US and Canada Probiotic Drinks Market - 2024-2027

Report Overview

The US and Canada Probiotic Drinks market recorded a value of US$ 5,347.04 million in 2023 and is expected to reach a value of US$ 7,658.60 million in 2027, growing at a CAGR of 9.56% during the forecast period (2024-2027).

A growing focus on gut health and immune system support is a primary driver. Post-pandemic health consciousness has spurred interest in probiotic products, with a notable shift from traditional probiotic supplements to more convenient ready-to-drink (RTD) formats. Kefir, kombucha, and other fermented beverages are among the fastest-growing product segments. Consumers in both countries prefer organic and non-GMO options. In 2023, organic probiotic drinks accounted for approximately 25% of the market in the US, as more consumers prioritize clean-label and sustainably sourced products.

The market is highly competitive, with both established brands and smaller players. Some of the leading companies in the US include GT's Living Foods, Lifeway Foods, and Health-Ade Kombucha. These brands focus on innovation, expanding flavors, and adding functional ingredients like botanicals or adaptogens. In Canada, brands like Rizopia Foods and Liberte are popular, with increasing competition from private-label brands.

For instance, in May 2022, KeVita introduced three new effervescent probiotic beverages under its new herbal spritzer label in the United States. The Herbal Spritzer collection, which is sold at Whole Foods markets around the country, consists of softly fermented drinks with active probiotics and a delicate hint of fruit and herbal extracts.

Sustainability is becoming increasingly important to North American consumers. Brands are incorporating sustainable packaging and sourcing methods to align with consumer values. In 2023, over 30% of probiotic drink brands in the US marketed their products as sustainable or eco-friendly.

Market Drivers

Premiumization of Health and Wellness Beverages

US and Canadian consumers are seeking probiotic drinks made from superior ingredients. They prefer products with clinically validated probiotic strains, organic components, and natural sweeteners. The clean-label movement, which pushes for transparency in ingredient sourcing and formulation, is encouraging brands to create products free from artificial additives and preservatives. Consumers are choosing products that are perceived as being more natural and closer to their health goals. Around 40% of consumers in the US and Canada are willing to pay a premium for probiotic drinks that use high-quality, organic ingredients.

As scientific research around probiotics advances, there is growing consumer awareness of specific strains that can address distinct health concerns like gut health, immunity, and mental well-being. Probiotic drink brands that market strain-specific benefits have an edge, as educated consumers are willing to pay more for products that offer targeted health advantages.

Another key element driving premiumization is sustainability. Consumers today are more eco-conscious and favor brands that use sustainable packaging and adopt ethical sourcing practices. Biodegradable and recyclable packaging is gaining popularity, and brands that can position themselves as environmentally responsible see strong loyalty from premium buyers. 37% of consumers in the US and Canada stated they are more likely to purchase probiotic drinks packaged in eco-friendly materials, and 27% are willing to pay more for these sustainable options.

The premiumization trend has had a noticeable impact on the probiotic drinks market in the US and Canada. With consumers prioritizing quality and health benefits over cost, brands offering premium probiotic products are enjoying higher margins and greater market share.

Increasing Popularity of Plant-Based and Dairy-Free Options

A growing number of consumers in North America are becoming more conscious of lactose intolerance and sensitivities to dairy. As a result, many people are turning to plant-based probiotic drinks to avoid the digestive discomfort associated with traditional dairy-based beverages. This shift in consumer preference is driving the demand for dairy-free options, particularly in the functional drinks category, which includes probiotic drinks.

According to the National Institutes of Health (NIH), approximately 68% of the global population has lactose malabsorption, with a significant portion of this affecting North America. In the US, it is estimated that 36% of the population has some form of lactose intolerance, contributing to the demand for dairy-free options such as plant-based probiotic drinks. Similarly, Health Canada reported that a growing number of Canadians are seeking alternatives due to lactose intolerance, fueling the demand for dairy-free products.

The rise of plant-based diets is not only linked to health concerns but also to ethical and environmental factors. Consumers are increasingly aware of the environmental benefits of reducing animal-based food consumption, such as lowering greenhouse gas emissions and conserving water.

Government surveys conducted by Agriculture and Agri-Food Canada in 2023 show that 40% of Canadian consumers are actively trying to incorporate more plant-based foods into their diets, driven by health concerns and environmental sustainability. In the US, the Plant-Based Foods Association (PBFA) and data from USDA support this, with plant-based beverage sales increasing by 21% in 2023, aligning with broader dietary trends towards plant-based alternatives, including probiotic drinks.

Market Restraints

Logistical Challenges in Cold Chain Management

Probiotic drinks are live-culture beverages that require strict temperature control throughout the supply chain to ensure the viability of the beneficial bacteria they contain. Maintaining the integrity of these live cultures is crucial, as exposure to temperatures outside the recommended range can kill the probiotics, rendering the product less effective or even unusable. This need for constant refrigeration from production to distribution to retail poses significant logistical challenges in cold chain management for the US and Canada probiotic drinks market.

The Cold Chain Alliance of North America reported that cold chain logistics costs rose by 12% in 2023, driven by increased energy costs, labor shortages, and transportation disruptions, all of which have impacted the efficient movement of temperature-sensitive products like probiotic drinks.

The key challenge is the high cost associated with maintaining an unbroken cold chain. From refrigerated trucks and warehouses to energy expenses, ensuring that probiotic drinks remain at the optimal temperature throughout the supply chain is an expensive endeavor. These costs can drive up the overall price of probiotic drinks, making them less affordable for consumers, especially in price-sensitive segments of the market.

Companies looking to scale their distribution face increased expenses, which may limit the expansion of probiotic drink availability, especially in remote or underserved areas. According to the US Department of Agriculture (USDA), cold chain infrastructure costs have increased by 15% in the past year due to rising fuel costs and the need for advanced refrigeration technologies. This increase is particularly challenging for smaller manufacturers and regional distributors in the US and Canada.

Market Drivers

Premiumization of Health and Wellness Beverages

US and Canadian consumers are seeking probiotic drinks made from superior ingredients. They prefer products with clinically validated probiotic strains, organic components, and natural sweeteners. The clean-label movement, which pushes for transparency in ingredient sourcing and formulation, is encouraging brands to create products free from artificial additives and preservatives. Consumers are choosing products that are perceived as being more natural and closer to their health goals. Around 40% of consumers in the US and Canada are willing to pay a premium for probiotic drinks that use high-quality, organic ingredients.

As scientific research around probiotics advances, there is growing consumer awareness of specific strains that can address distinct health concerns like gut health, immunity, and mental well-being. Probiotic drink brands that market strain-specific benefits have an edge, as educated consumers are willing to pay more for products that offer targeted health advantages.

Another key element driving premiumization is sustainability. Consumers today are more eco-conscious and favor brands that use sustainable packaging and adopt ethical sourcing practices. Biodegradable and recyclable packaging is gaining popularity, and brands that can position themselves as environmentally responsible see strong loyalty from premium buyers. 37% of consumers in the US and Canada stated they are more likely to purchase probiotic drinks packaged in eco-friendly materials, and 27% are willing to pay more for these sustainable options.

The premiumization trend has had a noticeable impact on the probiotic drinks market in the US and Canada. With consumers prioritizing quality and health benefits over cost, brands offering premium probiotic products are enjoying higher margins and greater market share.

Increasing Popularity of Plant-Based and Dairy-Free Options

A growing number of consumers in North America are becoming more conscious of lactose intolerance and sensitivities to dairy. As a result, many people are turning to plant-based probiotic drinks to avoid the digestive discomfort associated with traditional dairy-based beverages. This shift in consumer preference is driving the demand for dairy-free options, particularly in the functional drinks category, which includes probiotic drinks.

According to the National Institutes of Health (NIH), approximately 68% of the global population has lactose malabsorption, with a significant portion of this affecting North America. In the US, it is estimated that 36% of the population has some form of lactose intolerance, contributing to the demand for dairy-free options such as plant-based probiotic drinks. Similarly, Health Canada reported that a growing number of Canadians are seeking alternatives due to lactose intolerance, fueling the demand for dairy-free products.

The rise of plant-based diets is not only linked to health concerns but also to ethical and environmental factors. Consumers are increasingly aware of the environmental benefits of reducing animal-based food consumption, such as lowering greenhouse gas emissions and conserving water.

Government surveys conducted by Agriculture and Agri-Food Canada in 2023 show that 40% of Canadian consumers are actively trying to incorporate more plant-based foods into their diets, driven by health concerns and environmental sustainability. In the US, the Plant-Based Foods Association (PBFA) and data from USDA support this, with plant-based beverage sales increasing by 21% in 2023, aligning with broader dietary trends towards plant-based alternatives, including probiotic drinks.

Market Restraints

Logistical Challenges in Cold Chain Management

Probiotic drinks are live-culture beverages that require strict temperature control throughout the supply chain to ensure the viability of the beneficial bacteria they contain. Maintaining the integrity of these live cultures is crucial, as exposure to temperatures outside the recommended range can kill the probiotics, rendering the product less effective or even unusable. This need for constant refrigeration from production to distribution to retail poses significant logistical challenges in cold chain management for the US and Canada probiotic drinks market.

The Cold Chain Alliance of North America reported that cold chain logistics costs rose by 12% in 2023, driven by increased energy costs, labor shortages, and transportation disruptions, all of which have impacted the efficient movement of temperature-sensitive products like probiotic drinks.

The key challenge is the high cost associated with maintaining an unbroken cold chain. From refrigerated trucks and warehouses to energy expenses, ensuring that probiotic drinks remain at the optimal temperature throughout the supply chain is an expensive endeavor. These costs can drive up the overall price of probiotic drinks, making them less affordable for consumers, especially in price-sensitive segments of the market.

Companies looking to scale their distribution face increased expenses, which may limit the expansion of probiotic drink availability, especially in remote or underserved areas. According to the US Department of Agriculture (USDA), cold chain infrastructure costs have increased by 15% in the past year due to rising fuel costs and the need for advanced refrigeration technologies. This increase is particularly challenging for smaller manufacturers and regional distributors in the US and Canada.

Market Segment Analysis

The US and Canada probiotic drinks market is segmented based on type, ingredient, application, age, and distribution channel.

Convenience and Portability & Variety of Flavors and Formulations Drives the Segment Growth

Drinkable yogurt holds a significant share in the US and Canada probiotic drinks market. Drinkable yogurt offers a convenient, on-the-go option for consumers who are looking for quick and nutritious snack alternatives. Its ready-to-consume format appeals to busy lifestyles, making it a dominant choice in the market. As a rich source of probiotics, drinkable yogurt is well-regarded for its health benefits, particularly for digestive health and immune support. This reputation enhances its appeal within the probiotic drinks market, as consumers increasingly seek products that promote gut health.

Many brands in the drinkable yogurt segment leverage effective marketing strategies that highlight the health benefits and convenience of their products. This branding, coupled with strong distribution channels, enhances the visibility and accessibility of drinkable yogurt in the market. The drinkable yogurt segment offers a diverse range of flavors, textures, and formulations, including low-sugar, plant-based, and fortified options. This variety caters to different consumer preferences and dietary needs, driving growth within the market.

For instance, in June 2022, Danone North America, White Plains, N.Y., and Boulder, Colo., announced its latest innovation hitting grocery coolers: Activia+ Multi-Benefit Probiotic Yogurt Drinks. Packed with billions of live and active probiotics that help support one's gut health, Activia+ also is an excellent source (20% DV) of vitamins C, D, and zinc to support the immune system. The company points out that younger generations, like millennials, are looking for functional benefits in their foods.

Sustainability Analysis

The probiotic drink market is increasingly focused on sourcing ingredients from sustainable and organic farms. This includes using non-GMO crops and organic fruits to reduce environmental impact, and pesticide use, and promote biodiversity. Sustainable ingredient sourcing aligns with growing consumer preferences for eco-friendly products, enhancing the market's appeal.

To address concerns about plastic waste, companies in the probiotic drink market are adopting more sustainable packaging options, such as biodegradable, recyclable, or plant-based materials. These efforts reduce the reliance on single-use plastics and contribute to the market's sustainability by minimizing environmental waste.

The market is also focusing on reducing food waste by optimizing the use of raw materials and repurposing by-products from the production process. For instance, probiotic drink companies are exploring ways to use fruit pulp or other residual ingredients in other products, contributing to a circular economy and lowering waste levels in the production chain.

Unmet Needs

The significant unmet needs in the US and Canada probiotic drinks market are the lack of consumer awareness and understanding of probiotics' specific health benefits. While many consumers are familiar with the general concept of probiotics, a large portion of the population remains unaware of their potential benefits for gut health, immunity, and overall wellness.

According to a 2023 survey conducted by the International Food Information Council (IFIC), only 42% of North American consumers could correctly identify the health benefits associated with probiotics. This knowledge gap indicates a clear opportunity for probiotic drink manufacturers to invest in educational marketing campaigns that explain how these products work and why they are essential for long-term health.

Despite the growing demand for functional beverages, probiotic drinks still face challenges related to limited product variety and accessibility. Many probiotic drinks are still concentrated in specialty health stores or premium grocery chains, restricting their availability to a broader consumer base.

A 2023 report by the Food Marketing Institute (FMI) revealed that 38% of consumers in rural or underserved areas found it challenging to access probiotic drinks, especially in smaller retail locations that lack refrigeration infrastructure. The industry needs to expand its product distribution and create options that cater to diverse consumer preferences, including different flavors, price points, and packaging sizes. Affordability is another unmet need in the probiotic drinks market. Probiotic drinks are often perceived as premium products, which limits their appeal among price-sensitive consumers.

Market Competitive Landscape

The major players in the market include Lifeway Foods, Inc., Kirk's Probiotic Soda, Plant Veda Foods Ltd., Tropicana Brand Group, Harmless Harvest, Inc., GT's Living Foods LLC, GoodBelly (Next Foods), De La Calle, Health-Ade LLC, RISE Kombucha, General Mills Inc., Dahlicious, YOSO, Buchi (Asheville Kombucha Mamas), Pulp & Press Canada Inc. and among other.

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 HealthSleep

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 HealthColic

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 January 2023, Cove Gut Healthy Drinks announced the launch of Cove Gut Healthy Soda, Canada's first-ever zero-sugar, functional soda, made with one billion probiotics, prebiotics, and nothing artificial. Co-founders John and Ryan MacLellan launch Canada's first zero-sugar, functional soda, Cove Gut Healthy Soda under their umbrella brand Cove Gut Healthy Drinks. (CNW Group/Cove Gut Healthy Drinks). Known for their Kombucha, Cove Gut Healthy Drinks will expand into a new fast-growing category of shelf-stable and better-for-you sodas.

In August 2023, Yakult announced plans to boost its US production. The Japan-based group has chosen the state of Georgia for its second manufacturing site in the country. In 2022, Yakult more than doubled the sales of its probiotic beverages in the US on a unit basis. The company plans to build the new site about 45 minutes north-west of Atlanta in Barcow County. At an estimated cost of $305m, the factory is scheduled to start production in 2026.

In June 2022, Danone North America, White Plains, N.Y., and Boulder, Colo., announced its latest innovation hitting grocery coolers: Activia+ Multi-Benefit Probiotic Yogurt Drinks. Packed with billions of live and active probiotics that help support one's gut health, Activia+ also is an excellent source (20% DV) of vitamins C, D and zinc to support the immune system. The company points out that younger generations, like millennials, are looking for functional benefits in their foods.

In August 2021, The United States-based start-up Yoi launched a line of plant-based probiotic drinks. The range, the first from Yoi, is available in Strawberry, Vanilla Bean, Pineapple, and Cacao Nib flavors. In July 2021, PepsiCo launched an on-the-go fermented beverage designed to promote gut health.

Why Purchase the Report?

To visualize the US and Canada probiotic drinks market segmentation based on type, ingredient, 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 US and Canada 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 US and Canada probiotic drinks report would provide approximately 60 tables, 64 figures and 124 pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies