Prebiotics Market by Ingredient (Inulin, Fructo Oligosaccharides, Galacto Oligosaccharides, Mannan Oligosaccharides), Application (Food & Beverages {Dairy Products, Beverages, Infant Food Products}, Dietary Supplements), and Geography - Global Forecast to 2029

The Prebiotics Market is projected to reach $6.61 billion by 2029, at a CAGR of 7.6% during the forecast period 2022–2029. The growth of this market is driven by the increasing consumption of prebiotics, the rising demand for nutraceuticals, and the increasing demand for plant-based food ingredients. However, the lack of awareness regarding the health benefits of prebiotics restrains the growth of this market. The growing use of prebiotics in infant formulas is expected to create growth opportunities for the players operating in this market. Additionally, the growing demand for natural, organic, and clean-label ingredients is a major trend in the global prebiotics market.

Rising Demand for Nutraceuticals is Driving the Growth of the Prebiotics Market

Prebiotics are rapidly gaining popularity in the nutraceutical market. The increasing consumption of prebiotics is mainly attributed to their health benefits, such as improved digestion, immunity, and cardiovascular and bone health. These health benefits drive the demand for prebiotics in the nutraceuticals sector. Nutraceuticals are functional foods with health-promoting or disease-preventing properties.

According to the Food and Agriculture Organization of the United Nations, the undernourished global population increased from 650.3 million in 2019 to 768 million in 2020. According to the World Health Organization, in 2020, 149 million children under the age of five were too short for their age (stunted), 45 million did not weigh enough for their height (wasted), and 39 million were overweight. Undernutrition and malnutrition are caused due to the chronic lack of essential nutrients. Consumers are increasingly adopting nutraceuticals to overcome such nutritional challenges. Nutraceuticals are rich in essential nutrients required for proper growth and development.

The growing consumption of dietary supplements and functional foods, the increasing prevalence of metabolic disorders, and the growing demand for integrated functional and medical food products support the growth of the nutraceuticals sector. According to India’s Ministry of Food Processing Industries, the global nutraceuticals market is projected to reach USD 336 billion by 2023 from USD 247 billion in 2019. The growing demand for nutraceuticals is expected to drive the utilization of prebiotics.

According to a 2021 survey by Kerry Group (Ireland), 28% of European consumers preferred dietary supplements, while 26% preferred fortified or functional foods & beverages since the outbreak of COVID-19. Furthermore, 61% of the consumers reported that immunity and digestive health were the major factors for their consumption of functional foods. The rising health awareness among individuals has increased the consumption of functional foods with health benefits. As a result, the demand for prebiotics is expected to increase significantly in the coming years, driving the growth of the prebiotics market.

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Increasing Demand for Plant-Based Food Ingredients

Plant-based food ingredients include nondigestible compounds, such as starch and cellulose, and yeast that can easily reproduce and survive in any climatic condition. Plant-based ingredients include grains, vegetables, seeds, fruits, and legumes. The increasing consumer acceptance of plant-based foods is mainly attributed to their compatibility with vegan and vegetarian diets, their health benefits, and better sustainability compared to equivalent animal products. As consumers increasingly prefer plant-based and natural products, manufacturers across industries are incorporating natural ingredients into their products. These factors are expected to increase the demand for prebiotics.

Natural dietary fiber is a major source of prebiotic ingredients. Rising awareness regarding the harms of antibiotics and chemicals found in processed food products is driving the consumption of natural products such as prebiotic fibers. According to the Plant Based Foods Association and The Good Food Institute, retail sales of plant-based foods in the U.S. grew by 54%, from USD 4.8 billion in 2018 to USD 7.4 billion in 2021, at a CAGR of 15%. Thus, the rising consumer preference for plant-based products is expected to drive the growth of the prebiotics market.

Key Findings in the Prebiotics Market Study:

In 2022, the Inulin Segment to Dominate the Prebiotics Market

Based on ingredient, the global prebiotics market is segmented into inulin, fructo-oligosaccharides, galacto-oligosaccharides, mannan-oligosaccharides, and other ingredients. In 2022, the inulin segment accounted for the largest share of the global prebiotics market. The large market share of this segment is attributed to the use of inulin in dietary products, which enhances gut flora and inhibits the growth of harmful organisms by improving gut function. Moreover, the increasing demand for natural products will increase the demand for prebiotic inulin globally.

However, the galacto-oligosaccharides segment is projected to register the highest CAGR during the forecast period. The rapid growth of this segment is mainly driven by its health benefits, such as relieving symptoms of constipation, preventing colon cancer, and promoting the growth of bifidobacteria. In the food and beverage industry, it is used in non-alcoholic beverages to enhance taste and in bakery products to improve taste and texture due to its low calorific value and moisture retention properties.

In 2022, the Food & Beverages Segment to Dominate the Prebiotics Market

Based on application, the global prebiotics market is mainly segmented into food & beverages, dietary supplements, animal feed & pet food, and cosmetics. In 2022, the food & beverages segment accounted for the largest share of the global prebiotics market. The large market share of this segment is mainly attributed to the rising demand for fortifying food with prebiotic ingredients and increasing health consciousness among consumers. Moreover, this segment is projected to register the highest CAGR during the forecast period due to people’s inclination towards a healthy and active lifestyle, increasing investments to innovate new products in the food & beverages industry, and awareness of health benefits.

Asia-Pacific: The Dominating Market in the Region

Based on geography, the global prebiotics market is segmented into five major regions, namely North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2022, the Asia-Pacific accounted for the largest share of the global prebiotics market. The large share of this market is mainly attributed to the people’s growing interest in digestive health ingredients, increasing focus on improving immune health in infants, innovations in prebiotic formulations, the growing aging population, and increased consumer awareness about the link between digestive health, immunity, and overall wellness. Moreover, this region is projected to register the highest CAGR during the forecast period.

Key Players

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them in the last 3–4 years. Some of the key players operating in the global prebiotics market are Archer-Daniels-Midland Company (U.S.), BENEO GmbH (Part of Südzucker AG) (Germany), Cargill, Incorporated (U.S.), Cosucra Groupe Warcoing SA (Belgium), Gobiotics BV (Netherlands), Ingredion Incorporated (U.S.), International Flavors & Fragrances Inc. (U.S.), Jarrow Formulas, Inc. (U.S.), Kerry Group plc (Ireland), Roquette Frères (France), Royal FrieslandCampina N.V. (Netherlands), Sensus B.V. (Part of Royal Cosun) (Netherlands), Tereos Group (France), and Yakult Honsha Co., Ltd. (Japan).

Scope of the Report:

Prebiotics Market Assessment, by Ingredient

• Inulin
• Fructo-oligosaccharides
• Galacto-oligosaccharides
• Mannan-oligosaccharides
• Other Ingredients

Prebiotics Market Assessment, by Application

• Food & Beverages
  • Dairy Products
  • Beverages
  • Bakery & Confectionery Products
  • Cereals-Based Products
  • Infant Food Products
  • Others Food & Beverage Applications
• Dietary Supplements
• Animal Feed & Pet Food
• Cosmetics

Prebiotics Market Assessment, by Geography

• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific
• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa

Key Questions Answered in the Report: