Knowledge and awareness of different probiotics types is low and therefore using specific strains as a point of difference will require further consumer education

Probiotics are associated with digestive health and overall wellness, but emerging benefit areas of immunity & mental wellness are gaining traction

Top reasons for consuming probiotics globally1

Sources: 1. FMCG gurus, global digestive health, 2019

2. Global Data, global consumer survey Q4 2016

3. Mintel GNPD, 2019

4. Global Data, global consumer survey Q1 2017

5. Mintel, Achieving digestive wellness with food & drinks, 2018

6. FMCG Gurus, consumer probiotics survey, 2018

7. Euromonitor, 2019

FAST FACTS

Digestive wellness: It all starts in the gut

There is a growing body of research highlighting the importance of maintaining a balanced microbiome for good gut health, which in turn supports overall health and wellbeing. A primary influence of gut health is of course the diet. As consumers’ understanding of this increases, we see a growing demand for a range of products to address digestive concerns.

Consumers are proactively looking for food and drink to help address or improve their digestive health

And they are linking digestive health with an overall sense of wellness, both physically and mentally

60% of global consumers recognize the link between their digestive health and overall wellbeing 1

of consumers globally already regularly seek out food and drink products which will aid their digestive health 1

of consumers globally, willingness to pay a premium for digestive health related products, 59% in China 1

of global consumers find food and drink that are“Good for digestion and gut health”appealing 2

of consumers in the US agree good digestive health is important for overall wellbeing 1

49%76%

39%48%

To feel more relaxed

To feel more active

To improve the body’s natural

defences

To lose weight

For long-term health

To aid the digestive system

To make sure I have enough “good” bacteria in the body

For general health and wellbeing purposes

To boost the immune system

To prevent bowel problems

Level of awareness for different probiotics species6

China USA UK France Germany Australia

Dairy is still the leading category for probiotics

Top 6 categories by NPDs launches for Dairy with probiotics claim 3*

Top categories by NPD launches for food & drinks (Excl. Dairy) with probiotics claims 3 *

Largest markets in food & drinks for probiotics 7*

Top format type for probiotics products 3*

Market with highest % growth in food & drinks with probiotics claims launches 3*

*Based on the past 5 years (2013-2018)

*Based on the past 5 years (2012-2018)

*Based on 2013 vs 2018

*Based on 2013 vs 2018

*Based on US$ Retail market value in 2018

Spoonable Yogurt 1,502 Ice Cream 97

Drinking Yogurt & Liquid Cultured Milk 1,407

Soft Cheese Desserts 29

Baby Formula 575 White Milk 25

Other Beverages +348%

China $11Bn

Liquid

Australia+272%

Snacks +190%

Brazil $1.8Bn

Cup/tub

India+100%

Juice drinks +107%

Japan $4.5Bn

Powder

South Korea+165%

Breakfast cereal +128%

South Korea $1.4Bn

Spread

Colombia+80%

USA $2.8Bn

China+150%

As consumers become more aware of the multiple benefits of a healthy digestive system, they will seek product formulations that serve multiple needs, from improving digestive health to supporting overall wellness.

Probiotics continue to have a key role in digestive health. Manufacturers can tap into consumers’ growing interest by educating consumers about the importance of keeping their gut balanced with ‘good bacteria’.

There will also be an opportunity to expand consumer messaging to address needs to cope with stressful, busy and active lives. Differentiating specific types of strains and their ability to specifically address certain health issues can be a point of differentiation moving forward.

As consumers incorporate probiotics as part of everyday nutrition, extension into categories beyond dairy will become the norm, offering new areas for product innovation.

Opportunities

of global consumers recognize the link between their digestive health and overall wellbeing 1

60%

consumers think probiotics is good for

cognitive health6

1 in 4In the US around

33%

But opportunities for probiotics innovation is now appearing across other categories

Top reasons global consumers are looking to improve with digestive health 1

33%

28% 28%30%

23%

23%

26%

36%

38%