Global Probiotics Market to Reach $24 Billion by 2017

DALLASRising levels of health consciousness and aging baby boomer population are just a few of the drivers helping drive growth in the global probiotic market that is expected to reach $23.93 billion by 2017, according to a new report from MarketsandMarkets.

According to the Probiotics Market - Global Trends & Forecasts To 2017" report, the global probiotics market will grow at a CAGR of 6.8% from 2012 to 2017. In 2011, North America, Europe, Asia-Pacific (APAC) led the global market with share of 40% followed by Europe and North America in terms of revenue. The food and beverage segment commanded more than 85% of the overall probiotics market in 2011.

APAC forms the largest market for probiotics with an estimated $14.55 billion by 2017. Its 6.9% CAGR from 2012 to 2017 is driven by consumer demand for health-enhancing probiotic products such as probiotic yogurts, other probiotic dairy products, and probiotic dietary supplements. Europe is the second largest segment and it is expected to reach $11.87 billion by 2017 growing at a CAGR of 6.3% from 2012 to 2017.

Probiotic dairy products are expected to command the highest market share among all the probiotic foodstuffs accounting for almost 80% in the year 2011 and reach a market size of almost $23.93 billion by 2017. The biggest markets for these products are Europe and Asia-Pacific. The North American market has gradually opened up to these products in the recent past and is expected to grow at a CAGR of 7% from 2012 to 2017, the biggest contributor being supplements and specialty nutrients.

Though the market base of probiotic products is comparatively lesser in the United States in comparison to countries, the market is expected to grow at a promising rate of almost 6.8% in the same period driven by the large scale acceptance of the probiotic yogurts in spoonable single-serve packs and probiotic cultured drinks in single-shot packaging form and probiotic dietary supplements.

Products that fall under the niche category presently, such as probiotic chocolates, probiotic ice creams, and probiotic baked products are expected to enjoy a larger market share. Consumers' willingness to pay the premium price for fortified products with proven benefits is a key driver for these segments. However, probiotic cheese, probiotic butter, etc. are fated to the status of ultra-niche products due to their conventional image as unhealthy dietary products.