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

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

The global synbiotic product market size is anticipated to reach USD 1.3 billion by 2027, expanding at a CAGR of 8.3% over the forecast period, according to a new report by Grand View Research, Inc. Increasing consumption of functional food and beverages around the world is the main factor expected to boost the demand for synbiotic products over the forecast period. In addition, rise in the consumption of probiotics and prebiotics owing to widespread awareness regarding health benefits in India, China, and Japan is expected to provide growth opportunity for the market in the near future.

Growing trend of fortifying functional food and beverages with prebiotics and probiotic ingredients to enhance nutritional content and product offerings will open new avenues for the market in coming years. For instance, in February 2020, Asmara, a Singapore brand owned by F&B consultancy company NU3x, will launch six functional powders containing synbiotics by the end of March, 2020. The products are designed to enhance immunity, cognitive health, energy, and vitality. Major vendors are adopting merger & acquisition strategies to enhance product offerings. For instance, in November 2019, Synbiotic Health entered into a licensing agreement with NUtech Ventures, the nonprofit technology commercialization affiliate of the University of Nebraska, to develop innovative synergistic synbiotics.

Functional food and beverage emerged as the largest product segment with a share of 84.1% in 2019. Growing awareness among consumers regarding associated benefits of fortified functional food and beverages for the enhancement of gut health is projected to be a key factor for the segment growth. Additionally, increasing application of fortified food and beverages to improve immunity, cardiovascular health, and cognitive health is expected to provide growth opportunity for the segment over the forecast period. Dietary supplement is expected to witness the fastest growth over the forecast period. Increasing number of health conscious consumers is expected to support the growth of dietary supplements in coming years.

The offline segment held a leading market share in 2019. High availability at supermarket and hypermarket and pharmacy stores is the main factor expected to favor the sales of synbiotic products through the offline channel in coming years. While the popularity of online sales channel is steadily growing, around 83% of consumers prefer the offline channel as it provides the leverage of feel, touch, and taste, thus driving the sales of synbiotic products through offline channel.

Europe emerged as the largest regional market with a share of 37% in 2019. This is attributed to high awareness regarding health benefits, coupled with the availability of synbiotic products. Asia Pacific is expected to expand at the fastest CAGR of 9.5% from 2020 to 2027. Growing middle class population and rapid urbanization, along with growing awareness regarding health benefits of synbiotics, are the major factors expected to drive the regional market over the forecast period. Shifting consumer inclination towards functional food and beverages on account of rising incidence of cardiovascular disorders and surge in the number of weight management programs is expected to propel the demand for synbiotic products in coming years.

Further key findings from the study suggest:

• Based on product, the functional food and beverages segment is expected to expand at a CAGR of 8.1% from 2020 to 2027 and reach USD 1.09 billion by 2027. Increasing fortification of food and beverages to enhance nutritional value is the main factor propelling the segment growth
• Online distribution channel is expected to expand at the fastest CAGR of 10.6% from 2020 to 2027. This is attributed to increasing consumer preferences for e-commerce and dependence of generation X, millennials, and generation Z parents on internet
• Europe dominated the synbiotic products market with a share of exceeding 35% in 2019 due to increasing consumption of functional food and beverages, along with growing awareness regarding health benefits of prebiotics and probiotics among the consumers
• Asia Pacific is expected to expand at the fastest CAGR of 9.5% over the forecast period on account of rising consumption of functional drinks in countries, like Japan, China, India, and New Zealand
• 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).