The global synbiotic product market size was valued at USD 700.6 million in 2019 and is expected to witness significant growth over the forecast period. Growing health awareness among urban consumers has led to an increase in the consumption of functional food and beverages, thereby driving the market for synbiotic products.
Moreover, shifting consumer inclination towards nutritional supplements on account of changing lifestyle and eating habits is expected to drive the demand for synbiotic products in the coming years. Increasing fortification of functional foods with prebiotics and probiotic ingredients is anticipated to positively impact the growth of the market.
Synbiotic is a mixture of probiotics as well as prebiotics and is used as food supplements. This food supplement termed as functional food is used for altering, modifying, and restoring the pre-existing intestinal flora. Moreover, synbiotic products facilitate the smooth functioning of the intestinal environment. Probiotics strains such as Bifidobacterium, Lactobacilli, S. boulardii, B. coagulans, and prebiotics, including inulin, FOS, GOS, XOS, and fructans, are the most commonly used fibers, which when used together with probiotics are termed as synbiotic and are able to improve the viability of the probiotics.
Synbiotic products are designed to enhance immunity, cognitive health, energy, and vitality. Functional foods have the ability to improve optimal health by reducing the occurrences of various non-communicable disorders, enhancing nutrient absorption, aiding better digestion, and ensuring the adherence to proper weight management. As a result, the buyers are expected to pay a premium in order to purchase such products.
Companies engaged in nutritional supplements and food and beverage manufacturing have been increasing fortification of their products with probiotics, prebiotics, and synbiotic to enhance nutritional value and provide associated health benefits. For instance, in March 2019, Yakult Korea entered into a collaboration with a Dutch life science company, BioActor to develop a dual-purpose functional drink called MPRO3, a synbiotic product that contains probiotics, prebiotics, and flavobiotics, in the Korean Market.
Functional food and beverages dominated the synbiotic product market and accounted for a share of 84.1% in 2019. Increasing application of functional food and beverages to enhance immunity, cardio health, and digestive health is expected to open new avenues for synbiotic food and beverages in the coming years. Food manufacturers such as Nestle and Pfizer are partnering with Universities to enhance understanding about how the microbiome affects human health.
For instance, in November 2019, Nestlé entered into a partnership with the Center for Microbiome Innovation (CMI) at the University of California San Diego to enhance its understanding of how the microbiome affects human health as well as increase the development of nutritional solutions that promote health and well-being.
The dietary supplements segment is expected to exhibit the fastest CAGR of 9.6% from 2020 to 2027. High consumer awareness, coupled with prevalent marketing, is the major factor driving the demand for synbiotic-based dietary supplements. Moreover, dietary supplements are low in calories, have a longer shelf life as compared to dairy products, and do not require refrigeration. Additionally, they serve as an excellent alternative for those with lactose intolerance, thereby boosting the demand for synbiotic-based dietary supplements in the coming years.
The offline distribution channel led the market for synbiotic products in 2019 and held a share of 93.3%. High product visibility at the retail and pharmacy stores is the major factor favoring the sales of synbiotic products through an offline channel. Additionally, an increasing number of retailers in countries, such as India, China, and Brazil, will positively influence the segment growth in the coming years. For instance, as of May 2018, Walmart had 21 stores and it plans to open around 50 more stores by the end of 2023 in India.
The online distribution channel is expected to expand at the fastest CAGR of 10.6% from 2020 to 2027. Increasing familiarity and dependence of generation X, millennials, and generation Z parents on the internet and e-commerce are the major factors expected to drive the sales of synbiotic products through the online channel in the coming years.
Several value-added services, such as discounted prices, cash-on-delivery, and paybacks, offered by e-retailers are expected to promote the growth of online channels in the coming years. This channel includes aggregators as well as manufacturer hosted e-commerce sites. Manufacturers have realized the potential of the channel, and thus they host their shopping websites to cater to customer needs in a better way and have a higher profit margin.
The third-party sellers sell products of major manufacturers as well as local producers. They excel by establishing a strong supply chain that expands even beyond geographical borders. Therefore, when customers buy from international players, who might not be available in a certain geography, third-party suppliers form the perfect solution.
Europe emerged as the largest regional market and accounted for a share of 37% in 2019. The region is expected to maintain its lead in the market for synbiotic products throughout the forecast period. Increasing awareness regarding synbiotic products, coupled with high visibility of the products, is the main factor favoring the demand for synbiotic products in the recent past and is expected to continue over the forecast period.
Asia Pacific is expected to expand at a CAGR of 9.5% over the forecast period. Growing habit of eating away from home can affect intestinal health, thus leading to impaired health. Increasing use of probiotics and prebiotics in the treatment of irritable bowel syndrome and ulcerative colitis is expected to drive the regional market for synbiotic products over the forecast period.
The market for synbiotic products has been characterized by high competition due to the presence of a large number of vendors operating at the global level. Industry participants are adopting various strategies, such as mergers & acquisitions and product innovation, to expand their product portfolio. Some of the key players operating in the market are Daflorn Ltd.; DANONE; Sabinsa Corporation; Yakult S/A; Probiotical S.p.A.; United Naturals; Synbiotics Corporation (Pfizer); Synbiotic Health, Inc.; NUtech Ventures; and Asmara (NU3x).
Attribute |
Details |
Base year for estimation |
2019 |
Actual estimates/Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Market representation |
Revenue in USD Million and CAGR from 2020 to 2027 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
Country scope |
U.S., Germany, U.K., China, India, Brazil, and South Africa |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global synbiotic product market report on the basis of product, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
Functional Food & Beverages
Dietary Supplements
Others
Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
Offline
Online
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Europe
Germany
The U.K.
Asia Pacific
China
India
Central & South America
Brazil
Middle East & Africa
South Africa
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Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.