Probiotic Companies Thrive on Proprietary Strains

WELLESLEY, Mass.Global probiotic sales were $21.6 billion in 2010, and have a projected 2015 value of $31.1 billion in 2015, increasing at a five-year compound annual growth rate (CAGR) of 7.6 percent, according to BCC Researchs recent report The Probiotics Market: Ingredients, Supplements, Foods." However, this growth should only benefit a few companies, as the market research firm noted the industry of premium probiotic ingredients is highly concentrated. The smaller companies that do thrive rely on ownership of certain proprietary strains.

BCC said proprietary strains command a premium over generic and undocumented strains, making quality research and science-based evidence of specific health benefits essential.

Sales of supplements were $1.3 billion in 2010, and by 2015, they should reach nearly $2.1 billion, growing at a CAGR of 9.6-percent. The segment made up of ingredients was valued at $699 million in 2010 and is projected to reach $929 million in 2015 for a CAGR of 5.9 percent.

Probiotics, by definition, are live microorganisms that, when taken in proper amounts, confer beneficial health effects. There is considerable scientific as well as business interest in probiotics, but their manufacture and application remain a niche market.