India Probiotic Drinks Market - 2024-2031

Overview

The India Probiotic Drinks market recorded a value of US$ 4,116.08 million in 2023 and is expected to reach a value of US$ 7,852.11 million in 2031, growing at a CAGR of 17.83% during the forecast period (2024-2031).

The probiotic drinks market in India is experiencing significant growth, propelled by increasing health awareness, a rising focus on gut health and urbanization. Consumers are becoming more conscious of the benefits of functional foods and beverages that support immunity and digestion, particularly in the context of post-pandemic health priorities. This interest aligns with India's broader health goals, as initiatives like Poshan Abhiyaan seek to improve national nutrition levels, indirectly boosting the demand for health-promoting products like probiotics.

Government efforts toward improving public health and nutrition standards are encouraging a shift in dietary habits, as consumers are more inclined to choose products with verified health benefits. This has resulted in a proliferation of probiotic beverages that are not only appealing to health-conscious urban populations but are increasingly accessible in smaller cities and towns.

Moreover, the growth in organized retail, such as supermarkets and online platforms, has made probiotic drinks more available across various demographics. This accessibility aligns with the government's encouragement of nutritional foods, creating a fertile market for both well-established dairy brands and newer health-focused entrants. Meanwhile, the plant-based drinks sector is expected to see a rise from $21 million to $63.9 million by 2024, with a compound annual growth rate of 20.7%. With growing consumer awareness of gut health benefits coupled with plant-based, probiotic drinks are becoming an essential part of the Indian diet, which is driving the market further.

Drivers

Expanding Urbanization and Modern Retail Networks

Expanding urbanization and the growth of modern retail networks are major factors driving the probiotic drinks market in India. Urbanization has increased significantly, with over 35% of India's population now living in urban areas, contributing to rising demand for convenient, health-focused products like probiotic drinks.

In 2023, 36.36% of India's population lived in urban areas, according to the World Bank. This is an increase of over 4% in the last decade. The Economic Survey 2023-24 estimates that more than 40% of India's population will live in urban areas by 2030. The UN projects that India will have 416 million urban dwellers by 2050. This shift toward urban living has intensified interest in preventive health, prompting consumers to prioritize products that support digestive health and immunity.

Modern retail networks, including supermarkets, hypermarkets and convenience stores, further facilitate access to these probiotic products, particularly in urban settings. These retail networks often provide dedicated sections for health foods and beverages, including probiotics, making it easier for consumers to access a variety of options. This accessibility, combined with targeted marketing from leading brands, encourages trial and repeat purchases, further boosting market growth.

Rising Popularity of Functional Beverages

The rise in popularity of functional beverages, including probiotic drinks, is a key factor driving growth in the Indian market. A 2023 consumer survey on probiotics highlighted that 67% of individuals are familiar with probiotics, with a significant portion actively incorporating them into their diets, particularly for gut health. In fact, over half (51%) of probiotic consumers report doing so primarily to support their digestive systems. This trend aligns with a broader focus on health and wellness, as more people seek out products that can improve immunity and overall well-being.

Furthermore, India's rising middle class, which is becoming increasingly health-conscious, is contributing to the expanding demand for these beverages. With an increasing focus on preventive health care, more consumers are turning to functional drinks as part of their daily routines. A survey by the International Food Information Council found that 32% of consumers actively try to consume probiotics at least once a day. This indicates a growing segment of consumers who prioritize gut health, which is fueling the demand for probiotic drinks in India.

Restraints

High Competition from Traditional Dairy Products

The competition from traditional dairy products continues to impact the growth of the probiotic drinks market in India. Products such as yogurt, curd and buttermilk, which naturally contain probiotics, are entrenched in the Indian diet. These dairy products remain highly popular due to their cultural significance and accessibility across urban and rural markets. According to a 2023 government report by the Ministry of Agriculture & Farmers Welfare, over 70% of Indian households consume dairy products regularly, underscoring the deep-rooted consumption habits of dairy-based probiotic foods.

Traditional dairy products, especially yogurt, already serve as a source of beneficial probiotics, which makes them a direct competitor to newer probiotic drink options. For example, a survey by the National Dairy Development Board (NDDB) indicates that approximately 65% of urban and rural consumers still prefer yogurt and other dairy-based probiotics over newer functional beverages. In rural regions, the market for probiotic drinks faces additional challenges, particularly due to limited cold chain infrastructure.

The Ministry of Food Processing Industries highlights that the dairy industry's well-established supply chain network ensures the availability of dairy products even in remote areas, making them more accessible and convenient for consumers. On the other hand, probiotic drinks often require more sophisticated storage and distribution systems, which can limit their penetration in these areas.

Trends

Segment Analysis

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

Drinkable Yogurt's Popularity as a Convenient, Nutritious Option Drives the Segment Growth

Drinkable yogurt has captured a significant share of the Indian probiotic drinks market due to its growing popularity as a healthy and convenient beverage. With increasing health consciousness, Indian consumers are increasingly seeking functional foods that offer digestive benefits, making probiotic-rich drinks like yogurt a preferred choice. The product's ability to provide probiotics, improve gut health and boost immunity has resonated with health-conscious individuals.

International brands are introducing innovative flavors and formulations in the country to attract a broad demographic. In August 2021, Lactaris India, a subsidiary of the French Lactaris Group, launched RakI Turbo Yogurt Drink in Chennai, marking its entry into the Indian yogurt category. The company claims this to be the first product of its kind in the country. This launch expands Lactaris India's portfolio in the growing probiotic beverage market.

Sustainability Analysis

As more consumers seek functional beverages that offer gut health benefits, manufacturers are focusing on using natural organic ingredients and minimizing the use of artificial additives. Sustainable sourcing of ingredients, such as plant-based or locally grown components, has become a priority to reduce carbon footprints. Additionally, brands are adopting eco-friendly packaging options, including recyclable or biodegradable materials, to cater to the growing concern over plastic waste. The shift towards clean-label products is also driving companies to maintain transparency in sourcing and production processes.

With sustainability becoming a key consumer preference, the market is seeing innovations in product formulations, packaging and distribution methods. However, challenges remain in sourcing raw materials sustainably while keeping costs competitive. As regulations around sustainability tighten, companies in the probiotic drinks market are expected to invest further in green technologies and practices to align with both consumer expectations and environmental goals.

Unmet Needs

The market for probiotic drinks in India is expanding steadily due to growing knowledge of immunity and gut health. However, several unmet needs could pave up further market opportunities. First, pricing and accessibility continue to be major obstacles. Demand is rising in metropolitan areas, but higher price points pose a problem for India's rural areas, which house more than 65% of the country's population. Since probiotic drinks typically cost between INR 50 and INR 100, many consumers in lower-income groups cannot afford them.

Secondly, the majority of probiotic drinks on the market are dairy-based, which limits the diversity of products available. As more people switch to plant-based diets, this reduces the options available to those who are lactose intolerant. About 10-12% of Indians reported having lactose intolerance in 2023 and plant-based diets are gaining traction. A significant vacuum in product offerings could be filled by branching out into plant-based or non-dairy probiotic drinks to appeal to vegan and health-conscious consumers.

Despite growing awareness, many people are still unsure of the precise health advantages of probiotics. According to a poll conducted in 2023, more than 40% of Indian customers have doubts about the safety and effectiveness of probiotics. Focused educational campaigns that highlight advantages beyond gut health, such as immunity and mental health, may boost demand and customer trust.

Competitive Landscape

The major players in the market include Mother Dairy Fruit & Vegetable Pvt. Ltd., Amul (Gujarat Cooperative Milk Marketing Federation (GCMMF)), Zoh Farms Private Limited (Zoh Probiotics), Joi Farm (JIS Farms Pvt Ltd), Atmosphere Kombucha, Borecha, Local Ferment Co., Yuva (Indian kefir Company), Epigamia and Kultur'd Kombucha.

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 November 2024, MilkyMist, a Tamil Nadu-based company, in collaboration with SIG and AnaBio Technologies, launched the world's first long-life probiotic buttermilk in aseptic carton packs. This innovation unveiled at Gulfood Manufacturing 2024 in Dubai, marks a breakthrough in incorporating probiotics into shelf-stable beverages.
• In July 2024, Yakult, a Japan-based probiotic drink company announced its plans to boost its bottle sales by 50% in India over the next few years by launching a new mango flavor. The company is capitalizing on the fruit's popularity in the South Asian market.
• In July 2024, Naga entrepreneurs Moa and Tempi introduced 'Ginger Nova,' an innovative alcohol-free probiotic drink under the NOVA brand. The organic beverage is made by fermenting ginger and other natural ingredients. Although in its early stages, the start-up has ambitious plans for future growth.

Why Purchase the Report?

• To visualize the India 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 India 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 India probiotic drinks report would provide approximately 45 tables, 60 figures and 200 pages.

Target Audience 2024

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