotic beverages as well.

“It’s all about the intersection of health, convenience, and transparency,” Keychain’s Madoff says. “People want products that are not only good for them, but also easy to integrate into their daily lives. There’s generally a growing curiosity about functional food and beverages — consumers are drawn to products that work a little harder for them and offer added health benefits.”

He notes that consumers increasingly are focused on BFY products and paying more attention than ever before to what it is they are consuming. Clean labels, natural ingredients, and sustainable practices are becoming baseline expectations, Madoff adds, and prebiotic and probiotic beverages check those boxes.

Lifeway’s Smolyansky notes that, beyond gut health, today’s consumers are turning to prebiotic and probiotic drinks for a plethora of benefits.

“Many of our customers and kefir fans are now using probiotic and prebiotic beverages as healthy social choices, on-the-go enjoyment, post-workout recovery, in their beauty regiments and in creative spaces as we see each day on social media,” she says. “Whether that’s enjoying a refreshing new drink recipe made with kefir, using it for skin health as Margot Robbie did for her role in the ‘Barbie’ movie or creating a post-workout recovery drink, there are multitudes of ways to use Lifeway products and other probiotic and prebiotic foods and beverages as enhancements to consumers’ overall lifestyle choices.”

Smolyansky shares that Lifeway Kefir is a complete food rich in probiotics, protein, natural calcium, vitamin D, B vitamins, and minerals like potassium and magnesium, which make it “an excellent choice for many aspects of health.” She says consumers are looking for more products like this in the probiotic and prebiotic beverage space — products that contribute to more than just digestive health.

OLIPOP’s Goodwin feels that the rising demand for probiotic and prebiotic beverages is part of a larger cultural shift toward health-conscious living and self-care.

“Before the pandemic, the traditional soda market was in consistent decline as consumers shifted to alternative options like sparkling water,” he explains. “Our launch coincided with this trend, as people increasingly sought healthier beverages and became more aware of the negative health impacts of traditional sodas, but still craved the full flavor of a soda.”

Goodwin says the changing tide created a strong demand for products like OLIPOP, with delicious flavor and functional health benefits.

“As we gained traction, retailers realized we were a direct alternative to traditional soda, bringing back consumers who couldn’t rationalize the health trade-off,” he shares. “With digestive health continuing to gain attention, probiotic and prebiotic drinks are now becoming a staple in many people’s daily routines. Consumers are more mindful than ever about what’s in their beverages and foods, favoring products with simple, transparent ingredients that align with their individual health needs.”

Finding the best beverage format 

As consumer awareness regarding gut health grows, the beverage formats utilizing prebiotics and probiotics in their formulations has grown as well.

Keychain’s Madoff shares that the category has grown to be very diverse, from classic dairy-based drinks like kefir, to the rise of kombucha and sodas.

“At Keychain, we’ve seen brands experimenting with everything from functional teas to fruit-based drinks that incorporate these ingredients,” he says. “It’s all about meeting consumers where they are — whether that’s at breakfast with a yogurt drink or on-the-go with a gut-friendly soda.”

Lifeway’s Smolyansky observes the increasing number of players in the space, noting the growth is due to evolving consumer preferences and the proliferation of research around the microbiome. The CEO says she is thrilled to see more awareness for gut-healthy products that enhance people’s lives.

“Lifeway has been a pioneer in this space for decades, and we’ve developed a wonderful reputation as the kefir leader thanks to our powerful probiotic drink that nourishes the gut, brain, immune system, muscles, and more,” Smolyansky shares. “We’ve helped drive strong growth in the cultured dairy segment and look forward to introducing even more customers to the magic of Lifeway Kefir in the coming years.”

Roger Dilworth, senior analyst at Beverage Marketing Corporation (BMC), Wintersville, Ohio, shares how the market is seeing brand owners incorporate these digestive health attributes.

“Prebiotics are popularly used in seltzers and sodas, while probiotics originated in dairy foods and beverages, and later branched out to juices, water, and kombucha,” he says. “The latter, of course, differs from juices and water in that bacteria and yeast are intrinsic to the product formulation.”

Broad appeal 

Lifeway’s Smolyansky says that consumer demographics in this beverage sector spans across all ages, especially as consumer knowledge continues to grow.

“We see a heightened interest in Gen Z, as well as Gen X and millennials; however, many of our customers are also baby boomers,” she shares. “The topic of gut health, microbiome health, muscle health, supporting our mental health through dietary choices, and overall wellness expands to all ages.”

Parents also are prioritizing gut health for their children, Smolyansky notes, which Lifeway has seen with the demand for its kid-friendly Organic ProBugs — kefir pouches for little ones with sensitive tummies in mind.

“We recognize that everyone knows the importance of products like Lifeway Kefir in their daily routines, and we couldn’t be more honored to provide an answer to the call in the market for them,” Smolyansky says.

OLIPOP’s Goodwin states that the brand’s consumer base is diverse, as the product is “really, for everyone.”

“While functional beverage consumers are more likely to be millennials or Gen Z compared to the average U.S. shopper, we’ve found that OLIPOP resonates with people of all ages,” he shares. “For brands like ours that have successfully bridged the gap from niche to mainstream, the demographic landscape starts to shift. As we gain broader appeal, our consumer base begins to align more closely with the average soft drink consumer, attracting a much wider audience than just the early adopters who were initially drawn to the brand.”

BMC’s Dilworth notes that the probiotic and prebiotic consumer typically skews female, with young adults likely more inclined to drink prebiotic beverages for no other reason than their relative newness.

“Older consumers would seem to be the natural constituency for probiotic drinks, but this is counterbalanced by the fact that older consumers tend to consume fewer packaged beverages,” he says.

Ever-growing potential 

In terms of growth for the category, Lifeway’s Smolyansky believes the market has only seen the tip of the iceberg for the category’s potential. She points to the company’s Organic Grassfed Kefir.

“This product line offers an exceptional source of both probiotics and prebiotic fiber, making it so easy for consumers to get the benefits of both worlds,” Smolyansky explains. “It is a fantastic way to bring both of these nutrients to the market in a feasible manner for people in their day-to-day living.  Our team continues to drive innovation and stay ahead of emerging trends, and we have plans to excel in offering even more options that will be a part of the massive growth that is right around the corner.”

One area she expects to be a “huge growth sector” is the option for synergistic products, like the brand’s Organic Grassfed Kefir that brings together prebiotic fibers and probiotics in one convenient product.

“We also launched a new Probiotic Smoothie and Collagen made with organic kefir cultures coming to market very soon and is completely lactose-free,” Smolyansky adds. “Consumers are looking for easy ways to consume multiple nutrient-rich products in one, and we know this is going to be an important space to fill going forward, as we’re seeing competitors become more interested in this space as well.”

OLIPOP’s Goodwin notes potential growth for probiotic and prebiotic beverages in the U.S. market could be massive, especially when considering the market shares of soda and health and wellness industries.

“This creates a tremendous opportunity for innovation and growth, and we are just starting to see how it will play out at scale,” he says. “At OLIPOP, we’re proud to offer something truly unique, helping to define a new category for consumers seeking better-for-you alternatives backed by science, without any sacrifice on flavor. As more people focus on wellness, we believe this space will continue to grow, opening up even more opportunities to meet the rising demand for functional, flavorful drinks.”

Keychain’s Madoff notes that there’s a growing appetite for functional beverages that don’t sacrifice flavor of convenience.

“The U.S. market, in particular, is ripe for growth — people are becoming more informed about gut health and are actively looking for products that align with that,” he concludes. “Brands that tap into this trend while keeping their products approachable and relatable have the largest opportunity to thrive.”