Probiotics Dominate Digestive Health Products Market: A Deep Dive into Market Dynamics

Probiotics Dominate Digestive Health Products Market: A Deep Dive into Market Dynamics

The digestive health products market comprises a wide range of probiotic and prebiotic supplements that promote gut health and digestive function. Probiotic supplements contain 'good' bacteria that help maintain a balanced environment in the gut, while prebiotics act as food for the beneficial microbes already in the intestine. Growing awareness about the link between gut health and overall well-being has boosted demand for these products in recent years.

The global digestive health products market is estimated to be valued at US$ 47.02 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity in improving gut health through the use of digestive health products is expected to drive significant market growth over the coming years. Research increasingly shows that gut flora influences multiple systems in the human body like the immune system and brain. Imbalances in the gut microbiome have been associated with several diseases ranging from irritable bowel syndrome to cardiovascular conditions. As consumers seek natural remedies to tackle gut-related issues and promote overall wellness, the demand for high-quality probiotic and prebiotic supplements is poised to rise substantially. Manufacturers introducing innovative products targeting specific gut health problems can gain an edge in this burgeoning market.

Porter's Analysis

• Threat of new entrants: The threat of new entrants is moderate as the digestive health product market requires extensive R&D and brand recognition. However, opportunities exist with new innovations.
• Bargaining power of buyers: The bargaining power of buyers is high given the presence of many substitute products. Buyers can opt for private label products if branded products increase prices.
• Bargaining power of suppliers: The bargaining power of suppliers is moderate as key ingredients are commodities available from many suppliers globally. Suppliers of specialized ingredients may wield some pricing power.
• Threat of new substitutes: The threat of new substitutes is high from alternative probiotic and prebiotic sources, as well as non-dairy yogurt and drinks. Innovation is high in functional foods and beverages.
• Competitive rivalry: Competition is intense among global players and private label brands. Companies compete on product innovation, brand, and marketing.

SWOT Analysis

• Strengths: Strong brands and R&D capabilities of key players. Increasing awareness about digestive health and gut health.
• Weaknesses: Sensitivity of probiotic cultures to processing and storage conditions. Higher prices than conventional foods limit adoption.
• Opportunities: Growth in vegetarian and vegan diets driving demand for non-dairy products. Emerging markets yet to realize potential. Flexitarian trends favor functional foods.
• Threats: Intense private label competition and proliferation of me-too products dilute brands. Regulatory environment can impact innovations.

Key Takeaways

The global digestive health products market is expected to witness high growth. Being a specialty industry, it is more resilient to economic cycles compared to staples. The market size is estimated to reach US$ 91.31 Bn by 2030 from US$ 47.02 Bn in 2023, expanding at a CAGR of 7.2%.

North America holds the largest share currently, driven by health awareness and discretionary spending. Asia Pacific is poised to be the fastest growing region with rising middle class and westernization of diets in large economies like India and China. Japan also has a well-established probiotics market.

Key players operating in the digestive health products market are Danone S.A., Arla Foods amba, Nestlé, Chr. Hansen Holding A/S, Yakult Honsha Co., Ltd., General Mills Inc., Meiji Holdings Co., Ltd, MondelÄ“z International, PepsiCo, Inc., and Kellogg NA Co. These companies have strong R&D and marketing capabilities to consolidate their leadership positions.