Probiotics Success Strategies in Food and Drinks: Novel Applications, Future R&D and Consumer Engagement
Scripp Business Insights, February 2010, Pages: 101
Probiotics have been a functional component of health foods for almost 100 years, although no legal definition exists for the term probiotic. Probiotics are tiny microorganisms which confer a series of innate health benefits to the host, and have numerous applications in both food and drugs.
The application of probiotics has extended to a wide range of delivery formats in food and drinks, and they are marketed on multiple health enhancing platforms. As the level of science increases behind the use of foods offering health benefits, consumers will increasingly search out new products promising additional advantages beyond taste and convenience.
Key features of this report
- Analysis of the emerging roles that probiotics are playing in health and disease and examples of their first commercial applications in the functional foods and drinks market.
- Insights into the current marketing and formulation strategies of the leading probiotic products and brands which are setting the pace for marketing the benefits of probiotics.
- Review of legislation and litigations currently impacting the marketing of probiotic based foods and beverages within the EU and USA.
- A breakdown of the growth of the probiotic based food and drinks in the USA, EU and Japan and the forecasted growth within specific EU countries. Per captia growth and current sales revenues are assessed including the share of products launched within specific food categories i.e. dairy versus snacks.
Scope of this report
- A comprehensive review of the scientific basis of probiotics as health enhancing foods including their specific roles in immune, skin, and nutrient absorption. The latest emerging research covering allergies, chronic fatigue, depression, obesity and urinary tract infections are also presented. Current scientific controversies over issues of efficacy and strain to stability and health effects are also noted.
- The regulatory environment for probiotics has been the most active since its inception over the past four years. This report provides key insights into the current litigation and legislation impacting the sale and marketing of probiotics in the EU and USA.
- A condensed summation of the most influential events effecting the sale and growth probiotics, their current growth rate (to 2013) and market value are delivered in an easy to comprehend format.
Key Market Issues
- The impact of EU health claims regulation: For manufacturers willing to invest a significant portion of their R&D budget into the health claims assessment process within the EU, success will offer significant competitive advantage given the number of rejected claims so far.
- The cultural difference in probiotic acceptance After only two years on the market, Kraft’s attempt to extend the US probiotic market was unsuccessful. Although Kraft’s expertise lies in formulation and distribution; it overlooked some key success factors for the functional food category. Danone was able to capitalize on the US market and avoided making mistakes.
- Difference in marketing strategies: Yakult has been successful for many reasons including its focus on one health message, its long-term investment in functional drinks, and specifically it’s direct-to-consumer approach to selling. In comparison Danone's Actimel was differentiated on taste and has increased its awareness with consumers at a time when they are looking for choice within the probiotics market.
- Emerging trends in the probiotic market: Consumers often have personal and defined health goals. Food and drinks manufacturers will need to provide unique product differentiation in order to gain loyalty from them and stand out from competitors. The use of probiotics offers this opportunity due to their unique impact on specific health areas such as immunity, allergies and skin health.
Key findings from this report
- The market for probiotics has grown rapidly from a relatively small base and continues to grow 8.9% (CAGR 03-08) to $11.3bn. Although slowing slightly, growth is expected to remain strong through 2013 at 6.2% (CAGR) when the market for probiotics is expected to be worth $15.3bn globally.
- Of all EU countries, Italy dominates the market and with growth exceeding 7% (CAGR 08-13), its value will reach $489mn by 2013.
- The US probiotics market has grown 8.7% over the past 5 years (CAGR 03-08) to $5 bn, and is expected at to grow at 5% through to 2013 to a value of $6.4 bn.
- Japan is the largest market, based on per capita spend ($20.3 in 2008). Japan’s growth is set to continue at a growth rate of 6.7% (CAGR 08-13) resulting in an average spend per capita of $28.1. Japan’s spend per capita is almost four and half times that of the US.
Key questions answered
- What are the latest applications for human health for probiotics, which products are already capitalising on these application?
- Is the use of technology that aids in the survival and storage of probiotics worth the costs, or are dead bacteria just as beneficial to health?
- What 3 probiotic products/brands have been damaged by litigation and regulation in the US since 2009?
- Of all probiotics markets, which ones have helped shape the market through both success and failure? What lessons are to be learned from 11 of the most innovative products in the probiotic category?
- Which European country is the fastest growing probiotic market and set to dominate until 2013?
- Which major countries will continue to grow and which will slow down over the next 4 years?
Probiotics Success Strategies In Food and Drinks Executive summary
Introduction to probiotics
Regulatory perspectives of the probiotic market
Market analysis of the global probiotic category
Product analysis – Insights from brand successes and failures
The probiotic principles for success
Chapter 1 Introduction
Summary
Research methods and report structure
Report structure
Chapter 2 Health benefits
Summary
What is a probiotic?
Commercial origins
The science of probiotics
Gut health
Immune support
Skin health
Nutrient absorption
Novel research
Allergies
Chronic fatigue
Depression
Obesity
Urinary tract infections
Type of probiotic strain – Does it matter?
An issue of stability – Do probiotics need to be alive?
Chapter 3 The probiotics regulatory environment
Summary
Regulatory landscape in the EU the US
Enforcing consumer rights in the US
Enforcement – Class action leads the way in 2009 and 2010
Hard times for the EU probiotic market
EFSA and probiotics
The future of regulation
Chapter 4 Global market analysis
Summary
Introduction
Category growth
Europe – market size, growth and forecast to 2013
US – market size, growth and forecast to 2013
Japan - market size, growth and forecast to 2013
Chapter 5 Product analysis – brand successes and failures
Summary
Introduction
Failures in the probiotic market
Case Study 1 - LiveActive by Kraft Foods
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Case study 2 - Dancing Daisy by St Helen’s Farm
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Case study 3 - LC1 Go! by Nestlé
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Success in the probiotic market
Case study 4 – Yakult by Yakult Honsha Co. Ltd
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Case study 5 - Actimel by Danone
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Case study 6 - ProViva by Probi
Company overview
Product innovation
Strategy and marketing messages
Conclusions
The future: Innovation in probiotics
Case study 7 - BLIS Throat Guard by BLIS Technologies Limited
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Case study 8 - Bravo Friscus by Skånemejerier
Product innovation
Strategy and marketing messages
Conclusions
Case study 9 - Galaxy Probiotic drink by Mars Incorporated
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Case study 10 – Walls Milk Time ice lolly by Unilever
Company overview
Product innovation
Strategy and marketing messages
Conclusions
Case study 11 - Lätta spread by Unilever
Product innovation
Strategy and marketing messages
Conclusions
Chapter 6 Probiotic market success factors
Summary
Introduction
Connect with the consumer
Engage with efficacy
Bridge the benefit
Be the authority
Partner with precision
Appendix
Interview with Jeff Hilton, Integrated Marketing Group
Index
References
List of Figures
Figure 2.1: Number of probiotics research publications, (1990-2009)
Figure 2.2: Racconto Essentials Digestive Health All Natural Pasta with GanedenBC30, a patented probiotic strain developed by Cleveland, OH based Ganeden Biotech, Inc
Figure 2.3: Dukat Bio Aktiv LGG
Figure 2.4: Age Defence dietary supplement from Nude Skincare containing probiotics and a blend of nutrients
Figure 2.5: Koiwai KW Nyusankin yogurt from Koiwai Nyugyo, contains the Lactobacillus paracasei KW3110 strain of bacteria with anti-allergy properties
Figure 2.6: Natren Healthy Tummy Dieter's Probiotic chewable supplement wafers from Natren Inc, claim to suppress appetite and reduce effects of over indulgence
Figure 2.7: Fem Dophilus from Jarrow Formulas Inc
Figure 4.8: Probiotic market value by country ($m), 2008
Figure 5.9: LiveActive cheese strings and granola bars from Kraft Foods
Figure 5.10: Dancing Daisy Probiotic drink from St Helen’s Farm
Figure 5.11: LC1 Go! from Nestlé
Figure 5.12: Yakult probiotic drink from Yakult Honsha Co. Ltd
Figure 5.13: Actimel from Danone
Figure 5.14: ProViva range by Probi
Figure 5.15: BLIS Throat Guard from BLIS Technologies
Figure 5.16: Bravo Friscus from Skånemejerier
Figure 5.17: Galaxy Probiotic chocolate mini drink from Mars Inc
Figure 5.18: Walls Milk Time ice lolly from Unilever
Figure 5.19: Lätta mit Probiotik spread from Unilever
Figure 5.20: Unilever’s Healthy Choice logo
List of Tables
Table 4.1: Sales and CAGR of the probiotic market, by country ($), (2003-2013)
Table 4.2: Sale per capita and CAGR of the probiotic market, by country ($), (2003-2013)
Table 4.3: Share of products launched, by category (%), 2006-2009
Table 4.4: Share of probiotic products launched, by region, (2006-2009)
- Jarrow Formulas Inc
- Kraft Foods
- St Helen’s Farm
- Nestlé
- Yakult Honsha Co. Ltd
- Danone
- Probi
- BLIS Technologies
- Skånemejerier
- Mars Inc
- Unilever
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