Probiotics Market Size, Industry Share & COVID-19 Impact Analysis, By Microbial Genus (Lactobacillus, Bifidobacterium, and Yeast), Application (Functional Foods & Beverages, Dietary Supplements, and Animal Feed), Distribution Channel (Supermarkets/Hypermarkets, Pharmacies/Health Stores, Convenience Stores, Online Retail, and Others), and Regional Forecast, 2024-2032

The global probiotics market size was valued at USD 48.88 billion in 2019 and is projected to reach USD 94.48 billion by 2027, exhibiting a CAGR of 7.9% during the forecast period. The probiotics market in the U.S. is projected to grow significantly, reaching an estimated value of USD 17.99 billion by 2032, driven by the rising adoption of immunity boosting and probiotics fortified food products owing there health benefits.

The rising awareness among buyers regarding preventive healthcare measures, along with the increasing demand for natural and safe health-benefiting products, is predicted to drive the market. Several initiatives and increasing efforts of professional associations & organizations to encourage consumers to purchase these products are expected to be a favorable factor for market growth. For instance, the Nutrition Society of Malaysia (NSM) has introduced the Probiotics Education Program (PEP) to provide customers with better information of the health benefits of the product.

Increasing Demand for Immunity Boosting Products amid COVID-19 to Favor Growth

At present, the global market is partially challenged by the logistical and associated economic impacts of the pandemic. Regardless of these external factors, the demand for health and immune-boosting products is predicted to grow at a healthier pace. Currently, buyers are more aware of dietary supplements and functional foods, and the important role these products play in ensuring better health and wellbeing. Therefore, these products are becoming more popular owing to their various health benefits such as enhancement of gut health and improvement of immune response, which will aid the market growth in the near future.

Several large, as well as small manufacturers and retailers have reported a surge in the demand for these products in recent months.  For instance, in April 2020, Probi, a global leader in probiotics, reported a considerable surge in the sales of its products that was clearly a result of the increased interest in immunity products from the consumers. This demand is anticipated to remain incredibly high during the next few months as individuals have become gradually conscious of their health and well-being owing to the sudden outbreak of coronavirus.

PROBIOTICS MARKET TRENDS

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Escalating Adoption of Probiotics as a Replacement for Pharmacological Solutions to Surge Demand

Probiotic bacteria fortified food has become popular among buyers who are seeking natural solutions to treat numerous health ailments. These products can act as a substitute for various pharmaceutical solutions as they are considered as an effective natural way in treating gastrointestinal conditions and gut health. The increasing evidence regarding the health benefits linked with the product’s consumption and the growing popularity of probiotic strains as a natural, cost-effective, and safe substitute for pharmacological solutions are projected to positively impact the market growth.

DRIVING FACTORS

Rising Adoption of Immunity Boosting  Probiotics Fortified Food to Favor Growth

Probiotics help in the digestion process along with numerous health benefits such as boosting immunity, maintaining gut health, weight management, preventing obesity, and many others. The increasing awareness about the health benefits offered is anticipated to drive the market in the forthcoming years. The rising health-consciousness among consumers and the emerging trend of veganism are luring consumers towards a plant-based diet which is expected to boost the demand for plant-based products. As a result, several niches as well as prominent market players are embarking on the launch of plant-based probiotics to increase their consumer base. For instance, in August 2020, Chobani, an American Food Company announced the launch of a new probiotic drink. The new product is available in four different flavors i.e. Lemon Ginger, Pineapple Turmeric, Peach Mint, and Cherry Hibiscus Tea.

Increasing Investment in R&D Activities to Promote Growth

The increasing investment by prominent players on the research and development of innovative products is expected to positively impact the probiotics industry growth. For instance, in February 2020, Amorepacific Group opened its novel Green Tea Probiotics Research Center to expand the study of lactobacillus (a beneficial microbial strain) recently found in Jeju organic green tea garden.

The companies are actively focusing on mergers and acquisitions to diversify their product portfolio and consumer offerings. For instance, in April 2020, Chr Hansen announced the acquisition of HSO Health Care. This acquisition of the Austria-based company specializing in probiotics for women's health can help to strengthen Chr Hansen's probiotic offerings.

RESTRAINING FACTORS

Risk of Contamination to Hamper the Growth of the Market         

Probiotics are the live microorganisms and the probiotic-containing products are wholly dependent on the cultivation and secretion by probiotic living organisms. The risk of contamination of these products by the non-desirable microbes with high toxicity is expected to hamper the production of a specific batch. Moreover, the high investment required for the research and development of new bacterial strain is predicted to further limit the market growth.

SEGMENTATION

By Microbial Genus

Lactobacillus to Hold a Major Share of the Market Owing to their Diversified Applications & Benefits

Lactobacillus held the largest share in the global probiotics market in 2019. Lactobacillus strains have an inhibitory potential to minimize the growth of microbes and pathogens, which is favorable for extending shelf-life and increasing the hygienic superiority of foods. Lactobacillus strain is beneficial to humans because of their potential in reducing enteric diseases in humans, which is projected to positively impact product demand.

Yeast is expected to grow at the highest CAGR in the global market. Saccharomyces boulardii is one of the widely utilized yeast for the production of probiotic drinks.  It helps to regulate the intestines and protect them from harmful pathogens that can damage the intestinal lining. It further regulates several parts of the immune system and keeps the intestinal barrier function up and running. The rising awareness regarding the benefits associated with the consumption of these products is expected to positively leverage product sales.

By Application

Functional Food & Beverage Segment to Dominate the Global Marketplace Owing to Increasing Demand

At present functional foods and beverages have become a part of an everyday diet and are demonstrated to offer potential health benefits beyond the widely accepted nutritional effects. Currently, the consumption of functional food and beverages is one of the trending food habits worldwide. The increasing popularity of natural and health-benefiting food products is driving product sales. The rising awareness among consumers regarding the good and balanced diet benefits in controlling disease risk and maintaining overall health is expected to boost the demand for dietary supplements that meet their needs.

By Distribution Channel

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Online Retail Segment to Experience Dynamic Growth Owing to Ease Offered by Them

Supermarkets and hypermarkets are projected to remain a major distributor of the product due to the various cashback or discounts offered by them.  Moreover, the arrangement of distinct shelves for the probiotics and easy availability of a wide variety of products are expected to increase the sales through these stores. However, due to busy lifestyles and hectic schedules consumers nowadays prefer to purchase grocery items through online retail stores as they offer door-step delivery, which in turn can positively impact the product sales through online channels.

REGIONAL INSIGHTS

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Increasing Demand for Fermented Drinks in Asia Pacific to Favor Growth

Asia Pacific is the largest market at present and is expected to account for a significant proportion during the forecast period. The region has evolved rapidly over the last decade with China and Japan occupying more than half of the regional sales. The demand for probiotic products, especially drinks in Japan and some countries in Central and Southeast Asia is expected to remain promising during the forthcoming years. For instance, Japan-based Yakult Honsha, claims that the company sells 9,540 Yakult bottles per day in Japan. The increasing popularity of these fermented drinks is expected to support regional market growth.

North America dominated the probiotics market with a market share of 16.98% in 2019. North America is predicted to witness considerable growth in the global market. The well-established food industry, presence of prominent players, and rising prevalence of lifestyle-related diseases such as diabetes and obesity are encouraging the consumers to inculcate healthy eating habits, which in turn, is likely to boost the product sales in the region.

KEY INDUSTRY PLAYERS

Industry Emphasis on New Product Development to Aid Market Growth

The growing consumer’s understanding of these products and its effects that go beyond digestive health is likely to increase the product demand at a healthier pace. The thriving demand for this product is motivating market players to diversify its product portfolio and distribution network to increase their market reach and consumer base.

Danone S.A. is one of the leaders operating in the market. Innovations and expansion of business are the key strategies adopted by the company to compete in the global market. Danone announced the launch of new plant-based variants for its Danio and Activia yogurt brands in the Netherland market. This launch is a completely new experience for Danone as the company for the very first time is concentrating on products that are 100% plant-based. Danone North America announced the launch of its new kids’ yogurt brand Danimals.  The newly launched low-fat yogurt contains vitamins C and D, along with probiotic products that claim to potentially aid the immune system of kids.

LIST OF KEY COMPANIES PROFILED IN THE PROBIOTICS MARKET:

• Danone S.A. (Paris, France)


• Lallemand Inc. (Canada)


• Yakult Honsha (Japan)


• Nestlé S.A. (Vevey, Switzerland)


• DuPont (Danisco A/S) (Delaware, United States)


• Chr. Hansen (Horsholm, Denmark)


• Kerry Inc. (Tralee, Ireland)


• Post Holdings, Inc. (Missouri)


• Pepsico, Inc. (New York, United States)


• Evolve Biosystems, Inc. (Davis, California)

KEY INDUSTRY DEVELOPMENTS:

1. April 2020: Chr. Hansen Inc. announced the launch of a science-based online probiotic platform in the US market. The new online platform is intended to educate consumers and health care professionals about the benefits of probiotics.


2. May 2019: Neuraxpharm Group, one of the leading European specialty pharmaceutical companies introduced its first probiotic in the regional market following an special licensing contract with the Bened Biomedical Co., Ltd.


3. March 2019: Danone and Nestle SA both announced the launch of their probiotic infused refrigerated yogurt bars.

REPORT COVERAGE

An Infographic Representation of Probiotics Market

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The market research report provides qualitative and quantitative insights on the market and detailed analysis of market size and growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key probiotics market trends.

Report Scope & Segmentation