US, Brazil still dominate $10bn probiotic Americas market
From the continued market dominance of the US and Brazil to the mainstreaming target market, changing regulation and the (surprising) similarity in a popular probiotic delivery format, Feldman provides some insight into an exciting category where much of the scientific research is still in its infancy.
NutraIngredients-USA: What are the key markets in the Americas for probiotics?
Monica Feldman: The retail value of probiotics foods, beverages and supplements reached $10 billion in 2014, up 8% from the previous year. The US and Brazil dominated 76% of probiotics in the Americas in 2014.
In the US market, more health practitioners and gastroenterologists are recommending that people take probiotics to improve their digestive health. Probiotic supplements reported an excellent year in the US, with 22% retail value (constant/real) growth in 2014 from 2013 as more people became aware of the digestive benefits of probiotics due to positive reports in mass media outlets. In contrast, pro/prebiotic yogurt and naturally healthy sour milk products such as kefir only grew 5%. Yet, these foods and beverages still accounted for 70% share of total probiotics sales in the US.
In Brazil probiotics have been incorporated into the formulation of many different types of foods such as bakery products, snack bars and baby food, among others. However, probiotics are mostly available in dairy products, especially yogurt.
NutraIngredients-USA: Are there big differences between North and Latin America when it comes to delivery formats?
Feldman: Surprisingly, in both North and Latin America the most common consumption of probiotics is via spoonable and/or drinking yogurt at rates of 66% and 95%, respectively. It is true that probiotic supplements in the form of tablets, pills or capsules are not as popular in Latin America as they are in North America. One reason for this disparity is that probiotic supplements are usually taken for more medical reasons and not so much for general well being in Latin America. For example, leading brands such as Enterogermina and Sinuberase by Sanofi or Floratil (Merck KGaA) have been long regarded as an aid in digestive diseases such as diarrhea and recommended by pediatricians or health practitioners.
NutraIngredients-USA: Which brands are growing the most?
Feldman: Americans became aware of probiotic cultures through Danone’s extensive marketing campaign for Activia that claims to help promote digestive regularity. Yet, many consumers have little understanding about which brands of yogurt offer sufficiently high doses of probiotics to provide true health benefits, and nearly all manufacturers label their products as containing live active cultures. In Brazil the success of Activia has been supported by the simple marketing messages promoting the yogurt for good digestive health. Higher-income women were the original target audience for Activia; yet in recent years the company has targeted middle and low-income consumers, as its price decreased.
In 2013 the competitor Yakult made a big splash to celebrate its 45 years of success in Brazil by introducing two creative marketing campaigns. The first showed a soccer coach explaining to his team the tactics of the Lactobacillus casei shirota to maintain intestinal health. The second reinforced the difference between Yakult and Yakult 40, the latter of which is premium positioned and targets older consumers.
The main message used by Yakult in Latin America is that it should be consumed by the whole family, once a day in any place, given that it is available anywhere through retailing stores and independent saleswomen, the “Yakult ladies” who knock on doors to sell the probiotic drink.
In Chile, brand Bion 3 (Merck KGaA) sells a multivitamin combined with probiotics that has proven successful at retail.
NutraIngredients-USA: Are any health conditions beyond general gut and digestive health gaining traction?
Feldman: In Mexico Danone launched Benegastro, a probiotic drinking yogurt with a creamy consistency aimed at reducing the discomfort of heartburn. Benegastro’s marketing campaigns target men with the slogan “freshness for the fire man” and with visuals of men suffering from digestive discomfort due to eating spicy food, which is relieved thanks to Benegastro.
In the US, dental probiotics continue to gain track now backed up by major dentistry brands such as Gum PerioBalance (Sunstar Americas) probiotic lozenges. Nutritional brands such as EvoraPlus and Nature’s Plus have increased their visibility in dental probiotics as well.
Alternatively, also in the US, the consumption of probiotic supplements for vaginal health has increased importantly in the past two years. Brands such as Renew Life’s Ultimate Flora Vaginal Support, Garden of Life’s Raw Probiotics Vaginal Care, Jarrow’s Fem-Dophilus and Church and Dwight’s RepHrese Pro-B are becoming important players in this space.
NutraIngredients-USA: Any remaining regulatory hurdles worth noting?
Feldman: A sign of changing regulatory attitudes was the approval by Health Canada of a range of new condition-specific claims related to digestive health, natural defenses and anti-stress for probiotics manufactured by Lallemand Health Solutions in early 2013.
In Colombia health authorities have been active in checking the promotion and advertising of supplements including probiotics. In this development, advertising of supplements need to state that consumption is complementary not a substitute for a healthy diet.
Alternatively in Brazil, the regulatory agency ANVISA does not allow manufacturers to make claims on the packaging that a certain dietary supplement is good for the digestive system unless it is scientifically proven. Therefore, it is very common for producers to market supplements based on the popular belief of healing attributed to certain ingredients.
Monica Feldman will join a host of other top speakers from North and South America at the Probiota Americas event in San Diego, June 3-5. For more information about the event and to register, please click here: http://www.probiotaamericas.com/
