Probiotics Market

Probiotics Market Analysis, Growth Opportunities, and Forecast (2024-2029)

Global probiotics market size is projected to grow from US$ 71.2 billion in 2024 to US$ 105.7 billion by 2029, with a CAGR of 8.2%.This growth is driven by a combination of key factors. Rising consumer awareness of gut health's link to overall well-being and a growing preference for preventive healthcare are key drivers. Additionally, innovation in delivery methods and targeted strains promises exciting future growth.

The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, in October 2023, Probi (Sweden) unveiled synbiotic solutions in collaboration with Clasado (UK) at Supply Side West. Launching Bimuno GOS with Probi Defendum and Probi Digestis , these innovations signify a strategic leap into the burgeoning synbiotics sector. This milestone underscores Probi's commitment to evidence-based advancements in digestive and immune health.  Other major players, such as ADM (US), expand its international distribution partnership with Nutramax, bolstering their presence in the probiotics market. ADM Protexin now oversees Nutramax brands in Europe and select Asia Pacific markets, aiming for further global expansion. This strategic move enhances access to Nutramax's renowned pet health solutions. The deal underscores ADM's commitment to quality and animal welfare.

The overall probiotics market is classified as a fragmented market, with the Major players, namely Nestlé (Switzerland), ADM (US), International Flavors & Fragrances Inc. (US), Yakult Honsha Co., Ltd. (Japan), Meiji Holdings Co., Ltd. (Japan) occupying 12-24% of the market share.

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Probiotics Market Dynamics

Drivers: Health benefits associated with probiotic-fortified foods

Health awareness among consumers is on the rise, wherein most consumers are constantly in search of healthy food products for daily consumption. Probiotics have provided strong health benefits, more specifically to the human digestive system. In Europe, the dairy sector is the most developed segment of the market. Probiotic yogurts and fermented milk that are sold in a convenient “daily dose and small pack” format are the most widely used. Consumer acceptance of probiotic-containing products varies greatly across Europe. For instance, in August 2021, Müller launched its first stand-alone yogurt brand in the UK called Gut Glory. The new range will be available in pack sizes of 450g and 125g packs. In addition to this, the Food and Agriculture Organization of the United Nations (FAO) has concluded the solid demand for dairy products, such as cheese and yogurts, globally. International trade in cheese products reached 2.8 million tons in 2020, sustaining the expansion for a fifth consecutive year by 4.1%, underpinned by the continued solid import demand by several countries, especially the Russian Federation, Iraq, China, and the Republic of Korea.

Restraints: High R&D costs for developing new probiotic strains

Substantial investments in research and development (R&D), alongside expenditures on laboratories, research equipment, and the hiring of skilled professionals, present formidable barriers to entry in the probiotics market. Scientific validation of probiotic applications has proven crucial for market success, with their association with health benefits posing challenges for manufacturers seeking a return on investment (RoI) given the high initial capital outlay. Leading companies such as , Probi (Sweden), Nestlé (Switzerland), ADM (US), Danone (France), and Yakult Honsha (Japan) have prioritized bolstering their R&D capabilities to secure a competitive edge, thereby erecting barriers for potential market entrants.

The development and production of probiotic strains and products adhere to international food regulations, contributing to high production costs and subsequently elevated final product prices. Marketing and distribution of probiotic products further inflate costs, as they necessitate distinct packaging and distribution channels compared to conventional products. Despite consumer awareness of the health advantages associated with probiotics, their premium pricing presents a hurdle to widespread adoption, posing a significant challenge for manufacturers.

Opportunities: Replacement of pharmaceutical agents by probiotics

The rising demand for probiotics underscores consumers' preference for products with established health benefits. As evidence of probiotics' positive impact on health continues to accumulate, consumer expectations regarding these products have grown. This trend towards seeking safe, natural, and cost-effective alternatives to pharmaceuticals has prompted the exploration of probiotics' potential as pharmaceutical agents. The efficacy of probiotics in this context appears to depend on the specific strain and dosage used. Clinical trials have demonstrated that probiotics have the potential to treat various human disorders, particularly those affecting the gastrointestinal (GI) tract. Incorporating probiotic-rich fermented dairy products into diets has shown promise in addressing specific clinical conditions, including antibiotic-associated diarrhea, rotavirus-associated diarrhea, inflammatory bowel disease, irritable bowel syndrome (IBS), allergic diseases, cancer, Helicobacter pylori infection, and lactose intolerance.

As per the research paper published by National Center for Biotechnology Information, probiotics have demonstrated high potential to treat and prevent various diseases such as neurodegenerative disorders, cancers, cardiovascular diseases, and inflammatory diseases. In addition, probiotics are also effective against multidrug-resistant pathogens and help maintain a balanced gut microbiota ecosystem.

Challenges: Complexities in integrating probiotics in functional foods

The process of developing and commercializing functional food products involves complexity, cost, and uncertainty. Success in this field depends on various factors including consumer demand, technological advancements, and regulatory frameworks. Additionally, consumer awareness of the health benefits associated with specific ingredients influences the acceptance of functional foods. While traditional functional ingredients like minerals, fiber, and vitamins remain popular, there is growing interest in novel products enriched with probiotics, prebiotics, flavonoids, carotenoids, and conjugated linolenic acid

The researcher has to work in-depth to overcome all the challenges related to the selection and development of the strain and related production processes. Probiotic strains are prone to changes in pH and temperature. The strains must sustain while integrating with functional foodstuffs. The basic requirement for probiotics is that products should contain sufficient numbers of microorganisms up to the expiry date. Hence, probiotics must contain specific strains and maintain certain numbers of live cells to produce health benefits in the host. Different countries have decided on the minimum number of viable cells required in the probiotic product for it to be beneficial. The preservation of these probiotic microorganisms presents a challenge as they are affected by exposure to temperature, oxygen, and light.

The Probiotics Market Ecosystem

By Product type, the Functional Food & beverages segment accounts for the highest market share Probiotics market during the forecast period.

Consumer demand for convenient and proactive wellness solutions has propelled the popularity of probiotic-fortified products like yogurts, kefir, kombucha, and fortified beverages, which offer an easy and enjoyable way to incorporate probiotics into daily routines. These products align well with the rising trend of preventive healthcare, catering to consumers seeking to maintain their health and well-being proactively. The segment benefits from continuous innovation and diversification, with manufacturers introducing a wide range of new probiotic-infused products to meet diverse taste preferences and dietary needs. This includes offerings such as probiotic-infused waters, shots, snack bars, and chocolates, catering to various consumer demographics and lifestyle choices, including vegan and lactose-free diets. As consumers increasingly seek personalized solutions for their health concerns, the segment is poised to further expand through tailored probiotic formulations designed to address specific digestive issues or mental health concerns, emphasizing the importance of personalization in driving market growth

By Ingredient, the bacteria segment accounts for a significant market share in the Probiotics market.

Bacteria have a well-established reputation and extensive scientific backing supporting their efficacy in promoting gut health, a fundamental application of probiotics. Bacterial strains offer a broader spectrum of diversity compared to alternative probiotic types like yeast, enabling the development of targeted formulations tailored to address specific health needs. Recent innovations, such as psychobiotic strains targeting mental well-being and spore-forming bacteria with improved shelf life and delivery properties, underscore the versatility and applicability of bacterial probiotics. The established and cost-effective manufacturing processes associated with bacteria contribute to greater affordability and broader consumer accessibility, further consolidating the bacteria segment's market dominance during the forecasted period.

By Distribution channel, the Hypermarkets/ Supermarkets segment accounts for a significant market share in the Probiotics market.

Hypermarkets, comprising expansive supermarkets and warehouse clubs, stand as pivotal hubs for probiotic distribution, capitalizing on their extensive reach and accessibility. With a sprawling network of stores, hypermarkets offer unparalleled convenience to a broad spectrum of consumers, ensuring easy access to probiotic products. This accessibility is especially important for those who prioritize convenience and don't often visit specialty stores. Moreover, hypermarkets provide a comprehensive shopping experience by curating a diverse selection of groceries, including a dedicated health and wellness section where probiotics are prominently featured. This one-stop shopping approach streamlines the purchasing process for consumers, allowing them to fulfill their dietary needs alongside other household essentials. The abundant product variety available at hypermarkets, spanning different brands, formulations, and price points, further caters to diverse consumer preferences, enriching the shopping experience.

By End User, the Human segment accounts for a significant market share in the Probiotics market.

This segment benefits from a multifaceted approach that encompasses growing awareness of gut health among the public, underscored by a 2022 IFIC survey revealing that 24% of respondents prioritize digestive health in their overall well-being. Additionally, with 32% of respondents actively seeking out probiotics and 60% of those consumers integrating them into their daily routine, there is a palpable demand for probiotic products tailored to human health needs, including digestive support, immune enhancement, and mental well-being. Furthermore, the human probiotics market thrives on a continuous stream of product innovation, evidenced by the emergence of personalized formulations targeting specific health concerns and innovative delivery methods such as chewable tablets. This innovative spirit extends to exploring psychobiotic strains for mental health benefits, highlighting the dynamic nature of the market.

Increased awareness of gut microbiome and aging population are key drivers in Asia-Pacific probiotics market. Asia Pacific is poised to experience the highest CAGR in the Probiotics market during the forecast period.

An increased awareness of the gut microbiome and its profound impact on digestion, immunity, and mental health among the public. This heightened awareness is prompting individuals to explore probiotic supplements and foods fortified with probiotics as a means to support overall well-being. Additionally, the region's rapidly aging population, particularly in countries like South Korea, is driving the adoption of probiotics, as they are increasingly recognized for their potential benefits for gut health and immune function in older adults. Innovation, such as the development of personalized probiotic strains tailored to individual health needs, and exploration into probiotics for skin health and mental well-being, is expected to further amplify market potential in the region. In  December 2020 government initiatives, such as India's promotion of nutraceuticals through policies such as the AYUSH policy, are also fostering market growth. With these factors at play, the Asia Pacific region is poised to experience the highest CAGR in the probiotics market during the forecast period.

Asia Pacific: Probiotics Market Snapshot

Key Market Players

Key players in this market include Probi (Sweden), Nestlé (Switzerland), ADM (US), Danone (France), International Flavors & Fragrances Inc. (US), Yakult Honsha Co., Ltd. (Japan), BioGaia (Sweden), MORINAGA MILK INDUSTRY CO., LTD. (Japan), Meiji Holdings Co., Ltd. (Japan), Lifeway Foods, Inc. (US), Adisseo (France), Winclove Probiotics (US), AB-Biotics, S.A. (Belgium), Apsen Farmacêutica (Brazil), and Lallemand (Canada).

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Scope of the Report

Report Scope:

Probiotics market:

By Product Type

• Functional Food & Beverages
  • Dairy Products
  • Non-Dairy Beverage
  • Infant Formula
  • Cereals
  • Other Applications
• Dietary Supplements
  • Tablets
  • Capsules
  • Powders
  • Liquids
  • Soft Gels
  • Gel Caps
• Feed

By Ingredient

• Bacteria
  • Lactobacilli
    • Lactobacillus Acidophilus
    • Lactobacillus Rhamnosus
    • Lactobacillus Casei
    • Lactobacillus Reuteri
  • Bifidobacterium                       
  • Streptococcus Thermophilus                              
• Yeast
  • Saccharomyces Boulardii                      
  • Other Yeasts             

By Distribution Channel

• Hypermarkets/Supermarkets
• Pharmacies/Drugstores
• Specialty Stores
• Online
• Convenience Stores/Small Retail Formats     

By End User

• Human
• Animal

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World

Key Probiotics Industry Developments

• In February 2024, AB Biotics SA (Netherlands) expands its presence in Asia, partnering with Wonderlab for their globally marketed product, AB-LIFE . The collaboration introduces Shape100 , a probiotic blend focusing on cardiometabolic health, to the Chinese market. This strategic move aims to address cholesterol-related concerns through evidence-based solutions.
• In November 2023, Nestlé (Switzerland) launched N3 milk, a breakthrough in nutritional innovation. Incorporating prebiotic fibers and reduced lactose, it enriches gut health and boasts over 15% fewer calories. Tailored for diverse dietary needs, N3 supports bone health, muscle growth, and immunity.
• In September 2023, Yakult Honsha Co Ltd (Japan) Introduced the Yakult Gohonmaru Cafe & Gallery in Utsunomiya, Japan. This innovative venture, inclusive of a beauty salon and gallery, offers patrons an array of delectable treats infused with Yakult probiotic beverage. The strategic investment underscores Yakult's commitment to expanding its consumer base and fostering brand awareness.

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