trends, innovations and opportunities driving the global...

TRENDS, INNOVATIONS AND OPPORTUNITIES DRIVING THE GLOBAL PROBIOTICS MARKET

MATTHEW OSTER, HEAD OF CONSUMER HEALTH RESEARCH, EUROMONITOR INTERNATIONAL

JUNE 8, 2017

© Euromonitor International

2

Euromonitor International

EUROMONITOR INTERNATIONAL

http://www.euromonitor.com/

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


5

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



6

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



7

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



8

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


Total Probiotic Yoghurt

Sour Milk Products



9

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



10

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%


Asia Pacific

29%

63%

8%



Total Probiotic Yoghurt

Sour Milk Products



11

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



12

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



14

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


Fastest Growing Supplements 2016-2021, % Growth

World North America



15

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



16

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



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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



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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

[email protected]

https://www.linkedin.com/in/matthew-oster-39815a82/

Euromonitor International

224 South Michigan Ave. Suite 1500

Chicago, IL 60604

mailto:[email protected]






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