United States Probiotics Market is valued at USD 4 billion in 2018 and is expected to grow at the CAGR of 12% within the time period of 2017-2022 because of the increasing demand and high acceptance of these products.

However, lacking shreds of evidence regarding its safety and efficacy as well as unspecific regulative policies might restrain its growth.

• Definition / Scope
• Market Overview
• Market Risks
• Top Market Opportunities
• Market Trends
• Industry Challenges
• Technology Trends
• Pricing Trends
• Regulatory Trends
• Other Key Market Trends
• Market Size and Forecast
• Market Outlook
• Technology Roadmap
• Distribution Chain Analysis
• Competitive Landscape
• Competitive Factors
• Key Market Players
• Strategic Conclusion
• References
• Appendix

Definition / Scope

Probiotics are live health friendly microorganisms which are linked with the number of health benefits such as improved digestion, the enhanced immune function by maintaining intestinal microbial balance in the human body. However, some severe side effects such as infections are also reported among individuals with impaired immune function and underlying medicals conditions.

They are usually bacteria such as Lactobacillus, Bifidobacterium and yeasts which are consumed as foods products (yogurts, cheeses, kimchi) and dietary supplements in the form of capsules, tablets, powders, and gel.

Here, probiotic yogurt is preferred by most of the consumers. The probiotics market is comprised of the multiple segments on the basis of the composition, application, and functions which are categorized as follows:

Market Overview

The United States has the largest probiotics market in North America followed by Canada. In this context, it’s market value was USD 4 billion in 2018 and expected to grow at a high rate exceeding a CAGR of 12% during the time period of 2017-2022.

It is one of the fastest growing industry due to the high acceptance and the fastest rise in the demand of food-based probiotics in the region.  

Market Risks

Unregulated Probiotics Market

In the US, the Food Safety and Applied Nutrition Department of Food and Drug Administration is directing the probiotic market. According to the law developed by the FDA, the manufacturers are obliged to submit evidence regarding the safety of the product before marketing.

However, if the dietary ingredient was marketed before 1994, then it isn’t necessary to provide evidence of the safe use of the ingredient. As a result, these companies are free to market the product without safety evidence. This dysregulation might create a risk for the quality of the product.

Along with this, the FDA had concluded that half of the supplements manufacturing facilities them had violations to the law and were failed to identify the purity and strength of their supplements. As a result, it might distort public trust and create the risk to market growth.

Diverging shreds of evidence regarding the benefits of probiotics

There are contrasting pieces of evidence regarding the positive preventive health changes associated with the probiotics. Millions of people are using probiotics with the goal of maintaining and restoring their health.  

However, in a systematic review it has been concluded as almost 2% of clinical trials have reported harm among the individuals. Along with this, the study conducted among breastfeeding mother had shown that the consumption of probiotics wasn’t associated with better health outcomes among children and even the cohort with probiotic exposure have a higher incidence of mucosal illnesses. 

It indicates the contrasting research evidence on probiotic use, which can be the risks to the market players in this market.

Top Market Opportunities

• High level of consumer awareness about probiotics

In 2017, almost 76% of healthy consumers were aware of the benefits of probiotics and 75% of them reported interest in buying the probiotic product. This situation creates a better opportunity for the growth of this market.

• Focus on Preventive Healthcare services

A survey conducted among 2,800 people aged 35 years and above in the US has found that more than 20% of them received more than 75% of recommended preventive health services and almost 8% has got all services. 

This indicates that people are concerned with the prevention of the disease and focused on preventive care which might be due to the high rising cost of the health care sector. Use of probiotics is a part of the preventive care which create a wonderful opportunity for the promotion of this market.

• High use of dietary supplements and natural products

National Health and Nutrition Examination Surveys and Health and Diet surveys conducted in the US have concluded that almost 49% of the total population is estimated to use dietary supplements. It creates a favorable environment for the use of the probiotic supplements in the near future too. It is a wonderful opportunity for the market players.

Market Trends

• Rising health problems

Majority of the people are affected by diverse health conditions such as obesity, vaginal infections, digestive issues, lactose intolerance, etc. In the US, almost 70 million adults are suffered from digestive issues.

• Preventive and curative benefits of probiotics

The probiotics are well-known to provide the range of benefits for the prevention and treatment of disorders such as lactose intolerance, inflammatory bowel diseases, food poisoning, etc. Along with this, studies have shown that they are beneficial to deal with the high-stress level, nutritional disorders and aging problem. Here these benefits drives the demand of the probiotics and its market.

• Increasing use of the probiotics

National Health Interview Survey had shown that almost 3.9 million US Adults are using the probiotics, which is four times higher than that of consumption than in 2007. It indicates increasing its use at 4% within 5 years. It is rising the demand for the product and driving the growth of the market.

• Wider access to probiotic dietary supplements

At present, more than 500 dietary products enriched with the benefits of the probiotics are launched with the greatest acceptance among the public. It will increase the access and use of these supplements.

• Extended application of probiotics

Along with human health benefits, probiotics are known to provide the benefits in terms of agriculture and animal husbandry, which might broaden its market scope and growth. For example, probiotics are known to improve the intestinal microbial balance in the animals and improve animal performance by enhancing milk production and health of young calves.

• Safety concerns associated with the use of probiotics

It has been considered that in some of the individuals with impaired immune function some side effects were observed. For instance, diabetic women developed the condition of liver abscess related to the Lactobacillus after consuming it and children with indwelling central venous catheters developed sepsis with it. so, the safety issues associated with the consumption of the probiotics is restraining the growth of its market.

• Stringent regulations

In the context of the US, there are no existing governmental standards for the probiotics and they are considered to hold the status of ‘generally regarded as safe’.Till now, the government hasn’t approved the preventive and therapeutic claim of probiotics and this statement may restrain the growth of its market.

• Lack of fermented food choices

Very few food choices in terms of flavor are available in the US market. This may create the issue in preferences towards the use of the probiotics, which might hinder its growth. 

Industry Challenges

• Product Innovation

In the probiotics market, the companies need to focus on the development of the various strains of micro-organisms which are capable of providing multiple health benefits for different age groups and gender. It would be a challenge for their development.

• High market fragmentation

The probiotics market is fragmented on the basis of a variety of factors such as application, composition, end use, etc. For example, over the application, it can be food and beverages or dietary supplements while over the function it can be therapeutic or preventive use. so, the companies should follow strategies such as innovative products, joint venture, partnership, etc in order to sustain in the market.

Technology Trends

Advancement in science and technology is opening numerous opportunities for the development of a variety of probiotic products. Previously, it was quite difficult to grow most of the gastrointestinal microbes in the laboratory conditions but at the present context, development of new technology using DNA analysis has made the metagenomics possible in the practical field.

Along with this, technology can be used to study the diversity of microbial inhabitants, safety, health effects and efficacy of probiotic products. Furthermore, in the upcoming future, it is expected that it will bring numerous changes in the products and its market structure.

Pricing Trends

In the context of the regions of North America, the total retail value of the probiotics was USD 16.73 billion in 2018. Among these, almost 30% of the value is shared by probiotics supplements such as yogurts, kimchi, etc.

The price of Evivo, baby probiotics refill is USD 2.86 per count in the US while the price of Visbiome, a high potential probiotic is USD 1.13 per count in 2019. Here, the price of the product depends upon the bacterial count, their level of potency and type of strain of microorganism.

Regulatory Trends

Most of the probiotics are regulated as dietary supplements by FDA under the Dietary Supplement and Health Education Act 1994. Besides this, the probiotics containing dietary supplements are controlled by the following regulations:

• US Food and Drug Administration

It regulates the safety and health claims of the dietary supplements products.

• Federal Trade Commission

It is responsible for the regulation of the advertisement of the products. However, at present, there are no existing government standards specific for the regulation of the probiotics market.

Other Key Market Trends

In the probiotics market, there is quite a variation in the segments of the market over the application, composition, and end-users. For instance, on the basis of the application, the food and beverages dominate the market and are expected to grow at a high rate.

Market Size and Forecast

Globally, the market value of probiotics was estimated as USD 48.8 billion in 2018 and is expected to reach USD 64.02 billion by 2022 because of the rising health concerns and efficacy of health benefits of probiotics. 

In the context of the United States, the value of this market was valued at USD 4 billion in 2018. It is forecasted as one of the fastest growing industry due to the high acceptance and the fastest rise in the demand of food-based probiotics in the region. 

Market Outlook

Globally, this market is projected to grow to USD 57.4 billion by 2022 from USD 32.06 billion in 2013, which is making it one of the fastest growing market. It is growing with a CAGR of 7.7% during the time period of 2016-2022. Within the region of North America, the market is projected to rise with the highest CAGR of 7.04% during the time period of 2018-2023.

In the US, it is expected to grow at a high rate exceeding a CAGR of 12% during the time period of 2017-2022. 

Technology Roadmap

Technology has a direct impact on the growth and development of the probiotics market. Because of the advancement in technology such as the ability for the DNA analysis, synthesis, it has been possible to study about the variety of strains and characteristics of microbes with the capability to maintain digestive system and whole body immune system balance.

Along with this, innovative microbes similar to the gut of the human body with an ability to acts as normal floras can be developed.

Distribution Chain Analysis

For the distributions of the probiotics market following stakeholders are engaged in it:

• Microbe culturing and developing industries
• Microbe technological companies
• Development and research industries working for the innovation in the probiotic market
• Retail sales

Competitive Landscape

Although there are many small probiotics distributors in the US, there are few fermentation companies and probiotics are imported from outside and packed in the country. It is highly competitive because of the presence of well-established industries involved in the production of the probiotics 

The probiotics market is segmented over the composition, function, application, and end use of the product. By composition, it is segmented as yeast and bacteria while by the application it includes food and beverages, dietary supplements and nutrients.

It is comprised of prevention and therapeutic parts on the basis of the function. Here, food and beverages are leading the market with 84.1% revenue share and increasing at the rate of CAGR 8.2% within the forecasted time period of 2018-2023. 

While animal probiotics market under the category of the end-user has the smallest share with about 15% of the total market in 2016.

Competitive Factors

In the probiotics market, the companies are competing on the following factors:

• Development of multiple strains of the microbes

At present, industries are more focused on the development of the microbes with a versatile ability to provide multiple health benefits to the diverse group of the population in terms of gender and age.

• Research activities to establish safety and efficacy of the probiotics

In order to deal with the risk of concerns regarding the efficacy of the product, the companies might be concerned about the safety of their products among all groups of the population.

Key Market Players

The key market players of the US probiotics market are Evolve Biosystems, Oragenics, Nextfoods, etc. Some of them are described in tabular form as follows:

Strategic Conclusion

US probiotic market is in the growth stage with CAGR of 12% and is one of the fastest growing markets.

Increasing health issues focus on preventive care and demand of the probiotics is creating the fruitful environment for the growth and development of this market. In spite of this, limited source of information on the efficacy of these products might create obstacles on the way to its flourishment.

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Appendix

• FDA= Food and Drug Administration
• AOB= Ammonia-Oxidizing Bacteria
• USD= United States Dollar