GVR Report cover 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 (Human, Animal), By Distribution Channel, And Segment Forecasts, 2021 - 2028

  • Published Date: Aug, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-093-4
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 135

Report Overview

The global probiotics market size was estimated at USD 54.77 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2021 to 2028. 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 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 boost the market growth over the forecast period.

U.S. probiotics market size, by product, 2018 - 2028 (USD Billion)

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

The market in the U.S. 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 maximize their resources. Excessive demand for probiotic-based food and beverage products as well as 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 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 probiotic-based products for adults were launched in the country.

The COVID-19 pandemic resulted in a huge spike in demand for immunity-boosting food products and supplements. Probiotics are well known for their immunity-boosting properties as they offer robust protection against gastrointestinal pathogens and also promote the production of natural antibodies in the body.

As per a survey conducted by Natural Marketing Institute in May 2020, probiotic consumption witnessed an exponential surge in 2020. The survey concludes, the number of U.S. consumers taking probiotics increased by 66%, Italy experienced 188% of increase in new users, whereas, China witnessed 108% increase in probiotic users in May 2020 as compared to the previous 6 months. Thus, the rapid increase in probiotic consumers in 2020 significantly boosted the market growth.

Product Insights

The probiotic food & beverages segment led the global market in 2020 with a revenue share of more than 79% in 2020. On the basis of product, the market is segmented into probiotic food & beverages, probiotic dietary supplements, and animal feed probiotics. The food & 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 the 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

The bacteria segment led the global market in 2020 with a revenue share of more than 84%. By ingredient, the market is bifurcated into bacteria and yeast. The bacteria segment is further divided into lactobacilli, Bifidobacterium, streptococcus, and others, while yeast is 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 foods, 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 of growing &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

The hypermarket/supermarket segment led the global market in 2020 with a revenue share of more than 31%. On the basis of distribution channel, the market has been broadly classified into four categories, namely, hypermarkets/supermarkets, pharmacies/drugstores, specialty stores, and online stores. Supermarkets/hypermarkets are a popular channel for the purchase of protein-based supplement products due to the convenience of shopping and the availability of multiple brands. The 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 few years as a wide variety, 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 during the forecast period.

End-use Insights

The human probiotics segment led the global market in 2020 with a revenue share of more than 91%.On the basis of end use, the market has been broadly classified into human and animal probiotics. Technological advancements with respect to human-grade probiotics have broadened the scope of the products fit for human consumption. This is in reaction to the integration of novel food-grade ingredients in juices and other non-milk-based applications by prominent market players. This has led key players to forage into the juices market. For instance, Ganeden, Inc., a U.S.-based probiotic ingredient manufacturer, supplies probiotic juices for the elderly, children, and athletes.

Global probiotics market share, by end use, 2020 (%)

Probiotics have also been receiving considerable attention from researchers with respect to animal nutrition over the past few years. This development is attributable to the increasing focus on alternatives for conventional growth promoters, such as antibiotics, to improve animal health. Moreover, 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

Asia Pacific led the global market with a revenue share of over 41.9% in 2020. 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 standards of living is also expected to cater to the regional market 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 food & beverage and pharmaceutical industries are anticipated to contribute to the regional market growth. The regional players are investing in R&D to come up with new products to cater to consumers of different age groups and genders. Such factors are expected to accelerate the growth of the market over the forecast period.

Key Companies & Market Share Insights

The key players lead the market space with their global presence through well-established distribution channels. To withstand competition, these players focus on various business strategies like forming 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 target consumer base in the region. Some of the key players in the global probiotics market are:

  • Arla Foods, Inc.

  • BioGaia AB

  • Chr. Hansen Holding A/S

  • Danone

  • Danisco A/S

  • General Mills, Inc.

  • i-Health, Inc.

  • Lallemand, Inc.

  • Lifeway Foods, Inc.

  • Mother Dairy Fruit & Vegetable Pvt. Ltd.

  • Kerry

  • Nestle S.A.

  • Probi

  • Yakult Honsha Co., Ltd.

Probiotics Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 58.17 billion

Revenue forecast in 2028

USD 95.25 billion

Growth rate

CAGR of 7.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Product, ingredient, end use, distribution channel, region

Regional scope

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

Country scope

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

Key companies profiled

Arla Foods, Inc.; BioGaia AB; Chr. Hansen Holding A/S; Danone; Danisco A/S; General Mills Inc.; i-Health Inc.; Lallemand Inc.; Lifeway Foods, Inc.; Mother Dairy Fruit & Vegetable Pvt. Ltd.; Kerry; Nestle S.A.; Probi; Yakult Honsha Co., Ltd.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global probiotics market report on the basis of product, ingredient, end use, distribution channel, and region:

  • Product Outlook (Revenue, USD Million, 2017 - 2028)

    • Probiotic Food & Beverages

      • Dairy

      • Non-dairy

      • Cereals

      • Baked Food

      • Fermented Meat

      • Dry Food

    • Probiotic Dietary Supplements

      • Food Supplements

      • Nutritional Supplements

      • Specialty Nutrients

      • Infant Formula

    • Animal Feed Probiotics

  • Ingredient Outlook (Revenue, USD Million, 2017 - 2028)

    • Bacteria

    • Yeast

  • End-use Outlook (Revenue, USD Million, 2017 - 2028)

    • Human Probiotics

    • Animal Probiotics

  • Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

    • Hypermarkets/Supermarkets

    • Pharmacies/Drug stores

    • Specialty Stores

    • Online Stores

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • 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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