Global Probiotic Wellness Drinks Market - 2024-2031

Overview

The Global Probiotic Wellness Drinks Market reached US$ 812.1 million in 2023 and is expected to reach US$ 1,899.9 million by 2031, growing with a CAGR of 12.9% during the forecast period 2024-2031.

The growing awareness of the importance of gut health and its impact on overall well-being is driving consumer demand for probiotic wellness drinks. Consumers are becoming more educated about the benefits of probiotics in supporting digestive health, boosting immunity, and enhancing mental well-being. This heightened awareness is fueling market demand for functional beverages that provide these health benefits.

The market is witnessing a surge in product innovation and diversification. Manufacturers are developing a wide range of probiotic wellness drinks that cater to different tastes, dietary preferences, and health needs. Innovations include dairy-free options, flavored beverages, and products fortified with additional nutrients such as vitamins, minerals, and plant extracts. This diversification is expanding the market's appeal to a broader consumer base.

For instance, on February 28, 2024, NextFoods, a pioneering company at the forefront of holistic health solutions, launched its flagship brands, GoodBelly and Cheribundi. Known for their scientifically supported products that enhance quality of life, these brands merged under NextFoods in 2023. The new products will debut at booth #N722 during Natural Products Expo West 2024, where they are honored as finalists for the prestigious NEXTY Award in the Best Functional Food or Beverage category.

There is an increasing awareness among North American consumers about the importance of health and wellness, particularly gut health. This heightened awareness is driving demand for probiotic wellness drinks as consumers seek out functional beverages that offer digestive health benefits and boost overall well-being. This trend is significantly impacting market growth, with more consumers integrating probiotic drinks into their daily health routines.

Dynamics

Expansion of the Functional Beverage Sector

There is a growing consumer preference for beverages that offer health benefits beyond basic hydration. Functional beverages, including probiotic wellness drinks, appeal to health-conscious consumers seeking convenient ways to improve digestive health, boost immunity, and promote overall well-being. This increasing demand drives market growth as manufacturers expand their product offerings to meet these evolving consumer preferences.

The functional beverage sector continues to innovate with new product formulations that incorporate probiotics. Probiotic wellness drinks are formulated to deliver live beneficial bacteria, such as lactobacilli and bifidobacteria, which support gut health and enhance immune function. These innovations attract consumers looking for scientifically backed health solutions in convenient beverage formats.

For instance, on August 21, 2023, Activia, a leading brand in Danone's family of probiotic yogurt products, announced its inaugural We've Got Guts Forum. This public event will feature complimentary programming focused on advocating for gut health and empowering attendees to enhance their overall well-being. Scheduled for September 22, the free, in-person forum will be held at the community cultural hub located at Artscape Wychwood Barns in Toronto.

Continuous Research and Development in Probiotics

Research efforts aim to enhance the efficacy and stability of probiotics in beverages, ensuring that live cultures survive through processing, storage, and consumption. Innovations in encapsulation technologies and protective coatings for probiotic strains improve their viability, enabling manufacturers to deliver potent and effective probiotic beverages to consumers. This technological advancement boosts consumer confidence and drives market adoption.

Researchers focus on identifying and developing strains with specific health benefits, such as improved digestion, immune support, and mood enhancement. For instance, on May 23, 2023, Fonterra introduced a probiotic powdered drink tailored for Southeast Asia's health-conscious consumers with its launch in Singapore. The company plans to expand distribution across Indonesia, Malaysia, and Thailand, targeting the expanding middle-class demographic in these regions.

Stringent Regulatory Requirements

Stringent regulatory requirements can create barriers to market entry for new manufacturers and products. Compliance with complex regulations related to probiotics, health claims, labeling, and safety standards requires significant resources and expertise. Small and medium-sized enterprises (SMEs) may face difficulties in navigating these requirements, limiting their ability to enter the market and compete effectively.

Meeting stringent regulatory standards incurs additional costs for probiotic wellness drink manufacturers. Investments in research, testing, quality assurance, and regulatory consulting are necessary to ensure compliance with diverse regional and international regulations. These compliance costs can strain budgets, particularly for smaller firms, impacting their profitability and ability to price competitively in the market.

For instance, on September 29, 2021, the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016, came into effect upon their publication in the Official Gazette. Food Business Operators are required to comply with all provisions of these regulations by January 1, 2018. In these regulations, unless specified otherwise: the term "Act" refers to the Food Safety and Standards Act, 2006 (34 of 2006); "Food Authority" denotes the Food Safety and Standards Authority of India established under section 4 of the Act; and "Food for special dietary use" carries the meaning defined in section 22 of the Act.

Segment Analysis

The global probiotic wellness drinks market is segmented based on product type, packaging type, distribution channel, and region.

Growing Consumer Preference for Natural and Delicious Fruit-based Probiotic Drinks

Consumers are increasingly gravitating towards natural and delicious beverage options that combine health benefits with enjoyable flavors. Fruit-based probiotic drinks meet this demand by offering the natural sweetness and appealing taste of fruits, making them more attractive to a broad audience. This consumer preference is a significant driver for the market dominance of fruit-based probiotic drinks.

The market for fruit-based probiotic drinks is characterized by continuous innovation and a wide variety of product offerings. Manufacturers are experimenting with different fruit combinations, exotic flavors, and functional additives to cater to diverse consumer preferences. This variety not only attracts new consumers but also retains existing ones, contributing to the growth of this market segment.

Geographical Penetration

High Consumer Awareness and Demand in North America

North America dominates the global probiotic wellness drinks market. North America has a high level of consumer awareness regarding the benefits of probiotics for gut health, immunity, and overall wellness. This awareness drives a strong demand for probiotic wellness drinks. Consumers in this region are well-informed about the health advantages of probiotics, leading to a robust market for these functional beverages.

North America boasts a strong research and development (R&D) infrastructure, which supports the development of advanced probiotic products. Investments in scientific research, clinical trials, and technological advancements ensure that the probiotic wellness drinks produced in North America are effective and of high quality. This commitment to R&D drives market leadership.

COVID-19 Impact Analysis

The global probiotic wellness drinks market faced supply chain disruptions during the pandemic. Lockdowns, restrictions on movement, and labor shortages affected the production and distribution of probiotic ingredients and finished products. Manufacturers had to navigate these challenges to ensure a consistent supply of products to meet consumer demand, which sometimes led to temporary shortages or delays in product availability.

The pandemic has heightened consumer awareness regarding health and immunity. People are increasingly seeking products that can enhance their overall well-being and immune system. Probiotic wellness drinks, known for their benefits in supporting gut health and boosting immunity, have seen a surge in demand. This increased health consciousness has positively influenced market growth as consumers prioritize functional beverages that offer health benefits.

Russia-Ukraine War Impact Analysis

The war has contributed to increased prices for raw materials, including those used in the production of probiotics, such as certain grains and dairy products. The rising costs of inputs have put pressure on manufacturers, leading to higher production costs. These increased costs are often passed on to consumers, potentially affecting the market's pricing strategies and consumer purchasing behavior.

Energy prices have soared due to the conflict, particularly impacting the cost of fuel and transportation. The global supply chain for probiotic wellness drinks relies heavily on efficient and cost-effective transportation of goods. Increased transportation costs can lead to higher overall costs for probiotic products, affecting probiotic wellness drinks market competitiveness and profitability.

By Product Type

• Dairy-based Probiotic Drinks
• Plant-based Probiotic Drinks
• Fruit-based Probiotic Drinks

By Packaging Type

• Bottle
• Carton
• Pouch

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On May 16, 2024, CVS Pharmacy, the retail division of CVS Health, introduced Well Market, a fresh line of store-brand consumables including snacks, beverages, and groceries. They aim to become the leading consumer-centric healthcare solutions company. This repositioning and expansion of their food and beverage portfolio exemplify their commitment to offering a variety of nutritious options that customers desire.
• In July 2023, Yakult Honsha announced its plans to establish a new factory in Georgia, USA, aimed at expanding its production of probiotic wellness drinks for global markets. With an investment of approximately $305 million, the factory is scheduled to commence operations in 2026. This strategic initiative will enable Yakult to enhance its supply chain infrastructure and effectively distribute its probiotic wellness drinks across the United States and beyond.
• In 2021, Yakult Honsha, a prominent Japan-based beverage company, introduced a 100-ml probiotic dairy mix named Yakult 1000. Renowned as one of the leading entities in the global probiotic dairy beverage sector, Yakult has garnered significant popularity in South America and the Asia Pacific regions. Now, the company is strategically preparing to enter the United States market with its digestive wellness probiotics.

Competitive Landscape

The major players in the global probiotic wellness drinks market include Danone S.A., Nestle S.A., Yakult U.S.A. Inc., PepsiCo, Inc., Fonterra Co-operative Group Limited, Bio-K+, General Mills, Inc., Lifeway Foods, Inc., Chr. Hansen Holding A/S, and Amul.

Why Purchase the Report?

• To visualize the global probiotic wellness drinks market segmentation based on product type, packaging type, distribution channel, and region and understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous global probiotic wellness drinks market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global probiotic wellness drinks market report would provide approximately 62 tables, 53 figures, and 213 users.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies