The global probiotic ingredients market size was valued at USD 5.39 billion in 2023. It is estimated to reach from USD 5.61 billion by 2024 to USD 7.80 billion by 2032, growing at a CAGR of 4.20% during the forecast period (2024–2032). The application of probiotic ingredients in nutraceuticals is increasing due to the increased demand for probiotic supplements owing to their health benefits. This is expected to spur global market growth. Moreover, market players are focusing on enhancing the efficiency of their products by using innovative ingredients to gain a strong market foothold.
Probiotics are microorganisms that are consumed to improve the digestive system's function. These microorganisms also referred to as good or healthy bacteria, help avoid urinary tract infections, bacterial vaginosis, and oral health disorders. They aid in preventing respiratory infections, necrotizing enterocolitis, and bowel diseases. Probiotic ingredients are available as capsules, tablets, powder, and liquid and in fermented foods with live-active cultures, such as yogurt, kefir, sourdough bread, sauerkraut, tempeh, and kimchi. Probiotics, when consumed as dietary supplements, populate the gut with microorganisms that support health and inhibit the growth of pathogenic bacteria. Doctors also recommend them because they reduce depression and improve heart health.
The demand for probiotic ingredients is primarily driven by increasing application in nutraceuticals, such as fortified food and beverage products and dietary supplements. As per data by Packaged Facts, the consumption of probiotic dietary supplements was the highest among the age group of 18-34 years, highlighting their changing mindset toward staying fit and healthy. It can be concluded that young Americans do not want to suffer in old age, unlike their elders.
Preventive actions are being implemented to mitigate potential health difficulties that may arise from previous periods of their lives. Therefore, producers of probiotic supplements are capitalizing on the formulation, application, and therapeutic expansion to other health advantages, apart from the mainstream, to regulate sales. This, in turn, is increasing the application of probiotics in food and beverage products. Consumers are also clamoring for nutritional support from probiotic ingredients due to expanding awareness of the importance of gut health. Thus, using probiotics in nutraceuticals is expected to drive market growth.
Farmers rely on feed to obtain high-performance and quick weight gain in animals over a short period. According to the Food and Agriculture Organization of the United Nations (FAO), there is a projected 60% increase in the global demand for food by the year 2050. FAO estimates an annual growth rate of approximately 1.7% in the production of animal proteins from 2010 to 2050. This growth is expected to result in a substantial increase in meat production, reaching nearly 70%. Similarly, aquaculture is projected to experience a significant increase of 90%, while dairy production is expected to grow by 55%. Theoretically, if the growth rates of the past four decades were extrapolated to 2050, the demand would quadruple.
Live probiotic microbes can have numerous health benefits when introduced to feed in sufficient amounts. For instance, studies showed that probiotic ingredients enhanced the growth rate in broilers better than AGP (avilamycin) and other substitutes for AGP, such as phytochemicals, including essential oils. Increasing awareness about the nutritional benefits of probiotics will likely drive the application of probiotics in animal feed during the forecast period.
Microencapsulation is an available technology that allows probiotics to be formulated into feed additives and helps them preserve their viability. Such high-end technology provides an advantage in withstanding higher temperatures during processing and storage. It can also improve the overall shelf life of the product, thus resulting in soaring prices of probiotic products. Moreover, fermented and probiotic-containing products, like food and beverages and dietary supplements, are mostly targeted.
Maintaining the viability of probiotics throughout the production and delivery processes is a significant challenge. Products must be marketed in aseptic circumstances, and bacteria must be protected from excessive light, moisture, heat, or cold. Similarly, the shelf life of the supplements is predicted to be one to two years, combining a robust production process and proper product constitution. Therefore, increasing the overall cost of the product containing probiotics hinders market growth.
Probiotic supplements have seen the most innovation in formulation, delivery forms, packaging, and market positioning. Continuous innovation in product offerings and the high investment of large food companies in informative advertisements regarding the consumption of probiotics are expected to maintain the interest of consumers toward probiotic products in the coming years. This factor is expected to maintain the demand for probiotic ingredients.
For instance, in April 2022, Pantheyx, a digestive and immune support ingredients company specializing in colostrum, expanded its capabilities to launch probiotic-colostrum combo ingredients for children's and adults' dietary supplements. The new formulation contains strains, such as Bifidobacterium animalis BB-12, Lactobacillus rhamnosus LGG+, Lactobacillus plantarum HEAL9, Lactobacillus paracasei 8700:2, and B. subtilis DE111. The company offers dietary supplement manufacturers the ability to create new digestive and immune health duo products through this innovative combo. Such innovations are expected to create opportunities for market growth.
| Study Period | 2020-2032 | CAGR | 4.20% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 5.39Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 7.80 Billion |
| Largest Market | EMEA | Fastest Growing Market | Asia Pacific |
EMEA is the most significant global probiotic ingredients market shareholder and is estimated to exhibit a CAGR of 3.94% during the forecast period. The EMEA regions include Europe and the Middle East and Africa region. The probiotic ingredients market in Saudi Arabia witnessed a significant growth rate due to the huge demand for dietary supplements to cure disorders related to digestion, intestinal tracts, etc. The growing awareness about the connection between diet and health stimulates the demand for probiotic food and beverage products in the region. Probiotic ingredient-infused dietary supplements have been trending over the forecast period. In addition, key manufacturers have been focused on expanding their product portfolios to obtain a competitive edge. For instance, in October 2020, Sanofi added DioraByota to its Dioralyte line of post-diarrhea fluid replacement products after the launch of Buscobiota, two Nootropics supplements, which combined the s. boulardii probiotic with dietary fiber and vitamins B6 and B12. This factor is boosting the demand for probiotic ingredients during the forecast period.
Asia-Pacific is estimated to exhibit a CAGR of 4.48% over the forecast period. Asia-Pacific consumers are becoming increasingly health-conscious and inclined to purchase products that offer both convenience and nutritional value; this trend bodes well for the growth of the probiotic ingredients market soon. Similarly, yogurt, flavored milk, and buttermilk remain the most common probiotic products in the Indian market, encouraging all manufacturers operating in the market to introduce innovative products with new probiotic ingredient formulations. Manufacturers have realized the untapped opportunities of probiotic supplements that are beyond digestive health and immunity and are, therefore, targeting specific health concerns of individuals. For instance, Taiwan-based Bioflag Biotech's proprietary probiotic strain, Lactobacillus rhamnosus MP108, was launched as an infant product in China in 2021. Similarly, in 2020, Chr. Hansen agreed to supply probiotic ingredients to Teijin Limited, a Japanese prebiotic firm, for use in functional and health food applications in its domestic market. Such developments are driving the regional market growth.
In North America, digestive health and obesity are significant health issues, particularly in the United States. According to a study conducted by the American Gastroenterological Association (AGA) in 2020, more than fifty percent of the obese population in the United States uses probiotic dietary supplements to maintain gut health as part of their weight management treatment. Thus, the growing reliance of North American consumers on probiotic dietary supplements is anticipated to increase demand for probiotic ingredients in the region. Likewise, the key players in the market have been acquiring smaller players and vertically integrating their supply chains to consolidate their positions. Chr. Hansen Holding A/S signed an agreement with UAS Laboratories LLC ("UAS Labs") in June 2020 to acquire 100 percent of the Wisconsin-based B2B company specializing in clinically documented probiotics. The acquisition will strengthen and expand Chr. Hansen's global microbial platform and Human Health business are consistent with the company's strategy of pursuing microbial platform-related acquisitions. These factors are anticipated to stimulate regional market expansion.
Brazil is the leading revenue contributor in the Latin America region. The Brazilian regulatory agency for health, ANVISA, prohibits manufacturers from labeling dietary supplements as beneficial to the digestive system unless the claim has been scientifically proven. As a result, ingredient manufacturers are focusing on developing products with various health benefits and receiving approvals supporting food manufacturers nationwide. For instance, in 2018, DuPont Nutrition & Health received approval from ANVISA recognizing a health claim for the Bifidobacterium lactis HN019 probiotic strain. This created an opportunity for manufacturers in Brazil to produce new probiotic foods and dietary supplements using DuPont probiotics to qualify for an approved health claim in the local market.
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The bacteria segment dominates the global market and is projected to exhibit a CAGR of 3.70% over the forecast period. Probiotic bacteria have greater microbial control in their manufacturing plants, thus pushing various probiotic food product manufacturers to prefer bacteria over other categories. Pediacococcus acidilactici 5051 is a plant-based, probiotic bacteria generally recognized as safe as an ingredient. It is less sensitive to oxygen exposure than Lactobacillus and Bifidobacterium and less sensitive to heat exposure than other probiotic bacteria. It can withstand a wide temperature range, remaining stable and viable in temperatures ranging from -20 degrees Celsius to 185 degrees Celsius for brief periods, and is acid-resistant.
Furthermore, the stability associated with bacteria strains provides wide opportunities for the suppliers of the probiotic ingredient to add a non-spore formula to a spore-forming probiotic strain to ensure a high bacterial count in finished products. Such potential suggestions by ingredient suppliers to product manufacturers boost the demand for spore and non-spore-forming/bacteria ingredients.
The European Association for Specialty Yeast Products (EURASYP) has taken significant initiatives to raise awareness about yeast extract in the food industry. These initiatives focus on merchandise information on yeast extract production, composition, use, and labeling. Such initiatives taken by the European government have made a remarkable impact on the yeast ingredient market, hence boosting the market's growth. The demand for yeast as a probiotic ingredient in food products and supplements is estimated to exhibit high growth due to the use of natural additives and ingredients in bakery and functional food products.
In addition, a substantial demand for ready-to-eat and convenience foods is expected to propel the demand for yeast ingredients in the food industry over the forecast period. The rising consumer awareness regarding the consequent health benefits and nutritional significance of yeast as a probiotic ingredient is expected to create growth opportunities for market players during the forecast period.
The dietary supplements segment owns the highest market share and is estimated to exhibit a CAGR of 7.13% during the forecast period. The demand for probiotics dietary supplements has been gaining momentum, owing to the growing ease of consumption of supplement powders and chewable tablets. Streptococcus thermophilus is a commonly used lactic acid bacteria in probiotic supplements, which helps regulate the digestive tract functioning and immune system response. In addition, the rising application scope of probiotics in feminine health further fuels the product demand. Poor urogenital health due to microbial imbalance can lead to infertility, bacterial vaginosis, and preterm birth in women. Supplements, such as Garden of Life's Once Daily Women's probiotic capsules, improve vaginal health and are expected to gain traction. Likewise, major players, such as Herbalife, use microencapsulation and nanoencapsulation of probiotic ingredients to manufacture more efficient and versatile probiotic supplements to remain competitive.
The food and beverages segment is further bifurcated into yogurt, infant formula, probiotic drinks, and other food and beverages. Probiotic drinks dominated the market and are growing at a CAGR of 5.42%. Probiotic drinks aid in maintaining a healthy balance of stomach bacteria, thereby enhancing digestion, immune function, and weight loss. In addition, there is a change in consumer preference from carbonated drinks to ready-to-drink (RTD) functional beverages and probiotic drinks due to their high nutritional and low-calorie content, driving growth in the probiotics drinks market. Probiotic drinks include fruit-based and dairy-based beverages.
In addition, the increasing demand for pure and natural products with probiotic ingredients has led the key players to expand their offerings with an extensive range of authentic fruit-based probiotic drinks. For example, PepsiCo. offers 'Tropicana Essentials' probiotics, a new beverage with probiotics ingredients. According to the company's assertion, the beverages are purported to cater to a population of one billion individuals and include active cultures in each serving.
