Probiotic Seltzer Market Size (2023 - 2030)

The global probiotic seltzer market size was valued at USD 3.55 billion in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 6.1% from 2023 - 2030. 

Market Overview: 

An increase in the demand for functional beverages globally to boost digestive health is bolstering the growth of the market over the years. Probiotic drinks help preserve a healthy balance of gut and stomach bacteria, along with several health benefits, including digestive health, weight loss, and immunity functions. Regular consumption of probiotics improves bowel movement and nutrient absorption of the food. Therefore, with the increasing awareness of the product and understanding of its significance for gut wellness, the demand for the product is rising rapidly. Additionally, the growing health awareness among consumers, especially the young population, has propelled the demand for the product worldwide. Furthermore, the accessibility of ready-to-drink products for on-the-go consumption has led to the growth of the market. Several flavors, such as citrus and other flavors, are also gaining commercial popularity among consumers. The rising recognition and adoption of new flavors among consumers are predicted to provide opportunities to the players operating in this market. Furthermore, these drinks foster mental health as several studies have proven that mood and mental health are interlinked with gut health. Thus, the product helps with depression, anxiety, autism, and other mental health issues. 

COVID-19 Impact on the Probiotic Seltzer Market: 

During the COVID-19 outbreak, the health benefits of probiotic drinks have been instrumental in escalating the market's growth. It proved to be a boon for the market. The market was driven by a paradigm shift towards preventive health management exercises amidst the rising healthcare costs and the surging burden of diseases, due to COVID-19.  As the pandemic had a grave impact on the health and overall wellbeing of people around the globe, the demand and production of Probiotics increased rapidly. Due to the high prevalence of gastric diseases among people and serious symptoms of coronavirus, people have been inclined towards adopting healthy lifestyles and including healthy beverage options like probiotics. It has several health benefits such as improving intestinal health, reducing acidity, maintaining healthy body weight, and boosting the immunity of the person. Therefore, to prepare the body against coronavirus invasion, many people opted for Probiotic Drinks. And with several key players introducing new products and flavors with the benefits of probiotics, it has further augmented the market growth. 

Market Drivers: 

Growing demand for healthy beverages is surging the market growth: 

Rapidly growing diseases like acidity, gastric disorders, and constipation among people of all age groups are estimated to accelerate the growth of the Probiotic Seltzer market, worldwide. The drinks provide various health advantages such as, aiding in weight loss, improving the digestive power of the body, improving mental health, removing harmful toxins, and boosting immunity. Such factors are likely to surge the growth of the market in the predicted time frame. Therefore, the increased demand for healthy beverages among consumers due to the widespread prevalence of gastrointestinal diseases and disorders like constipation is likely to drive the market for Probiotic Seltzers in the forecast period. 

The expansion of product portfolio by the major key players is fuelling the market growth: 

The enhancements in the existing probiotic drinks products and the launch of new flavors and soda probiotic drink products with attractive packaging are anticipated to augment the probiotic seltzer market in the future. Major market key player companies in the Probiotic market have started to pay attention to new product launches to meet the increasing demand for high-nutrition probiotic beverages with enhanced consumer taste preferences. Such factors are likely to drive the Probiotic Seltzer market in the future. 

Market Restraints: 

The high cost of probiotic drinks is hindering the market growth in developing nations: 

Probiotic drinks fall slightly among the more expensive beverage products due to their high nutritional content and high processing cost in manufacturing industries. Therefore, they may not be affordable for many people in underdeveloped or developing countries. This factor is estimated to restrain the market growth of Probiotic Seltzer in the forecast period.

Lack of awareness about the health benefits of probiotics is restraining the market growth: 

The negligent behaviour along with a severe lack of awareness among people, in rural areas of underdeveloped and developing countries about the availability of probiotics and other healthy options in beverages, are likely to impede the market growth in the forecast period. 

PROBIOTIC SELTZER  MARKET REPORT COVERAGE:

This research report on the Probiotic Seltzer Market has been segmented and sub-segmented based on Type, Packaging, Distribution Channel, Region, and Key Companies.

Probiotic Seltzer Market – By Type. 

• Dairy-based products 
• Plant-based products 

Dairy-based products hold the largest market revenue share of more than 55.5%. Typically, probiotic drinks are linked with fermented dairy drinks or yogurt-based drinks as they are very compatible with dairy products. Drinkable yogurt is a popular beverage in the United States and with the increasing niche for carbonated drinkable yogurt in the functional foods market manufacturers are working toward launching new products to satisfy the consumer’s tastes and needs. Thus, the new manufacturing technologies may have the capability for the commercialization of carbonated symbiotic dairy-based beverages. According to a report by Food & Drink International in February 2021, Tesco plc, an international supermarket, reported demand growth of 400% for Kefir in the U.K. Major manufacturers including Yakult Honsha Co., Ltd., Danone S.A., and GCMMF (Amul) offer a wide range of milk-based products. 

The plant-based probiotic drink segment is estimated to project the fastest growth over the forecast period, 2022-2017. Over the past few years, the demand for plant-based probiotic drinks including fruit and vegetable juices has increased significantly. The growing number of lactose-intolerant people and increasing awareness about animal cruelty in the food and beverage industry have been driving the plant-based segment. In April 2021, Neuro, a beverage company, launched a probiotic kombucha tea, Probucha which is a carbonated drink flavored with lemon and ginger and cultured with Bacillus subtilis bacteria. 

Probiotic Seltzer Market – By Packaging. 

• Bottles 
• Tetra packs 
• Cans 

Based on the packaging type, the market is segmented into 3 categories – Bottles, Tetra packs, and cans.  

Probiotic Seltzer Market – By Distribution Channel. 

• Online Sales 

• Offline Sales 

The offline channel segment is leading the market and accounts for more than 85.0% of the global revenue. Supermarkets, hypermarkets, and convenience stores are the key offline distribution sales channels. The increased shelf space in supermarkets, convenience stores, grocery stores, health food stores, and pharmacies, has fostered the sales of these beverages over the world. 

Online channel is estimated to project the fastest CAGR of 6.7% from 2023 - 2030. The growing number of online retailers who offer discount coupons, competitive pricing, easy payment options, and hassle-free delivery is bolstering segment growth. Additionally, the growth can be attributed to the increasing experience and reliance of the younger generation on the internet and e-commerce. Further, the high penetration of smartphones and the internet among the middle-class population worldwide is likely to boost sales via online platforms over the coming years. 

Probiotic Seltzer Market – By Region. 

• North America 
• Europe’ 
• Asia-Pacific 
• South America 
• Middle-East and Africa 

The North American Probiotic Seltzer market holds a market share of 25.6% and a sales revenue total of USD 53.9 million. Increasing focus on health, growing availability of probiotic products, rising prevalence of health disorders, and increasing popularity of probiotic drinks among the millennial population are the major factors driving the probiotic seltzer demand in this region. 

The positive outlook of consumers towards probiotic drinks in Europe is anticipated to drive probiotic seltzer consumption in the region. The Europe probiotic soda market in 2022 stands at a value of USD 49 million and accounts for a significant market share of 23.2%. France, Germany, Spain, and the United Kingdom are likely to be prime markets in this region over the coming years. 

The Asia Pacific accounts for the majority of the market share, more than 40.0% in 2021. The market for probiotic seltzer in the Asia-Pacific region is anticipated to project a significant market share in the global landscape attributing to its increasing focus on health and rising awareness of the benefits of probiotic drinks. China, Japan, and India are the major probiotic seltzer markets in the region. According to a report by the International Probiotics Association (IPA), China is one of the most dominant markets for probiotics in the world. Currently, China’s probiotic seltzer market holds a total valuation of USD 19.8 million and holds a market share of 9.4% globally. Producers and suppliers have been observing a remarkable increase in sales in the nation. Yogurt-based probiotic drinks are especially widespread in the region. The demand for products such as probiotic tea and probiotic soda drinks is estimated to increase at a rapid pace throughout the forecast period increasing the market size. 

Central and South America are estimated to expand at the fastest CAGR of 7.2% from 2023 - 2030. The probiotic beverage market is one of the fastest-growing markets in the region. As of 2021, Brazil contributed more than half of the sales in the region. Furthermore, the rising middle-class population, growing health concerns, and easy availability of probiotic drinks are predicted to fuel the demand for the product in the upcoming years. 

Probiotic Seltzer Market – By Companies. 

1. Yakult Honsha Co. Ltd. 
2. Danone S.A. 
3. Nestle SA 
4. Chobani LLC 
5. NextFoods 
6. Harmless Harvest 
7. Bio-K Plus International Inc. 
8. GCMMF (Amul) 
9. PepsiCo 
10. Fonterra Co-operative Group 
11. Lifeway Foods Inc. 

The industry is marked by enormous competition on account of the presence of major key players who have been introducing and launching new flavors, attractive packaging, and organic ingredients to gain a lucrative advantage over others. 

Recent Industry Developments: 

• In November 2021, Beliv, a Latin-American beverage company, acquired Big Easy, a leading manufacturer of plant-based probiotic drinks in the United States. 
• In September 2020, Molson Coors Beverage Co., a Chicago-based beverage company, announced the launch of its new product, HUZZAH Probiotic Seltzer, the first non-alcoholic beverage innovation from the company’s emerging division.