Global probiotics market to grow 6.8% annually until 2018

By Shane Starling

- Last updated on GMT

Related tags: Probiotic

Global probiotics market to grow 6.8% annually until 2018
A new market analysis says the global probiotics market will surge by 6.8% a year for the next five years, driven by an Asia-Pacific, “expected to be the most prominent market in the future.”

The Global Industry Analysis report noted Europe was another dominant market, although it is one that even probiotic market leaders like DuPont and Chr Hansen have acknowledged is facing severe challenges via strict new health claims laws.

That reality is thought to be accelerating the rise of Asia as a probiotics powerhouse outside of the traditionally strong Japanese market, although the analyst forecast European growth at 6.7%, only marginally lower than the global prediction.

In sales terms, it put the market at $27.9bn (€20.9) in 2011, forecast to reach $44.9bn (€33.6bn) in 2018.

“Growing consumer awareness regarding gut health has played a key role in sustained growth of these ingredients. However, pricing issues, culture cultivation and lack of standardization of product specifications are expected to have an inhibiting effect on market growth over the next five years,”​ it said.

Probiotic animal feed was also forecast for strong growth – expected to be worth about $3bn (€2.25bn) in 2018.

Dairy continues to dominate

The report highlighted dairy, non-dairy, cereals, baked products, fermented meat products, dry foods as areas of particular interest.

“Dairy products are the largest application market for probiotic foods. Probiotic demand for dairy products is estimated to reach $32.2bn (€24.1bn)  in 2018, growing at a CAGR of 6.8% from 2013 to 2018.”

yoghurt pots

It added: “In Asia-Pacific, China and Japan dominate the market revenue for probiotics, with India and other regions also showing significant growth. In Europe, Germany and U.K. are the most attractive markets.”

“The markets of North America and emerging countries such as Brazil also show huge potential for demand growth.”

Chr Hansen saw revenue and organic growth increase in Asia and the Americas, while European sales contracted 1%, in Q1 results it released yesterday.

“We will also continue to focus on building our business in Asia,”​ CEO Lars Fredriksen said yesterday as the results were released. 

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