Probiotics are live microorganisms that provide various health benefits when consumed in adequate amounts. Probiotics improve gut microbiota balance and help aid digestion. They come in various forms such as dietary supplements and food & beverage products including non-dairy yogurts, juices, and others.
The global Probiotics Market is estimated to be valued at Us$ 63.79 Bn in 2023 and is expected to exhibit a CAGR Of 6.4% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Gut health has become a major consumer concern in recent years. Research has established links between gut microbiome imbalance and various health issues such as irritable bowel syndrome, colorectal cancer, and others. There is growing awareness about role of probiotics in maintaining a balanced gut microbiota. This increasing focus on gut health presents a major market opportunity for probiotic product manufacturers. They can launch new formulations targeting specific gut health issues and market their products highlighting benefits of probiotics for gut and overall wellness. Companies investing in research around strains for improving gut microbiome and their health benefits can gain significant market share in the foreseeable future.
Porter's Analysis
Threat of new entrants: The probiotics market demands high investment in research & development. Regulations also pose a significant barrier for new companies. However, there is moderate threat as market is growing and opportunity for new products is high.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and variety of players. However, established brands have buyer loyalty providing stability.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of alternatives and suppliers are mainly ingredient manufacturers facing competition.
Threat of new substitutes: Threat of substitutes is low to medium as probiotics have established health benefits over alternatives. However, potential threat comes from new delivery formats and innovation in gut health products.
Competitive rivalry: Market competition is high due to presence of established brands and private label players. Companies focus on new formats like gummies and technology to gain competitive edge.
SWOT Analysis
Strengths: Established health benefits. Rising gut health awareness boosting market. Innovation in delivery formats increasing consumer base.
Weaknesses: High R&D cost. Limited scientific evidence on efficacy of all strains. Concerns over standardization and potency of products.
Opportunities: Emerging markets like Asia Pacific and Latin America providing growth avenues. New application areas like skincare expanding scope. Synbiotics emerging as key growth driver.
Threats: Strong competition lowering profit margins. Threat of stringent regulations hindering innovation. Lack of consensus over labelling and standards. Patent cliff of blockbuster brands impacting sales.
Key Takeaways
The Global Probiotics Market Demand is estimated to be valued at US$ 63.79 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.
The global probiotics market is expected to witness high growth. Asia Pacific dominates with over 40% share due to rising health awareness and digestive issues. China, India and Japan are fastest growing regional markets.
Technological developments are allowing smaller, more targeted delivery of probiotics. Micro-encapsulation of probiotic strains helps provide protection and controlled release. Innovation across product types is further expanding the consumer base with products like gummies and chewables targeted towards children.
Key players operating in the probiotics market are F. Hoffmann-La Roche AG, Bio-Rad Laboratories, Inc., Thermo Fisher Scientific Inc., Agilent Technologies, Inc., Danaher Corporation, Qiagen N.V., PerkinElmer, Inc., Illumina, Inc. and Merck KGaA. Companies are investing in R&D to develop new strains, delivery systems and formulations as well as clinical evidence to strengthen market position. Collaboration with global brands in food and supplements is a key strategy.
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