Key Market Overview:
Prebiotics Market: Valued at USD 6,065.16 Million in 2022, Set to Reach USD 10,435.16 Million by 2030, with a CAGR of 7.1% (2023-2030). Growing Health Awareness Drives Demand.
Prebiotics are a group of nutrients that are degraded by gut microbiota. The major types of prebiotics include fructo-oligosaccharides (Fos), inulin, galacto-oligosaccharides (Gos), mannose oligosaccharides (MOS), and others. These types of prebiotics have various beneficial functionality such as improving digestion & metabolism, enhancing calcium absorption, and efficiently regulating blood sugar, among others. As a result, prebiotics are an ideal solution for various applications, including food & beverage, pharmaceuticals, animal feed, and others. The booming food & beverage industry is a prime factor boosting the growth of the prebiotics market.
For instance, according to the International Trade Administration (ITA), the Canadian food and beverage industry is ranked as the 2nd largest industry in the country, accounting for a 20% share in the manufacturing industry. In 2021, the food and beverage industry in Canada contributed USD 100 billion, a year-on-year increase of 14.8%. Thus, the increase in the production activities associated with food and beverage products is accelerating the demand for prebiotics as it is used as an ingredient in bakery products, chocolate, and other products. As a result, the bolstering food and beverage industry is contributing to the prebiotics market growth.
Prebiotics Market Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||10,435.16 Million|
|By Type||Fructo-Oligosaccharides (Fos), Inulin, Galacto-Oligosaccharides (Gos), Mannose oligosaccharides (MOS), and Others|
|By Application||Food & Beverages, Pharmaceuticals, Animal Feed, and Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Abbott, BENEO GmbH, Cargill Inc., Royal Cosun, Cosucra Groupe Warcoing SA, The Kraft Heinz Company, FrieslandCampina, Jarrow Formulas, Inc., Parmalat S.p.A, and Roquette Frères|
In the food and beverage industry, the deployment of prebiotics is essential since the ingredient is frequently utilized as a fat replacer in food products. Prebiotics are employed in a wide range of food and beverage products such as bakery products, fruit juices, dairy products, and others. For instance, according to the UK Federation of Bakers Ltd, in 2020, the Uk morning bakery and snacks products production, including bread, biscuits, and others was valued at 1.09 billion units, and in 2021, it was 1.18 billion units, a year-on-year increase of 7.6%. Hence, the growth in the production of the above-mentioned food and beverage products is accelerating the demand for prebiotics to promote healthy digestion. This, in turn, is augmenting the market growth at the global level.
The high cost associated with the deployment of qualified professionals and significant investments in research and development (R&D) activities is restraining the growth of the prebiotics market. For instance, the high cost of hiring trained professionals, the adoption of expensive machines & systems, and other factors add to the overall cost of the research and development of new prebiotics. The high cost of research and development activities has a direct implication on the overall pricing. Hence, the high cost related to the research and development (R&D) for prebiotics is posing a bottleneck for the growth of the prebiotics market.
The global players in the prebiotics industry are significantly adopting a strategy of innovations in prebiotics, which is utilized for superior gut health, improve digestion, and others. As a result of this, prebiotics manufacturers are developing new products with updated new ingredients. Thus, the introduction of new products with upgraded ingredients will create a potential opportunity for the expansion of the global prebiotics market. For illustration, in April 2023, PharmaBiome, a biotechnology company based in Switzerland formed a collaboration with Roquette, a global manufacturer of dietary supplements. The prime focus of the PharmaBiome and Roquette partnership is on the development of a new range of prebiotics products. Therefore, the innovations for prebiotics will create a prominent opportunity for the market during the projected forecast period.
Prebiotics Market Segmentation:
The type segment is classified into fructo-oligosaccharides (Fos), inulin, galacto-oligosaccharides (Gos), mannose oligosaccharides (MOS), and others. In 2022, inulin segment accounted for the highest market share in the prebiotics market. Inulin has various health benefits, including helping control diabetes, improving digestive health, and aiding weight loss. Thus, inulin is an efficient dietary fiber that is utilized to ensure efficient gut health. Inulin is utilized in the pharmaceutical industry as a drug carrier, stabilizer, and auxiliary therapeutic agent for the treatment of diseases such as constipation and diabetes. For instance, according to Invest India, an Indian investment promotion and facilitation agency, India is the world\'s 3rd largest manufacturer of pharmaceuticals. The market size for pharmaceuticals in India is expected to reach USD 65 billion by 2024 and USD 130 billion by the end of 2030. The expected growth rate of the pharmaceutical industry will be 11-12% during the forecast period of 2020 to 2030. Henceforth, the bolstering pharmaceuticals industry is accelerating the demand for inulin to promote digestive health, which, in turn, is driving market growth.
However, the galacto-oligosaccharides (Gos) segment is projected to grow at the fastest CAGR during the forecast period. This is due to the rising product innovations associated with galacto-oligosaccharides (Gos), which are favoring segment growth.
The application segment is categorized into food & beverages, pharmaceuticals, animal feed, and others. In 2022, the food & beverage segment accounted for the highest market share in the prebiotics market. Prebiotics provides aid in the building and maintaining of a healthy colony of good bacteria. The good bacteria supplement the gut and digestion. Hence, prebiotics is employed in bakery products, dairy products, chocolates & confectioneries, and others to boost beneficial bacteria by providing food with an appropriate environment where these microorganisms can flourish. For instance, in March 2022, Kerry Group, a food and beverage manufacturer, opened a new USD 137 million food manufacturing factory in Georgia, United States. As a result of the recent launch of new food and beverage manufacturing facilities at the global level is spurring the demand for prebiotics to improve nutrient absorption. This, in turn, is fostering the revenue growth of the prebiotics market.
However, the pharmaceuticals segment is expected to be the fastest-growing segment over the forecast period. The development of pharmaceutical manufacturing facilities, the growth in chronic diseases, and others are vital determinants accelerating the growth of pharmaceutical applications, thereby amplifying the prebiotics market demand.
By region, the market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. In 2022, Europe accounted for the highest market share in the prebiotics market. The advancement of sectors, including pharmaceuticals, food & beverage, and others are propelling the prebiotics market growth in the Europe region. For instance, according to Food Drink Europe, a European Union confederation for the food industry, in 2021, the European Union food and beverage industry turnover was valued at Euro 1,093 billion (USD 1,292.00 billion), and in 2022 it was valued at Euro 1,121 billion (USD 1,177.8 billion), a year-on-year increase of 2.6%. Therefore, the booming above industries are favoring the demand for prebiotics to ensure superior health benefits, which, in turn, is favoring market growth.
Moreover, Asia Pacific is anticipated to be the fastest-growing region over the forecast period, owing to the development of new food & beverage manufacturing plants, the presence of major players in the market, and others.
Prebiotics Market Competitive Landscape:
The prebiotics market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
• BENEO GmbH
• Royal Cosun
• Cosucra Groupe Warcoing SA
• The Kraft Heinz Company
• Jarrow Formulas, Inc.
• Parmalat S.p.A
• Roquette Frères
• In October 2022, OptiBiotix Health Plc, a global manufacturer of prebiotics launched OptiXOS in the European and African markets. The new range of OptiXOS is a xylo-oligosaccharide (XOS) prebiotic. Thus, the launch of a new range of products will foster the growth of the market.
• In August 2022, FrieslandCampina Ingredients, a leading player in the prebiotics market introduced GOS-OP High Purity, a new range of prebiotics. Hence, the introduction of prebiotic products will spur market growth.
• In January 2021, Wellbeing Nutrition, an India-based manufacturer of prebiotics launched plant-based and clinically-studied probiotics. The development of a new range of organic prebiotics will create an opportunity for market growth in the forecast years.