The global market for probiotics is mainly driven by high demand for probiotic yogurt and growing consumption of functional food. Growing consumer awareness regarding gut health has played a key role in sustained growth of these ingredients. However, pricing issues, culture cultivation and lack of standardization of product specifications are expected to have an inhibiting effect on market growth over the next five years.
Probiotic foods & beverages are the dominant segments the global market and are expected to grow at a CAGR of 6.8% from 2013 to 2018. Probiotic demand for food & beverage segment is estimated to reach USD 37.9 billion in 2018. Following food and beverages, the market for dietary supplements and animal feed are also witnessing significant growth.
With respect to application segments, probiotics are widely used in dairy, non-dairy, cereals, baked products, fermented meat products, dry foods and others. Dairy products are the largest application market for probiotic foods. Probiotic demand for dairy products is estimated to reach USD 32.2 billion in 2018, growing at a CAGR of 6.8% from 2013 to 2018. Probiotics have also emerged as a critical part of the animal feed industry. Probiotic demand for animal feed applications is estimated to cross USD 3 billion by 2018.