Self-care is a growing priority for consumers of all ages, including the increasing connection they are making between their gut health and their overall well-being. One product area in particular that has resonated with many consumers is probiotics. Sales of probiotics now represent about 9% of US vitamin sales, according to recent data from Circana.

Probiotics have posted a compound annual growth rate of 3.4% during the past three years, according to Circana’s “US Probiotics Update: August 2023,” which looks at trends in supplements, foods and beverages with probiotic benefits.

According to Circana, 90% of probiotics are sold in the mineral supplement subcategory of vitamins.

Consumers are buying their probiotics in mass outlets; the channel leads with 37% of total multi-outlet probiotic sales, followed by the drug and food channels.

While capsules remain the top supplement carrier, vegicaps and gummies have faster growth rates, according to Circana.

Market Opportunities

Recent category innovation is focused on women’s health, but men’s health is also a growth opportunity, too, asserts Circana.

According to Circana, innovation surrounding easier ways to ingest products, men’s health and co-branding opportunities with food and beverage brands are opportunities for further growth in probiotics.

We asked Kristin Hornberger, EVP and practice leader wellness and homecare at Circana, to shed more light on this topic.

HAPPI: Everyone is more invested in health and wellness—but are there differences in how generations see health and wellness and how they consume products in this space?

Hornberger: There are definitely differences between generations. Gen Z and Millennials are more interested in a proactive approach to health and wellness, while Boomers and seniors are looking for ways to maintain their health by taking vitamins and supplements or adjusting their life habits. Older generations also focus on more scientific and traditional approaches—while seeking advice from trusted medical professionals and online resources. The younger generations seek sustainable alternatives to optimize their mental and emotional health as much as their physical health and seek better work/life balance. They also ask friends and family for recommendations and advice.

HAPPI: Why do probiotics resonate with consumers? And do they resonate with those outside of those heavily invested in wellness?

Hornberger: Consumers see in probiotics a “more natural” way to take proactive actions to manage their health and wellness. It is a way to improve their health, aid digestion, boost their immunity system and prevent illnesses by leveraging bacteria that already lives in the body. Our self-care research found that 36% of consumers prefer brands that are “ree of artificial flavors, dyes or additives” and 33% prefer brands that are made from “natural and organic ingredients.” Particularly, following covid-19, consumers have been looking for ways to take greater control of their overall wellness; pre- and probiotics offer a tremendous opportunity to prioritize and actively manage general health and beauty goals.

Happi: Are there growth pockets withing the probiotics space—what are they and what should brands do to grow/expand in the category?

Hornberger: Within probiotics there are a couple of growth pockets: prebiotics, growing at a 29% and probiotics focused on Women/Vaginal Health, growing at a 20%. These are segments focused on addressing specific consumer needs. Brands that can show that level of specialization beyond basic gut health drive consumer interest and engagement. In a category where there are many alternatives, focusing on specific areas or benefits is very appealing.

Happi: Can you speak about consumer “status” and wellness interest/spending. Are there differences when looking at factors such as household income, for example?

Hornberger: Yes, higher income consumers and more educated segments are more involved in health and wellness and taking nutritional products to proactively address these needs. They try to stay more informed about the topic and have a higher consumption of supplements and probiotics.

Happi: What about co-branding opportunities. For instance, we know there's more science showing connections between gut heath and skin health/appearance. How can beauty brands leverage these trends? How can ingestible/food/beverage brands do the same? There is some activity already, but is a partnership or co-brand a safer bet than say rolling out their own products?

Hornberger: Cobranding is definitely an opportunity. With the right partnership, between brands that share a similar vision, co-branding can be a chance to reach new buyers and offer new solutions, while building on already strong equity and consumer loyalty. Probiotics have been participating actively in multiple food and drink categories such as sodas, yogurt, smoothies with value propositions that deliver health benefits to the consumer.  Strong probiotics brands, with equity in consumers’ minds, could be used to support the introduction of new brands or products in food and drink categories.  Several vitamin brands have been touting a more benefit driven approach vs. ingredient only, allowing consumers to shop by both need state and ingredient.

HAPPI: What else should we keep on our radar?

Hornberger: Interest in self-care and proactive health actions continue to be very relevant for consumers. Additionally, the desire for sustainability with more natural and better-for-you solutions to proactively manage your well-being are top-of-mind. These behaviors will continue to drive usage of probiotics and other natural supplements. The introduction of specialized solutions and brands, such as options for women’s health or men’s health, could be appealing opportunities.

Come To Happi's Wellness Conference

Interested in learning more about gut health and beauty? Come to Happi’s Wellness Conference on November 3, 2023 in New York City. Speakers from across gut health, dermatology, ingestibles and skincare are set to share insight during this in-person event that has been organized with our sister publication, Nutraceuticals World.

For more information and to register, click here!