Prebiotic Ingredients Market Size, Share & COVID-19 Impact Analysis, by Type (Inulin, Fructooligosaccharides, Galactooligosaccharides, and Others), Analysis by Application (Food & Beverage, Dietary Supplements, Animal Nutrition, Infant Formula, and Others), and Regional Forecast, 2023-2030

Prebiotics are known to be non-digestible carbohydrates that act as food for beneficial bacteria in the gut. The awareness about prebiotics has been attracting much attention, propelling scientific and industrial interest. Manufacturers of food and beverage products have been seeking natural and innovative ingredient solutions, such as prebiotics, for the health-conscious population without compromising product quality, integrity, and nutritional value.

Prebiotic ingredients have a high potential, which can be used as a key nutrition ingredient incorporated into a wide range of applications such as food and beverages, dietary supplements, and infant formula products. The prebiotic ingredients are typically used in food and beverage products to maintain or restore a ‘healthy’ gut microflora. Prebiotics are incorporated into products due to various factors, including increasing awareness of the multifunctional nature of prebiotic ingredients, paired with rising health-conscious consumer trends. With the growing advancement in the industry, the preparation methods of prebiotics have been optimized. According to a study published by Frontiers Journal, several new prebiotic species, such as polysaccharides, polyphenols, and others, have been developed.

Manufacturers are also facing issues with international regulations domestic food safety standards and high infrastructural investment for processing of the ingredients, limiting the market growth.

Impact of COVID-19 on the Global Prebiotic Ingredients Market

The COVID-19 pandemic had a positive impact on the prebiotic ingredients market. The pandemic made consumers more aware of the importance of gut health and its role in overall immunity. The pandemic increased the demand for functional foods and beverages as consumers sought ways to improve their health and well-being. However, the pandemic also caused disruptions to the global supply chain, affecting the manufacturers to source raw materials and affecting product distribution.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Prebiotic Ingredients Market


• Demand for Prebiotic Ingredients in the Food Sector


• Drivers, Restraints, and Opportunities


• Impact of COVID-19 on the Global Prebiotic Ingredients Market

Analysis by Type

The inulin segment is expected to hold a significant share of the market. Inulin is a prebiotic ingredient, a naturally occurring fiber in various plants, including chicory root, Jerusalem artichokes, and bananas. Inulin helps promote the growth of beneficial bacteria in the gut, which helps improve gut health and digestion. Inulin has also been shown to improve blood sugar control in people with type 2 diabetes and is widely utilized in the food processing sector as it is a healthy substitute for sugar and fat. Manufacturers have also been focusing on investment strategies in order to expand the production of inulin to meet the rising demand. For instance, in December 2021, Beneo, one of the leading manufacturers of functional ingredients, announced a multi-million investment program to expand the capacity for its prebiotic chicory root fiber production sites in Pemuco, Chile, and Oreye, Belgium. The expansion would help increase the production of inulin, meet the rising customer demand, and drive further growth within the market.

The fructo-oligsaccharides (FOS) segment is expected to grow at a high CAGR over the forecast period. This is due to rising consumer awareness of the health benefits of FOS, paired with expanding applications of the product in animal feed and pharmaceutical industries.

Analysis by Application

The food and beverage segment is expected to hold a significant share of the global market. The versatility and growing demand for prebiotic ingredients have made them ideal for food and beverage applications. Moreover, growing consumer interest in gut health and shifting preferences toward carbohydrate-based diets, where fiber is consumed calculative, created a significant runway for the prebiotic ingredients over the forecast period. Manufacturers are also developing innovative products and solutions to satisfy consumers' increasing demand. For instance, in October 2021, Prenexus Health, one of the leading manufacturers of organic prebiotic ingredients for the supplement, food, and beverage industry, formed a partnership with Aloha Medicinals to launch the novel mushroom-based prebiotic MyceliaGI to market. The new product offers food, beverage, and supplement manufacturers a novel prebiotic ingredient that satisfies the growing consumer demand for digestive health ingredients and medicinal mushroom offerings.

The dietary supplement segment is expected to grow at a high CAGR over the forecast period. Dietary supplements form a convenient way for consumers to increase their intake of prebiotics, especially if they do not get enough prebiotics from their diet. Prebiotic dietary supplements often improve gut health, boost immunity, and aid in weight loss.

Analysis by Region

Europe is expected to hold a significant share of the global prebiotic ingredient market. The growth of the prebiotic ingredients in the region is attributed to several factors, such as rising awareness related to gut health, increasing demand for functional foods, growing popularity of plant-based diets, and soaring prevalence of chronic diseases such as obesity, diabetes, and others. According to the International Diabetes Federation, in 2021, around  14.8% of adults between 20 and 79 had diabetes in Spain, followed by Portugal, Germany, Italy, Finland, and France. Major players in the market focus on developing new and innovative products to meet the growing demand for prebiotic ingredients in the European market. For instance, in October 2022, Optibiotix Health Plc, a life sciences company, launched OptiXOS prebiotic ingredients in the European market. The new product is made from xylo-oligosaccharide ingredients, which increases positive gut health microbes at low active doses.

Key Market Players

The key players in the market include Archer Daniels Midland Company, Ingredion Inc., Tereos Group, Cargill Inc., Yakult Honsha Co.Ltd., Jarrow Formulas, Inc., Optibiotix Health Plc., Prenexus Health, BENEO GmbH, and Royal FrieslandCampina N.V.

Key Developments

• In  December 2020, Ingredients By Nature, a California-based ingredients supplier, partnered with Israel-based Galam, to distribute a new prebiotic fiber called GOFOS to the nutraceuticals industry. The new product is a short-chain fructo-oligosaccharide (sc-FOS), a prebiotic, soluble, and non-digestible fiber.


• In June 2020, FrieslandCampina Ingredients, the global innovator in healthy and functional ingredients, launched Biotis - a new range of Health Benefit Solutions. The new array provides a superior prebiotic effect and improves gastrointestinal health in adults.