The global probiotics market size was valued at USD 54.32 billion in 2020 and is expected to grow at a CAGR of 8.1% during the forecast period. Over the years, the industry has experienced growth owing to factors such as increasing consumer awareness regarding preventive healthcare, nutritional requirements, and fitness. They are available in the form of food & beverages and dietary supplements containing Lactobacillus, Bifidobacterium, and Saccharomyces boulardii, among others.
Probiotics offer a wide range of health benefits such as enhanced digestion, healthier skin, increased energy from the production of vitamin B12, a more robust immune system, decreased chances of cold and flu, and weight loss. The demand for probiotics has grown from the animal nutrition sector to promote favorable gut microflora, enhanced digestion, and absorption of nutrients.
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The increasing health awareness among consumers and rising inclination towards probiotic-based dietary supplements are expected to drive the industry. The growing obese population, sedentary lifestyle of consumers leading to lifestyle diseases, increasing disposable income, and growing public initiatives to promote health and wellness drive the growth of this industry.
There has been an increased awareness among consumers regarding preventive healthcare, which supplements the growth of this market. Launching new products and acquisitions by leading players in the market coupled with growing demand from emerging economies has increased the demand for probiotics market.
E-commerce platforms have gained popularity for the sale of probiotics, especially during the pandemic. The convenience offered by online platforms coupled with a wide variety of choices available is key factors behind the success of online portals. The online distribution channel is well established in developed markets such as Europe and North America due to greater adoption of mobile devices and higher internet penetration. Significant growth in the sale of probiotics through online channels has also been registered in the developing economies, encouraging many new market entrants to launch their own e-commerce sites.
The COVID-19 outbreak has increased the demand for probiotics. Increasing health awareness and growing consumption of functional food and dietary supplements to boost immunity positively affects the market. The fear of contracting the disease has encouraged consumers of all ages to focus on nutrition and self-care. However, the COVID-19 outbreak has disrupted the supply chain of probiotics across the globe. Scarcity of raw material and reduced workforce has severely impacted the industry. Countries worldwide have regulated the movement of individuals and goods, resulting in decreased deliveries, roadblocks, and other logistic issues.
The market is primarily segmented on the basis of source, application, end-use, distribution channel, and region.
By Distribution Channel
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On the basis of source, the market is segmented into yeast and bacteria. The bacteria segment dominated the global market in 2020 owing to the increasing consumption of dairy-based products across the globe. Lactobacillus and Bifidobacterium are some common bacteria found in probiotics. Health benefits offered by bacteria-based probiotics include enhanced immune function, improved digestion, and greater lactase production.
Increasing incidences of health disorders have resulted in greater awareness regarding healthy eating habits and nutrition among consumers. Health and fitness consciousness has also increased in emerging economies such as China and India, thereby strengthening the growth of this segment.
The application segment has been divided into animal feed, dietary supplements, functional food & beverages, and others. The functional food & beverages segment dominated the global market in 2020. Consumers are increasingly turning towards functional food and beverages owing to their nutritional benefits and health advantages, particularly digestive health. Changing consumer behavior, hectic work lives, and the occurrence of chronic diseases drive the growth of probiotics.
The distribution channel segment has been divided into offline stores and online platforms. Offline channels accounted for a major share in 2020. Offline channels comprise pharmacies, supermarkets and hypermarkets, and specialty stores. These offline channels bridge the gap between manufacturers and customers by offering a wide range of product variety at the same place.
These stores are mainly rooted in highly populated cities and urban cities and attract heavy traffic due to heavy discounts and promotional offers. However, the spread of the pandemic is expected to boost the growth of online platforms owing to restrictions on movement and increased convenience.
On the basis of end-use, the market is segmented into animal probiotics and human probiotics. The human probiotics segment is expected to dominate the global probiotics industry during the forecast period. Several benefits associated with probiotics include enhanced immunity, improved gut health, relief in skin conditions, and prevention against allergies, among others. Increasing awareness regarding preventive healthcare and changing lifestyles have encouraged consumers to focus on overall health.
Asia-Pacific dominated the global probiotics market in 2020. There has been an increased awareness regarding weight loss and the benefits of eating healthy, which has resulted in an increased demand for probiotics in the region. The rising geriatric population coupled with rising initiatives by consumers to maintain their overall health aids the market growth. A trend of growing obesity has been observed in Asia-Pacific, which encourages the players to develop probiotic products catering to the local tastes of consumers in the region.
The Leading Players in the probiotics market include Arla Foods amba, BioGaia AB, Chr Hansen Holding A/S, Danisco A/S, Danone S.A., Ganeden, Inc., General Mills, Inc., Lallemand Inc., Lifeway Foods, Inc., Mother Dairy Fruit & Vegetable Pvt. Ltd., Nebraska Cultures, Inc, Nestle S.A., PepsiCo, Inc., Probi AB, Protexin, and Yakult Honsha Co., Ltd.
These players are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen presence in the industry. The companies are also introducing new innovative products in the industry to cater to the growing consumer demands.
Market size value in 2020
USD 54.32 billion
Revenue forecast in 2028
USD 105.63 billion
8.1% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD billion and CAGR from 2021 to 2028
By Source, By Application, By Distribution Channel, By End-Use, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Arla Foods amba, BioGaia AB, Chr Hansen Holding A/S, Danisco A/S, Danone S.A., Ganeden, Inc., General Mills, Inc., Lallemand Inc., Lifeway Foods, Inc., Mother Dairy Fruit & Vegetable Pvt. Ltd., Nebraska Cultures, Inc, Nestle S.A., PepsiCo, Inc., Probi AB, Protexin, and Yakult Honsha Co., Ltd.