REPORT DESCRIPTION

The United Nation’s Food and Agriculture Organization (FAO) defines probiotics as ‘live microorganisms, which when administered in adequate amounts confer a health benefit on the host.’ Such benefits include the prevention and cure of disorders such as lactose intolerance and inflammatory bowel disease. The major factors driving the growth of the global probiotics market are the increasing levels of health-consciousness, and the availability of probiotics in the form of dietary supplements.

The global probiotic products market generated $15.9 billion in 2008. More than 500 probiotic F&B products have been introduced in the past decade. These products have received varying levels of success, mostly in congruence with their overall health benefits. For instance, probiotic chocolates garnered more market share than probiotic cheese and butter, as it offers more health benefits without fortification. Taste and convenience are also expected important factors for securing market share.

The probiotics market offers plentiful opportunities for functional food suppliers and manufacturers. Product innovations are expected to play a major role in increasing the share of the market players. The leading developers and suppliers of probiotic strains include Danisco, Morinaga, and BioGaia. The products of these companies are used by FMCG companies such as Nestle and Attune. Europe is currently the largest probiotics market, owing to its high awareness of the benefits of probiotic yoghurts and fermented milk. The U.S. market is also growing rapidly due to the general affinity of the U.S. population towards the probiotic dietary supplements.

This report highlights major types of probiotic products such as functional foods and beverages, dietary supplements, specialty nutrients and animal feed products; as well as the major application areas such as regular consumption, probiotic therapy, and disease prevention. The report sizes the submarkets for these products and applications in the major markets of Europe, Asia, U.S., and Rest of the World (ROW). In addition to market forecasts, the report also highlights key opportunity areas for the relevant stakeholders; analyzing market trends, opportunities, drivers, and inhibitors for each sub-segment.

The existing studies and third-party market reports do not provide a comprehensive classification of the probiotics market. This report breaks the market into smaller product segments, which none of the other third-party reports have done so far. In order to provide a deeper understanding of the competitive landscape, the report profiles the top 40 companies in the probiotics market, and provides more than 50 market tables, categorized into geographic regions, products, and applications.

Scope of the report

The report discusses the segmentation of the probiotics market as follows.

• Products: Functional foods and beverages – dairy products, non dairy beverages, breakfast cereal, baked foods, fermented meat products, dry-food probiotics; animal feed probiotics; dietary supplements - food supplements, nutritional supplements and specialty nutrient.
• Applications: Human application – regular consumption, probiotic therapy, prevention of diseases and probiotic application for animals.
• Ingredients: Bacteria in probiotic foods – lactobacilli, bifidobacteria; yeast and others.

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Key questions answered

1. Which are the high-growth segments and how is the market segmented in terms of applications, products, services, ingredients, technologies, stakeholders?
2. What are market estimates and forecasts; which markets are doing well and which are not?
3. Where are the gaps and opportunities; what factors are driving market growth?
4. Which are the key playing fields and winning-edge imperatives?
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TABLE OF CONTENT

1. INTRODUCTION
   1.1. KEY TAKEAWAYS
   1.2. REPORT DESCRIPTION
   1.3. MARKETS COVERED
   1.4. STAKEHOLDERS
2. SUMMARY
   2.1. SYNOPSIS
3. MARKET OVERVIEW
   3.1. AWARENESS OF THE BENEFITS OF PROBIOTICS PRODUCTS
   3.2. AGEING BABY BOOMERS ARE PRIMARY CONSU MERS
   3.3. WOMEN AS TRADITIONAL F&B BUYERS
   3.4. WEAK IMMUNE SYSTEM OF CHILDREN BORN FROM CESAREAN OPERATIONS
   3.5. THE BUYING BEHAVIOR IN DEVELOPED & DEVELOPING NATIONS
   3.6. DRIVING FACTORS ANALYSIS FOR PROBIOTICS MARKET 
   3.7. EMERGENCE OF PROBIOTICS IN THE U.S. AND USFDA STANCE
   3.8. DRIVERS
        3.8.1. MASS MARKET APPEAL OF PROBIOTICS AS WELLNESS INGREDIENT
        3.8.2. U.S. A REGION WITH MAJOR GROWTH OPPORTUNITY
        3.8.3. PROBIOTICS IN DRY FOODS
        3.8.4. PROBIOTICS ENTER THE INDIAN AND THE CHINESE MARKET
        3.8.5. MARKETING OF PREBIOTICS REINFORCES PROBIOTICS TREND
   3.9. RESTRAINTS
        3.9.1. CONSUMER PERCEPTION
        3.9.2. DOUBTS OVER EFFICACY
   3.10.OPPORTUNITIES
        3.10.1.LEGISLATIVE ISSUES LEADING TO OPPORTUNITY IN EUROPE
        3.10.2.ENHANCEMENT IN PRODUCT PERIPHERALS
4. PROBIOTIC PRODUCTS
   4.1. SUMMARY
   4.2. PROBIOTIC FUNCTIONAL FOODS AND BEVERAGES
        4.2.1. DRIVERS
               4.2.1.1. Proactive approach towards health related issues
               4.2.1.2. Functional food/beverage makers capitalize on dairy ingredients
               4.2.1.3. Scientific validation favoring probiotic foods and drinks
        4.2.2. RESTRAINTS
               4.2.2.1. Lack of consensus and guidelines
               4.2.2.2. Products not in tune with American lifestyle
        4.2.3. OPPORTUNITIES
               4.2.3.1. Probiotic foods claim to ward off obesity
               4.2.3.2. Emerging avenues for integration with non-conventional foods
               4.2.3.3. Market success dependent on consumer edification
        4.2.4. PROBIOTIC DAIRY PRODUCTS
               4.2.4.1. Drivers
                        4.2.4.1.1. Probiotics are compatible with dairy ingredients
                        4.2.4.1.2. Easy process adaptability
                        4.2.4.1.3. Increasing market participation by international brands in Asian markets
                        4.2.4.1.4. Market influence of well known health benefits of milk
                        4.2.4.1.5. Consumers with lactose intolerance
               4.2.4.2. Restraints
                        4.2.4.2.1. Inhibited growth due to storage problems
                        4.2.4.2.2. Preference of taste over health benefits in children
               4.2.4.3. Opportunity
                        4.2.4.3.1. U.S. a potential lucrative market
                        4.2.4.3.2. Single shot products present growth opportunity
                        4.2.4.3.3. Probiotic yogurt
                        4.2.4.3.4. Probiotic cheese
                        4.2.4.3.5. Probiotic cultured drinks
                        4.2.4.3.6. Probiotic butter
                        4.2.4.3.7. Probiotic ice-cream
        4.2.5.  PROBIOTIC NON DAIRY BEVERAGES
                4.2.5.1. Drivers
                         4.2.5.1.1. Additional health benefits of probiotic beverages
                         4.2.5.1.2. Preserving efficacy and effective delivery of probiotics
                         4.2.5.1.3. Alternate ways to deliver probiotics is possible
                4.2.5.2. Restraints
                         4.2.5.2.1. Non communication of the probiotic benefits in the labels
                         4.2.5.2.2. Garbled image of probiotic beverages in India
                         4.2.5.2.3. Juices, not a constituent of meals in Asian cultures
                4.2.5.3. Opportunities
                         4.2.5.3.1. Curtailed proliferation of false claims helpful in controlling dilution of product image
                4.2.5.4. Probiotic fruit juices
                4.2.5.5. Probiotic vegetable juices
        4.2.6. PROBIOTIC BREAKFAST CEREAL
                4.2.6.1. Drivers
                4.2.6.2. Restraints and opportunities
        4.2.7. PROBIOTIC BAKED FOODS
                4.2.7.1. Drivers
                         4.2.7.1.1. Development of highly resistant probiotics
                         4.2.7.1.2. Addition of functional ingredients
                         4.2.7.1.3. Limited effect on taste of baked foods
                4.2.7.2. Restraints
                         4.2.7.2.1. Issue of trial and error
                         4.2.7.2.2. Issue of premium pricing
                4.2.7.3. Probiotic biscuits
                4.2.7.4. Probiotic chocolates
                4.2.7.5. Probiotic bread
        4.2.8. PROBIOTIC FERMENTED MEAT PRODUCTS
                4.2.8.1. Drivers
                4.2.8.2. Restraints and opportunity
        4.2.9. DRY-FOOD PROBIOTICS
                4.2.9.1. Probiotic baking mixes
                4.2.9.2. Probiotic soup mixes
        4.2.10. PROBIOTIC DIETARY SUPPLEMENTS
        4.2.11. DRIVERS
                4.2.11.1.U.S. a major growth region
                4.2.11.2.Medical benefits useful in improving health
                4.2.11.3.Technology enables effective ingestion of probiotics
                4.2.11.4.Characteristic benefits driving growth
        4.2.12. RESTRAINTS
                4.2.12.1.Issue of trust
                4.2.12.2.Adequate number of live microorganisms
                4.2.12.3.Greater investment costs
        4.2.13. OPPORTUNITY
                4.2.13.1.Consistency in claims to boost the market
                4.2.13.2.Consumer awareness leads to demand for new products
                4.2.13.3.Technological up gradation to offer better products
        4.2.14. PROBIOTIC FOOD SUPPLEMENTS
                4.2.14.1.Drivers
                         4.2.14.1.1. Rising adaptation to convenience foods
                         4.2.14.1.2. Availability in several consumable forms
                         4.2.14.1.3.Probiotic users show high cross usage across different supplements
                4.2.14.2.Restraints
                         4.2.14.2.1. Lack of perceived need
                         4.2.14.2.2. Confused image of probiotics
                4.2.14.3.Opportunity
                         4.2.14.3.1. Converting sporadic users to regular consumers
        4.2.15. PROBIOTIC NUTRITIONAL SUPPLEMENTS
                4.2.15.1.Drivers
                         4.2.15.1.1. Rapidly expanding market for probiotic-enhanced foods
                         4.2.15.1.2. Growing administration to patients to build immunity
                4.2.15.2.Restraints and Opportunities
        4.2.16. PROBIOTIC SPECIALTY NUTRIENTS
        4.2.17. PROBIOTIC INFANT FORMULA
                4.2.17.1.Drivers
                         4.2.17.1.1. Increased risk of infections for day care infants
                         4.2.17.1.2. Safety verified by scientific community
                         4.2.17.1.3. Relief for pediatric patients
                         4.2.17.1.4. Savings caused by prevention of diseases
                4.2.17.2.Restraints
                         4.2.17.2.1. Challenge of product differentiation
                         4.2.17.2.2. Insufficiently supported claims to be checked
                4.2.17.3.Opportunity
                         4.2.17.3.1. Higher investments to lead to differentiation
                         4.2.17.3.2. Probiotics suppliers hold key to claims
        4.2.18. ANIMAL FEED PROBIOTICS
                4.2.18.1.DRIVERS
                         4.2.18.1.1. Complete ban on all growth-promoting antimicrobials in the EU
                         4.2.18.1.2. Probiotics offer farmers solutions for issues in productivity
                         4.2.18.1.3. Concern over rampant use of therapeutic antimicrobials
                         4.2.18.1.4. Growing concern over toxic effect in humans
                4.2.18.2.Restraints
                         4.2.18.2.1. Competition from other feed additives
                         4.2.18.2.2. Probiotics’ price as feed supplements and their handling
5. PROBIOTICS APPLICATIONS
   5.1. SUMMARY
   5.2. PROBIOTIC APPLICATION FOR HUMANS
        5.2.1. DRIVERS
               5.2.1.1. Good health a primary driver in the ageing baby-boomer population
               5.2.1.2. Modern diet insufficient to maintain good health
               5.2.1.3. Women more likely to benefit from probiotics
        5.2.2. RESTRAINTS
               5.2.2.1. Lack of awareness and perceived need
               5.2.2.2. Condition specific one-time users
               5.2.2.3. Lack of probiotic specific regulations
        5.2.3. OPPORTUNITIE
               5.2.3.1. Encourage usage and higher daily compliance
               5.2.3.2. Shift from niche category to mass market appeal
        5.2.4. REGULAR CONSUMPTION
               5.2.4.1. Drivers
                        5.2.4.1.1. Easy integration with meals
                        5.2.4.1.2. Improved immune system leads to lesser medical expenditure
                        5.2.4.1.3. Success in certain dairy dominated regions
               5.2.4.2. Restraints
               5.2.4.3. Kids
               5.2.4.4. Young adults
               5.2.4.5. Middle aged population
               5.2.4.6. Older population
        5.2.5. PROBIOTIC THERAPY
               5.2.5.1. Lactose intolerance
               5.2.5.2. Lifestyle related disorders
               5.2.5.3. Immune booster
               5.2.5.4. Antibiotic-associated diarrhea
               5.2.5.5. Pediatric Gastrointestinal (GI) Therapy
               5.2.5.6. Irritable bowel syndrome
               5.2.5.7. Pouchitis in patients undergoing colectomy with ileo-anal pouch anastomosis
               5.2.5.8. Urinary tract infection
               5.2.5.9. Iron absorption
               5.2.5.10.Dental health
        5.2.6. PREVENTION OF DISEASES
        5.2.7. PROBIOTIC APPLICATION FOR ANIMALS
               5.2.7.1. DRIVERS
                        5.2.7.1.1. Unceasing nature of the demand
                        5.2.7.1.2. Developing countries giving a boost to the feed market
               5.2.7.2. RESTRAINTS
               5.2.7.3. OPPORTUNITIES
6. PROBIOTIC INGREDIENT IN FOODS
   6.1. SUMMARY
        6.1.1. BACTERIA IN PROBIOTIC FOODS
               6.1.1.1. Lactobacilli
                        6.1.1.1.1. Lactobacillus acidophilus
                        6.1.1.1.2. Lactobacillus rhamnosus
                        6.1.1.1.3. Lactobacillus casei.
                        6.1.1.1.4. Lactobacillus Reuteri
                        6.1.1.1.5. Lactobacillus plantarum
               6.1.1.2. Bifidobacteria.
7. PROBIOTICS TECHNOLOGY
   7.1. SUMMARY
   7.2. PRODUCTION OF PROBIOTICS
        7.2.1. FERMENTATION
        7.2.2. SUBLETHAL STRESS
               7.2.2.1. Proteomic approach
               7.2.2.2. Genomic approach
   7.3. PROBIOTIC DELIVERY SYSTEM
        7.3.1. SPRAY-DRYING TECHNIQUE AND FREEZE DRYING
        7.3.2. MICROENCAPSULATION WITH ALGINATE
        7.3.3. EMULSION TECHNIQUE
        7.3.4. TRIPLE-SHELL BEADLET TECHNOLOGY
        7.3.5. WHEY PROTEIN BASED TECHNIQUE
        7.3.6. DOUBLE COATING WITH SOY PEPTIDES
8. GEOGRAPHIC ANALYSIS
   8.1. SUMMARY
   8.2. THE U.S. PROBIOTICS MARKET
   8.3. THE EUROPEAN PROBIOTICS MARKET
   8.4. THE ASIAN PROBIOTICS MARKET
9. COMPANY PROFILES
   9.1. ALPHARMA
   9.2. ALLTECH BIOTECHNOLOGY
   9.3. AMERIFIT BRANDS
   9.4. ARLA FOODS 
   9.5. ATTUNE FOOD INC
   9.6. BIOGAIA AB
   9.7. BOMAC VETS PLUS
   9.8. CALPIS COMPANY
   9.9. CARGILL
   9.10.CD PHARMA
   9.11. CHINA-BIOTICS, INC
   9.12. CHR. HANSEN
   9.13. DANISCO
   9.14. DANONE
   9.15. DSM FOOD SPECIALTIES
   9.16. GANEDEN.
   9.17. GARDEN OF LIFE
   9.18. GENERAL MILLS
   9.19. JAMIESON LABORATORIES
   9.20. ARROW FORMULAS
   9.21. KASHI COMPANY
   9.22. KIRKMAN
   9.23. KRAFT FOODS INC
   9.24. LALLEMAND INC
   9.25. LIFE WAY FOOD INC
   9.26. MORINAGA MILK INDUSTRY CO. LTD
   9.27. MOTHER DAIRY
   9.28. MULLER DAIRY LTD
   9.29. NATREN
   9.30. NEBRASKA CULTURES
   9.31. NESTLE
   9.32. NOW FOODS
   9.33. NUTRACEUTIX, INC
   9.34. PROBI AB
   9.35. SKÅNEMEJERIER
   9.36. STONYFIELD FARM
   9.37. VALIO
   9.38. WELLS' DAIRY INC
   9.39. WILD WOOD
   9.40. YAKULT HONSHA
   9.41. YEO VALLEY
   9.42. YO CREAM INTERNATIONAL INC
10.PATENTS
   10.1. SUMMARY
APPENDIX
   U. S. PATENTS
   EUROPEAN PATENTS
   ASIAN PATENTS

LIST OF TABLES
SUMMARY TABLE GLOBAL PROBIOTICS MARKET 2007 – 2014 ($MILLIONS)
TABLE 1 GLOBAL PROBIOTIC FUNCTIONAL FOODS AND BEVERAGES MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS)
TABLE 2 GLOBAL PROBIOTIC FUNCTIONAL FOODS AND BEVERAGES MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 4
TABLE 3 GLOBAL PROBIOTIC DAIRY PRODUCTS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS)
TABLE 4 GLOBAL PROBIOTIC DAIRY PRODUCTS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 5 GLOBAL PROBIOTIC YOGURT MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 6 MAJOR PLAYERS AND PRODUCTS
TABLE 7 GLOBAL PROBIOTIC CHEESE MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 8 MAJOR PLAYERS AND PRODUCTS 50
TABLE 9 GLOBAL PROBIOTIC CULTURED DRINKS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 10 MAJOR PLAYERS AND PRODUCTS
TABLE 11 GLOBAL PROBIOTIC BUTTER MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 12 GLOBAL PROBIOTIC ICE CREAM MARKET, BY GEOGRAPHY, 2007-2014 ($ MILLIONS)
TABLE 13 MAJOR PLAYERS AND PRODUCTS 
TABLE 14 GLOBAL PROBIOTIC NON DAIRY BEVERAGE MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS) 
TABLE 15 GLOBAL PROBIOTIC NON DAIRY BEVERAGE MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 16 GLOBAL PROBIOTIC FRUIT JUICES MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 17 MAJOR PLAYERS AND PRODUCTS
TABLE 18 GLOBAL PROBIOTIC BREAKFAST CEREAL MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 19 MAJOR PLAYERS AND PRODUCTS 
TABLE 20 GLOBAL PROBIOTIC BAKED FOODS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS) 
TABLE 21 GLOBAL PROBIOTIC BAKED FOODS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 22 GLOBAL PROBIOTIC BISCUITS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 23 GLOBAL PROBIOTIC CHOCOLATES MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 24 MAJOR PLAYERS AND PRODUCTS 
TABLE 25 GLOBAL PROBIOTIC BREAD MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 26 GLOBAL PROBIOTIC FERMENTED MEAT PRODUCTS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS)
TABLE 27 GLOBAL PROBIOTIC FERMENTED MEAT PRODUCTS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 28 GLOBAL DRY-FOOD PROBIOTICS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS)
TABLE 29 GLOBAL DRY-FOOD PROBIOTICS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 30 GLOBAL PROBIOTIC BAKING MIXES MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 31 GLOBAL PROBIOTIC SOUP MIXES MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 32 MAJOR PLAYERS AND PRODUCTS
TABLE 33 GLOBAL PROBIOTIC DIETARY SUPPLEMENTS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS)
TABLE 34 GLOBAL PROBIOTIC DIETARY SUPPLEMENTS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 35 MAJOR PLAYERS AND PRODUCTS
TABLE 36 GLOBAL PROBIOTIC FOOD SUPPLEMENTS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS) 
TABLE 37 GLOBAL PROBIOTIC FOOD SUPPLEMENTS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 38 MAJOR PLAYERS AND PRODUCTS
TABLE 39 GLOBAL PROBIOTIC NUTRITIONAL SUPPLEMENTS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS)
TABLE 40 GLOBAL PROBIOTIC NUTRITIONAL SUPPLEMENTS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 41 MAJOR PLAYERS AND PRODUCTS
TABLE 42 GLOBAL PROBIOTIC SPECIALTY NUTRIENTS MARKET, BY PRODUCTS 2007-2014 ($ MILLIONS) 
TABLE 43 GLOBAL PROBIOTIC SPECIALTY NUTRIENTS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 44 GLOBAL PROBIOTIC INFANT FORMULA MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS)
TABLE 45 MAJOR PLAYERS AND PRODUCTS 
TABLE 46 GLOBAL ANIMAL FEED PROBIOTICS MARKET, BY GEOGRAPHY 2007-2014 ($ MILLIONS) 
TABLE 47 MAJOR PLAYERS AND PRODUCTS 
TABLE 48 GLOBAL PROBIOTIC APPLICATION MARKET FOR HUMANS 2007-2014 ($ MILLIONS)
TABLE 49 GLOBAL PROBIOTIC APPLICATION MARKET FOR REGULAR CONSUMPTION 2007-2014 ($ MILLIONS)
TABLE 50 GLOBAL APPLICATION MARKET FOR PROBIOTIC THERAPY 2007-2014 ($ MILLIONS)
TABLE 51 GLOBAL PROBIOTIC INGREDIENTS MARKET 2007-2014 ($ MILLIONS)
TABLE 52 MAJOR PLAYERS AND PRODUCT DEVELOPMENTS 101
TABLE 53 GLOBAL MARKET PROBIOTIC BACTERIA IN FOODS 2007-2014 ($ MILLIONS)
TABLE 54 GLOBAL PROBIOTICS MARKET 2007-2014 ($ MILLIONS) 
TABLE 55 U.S. PROBIOTICS MARKET 2007-2014 ($ MILLIONS) 
TABLE 56 EUROPEAN PROBIOTICS MARKET 2007-2014 ($ MILLIONS) 
TABLE 57 ASIAN PROBIOTICS MARKET 2007-2014 ($ MILLIONS)

LIST OF FIGURES
FIGURE 1 PARENTAL STRUCTURE OF PROBIOTICS MARKET
FIGURE 2 EVOLUTION OF PROBIOTICS
FIGURE 3 ANALYSIS OF PROBIOTICS CONSUMERS 
FIGURE 4 DRIVING FACTOR ANALYSIS FOR PROBIOTICS MARKET
FIGURE 5 THE GLOBAL PROBIOTICS PRODUCTS MARKET –F&B, THE SAFEST BET
FIGURE 6 ANALYSIS OF THE U.S. PROBIOTICS MARKET – F&B MARKET WITH HIGHEST GROWTH POTENTIAL
FIGURE 7 PROBIOTIC YOGURTS AND PROBIOTIC CULTURED DRINKS ARE THE WINNERS 
FIGURE 8 LIMITED CONGRUENCE BETWEEN EFFICIENCY AND NEW PRODUCT DEVELPOMENTS 
FIGURE 9 20% NEW PRODUCTS IN THE GLOBAL PROBIOTIC ICE CREAM MARKET LAUNCHED IN THE U.S SINCE 2004
FIGURE 10 MARKET POTENTIAL FOR PROBIOTICS
FIGURE 11 APPLICATION OF PROBIOTICS – PROBIOTIC THERAPY LEADING THE APPLICATION’S MARKET
FIGURE 12 EUROPE FILES THE LARGEST NUMBER OF PROBIOTICS PATENTS
FIGURE 13 NUMBER OF PROBIOTICS PATENTS REDUCING OVER THE YEARS
FIGURE 14 GANEDEN BIOTECH FILES THE MOST NUMBER OF PATENTS

Clear association of Probiotics with health benefits leads to a booming market

The probiotics market is currently being driven by the rising popularity of probiotic functional foods and beverages among (F&B) consumers. Age, stress, poor diet etc are some of the reasons responsible for digestive ailments, bloating, reduced resistance to infections etc; consumption of probiotic enhanced products helps to alleviate these widespread conditions. These products contain live microorganisms (probiotics) that confer positive health effect on the host. Companies such as Yakult Honsha, Chr Hansen have developed patented strains of microorganisms claiming to affect specific health benefits; there has been a proliferation of probiotic ingredient suppliers who develop tailored strains of microorganisms for integrating with diverse set of products. Awareness, faith on their efficacy and safety are some of the deciding factors for the success of probiotic products. The market for overall probiotic products was $16 billion in 2008 and is expected to grow at CAGR of 12.6% from 2009 to 2014 to reach a size of $32.6 billion in 2014.

Europe, owing to its high awareness of the benefits of probiotic yoghurts and fermented milk, is the largest market for probiotics, followed by Asia. However, the market is growing rapidly in the U.S as well; the general affinity of the U.S. population towards the probiotic dietary supplements is expected to drive the market in future; the sales of probiotic yogurts are already on the rise. The overall probiotic yogurt market is expected to reach a market size of $10.9 billion in 2014 growing at a CAGR of 11.1% from 2009 to 2014. The market size of probiotic dietary supplements is expected to be about $1.8 billion in 2014 growing at a CAGR of 8.6%.

Demographically, women buyers are presently one of the primary consumer segments driving the market. With the probiotic strains getting into a common factor among the companies, taste and convenience continue to be the most important factors for securing market share. On the whole, the probiotics market represents a growing market for functional food suppliers and manufacturers, and product innovations will hold a key factor for increasing market share.

The issue of uncurbed fake products making unsubstantiated health claims in the market diluting the image of the authentic products by making potential consumers wary about making the choice of consuming probiotic products is restraining the growth of the market. Moreover, the market faces stiff competition from other category of functional and good-for-you foodstuffs that have significant market share as well as goodwill among consumers such as products with - lesser carbohydrates, fortified with omega 3, vitamins etc.

The early movers in the industry will benefit in terms of market share but it is important that they focus on innovating probiotic strains that are more efficient in terms of survivability in harsh conditions and stability and are supported by competitively-priced production technologies. Extensive research is required to develop cost-efficient manufacturing processes for probiotics, the companies aiming to make a major impact in this market therefore needs to make extensive R&D investments. In addition, garnering faith of the consumers by making substantiated and legitimate assertions in terms of health benefits will profit the market in future.

The probiotics market consists of the probiotic ingredient suppliers and the end product manufacturers; it is a fragmented market with a large number of companies vying for shelf space. The companies enjoying substantial market share are Yakult Honsha, Danone, and Nestle S.A etc.