Industry Outlook

Prebiotics market projected to exhibit the CAGR of 10.8% during the forecast period from 2021 to 2029. Prebiotics are functional ingredients that stimulates the growth of favorable bacteria’s present in the gut to facilitate digestion system. Prebiotics also facilitate the immune system, mitigate the risk of cardiovascular disease, and helps in improving gut health, thereby improving overall health of the host. Prebiotics are among the key ingredients in functional food industry. Prebiotics stimulates the growth of the bacteria present in the gut, and hence helps in metabolism. Rising awareness regarding the benefits associated with prebiotics coupled with rise in the consumption of functional food especially in developed economies expected boost the prebiotics demand across the globe during the forecast period. Other factors such as high market penetration of high-nutrition and low-calorie processed food products, easy availability of low-cost raw materials, increasing chronic disease among people globally, persistent problems of obesity among the rising youth population, steady growth of dietary supplements and ban on the use of antibiotics in animal feed and multiple health benefits associated with prebiotics for animals fuelling the use of prebiotics in food and feed industry. Increasing demand for prebiotics, motivating manufacturers to find a new and economical source of prebiotics compared to commercially available prebiotics. However, the demand for prebiotic products has been restricted owing to presence of competitive ingredients with the same common objective of improving body functionality by enhancing the enzymes produced by microorganisms inside the body. Moreover, stringent government regulation regarding the approval and usage of prebiotics in different food products might hamper the market growth in coming years.

Europe was the leading region in prebiotic market in 2020. Rising demand for functional foods among consumers in the region boosting the market growth. Prebiotics as a dietary supplements is gaining traction owing to rising focus on preventive healthcare coupled with ban on use of antibiotics in animal feed in the region driving the overall market growth. Some of the key players operating in the market includes Beneo-Orafti SA (Belgium), Cargill Inc. (US), Jarrow Formulas, Inc., (US), Beghin Meiji (France), Clasado Ltd. (England), and Abbott Laboratories (US) among others.

"Inulin Segment Dominated the Prebiotics Market"

Inulin occupies top position in the list of prebiotics because of their availability from a wide resources with minimum cost involvement. Inulin and its different forms are present in a wide variety of plants as natural storage carbohydrates. Growing demand for inulin from drinks and baked goods expected to catapult the market growth. Inulin is the most extensively used prebiotics in animal feed due to its diversified health benefits such as slowing & improving digestion process, increasing fullness, etc. Chicory is a major source of inulin and oligofructose that are used in functional food. Moreover, it is easily available from various natural source thus making it widely used ingredient in various application.

Mannan-oligosaccharides (MOS) segment projected to be the fastest growing segment. Growth of the segment is augmented by large number of key consuming economies such as U.S., Canada, China, India, South Korea, etc.

"Increasing Demand for Functional Food Making Food & Beverages the Leading Application Segment of Prebiotics Market"

Food & Beverages segment accounted for more than 55% of global prebiotics demand in 2020. Prebiotics find promising application in the food and beverages products such as dairy products, nutritional supplements, infant formula, energy drinks and so on to enhance the taste, texture, and nutritive value of the food products. Moreover, rising popularity of healthy energy drinks among consumers over conventional carbonates also promote the use of prebiotics in food and beverages, thereby propelling the segment development. High consumption of dairy products in emerging economies, such as China and India, also bolstering the segment growth.

Animal feed application segment is identified as the fastest growing market during the forecast period. The rise in global meat consumption and ban of antibiotics as growth promoters in animal feed are the factors driving the growth of this market.

"Europe Led the Global Prebiotic Consumption In 2020"

Europe is the largest market in terms of value and volume consumption of prebiotics ingredients, globally. U.K. dominates the European market in terms of value and volume consumption, followed by Germany and France. In Europe, demand for prebiotics ingredients remarkably varies from country to country due to different preferences, traditions, enforced legislation, and cultural heritage of the consumers. Consumers are generally open towards functional food for reasons of health and well-being, but with taste also being an important growth factor for prebiotics market in Europe. Also, Europe ban on antibiotics in animal feed further escalating the demand for prebiotics in the region. Strict regulations and government uncertainties on health claims made on food (and the related approval process) may hamper the development of this market and can act as an entry barrier for new companies. Asia-Pacific expected to witness fastest growth during the forecast period owing to rising consumer awareness of health and fitness, growing baby boomer population, changing lifestyle patterns, increasing urbanisation and huge consumption of dairy products fuelling demand for prebiotics from Asia-Pacific food &  beverages industry.

"Cargill Inc. is the leading Player in Prebiotics Market"

Prebiotics market is highly competitive owing to presence of large number of established players such as Friesland Campina Domo, Roquette Freres, Jarrow Formulas, Inc., Abbott Laboratories, Cargill Incorporated and others. On account of rising demand for prebiotics in different application key players are aggressively investing on R&D and geographic expansion. Moreover, players have undertaken several business expansion strategies, such as M&A and new product development, to meet the increasing demand from food and beverages sector. For instance, to expand its offering of animal health and wellbeing focused feed additives, Cargill Inc., acquired Diamond V in November, 2020.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Prebiotics market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Prebiotics market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Prebiotics market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Prebiotics market?
• Which is the largest regional market for Prebiotics market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Prebiotics market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Prebiotics market worldwide?