India Probiotics Market Outlook to 2028

India Probiotics Market Overview

The global probiotics market was valued at USD 71.8 billion in 2023. The market has witnessed significant growth due to rising health consciousness, increasing disposable income, and the growing popularity of functional foods.

Major players in the Indian probiotics market include Yakult Danone India Pvt. Ltd., Nestle India Ltd., Amul, and Dr. Reddy’s Laboratories. These companies are leading due to their strong distribution networks, extensive R&D, and diverse product offerings.

In 2023, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul brand, launched a range of probiotic yogurt products. The products are made using the probiotic strain Lactobacillus acidophilus and are available in various flavors. Amul has invested INR 100 crore in the development and marketing of these products.

India Probiotics Market Analysis

The Indian government's emphasis on improving public health through various initiatives is fostering the growth of the probiotics market. For instance, the National Nutrition Mission aims to reduce malnutrition and promote healthy eating habits among the population.

The growing probiotics market in India is contributing significantly to the country's overall health and wellness industry. It is creating opportunities for local manufacturers, generating employment, and promoting research and development activities in microbial and gut health.

North India is currently the dominant region in the Indian probiotic market, accounting for the largest market share. This dominance is attributed to higher health awareness, better access to healthcare facilities, and higher disposable incomes in the region. Additionally, the presence of major dairy companies and advanced distribution networks in North India further strengthens its market position.

India Probiotics Market Segmentation

By Product Type: In 2023, the India probiotics market is segmented by product type into probiotic drink, probiotic supplement and probiotic food. Probiotic drinks dominate due to their convenience and immediate health benefits. These drinks are easy to consume, making them a popular choice among urban consumers with busy lifestyles.

By Distribution Channel: In 2023, the India probiotics market is segmented by distribution channel into supermarkets/hypermarkets, pharmacies and online retailers. Supermarkets and hypermarkets are the dominant distribution channel due to their wide reach and ability to offer a variety of products under one roof. These retail outlets provide consumers with the convenience of one-stop shopping and the opportunity to compare different products and brands.

By User: In 2023, India probiotic market is segmented by user into children, adults and elderly. Adults are the dominant end-user segment due to their higher health awareness and purchasing power. This demographic is more likely to seek out health-enhancing products, including probiotics, to manage digestive issues, boost immunity, and maintain overall wellness.

India Probiotics Market Competitive Landscape

Company

Establishment Year

Headquarters

Yakult Danone India Pvt Ltd

2005

Haryana

Nestle India

1961

Gurugram

Amul

1946

Anand, Gujarat

Dr. Reddy's Laboratories

1984

Hyderabad

Danone

1919

Paris, France

Nestle India: Leveraging its extensive distribution network, Nestle India has seen significant growth in its probiotic yogurt segment. The Nestle a+ Acti PLUS brand, launched in 2022, recorded sales of over INR 200 million in 2023.

Reddy's Laboratories: In 2022, Dr. Reddy's Laboratories launched a clinically tested probiotic supplement for immune support, expanding their product portfolio. This new supplement has been well-received in the market, with sales reaching INR 100 million in 2023.

Amul: Known for its dominance in the dairy sector, Amul introduced probiotic variants in its product line in 2023, including probiotic milk and cheese. Amul's strategic focus on product diversification and consumer education about the benefits of probiotics has significantly enhanced consumer accessibility and market growth.

India Probiotics Industry Analysis

India Probiotics Market Growth Drivers

Increasing Health Consciousness: In 2024, over 500 million people in India are actively seeking health-enhancing products, including probiotics. This shift is driven by growing awareness of the benefits of probiotics in improving digestion, boosting immunity, and preventing gastrointestinal issues.

Rise in Digestive Disorders: The prevalence of digestive disorders in India has increased substantially in 2024. Conditions like irritable bowel syndrome (IBS) and inflammatory bowel disease (IBD) are becoming more common due to changing dietary habits and lifestyle factors. Probiotics are increasingly recommended by healthcare professionals as a preventive and therapeutic measure for these conditions.

Government Support for Probiotics: In 2024, the Department of Biotechnology (DBT) under the Ministry of Science & Technology released guidelines for the evaluation of probiotics in food to help conduct research and promote its use in the industry. The DBT also organized a workshop on Biomanufacturing of Probiotics and Fermented Foods: A Step Towards Health Status and Social Well-Being in February 2024.

India Probiotics Market Challenges

High Cost of Probiotic Products: Probiotic products in India are generally more expensive than traditional food items, making them less accessible to a large portion of the population. According to a market analysis by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in 2024, the average price of a probiotic supplement in India is around INR 1,500 per month.

Regulatory Hurdles: The stringent regulatory environment poses a significant challenge for the probiotic market in India. According to the Food Safety and Standards Authority of India (FSSAI), there were over 1,500 regulatory inspections conducted in 2024, resulting in the temporary suspension of 200 probiotic products due to non-compliance with labeling and safety standards.

Consumer Skepticism: Despite growing awareness, a segment of the Indian population remains skeptical about the efficacy of probiotics. A survey conducted by the Indian Medical Association in 2024 revealed that consumers expressed doubts about the benefits of probiotics, primarily due to a lack of clear information and conflicting scientific opinions. This skepticism can hinder market growth as it affects consumer trust and adoption rates.

India Probiotics Market Recent Development

Amul's Probiotic Product Line Expansion (2023): Amul, a leading dairy brand in India, expanded its probiotic product line in 2023, introducing new variants of probiotic milk and cheese. These products have been well-received in the market, with sales reaching INR 150 million in the first six months.

Investment by Dr. Reddy's Laboratories (2023): In 2023, Dr. Reddy's Laboratories announced an investment of INR 500 million in research and development for probiotic products. This investment is aimed at developing new probiotic formulations targeting specific health conditions such as gut health and immune support.

Funding for Probiotic Research (2024): The Indian government allocated INR 1 billion to the Ministry of AYUSH in 2024 for research and development of natural health products, including probiotics. This funding is aimed at fostering innovation and improving the quality and availability of probiotic products in the market, supporting long-term market growth.

India Probiotics Market Future Outlook 2028

The India probiotics market is expected to continue its growth trajectory by 2028. Factors such as increased consumer awareness, innovation in product formulations, and the rising prevalence of lifestyle-related health issues will drive market expansion.

Future Market Trends

Integration of Probiotics in Everyday Foods: The trend of incorporating probiotics into everyday food items is gaining momentum in India. In 2024, over 300 new food and beverage products with added probiotics were launched in the market. This includes products like probiotic-infused snacks, juices, and cereals, making it easier for consumers to incorporate probiotics into their daily diets.

Growth of Plant-Based Probiotics: With the rising popularity of veganism and lactose intolerance concerns, plant-based probiotics are gaining traction in the Indian market. In 2024, the sales of plant-based probiotic products reached INR 500 million, reflecting a significant increase from previous years. These products are derived from sources like soy, almond, and coconut, catering to the dietary preferences of a growing segment of consumers.
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