TRENDS, INNOVATIONS AND OPPORTUNITIES DRIVING THE GLOBAL PROBIOTICS MARKET
MATTHEW OSTER, HEAD OF CONSUMER HEALTH RESEARCH, EUROMONITOR INTERNATIONAL
JUNE 8, 2017
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Euromonitor International
EUROMONITOR INTERNATIONAL
PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
LEARNINGS FROM VITAMINS AND DIETARY SUPPLEMENTS
INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
FUTURE OPPORTUNITIES AND CHALLENGES
4.3 billion US$ retail value of probiotic supplements in the world 2016
9% Retail value up from 2015
38% Expected growth from 2016 to 2021
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0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2006 2011 2016 2021
US$
mill
ion
Dietary Supplements – Retail Value 2006-2021
Probiotic Supplements
Ginseng
Glucosamine
Protein Supplements
Fish Oils/Omega Fatty Acids
Calcium Supplements
Combination Dietary Supplements
Other
Probiotic supplements to outpace all others through 2021 PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
248% Probiotic supplements growth from 2006 to 2021
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How are consumers taking probiotics? PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
8%
75%
17%
World Retail Value US$30.4 billion in 2010
11%
74%
15%
World Retail Value US$39.9 billion in 2016
ProbioticSupplements
Probiotic Dairy-basedYoghurt
Sour Milk Products
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Asia dominates global probiotics marketplace PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Asia Pacific North America WesternEurope
Eastern Europe Latin America Middle Eastand Africa
Australasia
US$
mill
ion
, co
nst
ant
exch
ange
rat
es
Retail Value of Probiotics by Region, 2016
Probiotic Supplements Total Probiotic Yoghurt Sour Milk Products
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Probiotics overview in Western Europe and North America PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
Western Europe North America
14%
73%
13%
Retail Value 2016 US$6.4 million
29%
63%
8%
Retail Value 2016 US$7.1 billion
Probiotic Supplements
Total Probiotic Yoghurt
Sour Milk Products
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North American consumers embrace probiotic supplements PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
3.3 billion US$ retail value of probiotic supplements in North America, 2021
55% Probiotic supplement growth from 2016 to 2021
25% Total probiotic yoghurt growth from 2016 to 2021
0
1,000
2,000
3,000
4,000
5,000
6,000
US$
mill
ion
, co
nst
ant
exch
ange
rat
es
North America – Retail Value of Probiotics by Type
Probiotic Supplements Total Probiotic Yoghurt Sour Milk Products
Consumption gap continues
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Consumption differences across top probiotic regions PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
Western Europe North America
14%
73%
13%
Retail Value 2016 US$6.4 million
4%
90% 6%
Retail Value 2016 US$16.1 billion
Asia Pacific
29%
63%
8%
Retail Value 2016 US$7.1 billion
Probiotic Supplements
Total Probiotic Yoghurt
Sour Milk Products
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Category in focus: Probiotic milk formula PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
0 500 1,000 1,500
China
Indonesia
Vietnam
Mexico
Brazil
Thailand
France
Philippines
Russia
Hong Kong, China
South Africa
South Korea
Taiwan
Saudi Arabia
Canada
US$ million, constant exchange rates
Top 15 Markets for Probiotic Milk Formula, 2016
US$2.4 billion; almost 50% of
global total
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Top-4 countries dominate global probiotic supplements market PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
57%
25%
8% 6%
27%
46%
13%
24%
16%
5%
19% 23%
14%
0%
10%
20%
30%
40%
50%
60%
0
500
1,000
1,500
2,000
2,500
% g
row
th
US$
mill
ion
Probiotic Supplements Retail Value, 2016-2021
Retail Value 2016 % Expected Growth 2016/2021
Top countries hold 76% of global share
PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
LEARNINGS FROM VITAMINS AND DIETARY SUPPLEMENTS
INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
FUTURE OPPORTUNITIES AND CHALLENGES
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Growth leaders: World versus North America LEARNINGS FROM VITAMINS AND DIETARY SUPPLEMENTS
0 10 20 30 40 50 60
Eye Health Supplements
Fish Oils/Omega Fatty Acids
Co-Enzyme Q10
Protein Supplements
Combination Dietary Supplements
Glucosamine
Probiotic Supplements
Fastest Growing Supplements 2016-2021, % Growth
World North America
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Consumers increasingly requesting positioned supplements LEARNINGS FROM VITAMINS AND DIETARY SUPPLEMENTS
0%
20%
40%
60%
80%
100%
120%
140%
160%
Women's Health Immune System Digestive Mood/Relaxing Heart Health Beauty General Health
Glo
bal
gro
wth
, US$
mn
, fix
ed
exc
han
ge
Dietary Supplement Global Growth by Positioning, 2007-2016
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Innovations in vitamins and dietary supplements LEARNINGS FROM VITAMINS AND DIETARY SUPPLEMENTS
Better You DLux1000 by
Better You Ltd
Vitamin D Spray
New Formats
Ritual Essential for Women by Ritual
Multivitamins/ Women’s Health
Clean Labelling
Vitaglow Beauty Fizz by Superdrug
Multivitamins/ Women’s health
Customer Segmentation
WellPath: Customised
Nutritional Solutions
Personalisation
Ample: On-the-go whole food bottle
Whole Food
Zenamins: Custom packs auto-renewed monthly
Subscriptions
PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
LEARNINGS FROM VITAMINS AND DIETARY SUPPLEMENTS
INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
FUTURE OPPORTUNITIES AND CHALLENGES
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New discoveries to bring opportunities in the retail space INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
Creating possibilities for probiotic supplements through prevention and treatment
Bone / joint health
Mood / depression
Diarrheal treatment
and prevention
Digestive health
Immunity
Oral health
Feminine health
Skin health
Weight control /
metabolism
Sports endurance
Cognitive health
Cardiovascular
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IBS
(Genestra Brands)
Oral Health
(Hyperbiotics)
Feminine Health
(Reuterina)
Urinary Tract
(CranBiotix - DR)
Ear, Nose & Throat - Ped.
(Hyperbiotics)
Skin Health
(Glow Inner Beauty)
Weight Loss
(Purely Inspired)
Alcohol Metabolism
(ClearVia)
Science and evidence help launch new supplements with health benefits INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
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Capsule
(Swisse)
Chewable Tablet
(Natrol)
Gum
(Cultured Care)
Powder sachet – no water
(Merck)
Juice
(Good Belly)
Chocolate confectionery
(Nature’s Way)
Gummies
(Schiff)
Pessary
(Balance Active BV)
Delivery forms expanding INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
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Neonatal (Evolve) Paediatric
(Rainbow Light)
Women
(Probulin)
Pregnancy
(Nutricia)
Teen
(Rainbow Light)
Men
(Garden of Life)
Athlete
(Sound Probiotics)
Older adult
(Life Space)
Supplements targeting specific consumer segments INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
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Influencers
On-the-go convenience
Symptom checker
Health apps
Personalisation
Purchase incentives
Traditional and new brands
Healthcare practitioner, pharmacist
Online health advice, social
media
Future drivers of probiotic supplements INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
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Is personalised nutrition the future? INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
The combination use of self-monitoring devices, web and mobile apps, easy remote access to a consultation, electronic health records, and direct-to-consumer genetic testing is transforming prevention in consumer health.
Thorne Research/Wellness FX
uBiome Vitagene
Great possibilities for the integration of probiotic supplementation for wellbeing
All images extracted from websites on May 25, 2017
PROBIOTICS: WHERE WE STAND AND DRIVERS OF GROWTH
LEARNINGS FROM VITAMINS AND DIETARY SUPPLEMENTS
INNOVATIONS IN FORMULATION, DELIVERY AND MARKETING
FUTURE OPPORTUNITIES AND CHALLENGES
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Points to consider FUTURE OPPORTUNITIES AND CHALLENGES
Opportunities
• Broader consumer interest in healthy lifestyles and lifetime self-care
• Untapped opportunities for probiotic supplements beyond digestive health and immunity
• Probiotics broad benefits perfect for movement towards personalisation
Challenges
• Regulation of health claims
• Potential for cannibalisation of sales?
• Higher prices of probiotic supplements
• Consumer education on usage, storage, strains and shelf-life
THANK YOU FOR LISTENING Matthew Oster
Head of Industry Research – Consumer Health
https://www.linkedin.com/in/matthew-oster-39815a82/
Euromonitor International
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Chicago, IL 60604