Nearly two-thirds of probiotic ingredients in Asia Pacific will be used in packaged food in 2024: Euromonitor International - Euromonitor.com

Oct 17, 2024

SINGAPORE, Singapore – Nearly two-thirds (68%) of probiotic culture ingredients in Asia Pacific will be used in packaged food in 2024, according to data analytics company Euromonitor International. Around 40% of botanical ingredients are also expected to be used in packaged food.

Herbal and traditional ingredients have been embedded in cultures across Asia and are synonymous with health, despite urbanisation and modernising societies. This reflects vast potential in the region for the innovation of naturally functional ingredients used in packaged foods.  According to new findings from Euromonitor International's Passport platform, the demand of herbal and traditional consumer health remedies in Asia Pacific reached USD35 billion in 2023.

Megumi Matsunaga, food and nutrition consultant at Euromonitor International, said: “Asia Pacific represents a bright spot for innovation opportunities in probiotics, given its maturity in packaged food applications compared to the rest of the world. Probiotics and botanicals have been identified as rising super ingredients, and they are set to propel health and wellness packaged food in Asia”

'Korean Wave’ accelerates wider use of probiotics in food products

The Asian market is expected to see nearly half (44%) of the global volume of probiotic cultures used as food ingredients in 2024. Fermentation techniques in Asia have been known to offer benefits, primarily for digestive health, including foods such as Japanese natto and Korean kimchi. 

Interest in fermented food is expected to develop further, with players building on its health profile and feeding positively into the reputation of foods known to have probiotic content.

The growing reputation of cultured food and fermentation has supported the wider use of probiotics in various food products. Driven by the rise of packaged Korean (K-) cuisine products as part of the K-food wave in the Asia Pacific region, packaged food products containing active probiotics have proliferated.

“From indulgent snacks to fermented pickled products, Korean food has been playing an important role in the internationalization of diets in Asia. Particularly, kimchi and fermented soybean products are improving consumer awareness of plant-derived bacteria in the region.

"K-brands such as Bibigo owned by CJ Corp are highlighting the health benefits of their probiotic content and promoting digestive health to appeal to export markets like Thailand.”

Additionally, consumers in emerging markets are shifting to modern grocery channels and are exploring food as medicine, creating opportunities to use well-known local ingredients in food products that appeal to global consumers.  

Probiotics dairy products shift focus to 'mental wellbeing'

The perception of probiotic dairy as a combination of indulgent and nutritious, with products providing both a good taste experience and health benefits, has contributed to its success in the region.

Asia Pacific saw the highest demand for probiotic dairy products globally, reaching USD12.6 billion in 2023, compared to North America at USD7.2 billion and Western Europe at USD5.5 billion in the same year. Japan alone makes up close to 40% of Asia Pacific’s demand for probiotic dairy products in 2023 at USD4.8 billion, followed by China at USD3.7 billion.

Matsunaga said: “Sleep and stress relief claims have surged in nutrition and indulgence categories, especially for dairy products. This is due to a higher reputation of dairy products as nutritious food among consumers in Asia.

“Claims linked to emotional wellness tend to be perceived by consumers as self-indulgent and historically not at the forefront of claims, unlike physical health benefits. The penetration of claims like sleep and stress relief has been reliant on demand for healthy indulgence. This in turn, has justified higher prices and a more premium positioning.”

From drinks to food, consumer familiarity bolsters the premiumisation of botanical infused products

Botanical ingredients also play a major role in the use of natural ingredients for health, and its use in consumer health products with functional health purposes has been well developed.

Consumer familiarity and awareness of the benefits of botanical ingredients is also boosted by the drinks market in Asia, where tea is linked to various health benefits. Asia Pacific is the only region globally where consumption of tea is larger (55%) than coffee, suggests that the understanding of botanicals and their benefits could be linked to trends in non-coffee drinks, providing a strong foundation for functional food.

The image of botanical ingredients is now evolving to a more modern, indulgent and premium one.  As packaged food consumption has increased, so has the potential to produce packaged versions of traditional dishes that are traditionally homemade and consumed fresh.

"Botanical ingredients linked to mood, relaxation, and sleep have been gaining traction in Asia. The product application of functional botanical ingredients is increasingly diversifying into indulgent categories such as snacks.

“From ginseng-infused cookies and macarons, to ice cream with ashwagandha, the speed of innovation in functional botanical ingredients is only going to accelerate as product application and variation continue to grow in Asia,” said Matsunaga.

For more information see Euromonitor International’s Probiotics and Botanicals: The Next Healthy Food in Asia report.

For further information, please contact:Euromonitor Press Office [email protected]

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