Digestive Health Market Size, Share & COVID-19 Impact Analysis, By Ingredient Type (Probiotics, Prebiotics, Digestive Enzymes/Food Enzymes, and Others), By Product Type (Functional Foods & Beverages, Vitamins & Dietary Supplements, and Others), By Distribution Channel (Supermarkets/Hypermarkets, Hospital Pharmacies, Online Pharmacies, and Others), and Regional Forecast, 2020-2027

The global digestive health market size was USD 37.93 billion in 2019 and is projected to grow from USD 42.19 billion in 2020 to USD 71.95 billion in 2027, exhibiting a CAGR of 7.9% in the 2020-2027 period. Asia Pacific dominated the digestive health market with a market share of 46.48% in 2019. Based on our analysis, the global market will exhibit a stellar growth of 4.7% in 2020. The global impact of COVID-19 has been unprecedented and staggering, with digestive health products witnessing a positive demand shock across all regions amid the pandemic. The slight decline in CAGR than before COVID impact is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The growing prevalence of digestive disorders, rising overall health concerns among the population, increasing geriatric population, and increasing demand for natural and safe products are the major factors contributing to the market growth. For instance, according to a research article published by the National Center of Biotechnology Information (NCBI), it is estimated that in the U.S., 11% of the population suffers from chronic digestive diseases, with a prevalence rate as high as 35% for those 65 years or over. The digestive system performs essential functions for the body and maintains good health. Thus, it is vital to maintain gut health through dietary supplements and other food products.

Rising Demand for Digestive Health Products to Spur Growth

Despite the logistic and other economic restrictions faced by the world due to the pandemic, the demand for gut health products is expected to grow at a rapid pace. With coronavirus rampaging across the globe, the key market players made sure to deliver good health to people without hindrance. For instance, according to Yakult U.S.A. Inc.'s annual report, in their overseas food and beverage business, average daily sales rose 1.6% from the previous year to 31,624 bottles in 2020.

Moreover, people are highly aware of the health benefits of probiotics, dietary supplements, and other products and their importance during this dangerous viral pandemic.

For instance, according to the Food & Beverages and Supplements Report 2020, almost one-third of consumers consume more supplements (31%), functional foods or beverages (29%).

LATEST TRENDS

Rapid Adoption of Probiotics to Boost Market

The use of probiotics as a dietary supplement has become a new way to control and treat infections in this modern era. The probiotics act as beneficial bacteria to protect against the detrimental bacteria in the gastrointestinal tract and thus reap a positive health benefit. Probiotics and dietary supplements can act as substitutes for pharmaceutical solutions as they help treat gastrointestinal conditions without any major side-effects.

Hence, the growing popularity of these products due to their safe and cost-effective properties will contribute significantly to the global digestive health products market growth during the forecast period.

DRIVING FACTORS

Increasing R&D initiatives by Market Players to Aid Development

The pace of research and development of digestive health products has accelerated in recent times due to consumers’ rising concern regarding their gut health. For instance, according to a large-scale multinational research study conducted in 2020, more than 40% of the people worldwide have functional gastrointestinal disorders, affecting the quality of life and healthcare use. Therefore, this leads to the growing demand for natural and safe products among the people.

And hence, market players are investing heavily in R&D for the development of novel products to cater to the ever-increasing demand. For instance, in November 2020, Beroni Group, an Australia-based diversified biopharmaceutical enterprise, announced the launch of a new product called Beilemei in China. It is a probiotic health product aimed at modulating the balance of human intestinal flora.

RESTRAINING FACTORS

Strict Regulations and Revised Tax Structure to Hamper the Market Growth

Although there are various market growth factors, the market of digestive health is also witnessing certain challenges restricting growth. One such factor is the stringent regulations that the vitamins and supplements manufacturers have to face before the product launch. In 1994, the Dietary Supplement Health and Education Act was signed into law. Under this act, a firm is responsible for determining that the dietary supplement it manufactures or distributes are safe and any representations or claims made about the product are correct. Also, manufacturers need to register themselves pursuant to the Bioterrorism Act with the FDA before producing or selling supplements. Hence, all this delays a product launch in the market. Moreover, the tax has also increased by around 5-10% in the last few years, and therefore, this is also restricting the digestive health market growth.

SEGMENTATION

By Ingredient Type Analysis

Probiotics Segment to Dominate the Market Owing to the Growing Demand

The global market is categorized into probiotics, prebiotics, digestive enzymes/food enzymes, and others based on ingredient type. Among them, the probiotics segment held the major share in the year 2019. The increasing preference for probiotics for the maintenance of gut health is one of the primary reasons for this market segment's growth during the forecast period. Hence, various market players are investing in the development of probiotics to meet the growing demand. For instance, in October 2020, Bio-K Plus International Inc., a pioneer in the probiotic sector and leader in the biotech industry, announced a new line of functional beverages, Essential, fused with probiotics.

By Product Type Analysis

Functional Foods and Beverages Segment to Lead During the Forecast Period

The global market is categorized into functional foods & beverages, vitamins & dietary supplements, and others based on product type. Among them, the functional foods & beverages segment held the lion’s share in the year 2019. The growing awareness about functional foods & beverages' health benefits has led them to be a part of everyday diet.

On the other hand, vitamins & supplements held the second largest market share in 2019. The growing acceptance among the consumers and novel innovation in the products leads to positive segmental growth during the forecast period.

By Distribution Channel Analysis

Availability of Wide Range of Products Enabled Supermarkets/hypermarkets to Dominate the Market

In terms of distribution channel, the supermarkets/hypermarkets segment held the leading digestive health market share in 2019. Factors attributed to the segment's growth are enormous popularity gained due to the availability of all types of products for the health of the digestive system with great discounts and provide comfortable shopping experience to the customers

On the other hand, online pharmacies tend to grow at the highest pace due to their ease and comfort for buying any type of product.

REGIONAL INSIGHTS

The market size of Asia Pacific stood at USD 17.63 billion in 2019. The rising demand for digestive health products in countries such as China, Japan, and India is the primary factor for the region's dominance during the forecast period. For instance, Yakult Honsha Co., Ltd. sells 9,540 probiotic drink bottles per day in Japan. Additionally, the growing prevalence of digestive problems in the region is another region for the growth of the market in the region.

North America is projected to be the second-largest region in terms of market share and revenue. This is attributable to the factors such as the continuously rising geriatric population with increasing number of gastrointestinal issues, the presence of a large number of manufacturers, and a highly aware population.

The market in Europe is likely to expand at a considerable growth rate. This is primarily due to a larger patient pool and rising adoption of natural and safe digestive health products over pharmaceutical solutions.

The market in Latin America and the Middle East & Africa is in the nascent stage. It is likely to grow during the forecast period due to increasing consumer spending and increasing market players' penetration.

KEY INDUSTRY PLAYERS

Strong Product Portfolios by Yakult Honsha Co., Ltd., Sanofi to Dominate the Global Market

The growing demand for digestive health products enables the market players to invest in the expansion of their product portfolio of these products. The players are also increasing their focus to diversify their geographical distribution to cater to customers' needs. For instance, in October 2020, Sanofi aims to expand its probiotic product portfolio, with the launch of DioraByota to its Dioralyte line of post-diarrhea fluid replacement products.

Other key players such as Bayer AG, BASF SE, Nestle S.A. in the market are continuously engaged in the development of novel products and maintaining their market position.

LIST OF KEY COMPANIES PROFILED:

• Yakult Honsha Co., Ltd. (Tokyo, Japan)


• Cie Gervais Danone (Paris, France)


• Sanofi (Paris, France)


• BASF SE (Ludwigshafen, Germany)


• Bayer AG (Leverkusen, Germany)


• Chr. Hansen Holding A/S (Hørsholm, Denmark)


• Nestle S.A. (Vevey, Switzerland)


• Deerland Probiotics & Enzymes, Inc (United States)


• DuPont (Delaware, United States)


• Other Prominent Players

KEY INDUSTRY DEVELOPMENTS:

• October 2020- Standard Process, a supplement company specializing in whole food-based products, announced its prebiotic infused dietary supplement, “GI Stability”.


• September 2020- Prorganiq announced its new, innovative health product, “24-in-1 Mega Superfoods”, a dietary supplement.

REPORT COVERAGE

The digestive health market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, ingredient type, product type and distribution channel. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the developed market over recent years.

Report Scope & Segmentation