ANSWER

Prebiotics and Inulin Growth

Prebiotics are the fastest growing segment in the additives market with a Compound Annual Growth Rate (CAGR) of 12.9% (Mordor Intelligence, 2015). According to Grand View Research Inc.(2015), the global inulin market is expected to reach a value of USD 2.35 billion by 2020. Increasing awareness towards low calorie foods and sugar reduction on account of rising diabetes prevalence is expected to play a crucial role in driving inulin market growth.

Global Inulin Market Volume by application, 2012 – 2020 (Kilo Tons)

Source: Grand View Research, 2015

Application Insights

Food & beverage is expected to remain the largest application segment over the forecast period owing to the gaining importance of functional ingredients for improving gut health functions and reducing sugar levels (Grand View Research, 2015).

i. Dietary Supplements and Infant Formula

The global inulin market demand was 246.5 kilo tons in 2013 and is expected to exceed 400 kilo tons by 2020, growing at a CAGR of over 9.0% from 2014 to 2020. The growing infant formula market demand in China and India coupled with the announcement of capacity expansion by baby food manufacturers such as Danone and Nestle is expected to positively impact the market over the next six years (Grand View Research, 2015).

ii. Nutraceuticals

The gaining importance of nutraceuticals on account of rising health awareness is expected to fuel a demand for inulin as a functional ingredient. U.S.’s FDA has declared inulin as a generally recognized as safe (GRAS) product, which paves the way for its use in pharmaceutical applications. Growth in the pharmaceutical sector is expected to have a positive impact on the inulin market (Grand View Research, 2015).

iii. Dairy Products

Growth of the dairy industry is expected to act as a major driver for the inulin market over the forecast period of growing demands for dairy products such as cheese, yogurts and ice cream in Australasia and the Middle East. Inulin finds its application as a natural ingredient in the fortification of dietary supplements, animal feed, construction and coating industries.

 

Regional Insights

Europe was the largest inulin market, accounting for over 50% of global volume in 2013. Growth in dairy production and the pharmaceutical industry in Mexico are anticipated to have a significant impact on the inulin market. Growing demands on substitutes for prebiotics and the development of synbiotics are expected to remain key restraining factors for the market.

The Asia Pacific is anticipated to witness high growth rates at an estimated CAGR of over 10% from 2014 to 2020 in terms of revenue owing to the positive dairy industry outlook in India, China, Australia and New Zealand. Gaining popularity of functional foods such as infant formula in China, Japan and India is expected to fuel inulin demands over the forecast period. The positive dairy industry outlook in India and China owing to domestic demand growth coupled with favorable regulatory support for FDI is expected to fuel inulin market demand. The food and beverage industry growth in Saudi Arabia and Brazil is expected to play an important role in driving inulin market in the near future as well.

 

North America Prebiotics Ingredients Market Volume, 2012 – 2020 (Kilo Tons)

Source from: Grand View Research, 2014.

 

 

References

Grand View Research. (2014). Prebiotics Market Analysis By Ingredients (FOS, Inulin, GOS, MOS), By Application (Food & Beverages, Animal Feed, Dietary Supplements) And Segment Forecasts To 2020, Industry Report.

Grand View Research. (2015). Inulin Market Analysis By Application (Food & Beverage, Dietary Supplements, Pharmaceuticals) And Segment Forecasts To 2020, Industry Report.

Mordor Intelligence. (2015). Global Feed additives market – Growth, Trends and Forecasts (2014-2020), Industry Report.