Prebiotic Ingredient Market Size, Share & Trends Analysis Report By Type (Oligosaccharides, Inulin, Polydextrose, Others), By Source (Roots, Grains, Vegetables), By Function (Gut Health, Bone Health, Immunity, Heart Health, Weight Management), By Application (Bakery and Confectionery, Dairy and Frozen Desserts, Dietary Supplements, Sweet and Savory Snacks, Oil And Fats, Beverages and Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global prebiotic ingredient market size was valued at USD 6.26 billion in 2021 and is projected to reach USD 15.26 billion by 2030, registering a CAGR of 10.41% from 2022 to 2030. The rising preference for plant-based products and increasing prebiotic consumption for gut health are driving growth in the prebiotic ingredients market. However, this growth is tempered by high production costs and a lack of awareness regarding the benefits of prebiotics. Additionally, concerns about the overconsumption of mineral ingredients pose further challenges to market expansion.

 Carbohydrates that allow beneficial bacteria grow or function more effectively in the human stomach are known as prebiotics. These carbohydrates are resistant to digestion by digestive enzymes and acids. They help to improve the function of the gut barrier, the strength of the immune system, the reduction of inflammation in the stomach, the improvement of overall digestive health, and the reduction of the risk of diarrhoea. Additionally, they help to increase calcium absorption, which promotes bone density and reduces risk factors for cardiovascular disease. The increasing consumer knowledge of the health benefits of prebiotics as well as the increased utilisation of prebiotics in the animal feed sector to boost digestion and the immune system are the primary factors driving the prebiotics market. The fact that prebiotic substances can be used for a variety of purposes and the ease with which they can be incorporated into a wide range of foods and beverages are both factors that are expected to further boost the overall market developments of the prebiotics ingredients market during the period 2022-2030.

Market Dynamics

Global Prebiotic Ingredient Market Drivers

Rising preference for plant-based products

Due to the fact that customers prefer items that are plant-based and natural, manufacturers in a variety of industries are making efforts to incorporate natural components into the goods they produce. Dietary fibre that comes from natural sources is the primary contributor of prebiotic chemicals. People are eating more prebiotic fibres because they are becoming more aware of the potentially harmful effects of antibiotics and other chemicals that are present in processed foods. As a consequence of this, it is anticipated that consumers' increasing preference for products derived from plants will have a positive effect on the market for prebiotics. Compounds of prebiotic fibre that are resistant to heat and pH change. The numerous benefits offered by prebiotics have led to an increase in their demand within the end-use industry, which is expected to be a primary factor in the expansion of the prebiotics market. As a result, the Prebiotics Ingredients Market is expected to experience significant expansion throughout the period between 2022 and 2030.

Global Prebiotic Ingredient Market Restraints

High production costs Lack of Awareness Regarding the Products and Overconsumption of Mineral Ingredients

Extensive and meticulously monitored experiments are required to be carried out in order to successfully manufacture prebiotic components. This requirement is one of the factors that is anticipated to impede the growth of the prebiotic ingredients market.

Key Market Opportunities

Increasing Prebiotic Consumption for Gut Health

There are about 1,400 different meals and beverages that contain prebiotic compounds. In order to make foods with fewer calories, manufacturers in a wide range of end-use industries are increasingly turning to prebiotic ingredients. This trend is fueling the expansion of the prebiotic ingredient market. It is anticipated that the market for prebiotic ingredients will grow, particularly in the countries of North America and Europe. This is mostly due to the growing demand for nutritious meals that contain prebiotic components. Due to the fact that they are gentle on the digestive system, galacto-oligosaccharides (GOS) and fructo-oligosaccharides (FOS) find widespread application in the field of food processing. As a result, the Prebiotics Ingredients Market is expected to experience significant expansion throughout the period between 2022 and 2030.

Regional Analysis

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

Due to the significant demand for prebiotic ingredients in the U.S. and Canada, North America contributed the most to the market in 2021, accounting for over fifty percent. Increasing consumer spending power in this region also contributes to market expansion. The market for consumer products in North America is expected to develop as a result of the sector's abundant potential. In addition, increased import demand is anticipated to contribute to market expansion throughout the forecast period.

Asia-Pacific is anticipated to experience a CAGR of 11.5% between 2022 and 2030. It is anticipated to expand due to the region's growing demand for prebiotic compounds. Increasing discretionary spending in nations such as China, India, and others contributes to the segment's rise in this area. Increasing demand for dairy products as a result of a large population will also contribute to market expansion over the forecast period.

Segmental Analysis

Due to the increasing demand for baked products and beverages, inulin accounted for over 40% of the global market's sales in 2021. Increasing use of inulin in infant food is also anticipated to drive segment growth during the forecast period. Increasing the use of inulin in various health products is projected to contribute to sector expansion. In addition, the growing significance of low-calorie sugar consumption in the food and beverage industry is anticipated to drive demand.

Due to rising demand, oligosaccharide is anticipated to experience the highest CAGR of 11.0% during the projection period. Increasing demand for confectionary products, rising disposable incomes, and shifting lifestyles are additional reasons fueling this segment's rise. The development of technology and the rising demand for oligosaccharides in the beverage industry are further factors driving the expansion of this category.

Due to its expanding sales, the food & beverage category generated more than 80% of the worldwide prebiotic ingredient market revenue in 2021. Changes in lifestyle, shifting consumer food preferences, and rising demand for beverages are factors driving the expansion of this market sector. In addition, the increasing demand for specialty foods such as lactose-free foods is accelerating the expansion of this market sector.

From 2022 to 2030, the dietary supplements segment is anticipated to experience the highest CAGR of 11.6%. Increasing consumer awareness of personal health is the primary driver of category growth throughout the forecast period. In addition, an expanding worldwide working population and a shift toward healthier lifestyles are driving the expansion of this market sector. Research and development is a key success factor for dietary supplements.

Recent Developments

In 2018, Tereos SA opened a research and development centre in Singapore, bringing innovative solutions to the food industry in the Asia-Pacific region and leveraging the group's extensive product portfolio to meet regional demand for noodles, bakery products, confectionery, teas, sauces, snacks, and beverages.

In 2017, DuPont agreed to establish a multi-year cooperation with the APC Microbiome Institute in Ireland, the venture's first significant relationship, to develop newborn microbiome health solutions.

In 2016, Nutraflora L95-S, a prebiotic fibre introduced by Ingredion, is an addition of the Nutraflora prebiotic fibre scFOS range. This prebiotic may reduce the sugar and calorie content of bakery products by 30%, hence having a significant application in the bakery business.