The global probiotics market is highly fragmented, with many small players claiming a stake in the revenue pie, states a new report by Transparency Market Research (TMR). The top five companies accounted for a 34.6% share of the market in 2013. Yakult Honsha Co., Ltd., Danone SA, Danisco A/S, Chr Hansen A/S, and Nestlé S.A. are the top five players in the market. The industry is marked by frequent mergers and acquisitions. Companies are concentrating on the launch of newer and innovative products. Although the manufacturing of probiotics is cost intensive, the untapped market and opportunities in terms of innovative products will result in a medium threat from new entrants. The threat of substitutes will decline from high to medium since prebiotics are costlier than probiotics.
According to the report, the global opportunity in probiotics will rise from US$67.01 bn in 2015 to US$96.04 bn by 2020. On the basis of application, the food and beverages segment will continue to lead and account for 80.10% of the market by 2020. By end user, the human probiotics segment will emerge as a leading segment, accounting for 92.27% of the market by 2020. On the basis of strain type, the lactobacillus segment is projected to account for 48.74% of the market by 2020. Asia Pacific, followed by Europe is anticipated to be lucrative markets for probiotics. Asia Pacific is projected to represent 35.32% of the global probiotic market by 2020.
High Prevalence of Functional Disorders Driving Demand for Probiotics
The number of people suffering from functional disorders and organic gastrointestinal diseases has been steadily growing over the past few years. Changing lifestyles and food habits among both developed and emerging countries have led to poor gut health, necessitating the need for consuming probiotics. All these factors are responsible for the growing demand for probiotics.
The efficiency of probiotics is another major factor leading to their high consumption. This is because the majority of commercially available probiotics are efficient in balancing the number of good bacteria required in the digestive system, thereby improving the immunity of the body.
Lack of Global Standardization in Probiotics Industry to Pose a Challenge
Probiotics are highly sensitive organisms and can be easily weakened by a variety of environmental factors during manufacturing and storage. They are thus, highly perishable. Consequently, there is a need for standardizing the packaging process and also their manufacturing process. Currently, there are no standardizations to regulate the manufacturing and storage of probiotics. However, with the involvement of the FDA setting standard processes for the same, the impact of this restraint may reduce in the coming years.
Another factor holding back the growth of the market is the limited awareness regarding the benefits of consuming probiotics. However, this problem can be resolved by holding campaigns and effective promotions. For instance, in Asia-Pacific, prominent persons are being roped in to promote probiotics and this strategy has proved to be helpful.
Generating Awareness about Benefits of Probiotics to Create Opportunities for Growth
“Probiotics have immense health benefits and thus, have huge market potential owing to the rising health consciousness among the average consumer,” states a TMR analyst. Probiotics are expected to be in high demand from the geriatric population. Since probiotics can help in balancing the dearth of fiber and nutrients in the body, their demand is expected to significantly rise in the coming years. The probiotics dietary supplement market is emerging as an attractive segment owing to the convenience and availability of these supplements in various consumable forms.
This information is based on the findings of a report published by Transparency Market Research titled “Probiotic Market - Global Industry Analysis, Size, Share, Growth and Forecast 2014 - 2020.”
The global probiotics market is segmented as follows:
- Food and beverages
- Dietary supplements
- Animal feed
- Human probiotics
- Animal probiotics
- Spore Formers
- North America
- Asia Pacific
- Rest of the World
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