Synbiotic Product Market Size, Share & Trends Analysis Report By Product (Functional Food & Beverages, Dietary Supplements), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global synbiotic product market size to be valued at USD 1.3 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 8.3% during the forecast period. Growing health awareness among urban consumers has led to an increase in the consumption of functional food and beverages, thereby driving the market for synbiotic products. Moreover, shifting consumer inclination towards nutritional supplements on account of changing lifestyle and eating habits is expected to drive the demand for synbiotic products in the coming years. Increasing fortification of functional foods with prebiotics and probiotic ingredients is anticipated to positively impact the growth of the market.

Synbiotic is a mixture of probiotics as well as prebiotics and is used as food supplements. This food supplement termed as functional food is used for altering, modifying, and restoring the pre-existing intestinal flora. Moreover, synbiotic products facilitate the smooth functioning of the intestinal environment. Probiotics strains such as Bifidobacterium, Lactobacilli, S. boulardii, B. coagulans, and prebiotics, including inulin, FOS, GOS, XOS, and fructans, are the most commonly used fibers, which when used together with probiotics are termed as synbiotic and are able to improve the viability of the probiotics.

Synbiotic products are designed to enhance immunity, cognitive health, energy, and vitality. Functional foods have the ability to improve optimal health by reducing the occurrences of various non-communicable disorders, enhancing nutrient absorption, aiding better digestion, and ensuring the adherence to proper weight management. As a result, the buyers are expected to pay a premium in order to purchase such products.

Companies engaged in nutritional supplements and food and beverage manufacturing have been increasing fortification of their products with probiotics, prebiotics, and synbiotic to enhance nutritional value and provide associated health benefits. For instance, in March 2019, Yakult Korea entered into a collaboration with a Dutch life science company, BioActor to develop a dual-purpose functional drink called MPRO3, a synbiotic product that contains probiotics, prebiotics, and flavobiotics, in the Korean Market.

Synbiotic Product Market Trends

Growing health consciousness among consumers is expected to drive market growth. This factor has increased the demand for functional beverages and food products containing prebiotics and probiotics. This is attributed to associated health benefits from its consumption, such as the prevention of osteoporosis and low risk of carcinogenic and cardiovascular disorders.

Moreover, manufacturers are finding innovative ways to include prebiotics, symbiotics, and probiotics content in their product offerings. This has stimulated the demand for pharmaceuticals and pet food products owing to their health and nutritional benefits. Furthermore, rising incidences of gut-related disorders are driving the demand for synbiotic products. According to the Centres for Disease Control and Prevention, around 37.2 million people were diagnosed with digestive system-related health disorders in 2018. These factors are poised to further propel the market during the forecast period.

On the other hand, the high costs associated with symbiotic manufacturing are restraining the market growth. However, technological advancements to make manufacturing a cost-effective process, along with an increase in promotional activities to spread product awareness, are likely to create huge opportunities for industry growth during the forecast period.

Product Insights

Functional food and beverages dominated the synbiotic product market and accounted for a share of 84.1% in 2019. Increasing application of functional food and beverages to enhance immunity, cardio health, and digestive health is expected to open new avenues for synbiotic food and beverages in the coming years. Food manufacturers such as Nestle and Pfizer are partnering with Universities to enhance understanding about how the microbiome affects human health.

For instance, in November 2019, Nestlé entered into a partnership with the Center for Microbiome Innovation (CMI) at the University of California San Diego to enhance its understanding of how the microbiome affects human health as well as increase the development of nutritional solutions that promote health and well-being.

The dietary supplements segment is expected to exhibit the fastest CAGR of 9.6% from 2020 to 2027. High consumer awareness, coupled with prevalent marketing, is the major factor driving the demand for synbiotic-based dietary supplements. Moreover, dietary supplements are low in calories, have a longer shelf life as compared to dairy products, and do not require refrigeration. Additionally, they serve as an excellent alternative for those with lactose intolerance, thereby boosting the demand for synbiotic-based dietary supplements in the coming years.

Distribution Channel Insights

The offline distribution channel led the market for synbiotic products in 2019 and held a share of 93.3%. High product visibility at the retail and pharmacy stores is the major factor favoring the sales of synbiotic products through an offline channel. Additionally, an increasing number of retailers in countries, such as India, China, and Brazil, will positively influence the segment growth in the coming years. For instance, as of May 2018, Walmart had 21 stores and it plans to open around 50 more stores by the end of 2023 in India.

The online distribution channel is expected to expand at the fastest CAGR of 10.6% from 2020 to 2027. Increasing familiarity and dependence of generation X, millennials, and generation Z parents on the internet and e-commerce are the major factors expected to drive the sales of synbiotic products through the online channel in the coming years.

Several value-added services, such as discounted prices, cash-on-delivery, and paybacks, offered by e-retailers are expected to promote the growth of online channels in the coming years. This channel includes aggregators as well as manufacturer hosted e-commerce sites. Manufacturers have realized the potential of the channel, and thus they host their shopping websites to cater to customer needs in a better way and have a higher profit margin.

The third-party sellers sell products of major manufacturers as well as local producers. They excel by establishing a strong supply chain that expands even beyond geographical borders. Therefore, when customers buy from international players, who might not be available in a certain geography, third-party suppliers form the perfect solution.

Regional Insights

Europe emerged as the largest regional market and accounted for a share of 37% in 2019. The region is expected to maintain its lead in the market throughout the forecast period. Increasing awareness regarding synbiotic products, coupled with high visibility of the products, is the main factor favoring the demand for synbiotic products in the recent past and is expected to continue over the forecast period.

Asia Pacific is expected to expand at a CAGR of 9.5% over the forecast period. Growing habit of eating away from home can affect intestinal health, thus leading to impaired health. Increasing use of probiotics and prebiotics in the treatment of irritable bowel syndrome and ulcerative colitis is expected to drive the regional market for synbiotic products over the forecast period.

Key Companies & Market Share Insights

The market has been characterized by high competition due to the presence of a large number of vendors operating at the global level. Industry participants are adopting various strategies, such as mergers & acquisitions and product innovation, to expand their product portfolio. Some of the key players operating in the market are Daflorn Ltd.; DANONE; Sabinsa Corporation; Yakult S/A; Probiotical S.p.A.; United Naturals; Synbiotics Corporation (Pfizer); Synbiotic Health, Inc.; NUtech Ventures; and Asmara (NU3x).

Recent Developments

• In February 2022, Sabinsa introduced a new product called ‘CurCousin’.  The product provides healthy metabolism and also helps to maintain blood sugar levels

• In August 2021, Sabinsa started two satellite offices in Spain and the United Kingdom (U.K.). This advancement is expected to fortify Sabinsa’s footprint in Europe and the U.K.

• In April 2022, Danone announced a strategic alliance with Compania Cervecerias Unidas (CCU). The partnership is expected to upgrade the company’s operations as well as product portfolio in the region

Synbiotic Product Market Report Scope

Global Synbiotic Product Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global synbiotic product market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Functional Food & Beverages

  • Dietary Supplements

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa