China and Hong Kong Probiotic Drinks Market - 2024-2027

Overview

The China and Hong Kong probiotic drinks market recorded a value of US$ 3,285.00 million in 2023 and is expected to reach a value of US$ 5,389.84 million in 2027, growing at a CAGR of 13.43% during the forecast period (2019-2027).

The Chinese market is characterized by a diverse range of probiotic drink formulations. Manufacturers are introducing innovative products that cater to various consumer preferences, including low-sugar options, dairy-free alternatives, and beverages enriched with additional vitamins and minerals. This diversity in product offerings allows brands to target different segments of the population based on dietary preferences and health needs, thereby expanding market penetration.

Manufacturers are innovating with high-quality formulations that emphasize natural ingredients, organic certification, and functional attributes such as improved digestion and immune support. This premiumization trend caters to discerning consumers who prioritize product quality and health benefits. For instance, in March 2023, Jinqi Biology signed a cooperation agreement with the National Dairy Technology Innovation Centre, officially gaining membership unit qualification within the centre.

The partnership is rooted in shared development concepts and a spirit of innovation. Together, they are dedicated to advancing the application of probiotics in dairy products, enhancing product value, accelerating development processes, and promoting the probiotics market on a larger scale.

Scope

Metrics

Details

CAGR

• 13.43%

Size Available for Years

2018-2027

Forecast Period

2024-2027

Data Availability

Value (US$)

Segments Covered

Type, Ingredient, Application, Age, and Distribution Channel

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter's Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights.

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Drivers

Growing popularity of Personalized Nutrition

The rising demand for personalized nutrition encourages innovative product development within the probiotic drinks market. Companies can explore the creation of custom probiotic blends that cater to different genetic predispositions and lifestyle factors. This innovation can extend to the development of probiotic drinks that target specific demographic segments, such as age-specific formulations for children, adults, and the elderly. Additionally, advancements in biotechnology can enable the formulation of probiotics that are more effective for certain populations, enhancing the overall appeal and efficacy of these products.

For instance, on March 27, 2023, China's dairy firm Junlebao launched a new yogurt product featuring a blend of 10 probiotic strains, among which includes the company's patented strain as well as several derived from kefir, a traditional yogurt originating from Egypt. This innovative product launch underscores Junlebao's commitment to enhancing consumer health through advanced probiotic formulations.

Growing Urbanization and Lifestyle Changes

Urbanization in China and Hong Kong has led to busier lifestyles, with more people living in metropolitan areas and working long hours. This shift has heightened the demand for convenient health solutions that fit into fast-paced urban living. Probiotic drinks, with their ready-to-consume format and health benefits, are ideally positioned to meet this demand. As urban consumers look for quick and effective ways to maintain their health, the market for probiotic drinks is set to expand.

According to The State Council Information Office of China (SCIO), urbanization has been progressing rapidly across the country in recent years. On February 6, 2023, the National Bureau of Statistics reported that the urbanization rate reached 64.72 percent in the previous year. By the end of 2022, the number of urban residents had increased to 914 million, marking a rise of 12.05 million from the year before.

The growing urbanization and lifestyle changes have attracted significant investment from both local and international companies in the probiotic drinks market. This investment is fostering innovation, leading to the development of new and improved probiotic drink products tailored to urban consumers' preferences.

For instance, on April 16, 2020, Japanese probiotic beverage company Yakult Honsha announced plans to invest approximately 300 million U.S. dollars in constructing a second factory in Wuxi, located in east China's Jiangsu Province. The local government has confirmed that this new facility, situated in Wuxi's hi-tech zone, will span around 6.67 hectares and house a total of 12 production lines. Construction is set to begin in August this year, with the factory expected to become operational in 2022.

Restraints

Strict Regulations and Standards

Compliance with strict regulatory standards in China and Hong Kong involves substantial costs and time-consuming approval processes. Manufacturers must invest in rigorous testing and documentation to meet safety, quality, and labelling requirements. This includes verifying the efficacy and safety of probiotic strains, conducting clinical trials, and ensuring that production processes adhere to Good Manufacturing Practices (GMP). These compliance costs can be prohibitively high, especially for small and medium-sized enterprises, limiting their ability to enter and compete in the market.

China and Hong Kong adhere to international standards set by organizations such as the Food and Agriculture Organization (FAO) and the World Health Organization (WHO). However, the interpretation and implementation of these standards can vary, creating trade barriers for international companies looking to enter the market. Differences in regulatory requirements between countries can complicate the import and export of probiotic drinks, leading to additional costs and delays. This complexity can discourage foreign investment and hinder the growth of the probiotic drinks market.

For instance, on March 6, 2024, The China National Food Industry Association (CNFIA) established industry standards for electrolyte beverages. These standards encompass the definition, technical and manufacturing specifications, testing procedures, labelling, and packaging requirements. This initiative comes in response to a renewed interest in electrolyte beverages across China.

Trends

Segment Analysis

The China + Hongkong probiotic drinks market is segmented based on type, ingredient, application, age, and distribution channel.

Growing Demand for Kombucha in China and Hong Kong

The demand for kombucha in the probiotic drinks market in China and Hong Kong is on the rise, fueled by growing health awareness and a shift towards functional beverages. Consumers are looking for natural and healthier alternatives to sugary drinks, making kombucha, known for its probiotic content and health benefits, increasingly popular. The International Probiotics Association reported a 25% growth in the kombucha market in China in 2023, driven largely by younger consumers who are focused on gut health and overall wellness.

In Hong Kong, kombucha's popularity is also increasing, particularly among the urban population that embraces health and wellness trends. According to the Hong Kong Beverage Association, kombucha sales rose by 18% in 2023, reflecting a heightened awareness of gut health and a preference for low-sugar, natural beverages. The growing presence of kombucha in supermarkets, cafes, and health stores has further boosted its demand, establishing kombucha as a significant player in the probiotic drinks market in both China and Hong Kong.

Sustainability Analysis

Sustainability in the probiotic drinks market in China and Hong Kong is increasingly important as consumers and companies alike prioritize eco-friendly practices. In China, there is growing awareness about the environmental impact of production processes. Companies are investing in sustainable practices such as reducing water usage, minimizing waste, and using eco-friendly packaging. However, the sector still faces challenges related to the energy-intensive nature of probiotic production and the need for greater transparency in supply chain sustainability.

In Hong Kong, sustainability is also gaining traction, with a notable shift towards greener practices among probiotic drink manufacturers. Consumers are increasingly seeking products with strong environmental credentials, prompting brands to highlight their sustainability efforts. Despite these advances, there are still gaps in the widespread adoption of sustainable practices, particularly in areas like reducing carbon emissions and improving overall supply chain efficiency.

Unmet Needs

The probiotic drinks market in China and Hong Kong is experiencing growth, but several unmet needs are impacting its full potential. In China, despite the expanding market, many consumers lack a detailed understanding of the specific health benefits of probiotics. The market is also constrained by a limited variety of products, with only a fraction of options providing clear information on the probiotic strains used and their health benefits, leading to scepticism about the efficacy and quality of these products.

In Hong Kong, challenges such as unappealing taste and price sensitivity also affect the market. Many consumers are dissatisfied with the flavour profiles of current probiotic drinks, and the high cost of premium products restricts access for some buyers. Additionally, concerns about product quality and regulatory compliance persist, with only a portion of products clearly communicating their adherence to safety standards and effectiveness. Addressing these gaps through better education, product variety, improved taste, and transparent labelling could significantly boost consumer acceptance and market growth in both regions.

Competitive Landscape

The major global players in the market include Green Vitamin, DFI Retail Group, China Mengniu Dairy Company Limited, Green Fermentation Lab, Bombooch Kombucha, Alive Food, FoodCraft Online Store, KUPPA KOMBUCHA LIMITED, Taboocha and Inner Mongolia Yili Industrial Group Co., Ltd.

By Type

Drinkable Yogurt

Kombucha

Kefir

Tepache

Others

By Ingredient

Lactobacillus

Streptococcus

Bifidobacterium

Others

By Application

Gastrointestinal Health

Gut Microbiota/Microbiome Balance

Digestion

Constipation

Bloating

Diarrhea

Leaky Gut

Inflammation

Immune System

Others

Gluten sensitivity

Abdominal Pain

GERD/Helicobacter pylori

Antibiotic-Associated Diarrhea/Post-Antibiotic Treatment

Gut Flora/Gut Microbiome Restoration

Others

Vaginal Health

Urinary Tract Health

Kidney Stones

UTIs

Others

Oral Health

Anti/Healthy Ageing

Allergies/Asthma

Bone & Joint Health

Osteoarthritis

Osteoporosis/Low Mineral Bone Density

Inflammation

Brain/Mental Health

Sleep

Cognition

Mood

Depression

Focus

Cardiovascular Health

Circulation

Energy/Fatigue Reduction

Metabolic Syndrome/Blood Glucose

Liver Health

Energy

Immunity/Respiratory Infections

Nutrient Absorption

Skin-Hair-Nails

Atopic Dermatitis & Eczema

Acne

Rosacea

Hair Growth/Hair Loss

Skin Microbiome

Others

Sports

Women's Health

Fertility

Menopause

Pregnancy

Pcos

Vaginal Health & Health Vaginal Microbiome

Vaginal Infections (Bv/Vvc)

Pregnancy Outcomes

Others

Men's Health & Men's Fertility

Weight Management

Pediatric Health

Colic

Constipation

Regurgitation

Atopic Dermatitis

Others

Others

By Age

Infant

Children

Adults

Seniors

By Distribution Channels

Supermarkets/Hypermarkets

Pharmacies and Drug Stores

Convenience Stores

Online Retailers

Other Distribution Channels

Key Developments

In March 2023, DSM reached a strategic cooperation with the China Food and Fermentation Industry Research Institute at FIC2023. The two parties will leverage their core strengths and industry expertise in this partnership to jointly establish a "Joint Research Center for the Standardization of Nutritional and Healthy Raw Materials." The center will focus on formulating, certifying, and popularizing raw material standards for fermented and functional foods and drinks.

In April 2024, at FIC2023, Cargill launched a series of innovative products and solutions designed to meet the evolving needs of the health and wellness market. Among the highlights were EpiCor, a unique postbiotic ingredient that supports immune and gut health; Truvia, a natural, zero-calorie sweetener derived from stevia, catering to the growing demand for healthier sugar alternatives; and Proliv, a functional ingredient aimed at enhancing liver health.

In March 2023, Jinqi Biology signed a cooperation agreement with the National Dairy Technology Innovation Center, officially gaining membership unit qualification within the center. This partnership is rooted in shared development concepts and a spirit of innovation. Together, they are dedicated to advancing the application of probiotics in dairy products, enhancing product value, accelerating development processes, and promoting the probiotics market on a larger scale.

Why Purchase the Report?

To visualize the China + Hongkong probiotic drinks market segmentation based on ingredient, type, application, age, and distribution channel, as well as understand key commercial assets and players.

Identify commercial opportunities by analyzing trends and co-development.

Excel data sheet with numerous data points of China + Hongkong probiotic drinks market-level 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 key products of all the major players.

The China and Hongkong probiotic drinks report would provide approximately 45 tables, 60 figures and 224 pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies