SSW08: Probiotics Gaining Industry, Consumer Attention

LAS VEGAS—More than 100 industry members showed up for the post-conference workshop on probiotics held the day after SupplySide West. Produced in conjunction with the International Probiotics Association (IPA), the event was co-sponsored by Chr. Hansen, Danisco, Ganeden, Morinaga, Nutraceutix and Wakunaga Probiotics.

In the first presentation, Greg Stephens, Natural Marketing Institute (NMI), provided data and insight related to consumer awareness and attitudes. He noted more than 54 million U.S. households are currently managing a digestive problem and more than 111 million Americans are concerned with preventing intestinal irregularity. He also revealed most consumers think of foods as the first choice to prevent intestinal irregularity, and most think of supplements as the first choice to treat intestinal irregularity. Awareness of the term “probiotic” has grown from 9 percent to 31 percent in the past five years, according to Stephens.

Datamonitor’s Tom Vierhile spoke next and covered product development strategies and market successes. He pointed out that although hundreds of new products containing probiotics have been introduced since early 2007, only 0.5 percent of all new food products contain these ingredients, making this still a very niche category. Of the new products, more than 75 percent are within the dairy, milk or yogurt category; however, innovative new products that contain probiotics include chewing gum, ketchup, hummus and pet food.

Finally, Christopher Shanahan, Frost & Sullivan, provided an overview of the U.S. and European markets, including sales data, regulatory situations and a list of the top factors driving and restraining growth of the probiotic market. He noted rising food prices present a challenge for developers of new products with added probiotics due to the added costs of the ingredient. He added the large marketing investment by leading brands such as Danone and Yakult continues to drive and grow the market. Further, he said, North American market growth remains stymied by lower consumer awareness and understanding of probiotics, and that continued efforts to educate the public are necessary.