Probiotics Success Strategies in Food and Drinks: Novel applications, future R&D and consumer engagement

Date: February 22, 2010
Pages: 101
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Hard Copy Mail Delivery, CD-ROM Mail Delivery
ID: P776724945CEN

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Probiotics Success Strategies in Food and Drinks: Novel applications, future R&D and consumer engagement
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 10
    Introduction to probiotics 10
    Regulatory perspectives of the probiotic market 11
    Market analysis of the global probiotic category 12
    Product analysis – Insights from brand successes and failures 13
    The probiotic principles for success 14


    Summary 16
    Research methods and report structure 17
    Report structure 17


    Summary 20
    What is a probiotic? 21
    Commercial origins 22
    The science of probiotics 23
    Gut health 24
    Immune support 25
    Skin health 26
    Nutrient absorption 28
    Novel research 29
    Allergies 30
    Chronic fatigue 32
    Depression 33
    Obesity 33
    Urinary tract infections 35
    Type of probiotic strain – Does it matter? 36
    An issue of stability – Do probiotics need to be alive? 37


    Summary 40
    Regulatory landscape in the EU the US 41
    Enforcing consumer rights in the US 41
    Enforcement – Class action leads the way in 2009 and 2010 44
    Hard times for the EU probiotic market 45
    EFSA and probiotics 46
    The future of regulation 47


    Summary 50
    Introduction 51
    Category growth 53
    Europe – market size, growth and forecast to 2013 54
    US – market size, growth and forecast to 2013 55
    Japan - market size, growth and forecast to 2013 56


    Summary 58
    Introduction 59
    Failures in the probiotic market 59
    Case Study 1 - LiveActive by Kraft Foods 59
    Company overview 59
    Product innovation 59
    Strategy and marketing messages 60
    Conclusions 61
    Case study 2 - Dancing Daisy by St Helen’s Farm 62
    Company overview 62
    Product innovation 62
    Strategy and marketing messages 63
    Conclusions 63
    Case study 3 - LC1 Go! by Nestlé 64
    Company overview 64
    Product innovation 64
    Strategy and marketing messages 65
    Conclusions 65
    Success in the probiotic market 66
    Case study 4 – Yakult by Yakult Honsha Co. Ltd 66
    Company overview 66
    Product innovation 66
    Strategy and marketing messages 67
    Conclusions 67
    Case study 5 - Actimel by Danone 68
    Company overview 68
    Product innovation 68
    Strategy and marketing messages 69
    Conclusions 70
    Case study 6 - ProViva by Probi 71
    Company overview 71
    Product innovation 72
    Strategy and marketing messages 72
    Conclusions 73
    The future: Innovation in probiotics 74
    Case study 7 - BLIS Throat Guard by BLIS Technologies Limited 74
    Company overview 74
    Product innovation 74
    Strategy and marketing messages 75
    Conclusions 76
    Case study 8 - Bravo Friscus by Skånemejerier 77
    Product innovation 77
    Strategy and marketing messages 78
    Conclusions 78
    Case study 9 - Galaxy Probiotic drink by Mars Incorporated 79
    Company overview 79
    Product innovation 79
    Strategy and marketing messages 80
    Conclusions 80
    Case study 10 – Walls Milk Time ice lolly by Unilever 81
    Company overview 81
    Product innovation 81
    Strategy and marketing messages 82
    Conclusions 82
    Case study 11 - Lätta spread by Unilever 82
    Product innovation 82
    Strategy and marketing messages 83
    Conclusions 84


    Summary 86
    Introduction 86
    Connect with the consumer 87
    Engage with efficacy 87
    Bridge the benefit 88
    Be the authority 89
    Partner with precision 89
    Appendix 91
    Interview with Jeff Hilton, Integrated Marketing Group 91
    Index 93
    References 94


    Figure 2.1: Number of probiotics research publications, (1990-2009) 23
    Figure 2.2: Racconto Essentials Digestive Health All Natural Pasta with GanedenBC30, a patented probiotic strain developed by Cleveland, OH based Ganeden Biotech, Inc 24
    Figure 2.3: Dukat Bio Aktiv LGG 26
    Figure 2.4: Age Defence dietary supplement from Nude Skincare containing probiotics and a blend of nutrients 27
    Figure 2.5: Koiwai KW Nyusankin yogurt from Koiwai Nyugyo, contains the Lactobacillus paracasei KW3110 strain of bacteria with anti-allergy properties 31
    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. 35
    Figure 2.7: Fem Dophilus from Jarrow Formulas Inc 36
    Figure 4.8: Probiotic market value by country ($m), 2008 51
    Figure 5.9: LiveActive cheese strings and granola bars from Kraft Foods 60
    Figure 5.10: Dancing Daisy Probiotic drink from St Helen’s Farm 62
    Figure 5.11: LC1 Go! from Nestlé 64
    Figure 5.12: Yakult probiotic drink from Yakult Honsha Co. Ltd 66
    Figure 5.13: Actimel from Danone 69
    Figure 5.14: ProViva range by Probi 71
    Figure 5.15: BLIS Throat Guard from BLIS Technologies 75
    Figure 5.16: Bravo Friscus from Skånemejerier 77
    Figure 5.17: Galaxy Probiotic chocolate mini drink from Mars Inc 79
    Figure 5.18: Walls Milk Time ice lolly from Unilever 81
    Figure 5.19: Lätta mit Probiotik spread from Unilever 83
    Figure 5.20: Unilever’s Healthy Choice logo 83


    Table 4.1: Sales and CAGR of the probiotic market, by country ($), (2003-2013) 52
    Table 4.2: Sale per capita and CAGR of the probiotic market, by country ($), (2003-2013) 53
    Table 4.3: Share of products launched, by category (%), 2006-2009 54
    Table 4.4: Share of probiotic products launched, by region, (2006-2009) 55

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