The global probiotics market size exceeded USD 35.0 billion in 2015. The effectiveness of these good bacteria in improving gut-related disorders such as diarrhea, inflammation, and gastric diseases is expected to drive the global demand. They are a type of bacteria which when consumed in adequate amounts, aid the body functions. They are used to treat a variety of diseases such as those concerning gastro intestinal tracts, bowel function, intestines, digestion, and can act as buffers against external pathogens as in the case of food poisoning. All these inherent benefits coupled with rising awareness towards health maintenance is expected to fuel the industry growth.
Major applications of the product include food & beverages, dietary supplements, and animal probiotics. Consumer tendencies to prefer healthy food is benefitting the food and beverages application segment. Also, preference towards dietary supplements as functional foods for improving the overall health has increased in the recent past, and this trend is expected to continue over the forecast period. This trend is benefitting the overall growth of dietary supplements segment.
Increasing health concerns is expected to play an important role in complimenting the growth over the forecast period. Rising disposable income and increasing standards of living, particularly in the developing regions are expected to benefit the overall market. Increasing probiotics penetration in dairy and other food and beverages industry is expected to compliment the overall demand.
Animal probiotics have been found useful in maintaining the animal health. Animal husbandry industry faces a constant threat of disease outbreaks. Moreover, the industry participants have to ensure proper health of animals to avoid losses. The effectiveness of these products in curbing animal diseases is expected to complement the market growth over the forecast period.
Major business players in the industry invest extensively in R&D to develop their product portfolio and to develop newer additives with superior properties to meet the growing industry demand. Numerous participants incorporate third party R&D companies to gain competitive advantage. Third party R&D companies develop probiotic strains for commercialization and market entry.
U.S. Probiotics Market Revenue By Product, 2014 - 2024 (USD Million)
Probiotics food & beverages segment was the largest segment in 2015 and accounted for more than 85% of total revenue. This application includes dairy products, nondairy products, cereals, baked food, fermented meat products, and dry food probiotics. Dairy products accounted for a major share in 2015 and this trend is expected to continue from 2016 to 2024. Fermented meat products segment is expected to show the highest growth rate over the forecast period.
Dietary supplements are expected to grow at an anticipated CAGR of 7.5% over the forecast period. These supplements include food supplements, nutritional supplements, specialty nutrients and infant formula. Nutritional supplements and specialty nutrients were the segments having higher penetration in 2015.
Human probiotics accounted for more than 90% of total revenue in 2015. Growing health concerns and development of more effective probiotic strains is expected to aid the industry growth. Increasing standard of living, as well as disposable income in areas such as Asia Pacific, the Middle East and Africa as well as Central & South America, has been benefiting the overall market growth.
Animal feed bacteria are expected to show a steady growth over the next eight years. Companies have been trying to develop and market more effective probiotic strains aimed at improving health. There has been a recent past in demand for quality meat, wool, leather and other animal based products thus making it imperative for animal husbandry participants to maintain proper animal health. All these factors are expected to benefit the overall animal probiotics growth.
Asia Pacific dominated the global industry and accounted for more than 40%. Strong demand from countries such as India, China and Japan is the major contributing factor for this scenario. Rising population, growing awareness regarding probiotics usage and the strong presence of international players in the region are contributing to the market growth. Government policies such as those favoring the dairy industry area also expected to fuel the global demand over the next eight years.
North America is expected to grow at an anticipated CAGR of 6.8% over the forecast period. Prevalent awareness regarding these product usages and rising preference for functional foods are the driving factors in the region. The Middle East & Africa and Central & South America are also expected to show modest growth over the forecast period.
Major industry participants are investing heavily in R&D to develop more effective probiotic strains. The companies are also striving to develop products which find novel applications such as skin treatment. Third party R&D companies are employed to develop superior cultures to gain competitive advantage. High level of integration between raw material suppliers, manufacturers, suppliers and end users. Major industry participants include Danisco A/S, Danone, Chr Hansen, Nestle, Arla Foods, Inc., Probi and Lallemand Inc.
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