Market Trends of Probiotic Drinks Industry
This section covers the major market trends shaping the Probiotic Drinks Market according to our research experts:
Growing Demand for Functional Beverages
In the global market, functional beverages from Japan have become an integral part of the beverage industry. There are many nutritional benefits offered by functional beverages that can positively affect the health of consumers and may be difficult to obtain through a regular diet. The rising consumer focus on health and wellness, especially among the younger generations, is driving a forceful demand for functional beverages to meet their needs. Presently, probiotic drinks are flourishing in the functional beverage market. These functional beverages provide numerous health benefits in addition to quenching thirst. The drinkable yogurt segment significantly contributes to the dairy-based probiotic drinks segment, driven by the inflated demand for convenient digestive supplements. With a variety of flavors to choose from, consumers can combine the benefits of probiotics with their favorite flavors to create a refreshing and revitalizing drink rather than medicine.
Furthermore, with the increasing demand for clean-label products and plant-based ingredients, manufacturers operating in the dairy space are investing heavily in product innovation to cater to the ever-increasing consumer demand. In August 2021, Pillars Yogurt LLC launched a new organic coconut probiotic yogurt. The yogurt is made with less sugar, more protein, functional fats, and a blend of pre- and probiotics, which help support gut health.
Asia-Pacific Remains the Fastest-growing Market
China, Japan, and India are the key markets in the region. According to the International Probiotics Association (IPA), China is one of the most important markets for probiotics in the world. Producers and suppliers have been witnessing a significant increase in sales nationwide. The majority of probiotics are consumed in the form of yogurt and fermented products. Probiotic drinks, such as drinking yogurt, have been experiencing increasing demand from the region.
Furthermore, kombucha is increasingly penetrating the market. Also, the market demand is further driven by the country's millennial population's continuous inclination toward healthy lifestyles. Probiotic drinks have become part of the daily diet. These factors are, in turn, driving the overall sale of probiotic drinks in the country. For instance, in March 2021, Australian probiotic technology brand PERKii launched its new 100% plant-based, non-fermented Sparkling Probiotic Drinks. To compete with kombucha, PERKii's non-fermented Sparkling Probiotic Drink was available in 700 Coles supermarkets. Furthermore, considering the demand for probiotics and the aging population in the country, market players are innovating new products for consumers. For instance, in April 2022, China Dairy Giant Yili launched a solid beverage formulated with probiotics and GABA as the critical ingredients in China.
