Albany, NY -- (SBWIRE) -- 05/17/2019 -- Affordable Pricing in Order to Exploit Emerging Markets of Asia-Pacific
The global functional food market with improved digestive health claims is slowly spreading outward from its traditional geographical markets of Europe and North America and entering the developing markets of Asia-Pacific and Rest of the World. These emerging markets have already been penetrated by probiotics that have found popularity with a majority of consumers.
For prebiotic fortified products to make an impact in this potentially lucrative market, it is necessary for prebiotic manufacturers to undercut the competition using various marketing strategies. From a business perspective, the best strategy for entering this market would be to offer prebiotic enriched products at affordable prices and thereby look to pull existing probiotic consumers into the prebiotic market. Although marketing standardization and imparting awareness are very important strategies, creating competition with affordable pricing could work as the tipping point for consumers to switch from probiotics to prebiotic functional food thus increasing product sales and a greater overall impact on the present market scenario.
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Global Prebiotic Ingredients Market Overview
In terms of value, the global prebiotic ingredients market is anticipated to expand at a CAGR of 10.5% during the forecast period and is expected to account for US$ 11,036.6 Mn by 2027 end. By ingredients, Mannan-oligosaccharide is projected to be the fastest growing segm
By ingredients, inulin segment occupies a dominant market position owing to high usage and is expected to retain its dominance in the ingredients segment through 2027, with 45.0% share, followed by Galacto-oligosaccharide segment, which is expected to account for market share of 19.5% by 2027.
By source, roots segment is expected to account for 49.8% market value share, followed by vegetables, which is expected to account for market share of 29.3% over the forecast period. Furthermore, cereals segment is expected to account for market share of 13.4% over the forecast period.
By End Use, dairy products segment occupies a dominant market position owing to high usage and is expected to retain its dominance in the ingredients segment through 2027, with 22.7% share, followed by functional food & beverage segment, which is expected to account for market share of 15.6% by 2027.
By region, Western Europe is expected to retain its dominance in the global prebiotic ingredients market through 2027 with 32.0% share, followed by APEJ which is expected to account for market share of 25.7% by 2027
Development of Functional Food
In the recent past, development of functional food products has significantly increased. It is estimated that the functional food market, worldwide is expected to reach more than US$ 2 Bn in the near future. Functional foods provide health benefits to humans in addition to nutritional benefits. Of all the recent functional food products, probiotics and prebiotics incorporated food products have gained a significant market share worldwide, particularly in Europe, Asia (Japan), Australia and recently in the US. Prebiotics are essentially complex carbohydrates that are resistant to human digestive enzymes and pass to colonic regions undigested and provide nutrients for the colonic commensal bacteria. Thus, the probiotic approach and the prebiotic approach through development of functional foods are fundamentally different, though both contribute to overall enhancement of gut health. Recently, a combination of both approaches, i.e. a synbiotics (probiotic and prebiotic) approach has been promoted and a number of synbiotics products are being developed for the functional food market.
Developing Consumer Awareness on Benefits of Prebiotics
For many years, there had been a prolonged discussion among health professionals regarding the health benefits of probiotics and prebiotics and which of them was the more efficient product for enhancing human health. Weighing each product for their pros and cons, manufacturers as well as researchers had leaned towards probiotics in the beginning while prebiotics were neglected in a way. This reflected in the marketing styles of each product and probiotics took a giant leap forward in terms of sales. In recent years however, market players are turning towards prebiotics as they feel that probiotics alone are not enough for a healthy gut. The best method is to use both probiotics and prebiotics in small quantities and enable multiplication of good bacteria by providing them feed in the form of prebiotics and replenish bacteria quantities over a period of time with probiotics.
Growing Trend of Sugar, Fat and Calorie Reduction
Obesity in humans usually occurs due to high intake of sugar, fats and calories, which increases the risk of numerous health conditions such as hypertension, adverse lipid concentrations and type-2 diabetes. These conditions in turn lead to various other complications in human health and can adversely influence the deterioration of health during seizures, heart-related ailments and other body-organ failures. The U.S. has traditionally shown the highest obesity in the world with the number of adult and child obesity cases on the rise since the 1980's. In 2010, 35.7% of all the Americans over the age of 20 were rated obese according to the new health and obesity standards. With a large number of child obesity cases prevalent in the U.S., these health concerns have become very important in the healthcare segment.
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At the same time, it had become imperative to adopt healthy food habits and reduce obesity across the nation. Prebiotics mainly differ from probiotics in their form and method of functioning. While probiotics aid in introducing good live bacteria into the human gut, prebiotics are essentially food for the good bacteria already present in the human gut. Prebiotics can be easily introduced into the human gut through various food products, enabling the good bacteria to flourish and multiply and thus, show higher efficacy. The World Health Organization observed that the levels of obesity in the Americans have started declining since 2010 and this trend has been a huge driver for growth of prebiotics market in the region.