Digestive health products including probiotics, prebiotics and digestive enzymes are used to treat or prevent conditions related to digestive system including constipation, diarrhea, gas, bloating and irritable bowel syndrome. Growing consumer awareness towards health and wellness along with benefits of probiotics such as immune system enhancement and increased nutrient absorption have been driving the demand for digestive health products.
The global Digestive Health Products Market is estimated to be valued at US$ 52.3 billion in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Increasing consumer awareness towards health and wellness presents a key opportunity for digestive health products market growth. Consumers are increasingly focusing on preventive healthcare and maintenance of overall well-being. Rising health consciousness has resulted in increased spending on supplements and functional foods for digestive health. Manufacturers are launching innovative products with specific benefits and varied formats including chewable tablets and gummies to cater to changing consumer preferences. Extensive marketing campaigns highlighting the role of probiotics in gut and immune health have boosted product awareness. This growing focus on gut health and wellness among consumers is expected to drive the demand for digestive health products over the forecast period.
Porter's Analysis
- Threat of new entrants: The threat of new entrants is moderate as the digestive health products market requires significant investment in R&D for new product development and significant marketing budgets to acquire consumer awareness. However, the market is growing rapidly offering opportunities for new players.
- Bargaining power of buyers: The bargaining power of buyers is high given the availability of various product options from different brands. Buyers can easily switch between brands based on price and product offerings.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are numerous raw material suppliers and most raw materials used in products are commodity chemicals without complexity. However, suppliers hold some power for few exclusive raw materials.
- Threat of new substitutes: The threat of new substitutes is moderate as digestive health products face competition from generic OTC medication, home remedies and alternative therapies for minor digestive issues. However, natural and herbal substitutes have limited treatability for chronic digestive disorders.
- Competitive rivalry: The competition in the market is high with the presence of numerous global and regional brands offering similar product categories. Manufacturers compete on new product innovations, brand awareness, and nutritional value proposition.
SWOT Analysis
- Strengths: 1) Growing consumer awareness about gut and digestive health, 2) Increasing adoption of herbal and natural remedies for minor digestive issues, 3) Ability to target specific digestive health issues through customized formulations.
- Weaknesses: 1) Dependence on natural raw material prices which are susceptible to seasonality and climate changes, 2) Vulnerable to negative publicity from product recalls or lawsuits.
- Opportunities: 1) Untapped growth potential in emerging Asian and African markets, 2) Scope for new product extensions like fortified foods and beverages targeting digestive health, 3) Growth through e-commerce platforms and wellness stores.
- Threats: 1) Stringent regulatory approvals delaying new product launches, 2) Intense competition from private label brands offering similar products at lower prices.
Key Takeaways
The global digestive health products market is expected to witness high growth over the forecast period. The market is driven by increasing incidence of digestive disorders owing to sedentary lifestyle and changing diets. Moreover, the growing availability of varied digestive health products through online retail and wellness stores is supporting the market growth. The global Digestive Health Products Market is estimated to be valued at US$ 52.3 billion in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023-2031.
Regional analysis of the digestive health products market shows North America dominates the market currently owing to rising health and wellness trend. The Asia Pacific region is anticipated to witness the fastest growth over the next few years led by developing economies like India and China. Growing middle class population, rising disposable incomes and westernization of diets are fueling the digestive health market across Asia Pacific.
Key players operating in the digestive health products market are Nestle, Danone, Yakult Honsha Co. Ltd., Dabur India Ltd., E.I.Du Pont De Nemours and Company. Manufacturers are launching innovative probiotic formulations, herbal extracts based products and packaging them in sachets, capsules for on-the-go consumption. Companies are also targeting the pet care segment
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