The prebiotic ingredients market, estimated at USD 6.3 billion in 2022, is projected to grow at a CAGR of 11.7% to reach USD 10.9 billion by 2027.
Several key factors are driving this growth:
1. General Wellbeing Trend:
- Increasing consumer focus on general wellbeing is a significant factor propelling market growth.
- Prebiotic ingredients are increasingly being incorporated into new product launches such as snacks and functional beverages to meet consumer demands for healthy ready-to-drink (RTD) and ready-to-eat (RTE) products.
2. Formulation Innovation:
- Industry formulators are continuously adjusting product formulations to introduce new delivery formats catering to consumer preferences for health, taste, and convenience.
- Factors like carbohydrate awareness and the popularity of ketogenic diets provide a strong foundation for the expanding prebiotics market.
3. Supply-side Expansion:
- Production expansion of inulin is driving prebiotic ingredients market growth.
- Inulin’s versatility and commercial benefits have led to significant market share expansion, facilitated by easier sourcing of raw materials and lower processing costs.
- Leading players are expanding production capacities, boosting volumes and paving the way for market growth.
Prebiotic Ingredients Market Research Insight
4. Root Sources Dominate:
- Roots, particularly raw chicory root, contribute significantly to the prebiotic ingredients market due to their high prebiotic content.
- Chicory roots are widely cultivated globally and offer abundant availability and higher yields, contributing to a larger market share.
5. Application in Food & Beverage Industry:
- The food & beverage segment is expected to hold the largest market share over the forecast period.
- Prebiotic ingredients can be easily incorporated into various food products without altering taste or texture, thus driving their adoption.
- Regular consumption of prebiotics offers immunity-boosting benefits and reduces the risk of certain diseases, driving their popularity in the food & beverage sector.
6. Growth in Functional Foods Category:
- Prebiotic ingredients are increasingly being incorporated into functional foods and beverages, driven by growing health consciousness among consumers.
- The trend extends to bakery and confectionery items, catering to consumer preferences for indulgent yet healthy options.
7. Asia Pacific Market Growth:
- The Asia Pacific region is projected to witness the highest market growth, driven by rapid economic growth and increasing demand for quality food & beverage products.
- Countries like China, India, and South Korea are experiencing rising expenditure on sports nutrition and general wellbeing, further promoting the demand for prebiotic ingredients.
Key Market Players:
- Beneo, ADM, DuPont, Friesland Campina, Ingredion, Samyang Corp, Beghin Meiji, Tate & Lyle PLC, Yakult, Kerry PLC, and others dominate the prebiotic ingredients market.
- These companies are focusing on developing prebiotic ingredients from unconventional sources and launching new products to meet evolving consumer demands.
