Probiotics propel packaged food growth in APAC
Rising demand for functional, natural foods drives probiotic use in Asian markets.
The Asia-Pacific region is witnessing a rapid rise in the incorporation of probiotics as a packaged food ingredient, with drinking yoghurt leading the charge. This growth is set to accelerate over the next five years, driven by several key factors.
Emil Fazira, Insights Manager for Food Asia at Euromonitor International, attributes this trend to a growing preference for naturally functional foods in the region. “This is partly tied to the cultural use of herbal supplements and remedies in this region. For instance, we are actually seeing herbal and traditional ingredients. Market size is actually on par with over-the-counter medicine," Fazira explained.
She added that "probiotics specifically have been on the rise for several years due to its clean and functional reputation. There is a demand for food that helps boost immunity. We saw that in the last several years during the pandemic."
Beyond digestive health, Asian food industries, particularly in dairy and snacks, are expanding the use of probiotics. There is a growing focus on the gut-brain axis, linking a healthy gut to mental well-being and cognition.
Fazira said, "This improves mental well-being and cognition. For instance, we see products in Japan claiming to improve sleep quality and reduce fatigue due to the use of probiotics in drinking yoghurt products."
The indulgence factor also plays a role in the success of probiotic dairy products. Consumers perceive these products as offering both taste and health benefits. "Dairy products with probiotics have grown increasingly successful in Asia, partly due to the perception of being a mixture of indulgence and nutrition," she explained.
This perception impacts consumer preferences and willingness to pay premium prices for probiotic products. "We have a survey at Euromonitor when we ask consumers if they are willing to pay more for healthy and natural attributes, specialty products, as well as novel products," Fazira shared. "There is high preference for products that are both novel and healthy, especially for markets where we see emerging demand and consumption of packaged foods."
In countries like Indonesia and the Philippines, consumers link higher prices to greater nutrition and indulgence. This trend encourages innovation and boosts the value growth of probiotic categories. "Consumers can expect to pay more and also receive greater enjoyment and rewards in return," Fazira concluded.
