probiotics market trends
TRANSCRIPT
Vol. 7, No. 15
July 2017
naturalproductsinsider.com
US$20.75
Probiotics Market Trends and Messaging
west.supplysideshow.com
SEPTEMBER 25-29Expo Hall
September 27 & 28Mandalay BayLas Vegas
2 INSIDER Probiotic Market Trends Digital Magazine July 2017
CONTENTS naturalproductsinsider.com
p.4
Probiotics Innovation Demands Effective, Strategic MarketingRachel Adams reviews probiotics market performance and trends, and details the need for effective communication to fuel innovation and maintain consumer confidence in the category.
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Viewpoint: Probiotics Perception
Vol. 7, No. 15 July 2017
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Takeaways for Your Business
p.22
Probiotic Product TrendsSudhir Ahluwalia, author and consultant, divulges the leading finished product categories for probiotics, as well as emerging categories such as juice drinks, baked goods, chocolate confectionery and savory spreads.
Emerging Probiotic OpportunitiesOne of the most intriguing and potentially important areas of research around the microbiome is in obesity, presenting potential for probiotics around weight management, suggests Peter Leighton, Abunda.
p.17
p.13
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4 INSIDER Probiotic Market Trends Digital Magazine July 2017
Probiotics PerceptionDid you know more consumers perceive probiotics as healthy than they do kale? According to the results of a 2017 survey by GlobalData, 65 percent of American consumers reported belief that probiotics have a positive impact on health, compared to 63 percent of consumers that reported the same belief about kale.
Mind blown, right? Considering you can buy shirts with kale-centric copy such as “KALE” (a spin on the iconic “YALE” printed tees) or “Kale Yeah” at mainstream retailers like Target, it’s safe to say consumers are pretty into kale. Which means, based on the GlobalData stat, consumers are also confident in the role of probiotics for health.
Well, kind of. As pointed out by Tom Vierhile, innovation insights director at GlobalData, in the article
on page 6, consumers are confident in the role of probiotics for digestion and increasingly link probiotics to immune health, even though consumer perception of other benefits of probiotics is “fuzzy.”
And, as discussed in the article on page 17, there may be opportunities for probiotics in other areas of health such as weight management.
Communicating the expanding role of probiotics is a critical task, but not an easy one. Consumers often confer their general knowledge of probiotics (often related to digestion/immunity) to all strains, not understanding specific strains convey specific benefits. Additionally, the market is seeing probiotic product launches containing several probiotic strains and specialty strains, among other market innovations, which require special consideration to ensure the effects of such products are effectively communicated.
This Digital Magazine is chock-full of statistics detailing the performance and direction of the probiotics market, and provides insight on key considerations when marketing probiotics products in this dynamic market.
And because we know mastering the complexity of the probiotics market is essential to achieving success in the category, we’re offering a Probiotics Workshop, developed in conjunction with the International Probiotics Association (IPA), at SupplySide West on Friday, Sept. 29, 2017, at 8:30 a.m., to offer in-depth insight to those operating within or entering the probiotics market. For more information, or to register to attend, visit supplysideshow.com.
Hope to see you there!
Rachel AdamsManaging [email protected](480) 281-6016
@r_adams03
Viewpoint
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6 INSIDER Probiotic Market Trends Digital Magazine July 2017
IN THIS ISSUE Viewpoint p.4 Product Trends p.13 Table of Contents p.2
INSIDER's Take
Products containing pre- and probiotics are outpacing probiotic-only products in terms of growth.
Functional beverages and yogurt containing probiotics are leading new product launches.
Product innovation abounds in children’s probiotics products, but there may be untapped opportunity in products for seniors.
Marketing
Probiotic Innovation Demands Effective, Strategic Messaging by Rachel Adams
Probiotics have been the talk of the town in recent years. The chatter remains strong, but, as with any mature market, innovation and diversification are stealing the stage as companies strive to create stand-out products to grab the attention of bacteria-savvy consumers. Within the probiotics category, diversification and innovation are particularly evident in pre- and probiotic combination products, innovative probiotic-fortified beverages, multiple-strain concoctions and specialty strains targeting specific conditions such as weight management.
Innovation is always exciting, as are reports of a strong, healthy market. But probiotics and the effects of probiotics on health are complex; strategic and effective messaging is critical to bridge the gaps in consumer knowledge of probiotics and to keep consumers engaged and confident in the benefits of these healthy bugs.
The Probiotics ConsumerIt’s safe to say most consumers believe probiotics are good
for them. Why? Well, per a 2017 health survey conducted by GlobalData, more consumers believe in probiotics than they do kale. The survey showed 65 percent of American consumers reported belief that probiotics have a positive impact on health, compared to 63 percent of consumers that reported the same belief about kale.
However, those who have the “warmest feelings for probiotics”—as stated by Tom Vierhile, innovation insights director at GlobalData—may not be buying them to the degree at which younger consumers are.
Vierhile noted that, among Americans, younger consumers tend to be most interested in probiotics. According to 2016 GlobalData research, 66 percent of consumers aged 25 to 34 years reported interest in products that contain probiotics and reported actively buying such products, compared to 38 percent of Americans of all ages. “Younger consumers seem to be more impressed than older
66% of consumers aged
25 to 34 years reported interest in products
that contain probiotics and reported actively buying such
products, compared to
38 percent of Americans of all ages.
7 INSIDER Probiotic Market Trends Digital Magazine July 2017
consumers by the health properties of food and drink products, potentially explaining this result,” Vierhile explained.
However, per GlobalData’s 2017 survey, 85 percent of women aged 45 to 54 years said probiotics had a positive impact on health, representing the highest reading for any age group of women. Sixty-eight percent of men between the ages of 55 and 64 years said they thought probiotics had a positive impact on health, representing the highest reading for any age group for men. “These results could pave the way for more new product innovation aimed at older consumers,” Vierhile said. “We’ll have to see if that transpires, but it could be a logical interpretation of where consumers are now, and where they could go in the future.”
Currently, children are a focus for probiotic innovation, which could be the result of increased interest in probiotics by parents. Vierhile pointed to 2016 research from GlobalData showing those who are parents, those who maintain a gross income of $100,000 or higher and those between the ages of 25 to 34 years are the real sweet spot
for probiotics. He added that among these consumers, nearly 75 percent reported they are interested in and actively buying products with probiotics.
“This may explain the recent new product launches aimed at children,” he suggested.
GlobalData’s product launch database indicated several probiotic product launches targeting children, including Culturelle® Kids Regularity Gentle-Go Formula, Olly’s Kids Quick Melt Probiotic Sticks and Proctor & Gamble’s Align Jr. Probiotic Supplement Chewables for Kids, among others. “The parents of these children are likely to be receptive to probiotic supplementation aimed at their children since they may be consuming probiotics themselves,” he said.
Among health-focused consumers, research from Ganeden and conducted by SSI in 2017 found 76 percent of healthy consumers are aware of probiotics—an increase from SSI stats compiled in 2015 showing 70 percent of healthy consumers reported awareness of probiotics.
Consumers most often associate the benefits of probiotics with digestion, but are increasingly connecting probiotics and immunity. This is supported by SSI data showing 93 percent of survey respondents in 2017 reported awareness that probiotics can support digestive health, and 82 percent reported awareness of the benefits of probiotics on immunity. GlobalData reported similar findings.
“The big reason that consumers are seeking out probiotics remains digestive health,” Vierhile said, pointing to a 2015 GlobalData consumer survey showing 58 percent of
Marketing
8 INSIDER Probiotic Market Trends Digital Magazine July 2017
Americans of all ages said digestive health was the benefit they most closely associated with probiotics. “Immune health” and “general wellbeing” were tied for No. 2, he said, with 22 percent of consumers selecting each option. The survey allowed respondents to select more than one choice, which, according to Vierhile, indicates “digestive health is the big driver for probiotics, and beyond that, the consumer perception of specific benefits related to probiotics is fuzzy.”
Probiotics Market Performance, ActivityProbiotic innovation is happening across food, beverage and supplements categories.
In the supplements category, products containing pre- and probiotic content are seeing impressive growth. Such products saw 32 percent growth in the past year, compared to 9 percent growth of probiotic-only products, according to SPINS. However, pre- and probiotic products represented a significantly smaller market share compared to probiotic-only products (US$112.7 million compared to $930.3 million, respectively).
The firm reported growth of multiple-strain probiotic products is outpacing that of single strain products, representing 11.6 percent growth in the past year compared to 3.5 percent.
In the food and beverage categories, the combination of pre- and probiotic is drawing increased interest, as well. Cross channel data on probiotic-only products is slightly down over the prior year (-1.8 percent), while the growth rate of products containing both pre- and probiotics increased 11 percent.
Vierhile pointed to two categories accounting for more than one-third (37.5 percent) of launches of products containing probiotics from 2016 to July 2017: functional drinks and yogurt. “The latter is no surprise,” he said. “The former is a newer development as drinks are a promising delivery format for probiotics and the range of beverages containing probiotics continues to grow.”
Vierhile also singled out an “unusual newcomer” among recent product launches: Blue Island Coffee recently debuted a Ready to Drink Cold Brew Coffee Kombucha, “which sounds like a novel pairing,” he said. “Probiotics have also gained ground in the juice category where Tropicana launched Tropicana Essentials Probiotics probiotic juice earlier this year, an
Marketing
Americans of all ages said digestive health was the benefit they most closely associated with probiotics.
9 INSIDER Probiotic Market Trends Digital Magazine July 2017
indication that juices fortified with probiotics have caught the attention of some of the biggest packaged drink makers.”
SPINS data supports the trend of probiotics in beverages, with four of the top five growth categories being beverages.
Effective Messaging RequiredAs noted by Vierhile, consumers know probiotics are good for digestion, but any
further, knowledge of specific benefits related to probiotics is “fuzzy.”Fuzziness is not a friend of natural products that rely on research and communication
of research-supported claims to drive product (and ultimately, category) success. For this reason, marketing and communication is critical to ensure consumers are aware of the increasingly diverse benefits of probiotics.
Marketing
Source: SPINS
Top Growth Categories for Probiotics
Up 281%
Shelf-Stable Water
Up 188%
Performance Nutrition
Up 58%
Shelf-Stable Soda & Carbonated
Beverages
Up 39%
Shelf-Stable Functional Beverages
Up 31%
Refrigerated Juice & Functional Beverages
Probiotics Trends for Furry FriendsSPINS data indicated pet nutrition trends are closely aligned with the human nutrition sector, with products containing pre- and probiotics seen as an emerging trend. SPINS reported sales of probiotic pet products was down over the prior year (-14 percent), while the growth rate of products containing pre- and probiotics content increased 24.2 percent.
10 INSIDER Probiotic Market Trends Digital Magazine July 2017
“When marketing a probiotic, it is very important that the efficacy or clinical benefit of a specific product is clearly communicated to the consumer,” said Steve Prescott, marketing director, Nutraceutix. “Consumers have become very savvy when shopping for probiotics, and manufacturers have responded by launching conditions-specific products.”
He noted probiotic marketing efforts often target specific conditions such as occasional constipation or occasional diarrhea, for reduction of gas and bloating, to support healthy immune systems in children, high-performance athletes or seniors. “Savvy consumers know these conditions-specific benefits are tied to individual strains or specific combinations of strains that that have been studied in large double-blind, placebo-controlled studies,” he said. “Therefore, it is important brand owners market probiotics to include the strain information and amounts of each strain on the package so consumers know exactly what they are purchasing.”
However, according to Vierhile, strain-specific labeling isn’t common. “Relatively few products, however, get into the particulars of the type of strain used, etc.,” he said. “This information may be disclosed on the packaging, but does not appear to be a big part of the marketing thrust for probiotic-containing products.”
Educating manufacturers and consumers about the benefits of specific strains is the responsibility of ingredient manufacturers and suppliers, said Mike Bush, president and CEO, Ganeden. “The responsibility falls on the probiotic companies to make sure they’re promoting the science that they’re doing,” he said. “They’re spending hundreds of thousands of dollars to support studies; they should be telling everybody who will listen … what the benefit [is], and they need to point out that these findings are specific to their strain and not necessarily all probiotics.”
One challenge facing innovation in the probiotics category is the tendency of consumers to lump the benefits of all probiotics into one category, rather than understanding different strains provide different benefits. This idea is often encouraged by mainstream media.
“[Mainstream media] tends to lump all probiotics into one barrel, and they even go so far as saying, ‘If you’re going to consume a probiotic, you should think about eating sauerkraut or kimchi or pickles or whatever,’” Bush said, “and there’s very little documented evidence on the strains specifically that are, for example, in sauerkraut or kimchi. The strains that turn a cabbage into sauerkraut do a great job with turning cabbage into sauerkraut, but there’s not a whole lot of research relating to whether or not there’s any health benefit there and from those strains at all.”
Marketing
Probiotics at SupplySide WestLearn more about the market for probiotics, along with insights on
the science around probiotics, the microbiome and overall health,
during the Probiotics Workshop, developed in conjunction with
the International Probiotics Association (IPA), at SupplySide West
in Las Vegas, on Friday, Sept. 29 at 8:30 a.m. For more
information, or to register to attend, visit supplysideshow.com.
11 INSIDER Probiotic Market Trends Digital Magazine July 2017
For this reason, communicating probiotics benefits to both media and consumers is of great importance. “Not just marketing to individuals, but marketing, or promoting, the science and information behind strains and probiotics benefits to the media [is important],” Bush said.
Another area of innovation—as indicated by SPINS data—revolves around products offering multiple strains.
“As the probiotic industry continues to mature, many manufactures are combining strains backed by clinical research and almost like designing blends to ensure the biggest benefit to health,” said Jamie Phillips, director—scientific affairs, Prod/Ops, SPINS.
Bush, too, referred to multiple-strain products as “en vogue.”
Claims for such products must be carefully navigated. “If you’re going to have multiple strains, then you should have a study that supports
the use of those multiple strains together working in concert with one another,” Bush said. “You also need to know how much of each strain is in there. So if you’re going to have five different strains [and] you’re going to have 50 billion CFU [colony forming units], is it 49-and-a-half billion of one strain and a half billion of a bunch of others? Consumers need to be informed as to what’s in this ‘propriety blend’ of probiotics.’”
Prescott pointed to best practice guidance on probiotic labeling recently published by the Council for Responsible Nutrition (CRN) and the International Probiotics Association (IPA), which can “help a great deal to provide consumers the needed information when selecting a probiotic,” he said. “The guidance asks brand owner to include important information on their labels like strain ID/names and total CFU on their packaging.
“Probiotic consumers are becoming more educated every year, but there is still a great deal of confusion when selection a product that is right for them,” Prescott said.
Additionally, product developers should be aware of where the finished product will be marketed, as claims for some strains aren’t allowed in certain markets. “For instance, there are strain species allowed in Asia, but not in Europe or the United States,” said Alan Rillorta, marketing head at AIDP, and Paul-Marie Xavier, technical and business development at Prayon, THT. “This is an important issue to know if you when positioning your product globally.”
Ultimately, as Bush suggested, marketing probiotics is about more than selling a product. “Your goal is to educate the consumer to the point where they fully understand the benefits, understand what it is they’re buying and why they’re buying it.”
Marketing
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The Microbiome Begins Here!
13 INSIDER Probiotic Market Trends Digital Magazine July 2017
IN THIS ISSUE Marketing p.6 Market Opportunities p.17 Table of Contents p.2
The global market for probiotic ingredients in 2017 is valued at US$36.6 billion. This is predicted to exceed $64 billion by 2023, according to Global Market Insights Inc. Dairy accounts for 69 percent of the probiotics market, baby food 12 percent, health care 8 percent and desserts, ice cream and snacks 2 percent each. Other emerging categories in food with probiotics include juice drinks, bakery, chocolate confectionery and savory spreads (Mintel Global New Products Database).
Scientists have verified probiotic bacteria play a critical role not just in helping maintain a good digestive function, but they have a larger role in keeping the body healthy. As the importance of a healthy gut microbiota in keeping us healthy becomes better understood and the message reaches to more people, demand for probiotic-based food products will rise.
Fermented foods, many of which contain probiotic bacteria have been part of our diet since ancient times. Yogurt and yogurt-related drinks have formed an integral part of the diet of Asian Indians since the emergence of settled life. An association of probiotics and wine has also been made by some.
Traditional food such as kimchi from Korea, kefir (a yogurt-based drink from Russia and Turkey), kombucha (fermented carrot pickle drink common in North India), sauerkraut, etc., are fermented food and drink that form part of the traditional food of people across the globe.
Product Trends
Probiotic Product Trends by Sudhir AhluwaliaINSIDER's Take
Dairy, baby food, health care products, desserts, ice cream and snacks are leading categories for probiotics.
Emerging categories in food with probiotics include juice drinks, baked goods, chocolate confectionery and savory spreads.
Many probiotics food product innovations contain prebiotics, which help build the gut environment wherein microbiota flourish.
Other emerging categories in food with probiotics include
Probiotics Market
Source: Mintel Global New Products Database
Juice Drinks Bakery Chocolate Confectionery Savory Spreads
Dairy
69%Baby Food
12%Health Care
8%Desserts
2%Ice Cream
2%Snacks
2%
14 INSIDER Probiotic Market Trends Digital Magazine July 2017
In September 2016, Tropicana launched a range of probiotic juices. A year prior, the juice brand Suja introduced a range of probiotic waters in the U.S. market. Chocolate bars containing lactobacillus and bifidobacterium probiotic bacteria have also been introduced.
Dark chocolate is said to improve gut microflora. Chocolate has been found to be a potential protective carrier for oral delivery of probiotic bacteria (Int J Food Microbiol. 2010;141(1):97-103).
Plant-based probiotic kale and broccoli poppers have been introduced by Brad’s Plant in the U.S. market. Probiotic spaghetti products introduced in Iran, muesli with probiotics in India, pancake and waffle mix with ancient grains in Puerto Rico, and durum wheat semolina spaghetti containing probiotic bacteria are some other examples of innovative non-dairy probiotic products being sold in different parts of the world.
In the dairy product space, beyond yogurt, baby food, ice cream and desserts, and fermented foods are becoming the target for innovation. Cottage cheese with live and active cultures of probiotic bacteria including Streptococcus thermophilus has been introduced.
Kefir probiotic-fermented milk under different brands is available. The scientific evidence in support of probiotic foods has mounted over the years. Food product manufacturers are leveraging this evidence to produce and market innovative snack and beverage products to health-conscious consumers in different parts of the world.
The pace of innovation in health products is rising. It is just a matter of time before consumers will be spoilt for choice. An entire range of probiotic fermented vegetables, waters, fruit and dairy ingredients have been developed. These products carry labels like “live and active cultures.”
Probiotic product innovation is expanding beyond food. Probiotic toothpastes and mouth rinses containing lactobacillus bacteria have been introduced into the Chinese market. A scientific analysis on the ability of these products to prevent oral infectious diseases such as caries and periodontal disease have been conducted and initial results appear positive (Medicinski glasnik. 2017;14(1):139-144).
Product Trends
In the dairy space, beyond yogurt, baby food, ice cream and desserts and fermented foods are becoming the target for probiotic innovation.
15 INSIDER Probiotic Market Trends Digital Magazine July 2017
Many of the probiotics food product innovations contain prebiotics. Prebiotics are fiber-like ingredients that help improve bowel movement, and help build the gut environment wherein microbiota flourish. Prebiotics-based products carry labels like “contains inulin fiber” or “fiber helps to improve intestinal transit.” Another prebiotic gaining popularity is galactooligosaccharides. These have been shown to improve bowel function (Scandinavian J Food Nutr. 2007;51(2):62-66).
Popular probiotic and prebiotic combination products encountered in traditional Asian and Asia Pacific cuisine include:
As the understanding of role of probiotics and prebiotics combination foods increases, food manufacturers are coming up with new and innovative products suitable and specific to palates of different parts of the world.
Given the growing popularity of probiotics, a good percentage of the new packaged foods and snack products will likely contain prebiotic and probiotic bacteria combinations.
Sudhir Ahluwalia is an author. His latest book is on herbs of the Bible. “Holy Herbs:
Modern Connections to Ancient Plants” is available in paperback and Kindle editions in
North America and in book stores in India. He is an former member of the Indian Forest
Service, Tata Consultant and a freelance columnist. He writes on natural products and
technology.
Product Trends
Yogurt or kefir and honeyYogurt or kefir with honey
and acacia gumBeans and picklesYogurt, source cream
or kefir with garlicFeta cheese and onionsYogurt with oatsGreens sautéed with garlic
and sour cream
Kombucha with chia seedsKombucha with acacia gumYogurt or kefir with chia seeds, acacia
gum and honeySour pickled onions
and pickled garlicSour pickled asparagus
*This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
UASLabs | The Probiotic Company® | www.uaslabs.com | 800.422.3371
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17 INSIDER Probiotic Market Trends Digital Magazine July 2017
IN THIS ISSUE Product Trends p.13 Takeaways p.22 Table of Contents p.2
The revolution has begun. A revolution in wellness and consumer products that is opening a new approach toward human health. Perhaps This is an inflection point in the evolution of health and nutrition.
Change the Microbiome, Change HealthToday more credible, “establishment” research is discovering the role
of the human microbiome in disease, and how changing the bacterial ecosystem can have profound benefits in health and wellness. Quite simply, our bacterial make-up can change our physiology, and we have the capability to identify specific strains of bacteria that can produce these targeted effects.
With the adoption of DNA sequencing, a new world has opened, allowing researchers to identify specific strains of bacteria. Combined with the informatics revolution, mass data gathering projects such as The Human Food Project, Human Microbiome Project and others are mapping the role of the diverse microbial environment to changes in health.
When looking at the diversity of bacteria in the microbiome of isolated humans who have had little to no contact with “Western society,” researchers can compare against other cultural and geographic populations. The findings suggest that what we eat and our lifestyle characteristics play a significant role in our health. Reducing the diversity of bacteria in our microbiome has a detrimental effect on our health.
Our diet and lifestyle affect the make-up of our microbiome. Processed foods and loss of biodiversity in the diet are changing the microbiome of many populations; there is truth to the “western diet/chronic disease” link. Processed foods and the so-called “Western diet” remove many phytonutrients heretofore thought to be unimportant. Today, our diet has dramatically reduced the biodiversity of foods we grow and eat. This reduced biodiversity dramatically diminishes the diversity of the bacteria species in our gut, as each bacteria species uses certain foods to proliferate.
Researchers are finding a link between certain strains of bacteria (or lack thereof) and a propensity toward chronic diseases. We’ve known for some time that microbes perform essential functions in the body such as digesting food and synthesizing nutrients. But we are now learning that unique bacterial strains are linked to specific
Market Opportunities
Emerging Probiotic Opportunities by Peter Leighton
INSIDER's Take
Reducing the diversity of bacteria in our microbiome has a detrimental effect on health, and can lead to inflammation and other chronic health conditions.
One intriguing and potentially important area of research around the microbiome is in obesity.
Increasing evidence places gut microbiota as important modulators of the crosstalk between diet and development of obesity and metabolic dysfunction.
18 INSIDER Probiotic Market Trends Digital Magazine July 2017
metabolic functions,1 and the gut microbes to a wide range of health conditions such as obesity,2,3 cardiovascular disease (CVD),4,5 high blood pressure6,7 and even autism,8 anxiety and depression.9,10,11 Some species are demonstrating an ability to increase physical performance. The bottom line is the human microbiome has profound consequences for our health—something we didn’t fully understand until recently.
One of the most intriguing and potentially important areas of research is in obesity. Rob Knight, Ph.D., professor in the Department on Pediatrics at the University of California San Diego, explains, “I can tell you with 90 percent certainty if you’re lean or obese based on your microbiome. If I was going on human genes alone, the accuracy would be 57 percent.” Knight, a member of the Steering Committee of the Earth Microbiome Project and co-founder of the American Gut Project, cited work12 by Jeffrey Gordon and his group at Washington University in St. Louis, which reported microbial populations in the gut are different between obese and lean people, and that when the obese people lost weight their microflora reverted to that observed in a lean person, suggesting that obesity may have a microbial component.
It’s important to remember the bacterial make-up of our gut is interacting with us in ways that drive our biology. As bacteria eat food, they secrete metabolites and by-products that affect hormones and a host of biological activity including metabolism. Perhaps we should question whether it’s us who crave the unhealthy foods, or our bacteria. But we are starting to see that by changing the make-up of bacteria in our gut, we can reduce the cravings for these “bad” foods and certainly the metabolic effects they produce.
Since so much of the cells in our body are bacterial, and these bacteria cells proliferate based upon the foods they prefer, many scientists are speculating the Western diet is accelerating the growth of “bad” bacteria species, which compete against “good” bacteria. For example, with an abundance of simple carbohydrates and saturated fats, certain bacteria gain an advantage and overpopulate the gut, limiting the growth of more healthy bacteria, and perpetuating the biological signals to eat more of the same.
Understanding that bacteria from a healthy donor can colonize and treat a sick patient (the most successful treatment of Clostridium difficile [C. diff] is a process known as fecal microbiota transplant), and noticing that the bacterial make up of overweight people is significantly different than those who are “thin,” scientists used germ-free mice to study how the microbiome can affect weight and obesity.12 The objective was to identify strains that affect weight gain and metabolism. They showed microbial changes encourage increased consumption of “bad” types of foods.
Scientists believe the widespread use of antibiotics may be playing a significant role in exacerbating the obesity epidemic. Previous work has already established a difference in the gut bacteria of lean and overweight people, but the latest research is lending support to the controversial idea that bacteria-killing antibiotics may be playing a role in predisposing some people to being fat.
Market Opportunities
19 INSIDER Probiotic Market Trends Digital Magazine July 2017
Diabetes, obesity and metabolic syndrome are multifactorial diseases dependent on a complex interaction of host genetics, diet and other environmental factors. Increasing evidence places gut microbiota as important modulators of the crosstalk between diet and development of obesity and metabolic dysfunction. In addition, host genetics can have important impact on the composition and function of gut microbiota. Indeed, depending on the genetic background of the host, diet and other environmental factors may produce different changes in gut microbiota, have different impacts on host metabolism and create different interactions between the microbiome and the host.
A New Consumer ApproachAccelerating scientific research in the areas of the human
microbiome and probiotics is attracting money and leading to greater scientific and commercial value. These initiatives are gaining attention and illustrate the tip of a probiotic iceberg. Furthermore, growing media attention about the role of the microbiome and probiotics is educating the public and changing the narrative about health and wellness.
Consumers are empowered, educated and ready to act on this new approach to health and wellness. In fact, 81 percent of Americans identify probiotics as the most important nutrient to take, according to the International Food Information Council Foundation (IFIC). This is demonstrated in the accelerating growth of probiotic sales.
The probiotics market is predicted to exceed $64 billion by 2023, according to 2016 data from Global Market Insights. IBISWorld reported global consumption of probiotics is more than three times that of omega-3, making probiotics the most successful functional ingredient in FDM after vitamins and minerals. The market for probiotic food & supplements is already greater than $35 billion in the United States, per Nutrition Business Journal. According to Packaged Facts, probiotics are one of four major trends driving supplement sales. Sales of probiotics were the fastest growing of all supplements in 2014, climbing 22 percent.
About 9 percent of Americans—15.3 million—currently take probiotic supplements, according to the Council for Responsible Nutrition’s (CRN) 2016 Consumer Survey on Dietary Supplements. More than 50 percent of supplement shoppers
Market Opportunities
81% of Americans identify
probiotics as the most important nutrient to take,
according to the International Food Information
Council Foundation (IFIC)
The probiotics
market is predicted to exceed
$64 billion by 2023, according to 2016 data from
Global Market Insights.
20 INSIDER Probiotic Market Trends Digital Magazine July 2017
regularly buy probiotics, 22 percent are lapse users and only 27 percent are non-users of probiotic supplements. According to Euromonitor International, sales of probiotic supplements are set to outpace all others throughout 2020.
Since advanced gene sequencing allows us to identify bacterial strains that have specific functional benefit, we can isolate and cultivate these strains. This new revolution opens the door to advanced functionally targeted probiotic products, providing consumers an ability to replenish depleted colonies of specific strains, to proactively bring them into a healthier state of balance. Viva la revolution!
Peter Leighton is the founding partner of Abunda, an integrated consulting group. Leighton brings 30 years
experience in consumer products, nutraceuticals and biotechnology. Responsible for some of the most
successful brands on the market, Peter has been a thought leader in the areas of functional foods and science-
based nutraceuticals. Leighton has held senior executive positions including vice president of product strategy
at Complete Nutrition, CEO at Advana Science, vice president of marketing and product development at Natrol
(NTOL), vice president at Galileo Laboratories, vice president of marketing at Metabolife, senior vice president of
marketing at Weider Nutrition (WNI) and director of marketing at InterHealth Nutraceuticals.
References
1. Martin FP et al. “Probiotic modulation of symbiotic gut microbial–host metabolic interactions in a humanized microbiome mouse model.” Molecular Systems Biology. 2008;4(1):157.
2. Ussar S, Fujisaka S, Kahn C. “Interactions between host genetics and gut microbiome in diabetes and metabolic syndrome.” Mol Metab. 2016;5(9):795-803.
3. Ridaura V et al. “Gut microbiota from twins discordant for obesity modulate metabolism in mice.” Science. 2013;341(6150):1241214.
4. Wang Z et al. “Non-lethal Inhibition of Gut Microbial Trimethylamine Production for the Treatment of Atherosclerosis.” Cell. 2015;163(7):1585-1595.
5. Kwan Chan Y et al. “Probiotic mixture VSL#3 reduce high fat diet induced vascular inflammation and atherosclerosis in ApoE−/− mice.” AMB Express. 2016;6:61.
6. Hasegawa H et al. “Effects of telmisartan and losartan on cardiovascular protection in Japanese hypertensive patients.” Hypertension Research. 2011;34:1179–84.
7. Khalesi S et al. “Effect of probiotics on blood pressure: a systematic review and meta-analysis of randomized, controlled trials.” Hypertension. 2014 Oct;64(4):897-903.
8. Hsiao E et al. “The microbiota modulates gut physiology and behavioral abnormalities associated with autism.” Cell. 2013;155(7):1451-1463.
9. Denou E et al. “The Intestinal Microbiota Determines Mouse Behavior and Brain BDNF Levels.” Gastroenterology. 2011;140(5):S-57.
10. Desbonnet L et al. “Effects of the probiotic Bifidobacterium infantis in the maternal separation model of depression.” Neuroscience. 2010 Nov 10;170(4):1179-88.
11. McKean J et al. “Probiotics and Subclinical Psychological Symptoms in Healthy Participants: A Systematic Review and Meta-Analysis.” J Altern Complement Med. 2017 Apr;23(4):249-258.
12. Turnbaugh P et al. “An obesity-associated gut microbiome with increased capacity for energy harvest.” Nature. 2006;444:1027-1031.
Market Opportunities
Is Your New Innovative Product a Game Changer? Tell Us About it.The 6th Annual SupplySide CPG Editor’s Choice Awards will recognize innovative finished product launches from CPG companies in a variety of categories. All finalists will be showcased through the SupplySide Global Health & Nutrition Network brands and winners will be announced at SupplySide West 2017 in Las Vegas.
If you’ve recently launched a cool, innovative finished product you think should be recognized – we want to hear about it and its unique value to consumers!
Nominate your product today at west.supplysideshow.com/en/cpg-awards
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22 INSIDER Probiotic Market Trends Digital Magazine July 2017
IN THIS ISSUE
Among Americans, younger consumers tend to be most interested in probiotics. According to 2016 GlobalData research, 66 percent of consumers aged 25 to 34 years reported interest in products that contain probiotics and reported actively buying such products, compared to 38 percent of Americans of all ages.
However, per GlobalData’s 2017 Q1 survey, 85 percent of women aged 45 to 54 years said probiotics had a positive impact on health, representing the highest reading for any age group of women. Sixty-eight percent of men between the ages of 55 and 64 years said they thought probiotics had a positive impact on health, representing the highest reading for any age group for men. “These results could pave the way for more new product innovation aimed at older consumers,” Tom Vierhile, innovation insights director at GlobalData, said.
Currently, children are a focus for probiotic innovation, which could be the result of increased interest in probiotics by parents. Vierhile pointed to 2016 research from GlobalData showing parents, those with a gross income of $100,000 or higher and between the ages of 25 to 34 years “are the real sweet spot for probiotics,” he said, adding that, among these consumers, nearly 75 percent reported they are interested in and actively buying products with probiotics.
Probiotic innovation is happening across food, beverage and supplements categories. In the supplements category, products containing pre- and probiotic content are
seeing impressive growth. Such products saw 32 percent growth in the past year, compared to 9 percent growth of probiotic-only products, according to SPINS. Further, the firm reported growth of multiple-strain probiotic products is outpacing that of single-strain products, representing 11.6 percent growth in the past year compared to 3.5 percent.
Two categories accounting for more than one-third (37.5 percent) of launches of products containing probiotics from 2016 to July 2017 are functional drinks and yogurt. Recent innovations include probiotic juices launched by Tropicana in 2016, probiotic waters introduced by Suja, chocolate bars containing lactobacillus and bifidobacterium probiotic bacteria and snacks such as plant-based probiotic kale and broccoli poppers introduced by Brad’s Plant in the U.S. market.
Researchers are finding a link between certain strains of bacteria (or lack thereof) and a propensity toward chronic diseases. One of the most intriguing and potentially important areas of research is in obesity.
However, while consumers know probiotics are good for digestion and immunity, consumer knowledge of specific benefits related to probiotics is fuzzy. For this reason, marketing and communication is critical to ensure consumers are aware of the increasingly diverse benefits of probiotics.
Market Opportunities p.17 INSIDER Contacts p.24 Table of Contents p.2
Takeaways for Your Business
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