Probiotics Market Size, Share & Trends Report

Probiotics Market Size, Share & Trends Analysis Report By Product (Food & Beverages, Dietary Supplements), By Ingredient (Bacteria, Yeast), By End Use, By Distribution Channel, And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-093-4
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 100

Industry Insights

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 the 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.

U.S. probiotics market

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 the aging population. Easy availability of information about preventive healthcare on the internet is also contributing favorably to rising awareness.

The U.S. probiotics market is characterized by the presence of demographic-specific probiotics such as 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 about the use of probiotics in nutraceuticals, Nutri cosmetics, and dietary supplements, especially infant formulas are extremely stringent in the 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.

Product Insights

Based on product, the market is segmented into three categories, namely, probiotic food & beverages, probiotic dietary supplements, and animal feed probiotics. The food and beverage are 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 the 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 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. The development of novel delivery systems such as gummies, fizzy powders, as well as chewable products is expected to further boost the growth.

Ingredient Insights

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 are 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 to fermented foods for 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.

Distribution Channel Insights

In terms of distribution channels, 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 the 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 the availability of products, increase in varieties, the 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.

End-Use Insights

Based on end-use, the market has been broadly classified into human probiotics and animals. Technological advancements concerning human-grade probiotics have 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.

Global probiotics market

Probiotics have also been receiving considerable attention from researchers for 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 the growth of the animal probiotics segment and is expected to create healthy growth prospects over the forecast period.

Regional Insights

The 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 a 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 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 to 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.

Probiotics Market Share Insights

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.

Report Scope

Attribute

Details

The base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

Country Scope

U.S., Canada, Mexico, Germany, France, U.K., China, Japan, India, Brazil, Saudi Arabia

15% free customization scope (equivalent to 5 analyst working days)

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Segments Covered in the Report

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 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

      • Dairy

      • Non-dairy

      • Cereals

      • Baked Food

      • Fermented Meat

      • Dry Food

    • Probiotic Dietary Supplements

      • Food Supplements

      • Nutritional Supplements

      • Specialty Supplements

      • Infant Formula

    • Animal Feed Probiotics

  • Ingredient Outlook (Revenue, USD Million, 2014 - 2025)

    • Bacteria

    • Yeast

  • End-Use Outlook (Revenue, USD Million, 2014 - 2025)

    • Human Probiotics

    • Animal Probiotics

  • Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

    • Hypermarkets/Supermarkets

    • Pharmacies/Drugstores

    • Specialty Stores

    • Online Stores

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

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