The Probiotics Market is expected to reach $75.9 billion by 2027, at a CAGR of 5.6% during the forecast period of 2020 to 2027. Growing consumer awareness regarding the health benefits of probiotics, increasing use of probiotics as an alternative to antibiotics, and growing research on probiotics are the key factors driving the growth of the probiotics market. Moreover, the growing use of probiotics for children and e-commerce growth is expected to create lucrative opportunities for players operating in this market.
Impact of COVID-19 on the Probiotics Market
The global impacts of COVID-19 are already starting to be felt and will significantly affect the probiotics market in 2020. The health officials have not determined the exact cause of COVID-19, which has sickened more than 109,206,497 people and killed 2,407,469, as of 18 February 2021 (Source: European Centre for Disease Prevention and Control). Since the COVID-19 virus outbreak in December 2019, the disease has spread to almost 100 countries worldwide, with the World Health Organization declaring it a public health emergency.
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Impact on the Human Probiotics Market
The probiotics market is experiencing a positive impact mainly due to the key role of probiotics in immune system health. The benefits of probiotics, in particular, were hailed as an effective supplementary method for tackling the virus. According to Yakult Honsha, year-on-year sales results of Yakult branded probiotic products increased by 11.5% in March and 10.3% in April 2020. Also, Probi and Danone SA witnessed growth in their probiotic demand amid COVID-19. Meanwhile, Meiji Holdings announced that its dairy products' value sales, including yogurt, experienced positive growth during February and April in 2020, and the year-on-year growth rate registered 7.4% in March 2020. Functional probiotic yogurt products have observed an increase in sales during the pandemic.
However, food & beverage companies across the world continue to feel the impact of COVID-19. Social distancing, self-isolation, and city-wide lockdowns have forced many establishments to close in countries across the world. In the U.K., the U.S., and Australia, supermarket chains have started to enforce new rules to curb panic buying, while suppliers and factory workers have put additional health and safety measures in place to keep consumers safe. Moreover, the manufacturers of consumer food & beverage products face significantly reduced consumption and disrupted supply chains. The food & beverage industry has witnessed a slight downfall due to the lockdowns imposed across various countries. All these factors restricted the demand for probiotics in the market. For instance, Yakult reported that the COVID-19 pandemic had caused its business in China to experience a drop in sales in the first two months of 2020.
Impact on the Animal Probiotics Market
The animal feed probiotic is facing a shortage in supply in many regions due to a lack of proper guidance for essential commodities. Moreover, in some regions, lockdowns have been announced to control the pandemic, impacting vehicle movement carrying livestock, feed, and feed ingredients. Along with the risk of animal feed suppliers slowing their production or closing altogether, farmers are also concerned that they may need to slow or stop slaughterhouse operations and keep their animals for a longer period due to lower demand, requiring them to use more feed than usual.
Even delivery trucks can be harder to come by, prioritizing other products and industries. These factors have led to livestock farms building up two-week supplies of feed when normally they might only keep enough for one or two days. Due to the present limited supply, the market demand has increased among farmers, benefiting many market players. Online sales have turned out to play a crucial role in maintaining the present market demand. For example, Cargill uses probiotics as a feed ingredient had seen its global feed sales volume grow by 10% or more in March 2020. Thus, the increasing animal feed demand globally has led to the growth in the demand for probiotics. However, a shortage of supplies in every region has created some barriers in the market.
Growing Proportion of Older People Fuels the Growth of the Probiotics Market
The pace of population aging around the world is increasing dramatically. According to the United Nations Department of Economic and Social Affairs, the global population aged 60 years or over numbered 962 million in 2017. The number of older people is expected to reach nearly 2.1 billion by 2050. The number of people aged 80 years or over is projected to increase by 425 million by 2050 from 137 million in 2017. Over the coming decades, the number of older people is expected to grow the fastest in Africa, where the aged population is expected to reach 226 million by 2050 from 69 million in 2017. Africa is followed by Latin America and Asia, where the population is projected to increase more than twofold. Among all the major geographic regions, Europe is expected to grow most slowly, with a projected increase of 35% between 2017 and 2050. This rapid rise in the elderly population leads to an increase in the number of patients suffering from chronic diseases, which, in turn, is expected to propel the need for microbes, such as probiotics, to limit the threat of such conditions.
Key Findings in the Probiotics Market Study:
The yeast strain products segment to grow at the highest CAGR during the forecast period
Based on strain, the yeast strain products segment is expected to grow with the fastest CAGR during the forecast period. Factors such as a ban on antibiotic usage in animal feed in several European and North American countries and increasing use of yeast strain in functional foods are the major drivers for this segment. Besides, increasing demand for yeast strain-based medicines due to proven positive results for reducing the risk of chronic diseases, such as diarrhea and bowel diseases related to antibiotic use, is expected to boost its demand in the forecast period.
In 2020, the functional food & beverages segment is expected to dominate the probiotics market
Based on product type, the functional food & beverages segment is expected to command the largest share of the probiotics market in 2020. The large share of this market is mainly attributed to the growing consumer interest in functional food, particularly probiotics that can support digestive health, rising health and wellness trends, and the growing application of probiotics in yogurt. Moreover, growing consumer preference for buying snacks containing ingredients with digestive health benefits and rising fortification of foods & beverages with science-backed probiotic ingredients is expected to fuel the demand for functional probiotic food and beverages.
The dry form segment to grow at the highest CAGR during the period
Based on form, the dry form segment is expected to grow with the fastest CAGR during the forecast period. Advantages of dry probiotics such as better handling & transport, ease of use, inexpensive nature, and the ability to avoid costly formulation mistakes are driving the growth of this segment. They also maintain the ingredient functionality's stability until utilized, making them accessible for all end users.
The offline sales segment is expected to dominate the probiotics market in 2020
Based on sales channel, the offline sales segment is expected to the largest share of the probiotics market in 2020. The large share of this segment is mainly attributed to the rising number of pharmacies and the growing probiotics supplement industry in the U.S. offers significant opportunities for supermarket owners and other stores.
The animals segment is expected to grow at the highest CAGR during the forecast period
Based on end user, the animals segment is expected to grow with the fastest CAGR during the forecast period. The animal probiotics sector has witnessed significant growth due to the growing pressure regarding reducing the use of antibiotics in feed. Further, the growing awareness among pet owners, cattle farmers, and hobbyists regarding the advantages of probiotics for animal health is further expected to drive the demand for animal probiotics.
Asia-Pacific: The largest market and growing at the fastest pace among all regions
In 2020, Asia-Pacific is expected to command the largest share of the overall probiotics market. The large share of this market is mainly attributed to the increasing consumer awareness about digestive health, growing diabetic and overweight population, and rising innovations in probiotic formulations. In addition, the increasing trend across the Asia-Pacific region for non-dairy probiotic food (cereal-based fruits and vegetable juices) and the presence of key players are further supporting the growth of this market in the region.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the probiotics market over the last four years. The key players operating in the probiotics market are Probi AB (Sweden), BioGaia AB (Sweden), Nestlé S.A. (Switzerland), Chr. Hasen Holding A/S (Denmark), Danone S.A. (France), Yakult Honsha Co., Ltd. (Japan), Lallemand Inc. (Canada), Lifeway Foods Inc. (U.S.), Dupont de Nemours, Inc. (U.S.), Kerry Group plc (Ireland), Archer Daniels Midland Co. (U.S.), Deerland Probiotics & Enzymes Inc. (U.S.), KeVita, Inc. (a part of PepsiCo Inc.) (U.S.), Evolve BioSystems (U.S.), Cell Biotech Co., Ltd. (Korea), and Probiotical S.p.A. (Italy).
Scope of the report
Probiotics Market, by Strain
- Bacteria Strain Products
- Multi Bacterial Strain Products
- Lactobacillus Strain Products
- Bifidobacterium Strain Products
- Streptococcus Thermophilus Strain Products
- Bacillus Strain Products
- Other Bacterial Strain Products
- Yeast Strain Products
Probiotics Market, by Product Type
- Functional Food & Beverages
- Dairy Food
- Yogurt
- Cheese
- Kefir
- Probiotic Milk
- Other Dairy Food
- Non-dairy Food
- Fruit and Vegetable Juices
- Non-dairy Kefir
- Non-dairy Yogurt
- Baked Food
- Other Functional Food & Beverages
- Medical & Dietary Supplements
- Nutritional Supplements
- Specialty Nutrients
- Infant Formula
- Animal Feed
Probiotics Market, by Form
- Liquid
- Dry
- Capsules & Tablets
- Powder
- Semi-solid & Gels
- Stick Packs
Probiotics Market, by Sales Channels
- Offline Sales
- Health Food Stores
- Pharmacies
- Supermarkets
- Online Sales
Probiotics Market, by End User
- Humans
- Adults (18-65 Years)
- Seniors (Above 65 Years)
- Children & Adolescents (<18 Years)
- Animals
- Poultry
- Swine
- Ruminants
- Aquaculture
- Pets
- Others
Probiotics Market, by Geography
- North America
- Europe
- France
- Germany
- U.K.
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- South Korea
- Australia
- India
- Rest of The Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
Key questions answered in the report: