Global Probiotics Ingredients Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

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Probiotics Ingredients Market Growth

The growth of the global probiotics ingredients market can be ascribed to the rising consumer awareness regarding preventive healthcare combined with the increased spending on probiotics by consumers. Furthermore, the accessibility to preventive healthcare data due to the availability of several online platforms is creating awareness among consumers regarding the product.

The increased focus on preventive healthcare by consumers, which is driving the demand of probiotics ingredients market, is the result of factors like rising disposable incomes, rising living standards, ageing populations, and changing attitudes towards healthcare, particularly in the developed and developing economies. Further, the growing demand for dietary supplements in the pharmaceutical, cosmetics, and personal care sectors is expected to drive the probiotics market, which in turn, is expected to drive the growth of the probiotics ingredients market.

Probiotics Ingredients Market Trends

Consumers are increasingly seeking foods and drinks fortified with probiotics to enhance digestive health. This trend of probiotics ingredients market has led to the incorporation of probiotic ingredients into a variety of products, including yogurts, kefir, and fermented beverages.  Innovations in encapsulation and stabilisation techniques are enhancing the viability and shelf life of probiotic products. These advancements ensure that a higher number of live microorganisms reach the gut, improving efficacy.

Probiotic ingredients are being incorporated into animal feed to promote gut health and enhance immunity in livestock and pets. This application is gaining traction as a natural alternative to antibiotics.

Recent Developments

Morinaga Milk Industry Co., Ltd., a prominent Japanese dairy manufacturer, has announced that its proprietary probiotic strain, Bifidobacterium infantis M-63, has received approval from the National Health Commission (NHC) of the People's Republic of China as a new food ingredient suitable for infant and children's products, which can contribute to the growth of the probiotics ingredients market. This approval represents a notable achievement for the company, positioning it as the sole Japanese company with three bifidobacteria strains registered for use in the infant and toddler food sector in China.

Industry Outlook

A Growing demand for Probiotic Ingredients in Food and Beverage and Animal Feed.

According to the FAO and WHO, the total imports of yeast globally increased from 2018 to 2021, with a consistent upward trend. In 2018, total imports amounted to USD 1,636.8 million, growing to $1,727.2 million by 2021. As per the probiotics ingredients industry analysis, Europe was the dominant importer throughout these years, accounting for a substantial share, from USD 561.4 million in 2018 to $568.9 million in 2021. Asia consistently ranked second, with imports ranging from $391.1 million in 2018 to $405.8 million in 2020 before declining to USD 375.9 million in 2021. North America saw modest growth, moving from USD 256.2 million in 2018 to USD 323.7 million in 2021.

Africa, South America, and Oceania maintained relatively smaller shares, although Africa showed a steady increase from USD 285.6 million in 2018 to USD 314.5 million in 2021, which contributed to the growth of the probiotics ingredients industry. This growth trajectory in yeast imports reflects the increasing demand for yeast-based products, which directly correlates with the rising popularity of probiotic ingredients. The surge in health-conscious consumers and the expansion of the functional food market are driving the demand for yeast in various food and beverage applications.

According to the 2023 Alltech Agri-Food Outlook, North America's compound feed production saw overall growth from 2021 to 2022, increasing by 0.88%, equivalent to 2.272 MMT. The broiler feed segment experienced the most significant rise, growing by 1.932 MMT, a 3.32% increase. Pet food production also saw substantial growth, increasing by 5.66%, with an additional 0.600 MMT produced, which increased probiotics ingredients industry revenue. Layer feed increased by 2.71%, with an added 0.410 MMT, while beef feed saw a modest growth of 0.64%. The increased emphasis on specialized feed for broilers and pets indicates a growing interest in optimizing animal health, which ties closely to the probiotic ingredients market.

Health Benefits of Probiotics Ingredients, Growing Consumer Awareness, Expanding Applications, Support the Growth of the Market.

• Probiotics are well-documented for their positive effects on gut health, immunity, and overall wellness.
• Increased awareness of the importance of gut health has spurred demand for probiotics.
• An expanding pharmaceutical market supports the probiotic ingredients demand in dietary supplements, and animal nutrition.
• An increasing elderly population that seeks health maintenance and disease prevention benefits significantly contributes to market demand.

Regulatory Challenges, Limited Shelf Life, Market Saturation, and Economic Downturns Can Challenge Market Growth.

• The market faces stringent regulations and varying approval processes across regions.
• Probiotic products often have shorter shelf lives compared to other supplements.
• The vast variety of strains and formulations can confuse consumers, hindering purchasing decisions.
• Any emerging negative research about probiotics could impact consumer trust and sales as well as probiotics ingredients demand forecast.
• In times of economic uncertainty, consumers may cut back on functional foods and beverages.

A Growing Middle-Class Population, Increased Research, and Demand for Personalised Nutrition Provide Opportunities to the Market.

• Growing middle-class populations in regions like Asia-Pacific present new market opportunities.
• Ongoing research into the health benefits of probiotics may lead to new applications and formulations.
• Advances in personalized nutrition allow for customized probiotic products based on individual health profiles, enhancing consumer appeal.
• Collaborating with food manufacturers to create fortified products can enhance market reach and provide additional revenue streams, increasing probiotics ingredients demand growth.
• Effective branding and consumer education about the benefits of probiotics can influence purchasing decisions.

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Probiotics Ingredients Industry Segmentations

Probiotics Ingredients Market Share

The use of probiotic strains in the production of end products such as cheese, yoghurt, and other dairy products has stimulated this segment’s development. It is estimated that the bacterial segment will hold a major probiotics ingredients market share and is expected to grow at a CAGR of 9.5% in the forecast period as it provides different health advantages.  Bacterial probiotics, particularly strains like Lactobacillus and Bifidobacterium, are widely recognised for their positive effects on digestive health, immune function, and overall well-being.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global probiotics ingredients industry, looking into their capacity, competitive landscape, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• CHR Hansen A/S  
• Danisco A/S (DuPont) 
• Lallemand, Inc. 
• Novozymes A/S  
• Kerry Group Plc (Ganeden Inc.)
• Archer Daniels Midland Company (Probiotics International Ltd.)
• Bifodan A/S 
• Others

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Probiotics Ingredients Market Regional Analysis

The Asia Pacific market is expected to grow at a CAGR of 9.8% in the forecast period. The markets in India and China are anticipated to witness a CAGR of 10.2% and 9.4% between 2024 and 2032. Rising health consciousness, increasing disposable incomes, and a growing demand for dietary supplements are fuelling probiotics ingredients market value. Moreover, a strong emphasis on preventive healthcare, favourable regulatory support, and a high demand for functional foods and beverages are also key factors boosting the market growth.

Competitive Factors in the Global Market for Probiotics Ingredients.

• The efficacy of probiotics often hinges on the specific strains used. Companies that offer scientifically validated strains may gain a competitive edge.
• Unique formulations that combine probiotics with prebiotics or other functional ingredients can differentiate products in the market.
• Companies with robust certification processes are often viewed more favorably.
• The ability to substantiate health claims through clinical research can enhance market credibility and competitive positioning.
• Established brands with a strong reputation for quality and transparency tend to perform better, especially in a market where consumer trust is vital.
• Companies that utilize diverse distribution channels, including e-commerce, retail, and health food stores, can reach a wider audience and boost probiotics ingredients market opportunities.
• Understanding the pricing landscape and positioning products competitively can attract cost-conscious consumers without compromising quality.
• Partnerships with universities and research institutions can foster innovation and enhance product credibility.
• Offering personalized probiotic solutions based on individual health needs can differentiate brands.
• Companies with streamlined supply chains and efficient production processes can reduce costs and enhance product availability.
• Advances in fermentation and encapsulation technologies can improve product stability and efficacy.

Key Price Indicators of the Global Probiotics Ingredients Market.

• Fluctuations in the cost of raw materials (such as fermentation agents and culture media) directly influence the price of probiotics.
• Expenses related to meeting health and safety regulations can impact the overall pricing strategy for manufacturers.
• The level of competition in the probiotics market can drive prices down or up, depending on market dynamics, fuelling probiotics ingredients market revenue.
• Established brands may command higher prices due to perceived quality and consumer trust, influencing overall market pricing.