The global probiotics market size was estimated at USD 48.38 billion in 2018 and is anticipated to expand at a CAGR of 6.9% during the forecast period. It is driven by the growing consumer inclination towards preventive healthcare in conjunction with development of efficient probiotic strains.
Probiotics, when consumed in adequate amounts, have desirable effects on the human body such as improved gut health and reduced intestinal inflammation. Probiotics play a great role in preventive healthcare as they prevent the occurrence of diseases by strengthening the immune system. Thus, rising awareness regarding preventive healthcare is expected to benefit the overall market growth over the forecast period.
Preventive healthcare includes a healthy lifestyle and dietary choices that help prevent the occurrence of diseases. Awareness regarding preventive healthcare is on the rise due to various factors such as increasing disposable income, standards of living, and growth in the number of aging population. Easy availability of information pertaining to preventive healthcare on the internet is also contributing favorably to the rising awareness.
The U.S. probiotics market is characterized by the presence of demographic-specific probiotics such as for geriatrics and genders. These niche markets have offered regional players the chance to adopt different strategies to enhance their product portfolio and to maximize their resources. Excessive demand for probiotic-based food and beverage products as well as probiotic dietary supplements is expected to drive the U.S. market over the next few years.
Regulations pertaining to the use of probiotics in nutraceuticals, nutricosmetics, and dietary supplements, especially infant formulas are extremely stringent in U.S. and are expected to pose a challenge for the regional market players. This has resulted in stagnancy in innovation in probiotic products for baby boomers. On the other hand, in 2016, 204 probiotics-based products for adults were launched in the country.
On the basis of product, the market is segmented into three categories, namely, probiotic food & beverages, probiotic dietary supplements, and animal feed probiotics. The food and beverage is further categorized into dairy, non-dairy, cereals, baked food, fermented meat, and dry food probiotics. The dietary supplement is further divided into food supplements, nutritional supplements, specialty nutrients, and infant formula.
Probiotics are incorporated to increase overall nutritive value as well as flavor of the baked goods. Probiotic muffins and nutritive bars, among others have been introduced in the market. The consumption of these probiotic-infused baked products has witnessed an increase in the recent years on account of rising inclination toward preventive healthcare.
Probiotic dietary supplements have become more popular among consumers seeking natural solutions to various health ailments. Probiotics, as opposed to pharmacological solutions, are a natural way of treating a variety of illnesses related to gut health, gastrointestinal conditions, and immunity strengthening. Development of novel delivery systems such as gummies, fizzy powders, as well as chewable products is expected to further boost the growth.
By ingredient, the market can be broadly divided into two categories, namely, bacteria and yeast. The bacteria can be further divided into lactobacilli, Bifidobacterium,streptococcus, and others, while yeast can be further classified intoSaccharomyces Boulardii and others. Most probiotics are predominantly bacterial, most notably employing lactobacillus or lactic acid bacteria. These ingredients primarily find application in fermented food such as kefir, sauerkraut, yogurt, and kimchi. Dietary supplements is another significant application segment for bacterial ingredients.
Numerous biological activities associated with yeast-based probiotic ingredients make them ideal for use in a range of applications beyond the food sector. Notwithstanding their contribution in fermented foods with respect to flavor innovation, yeast-based ingredients help enhance the productivity and health in growing and lactating animals. Saccharomyces Boulardii is the most commonly used yeast type (ingredient) in the probiotics industry owing to its healing property to help withstand harsh pancreatic and bile juices and other stomach acids.
In terms of distribution channel, the market has been broadly classified into four categories, namely, hypermarkets/supermarkets, pharmacies/drugstores, specialty stores, and online stores. Supermarkets/hypermarkets act as a popular channel for the purchase of protein-based supplement products due to the convenience of shopping and availability of multiple brands. Supermarkets/hypermarkets segment is expected to witness augmented growth over the forecast period. Consumers who buy probiotics in these retail channels are likely to be more selective in their approach owing to the availability of a range of probiotic products.
The online channel is another convenient option to purchase probiotics. Consumer buying behavior has reshaped over the past years as availability of products, increase in varieties, convenience of shopping, selection of desired quantity and delivery period, and discount offers have instigated consumers to prefer online retail. A considerable rise in the number of pharmacies, fitness centers, and other related distribution channels has impacted the industry favorably over the years and is expected to do so over the forecast period.
On the basis of end use, the market has been broadly classified into human probiotics and animals. Technological advancements with respect to human-grade probiotics has broadened the scope of the products fit for human consumption. This is in reaction to the integration of novel human-grade ingredients in juices and other non-milk based applications by prominent market players. This has led key players to forage into the juices space. For instance, Ganeden, Inc., a U.S.-based probiotic ingredient manufacturer supplies probiotic juices intended for consumption among kids, the elderly, and athletes.
Probiotics have also been receiving considerable attention by researchers with respect to animal nutrition over the years. This development is attributable to the increasing focus on alternatives for conventional growth promoters such as antibiotics to improve animal health. The presence of bans on antibiotics in various countries favorably impacted growth of the animal probiotics segment and is expected to create healthy growth prospect over the forecast period.
Asia Pacific led with a market share of 41.7% in 2018. The region is witnessing a substantial rise in consumer awareness due to competitive strategies adopted by the global players. Strong demand from countries such as India, China as well as Australia is contributing to the overall growth. The rising population coupled with the rising disposable income and standard of living is also expected to cater to overall growth.
In the recent past, due to lack of technology, the market was flooded with probiotics that lacked stability at room temperature. This issue of quality was addressed as major companies introduced technologies such as microencapsulation which enhance the stability and life of the probiotic bacteria. Also, ongoing R&D activities for the development of efficient strains that have a broad spectrum of treatment and can withstand high temperatures are also expected to benefit the regional growth over the forecast period.
North America is also expected to witness considerable growth over the forecast period. Continued investments from manufacturers in the cosmetic and pharmaceutical industries are anticipated contribute to the regional market growth. The regional players are investing in R&D to come up with the products to cater to the consumers of different age groups and genders. Such factors are expected to accelerate the growth of the market over the forecast period.
Arla Foods, Inc.; Lallemand Inc.;Danone; Nestle; Danisco A/S; and Chr. Hansen are some of the key players operating in the market. These players lead the market space with their global presence through well-established distribution channels. To withstand competition, the key players enter into long term supply agreements with various distribution channels. A key observation over the years is the increasing focus of key players to tap the South East Asian markets owing to the presence of a sizable consumer base in the region.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
U.S., Canada, Mexico, Germany, France, U.K., China, Japan, India, Brazil, Saudi Arabia
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This report forecasts revenue growth at global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global probiotics market report based on product, ingredient, end use, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2014 - 2025)
Probiotic Food & Beverages
Probiotic Dietary Supplements
Animal Feed Probiotics
Ingredient Outlook (Revenue, USD Million, 2014 - 2025)
End Use Outlook (Revenue, USD Million, 2014 - 2025)
Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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The demand for nutraceuticals & functional foods is expected to witness an upward surge owing to consumers opting for immunity boosting supplements during the COVID-19 pandemic. Furthermore, a decline in the consumption of poultry, meat and seafood products across the globe is expected to increase the demand for plant and animal-based protein supplements in the near future. The report will account for Covid19 as a key market contributor.