Global probiotics market is projected to register a CAGR of 8.15% during the forecast period (2020-2025).
- The probiotics market is driven by the robust demand for health-based products among consumers, especially from the younger generations. Probiotics are a part of functional foods and beverages. They are known for improving gut functionality, along with other benefits, such as boosting immunity.
- There is no clear demarcation for probiotics-based pharmaceuticals and food products, with variations across different countries. Thus, the complexity in the regulatory, legislative, and technological aspects is serving as a major hurdle for market growth.
Key Market Trends
Yogurt Segment Accounted for the Largest Market Share
The yogurt segment accounted for the highest revenue share, as it has various applications in the food industry, led by increasing awareness among consumers and the ongoing convenience trend. Yogurt containing probiotics recently gained popularity in the market, as they contain biologically active ingredients with more metabolic and physiological health benefits than nutritional benefits. Moreover, probiotics are linked to a host of health benefits, from improving skin to weight loss. In addition, yogurt is the first food which comes to consumers mind as a food product super-rich in probiotics. Thereby, catering the market studied. Protein-rich Greek yogurt boosted with probiotics also contributes to the market studied. Therefore, manufacturers, such as Fage, are producing quality products to supply additional benefits to the consumers.
Asia-Pacific Emerged as the Market Leader
The Asia-Pacific probiotics market is driven by increasing awareness and interest in new technology, media coverage, and consumer demand. The rising awareness of probiotics in China and India is expected to further boost the market growth in the region. In China, the inclusion of probiotics in the infant formula segment has been experiencing huge demand, which is likely to increase in the upcoming years. The market has witnessed a significant growth, owing to rise in the aging population, a growing understanding of the importance of preventive health, along with a wealth of studies showing benefits around immunity, cognitive health, and skincare, are driving the probiotics sales. The innovations in the retail chain with new formulations help differentiate the brands and the corresponding products.
The market is highly competitive, with the presence of key players operating, such as Nestle SA, Danone SA, PepsiCo Inc., and Yakult Honsha Co. Ltd. The sustainable competitive advantage through differentiation is high and manufacturers are increasingly introducing product innovations, in terms of ingredients, price, and functionalities. This has led to a high degree of competition in the market. Additionally, these companies are increasing their investments in research and development. The companies are also focusing on developing products with enhanced functionalities, in line with consumer needs, in order to expand their presence and maintain their positions in the market.
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