Prebiotics Market - Global Outlook & Forecast 2024-2029

INDUSTRY OVERVIEW

The global prebiotics market was valued at USD 6.95 billion in 2023 and is expected to reach USD 13.26 billion by 2029, growing at a CAGR of 11.37% during the forecast period. The growing awareness of the health benefits of prebiotics, such as improved gut health and overall digestive function, and increased consumption of functional dairy products are anticipated to boost the growth of the global market. Furthermore, a rise in the number of health-conscious consumers and interest in prebiotics and probiotics food manufacturing drive the growth of the global prebiotics market. Customers across the globe adopt a proactive method toward their health. Consumers prefer probiotics/prebiotics to increase their immune and gut health.

The increasing prevalence of lifestyle diseases drives the demand for prebiotics as part of a holistic approach to health maintenance. The rising prevalence of digestive disorders such as gastroesophageal reflux disease, lactose intolerance, and hiatal hernia, combined with the growing number of women suffering from obesity, diabetes, vaginal infections, and other issues, is creating a favorable industry across the world. Further, the North American prebiotics market is growing due to increasing health consciousness and awareness. The demand for digestive-related products in North America is growing, and food & beverage producers are responding by aggressively launching products that offer positive digestive health benefits.

MARKET TRENDS & DRIVERS

Advances in Pharmaceutical Applications of Prebiotics
Prebiotics have various applications in the pharmaceutical industry for treating chronic diseases such as cancer and metabolic & inflammatory diseases. Against multidrug pathogens, they effectively work as resistance and help to maintain the ecosystem of balanced gut microbiota. Maintaining the shelf life of prebiotics is crucial. The stable formulation is required to overcome various biological, biopharmaceutical, and physicochemical barriers and maximize prebiotics' clinical applicability and therapeutic effectiveness. However, prebiotics may lose effectiveness in bile salt or strident gastric stomach conditions. They may lose their viability during storage and preparation due to oxidative and thermal stress. In the pharmaceutical industry, the LAB strains have major applications in food formulation using various techniques such as nanoencapsulation and microencapsulation.

Rise in Health-Consciousness & Awareness
As consumers become more health-conscious, various food & beverage brands launch new products with more vitamins, proteins, and others. Companies are manufacturing prebiotic-based foods & beverages by considering the health benefits. Recently, there have been many developments in prebiotic-based food & beverage, and companies are working on how consumers can get more benefits as per increased expectations of consumers. While eating fast food, people are looking for health benefits from such food. Thus, companies need to maintain food quality for good gut health. Due to the rise in health-conscious consumer groups and awareness of the health benefits associated with prebiotics, the industry growth is expected to increase during the forecast period.

High Consumption of Dairy-based Products
Increasing knowledge about functional food leads to the demand for healthy food with adequate nutrition. In the last few decades, the interest in buying functional foods that contain prebiotics has increased. Products that contain prebiotics have various health benefits for humans and animals. Thus, companies focus on developing new applications and a new generation of prebiotics in functional foods. Dairy-based drinks of prebiotics are consumed in larger quantities than other prebiotic beverages. In dairy-based prebiotics, L. rhamnosus GG bacteria is used widely across Europe. L. rhamnosus GG is the most suitable bacteria that can be used in many industrial applications. Bacteria used for prebiotics in dairy applications include L. casei, L. rhamnosus, L. acidophilus, and L. plantarum. In infants and children, helping boost immunity and improves gut health.

SEGMENTATION INSIGHTS

INSIGHTS BY INGREDIENT
The inulin ingredient segment dominated the global prebiotics market in 2023. The higher share is due to the wide usage of inulin in functional foods & beverages, high nutritional value, and increased demand for prebiotics in the global industry. Inulin is a natural food ingredient found widely in plants, fruits, vegetables, and cereals, including leek, onion, wheat, garlic, banana, and chicory, and is widely consumed in Europe. Further, chicory is one of the major sources of inulin for food industry production. It is also used in dairy products, baked products, processed cheese, and more because of the gelling factors in inulin. Inulin is used in diabetic products as it is not digestible by gut enzymes. This increases the demand for inulin for food made especially for diabetic patients. Therefore, a high demand for diabetic-friendly foods drives the demand for inulin from the food & beverage industry.

INSIGHTS BY APPLICATION
The global prebiotics market by application is segmented into functional food and beverages and dietary supplements. In 2023, the functional food and beverages segment accounted for the largest industry share and is anticipated to retain its industry dominance during the forecast period. Customers have shown interest in purchasing prebiotic-based functional foods, which will drive the industry during the forecast period. Moreover, various diseases are increasing due to multiple reasons, such as unhealthy food consumption, changing lifestyles, and others. Many occur due to disturbed gut health. Thus, consumers prefer healthy foods & beverages that help to maintain gut health. They focus on offering foods with prebiotics along with other nutrients. Thus, the demand for functional food & beverage products will increase during the forecast period.

INSIGHTS BY AGE GROUP
The adult age group segment dominated the global prebiotics market share in 2023. The rise in the prevalence of chronic diseases such as diabetes, obesity, lactose intolerance, allergy, and others is a major factor contributing to the market growth during the forecast period. Adults include young adults, middle-aged adults, and older geriatric adults. Prebiotics help in maintaining overall health and treatment for various disorders. Further, older geriatric adults face a few common gastrointestinal problems, such as constipation, anorexia, dysphagia, dyspepsia, and fecal incontinence. Aging affects the muscles in the digestive tract, which become weak, stiff, and less efficient. Prebiotics produce vitamin B, which helps increase the metabolism rate and improve overall digestion.

INSIGHTS BY DISTRIBUTION CHANNELS
The global prebiotics market by distribution channels is segmented into supermarkets & hypermarkets, departmental stores, drug stores, and online stores. In 2023, the supermarkets & hypermarkets segment was the major revenue contributor to the global industry share. The expansion of supermarkets and hypermarkets is the primary reason for the increase in the demand for prebiotics in the global industry. Furthermore, consumers like to pay more for premium products in supermarkets & hypermarkets. In supermarkets and hypermarkets, prebiotic-based products are available in a wide range and are easy to access. Companies give various offers such as discounts and cashback. Such stores have tie-ups with various brands for providing foods & beverages. Further, the departmental store segment is experiencing significant growth in the industry. Departmental stores offer a wide range of prebiotic-based products in European countries, and their number is growing. Most people prefer to buy groceries from nearby department stores. There are many types of departmental stores where prebiotics products are available, such as food stores, general stores, personal care products stores, grocery stores, baby products, etc.

GEOGRAPHICAL ANALYSIS

APAC accounted for the largest share of the global prebiotics market and contributed a share of over 33% of the global market in 2023. The region’s market is growing significantly, which is expected to continue during the forecast period. The industry is driven by the robust demand for health-based products like prebiotics among consumers, especially from the young generation. Additionally, increasing acidity, stomach and gut issues, and indigestion problems among people in this region are increasing the demand for such prebiotics-incorporated foods. Moreover, a growing number of customers in the region are turning to beverages, creating a strong need for functional beverages to meet their demands, in addition to naturally sourced, balanced, and nutritious meals. This growing trend of healthier, enhanced beverages creates new opportunities for startups to develop products.

Europe accounted for a substantial share of the global prebiotics market in 2023. In 2023, EU-5 countries accounted for over 66% of the European prebiotics market share. In developed countries of the region, the awareness of prebiotics for improving gut health is increasing. However, due to unhealthy behavior and food habits, people face various health issues, such as digestion issues, several types of cancer, diabetes, allergy issues, low immunity, and others. Obesity and overweight are major issues in EU-5 countries, which affect the overall human body. Moreover, in many countries, such as Germany, France, and the UK, cancer is one of the major causes of death. As prebiotics are used as an adjuvant in cancer therapy and treatment for allergy-related diseases, the demand for prebiotics is increasing in those countries. Also, Germany's healthcare system is one of the best in the world. Dairy-based products are highly consumed, which helps to drive the market.

VENDOR LANDSCAPE

The global prebiotics market is highly competitive. With the growing health consciousness and awareness, various small and mid-sized companies are entering the industry to expand their presence. The emphasis on developing and discovering innovative products has helped garner a high customer base for key players. The competition in the global prebiotics market is intense, with several global players offering diverse products. Some companies currently dominating the industry include BENEO GmBH, Jarrow Formulas Inc., Cosucra, Frieslandcampina, Yakult Honsha, and others. Further, the significant players focus on strategic acquisitions, licensing, and collaboration agreements with emerging players to enter the industry and access commercially launched products. For instance, in 2021, Taiyo GmBH, a German manufacturer of natural dietary fibers, and Asiros, a Danish producer of fruit powders, collaborated to create and market high-fiber fruit variants.