Chapter1

ExecutiveSummary

MarketOverview1-1

Introduction1-1

Overview1-1

KeyApplicationSectors1-1

ResearchandDevelopment1-2

ScopeofResearch1-3

SummaryofMajorFindings1-4

MarketGrowthandOpportunities1-4

MarketChallengesandDrivers&Restraints1-5

KeyIndustryChallenges1-5

KeyMarketDrivers1-6

KeyMarketRestraints1-7

TrendsbyGeographicRegion1-8

CompetitiveAnalysis1-9

ConclusionsandRecommendations1-10

Chapter2

IntroductiontotheIndustry

MarketOverviewandDefinitions2-1

Introduction2-1

Definitions2-1

ProductTypesandApplications2-3

Introduction2-3

ResearchScope2-4

DairyYoghurtandYoghurtDrinkProbioticProducts2-4

YoghurtDrinks2-7

Yoghurt2-7

EthnicYoghurts2-7

ProbioticSolutions2-9

Non-DairyFoodandBeverageProbioticProducts2-10

ExamplesofProbioticBacterialInclusioninFoodandBeverageProducts2-11

DietarySupplementProbioticProducts2-12

ExamplesofDietarySupplementProbiotics2-12

OtherProbioticApplicationsProducts2-13

PharmaceuticalApplicationsforMedicalNutrition2-13

PersonalCareApplications2-15

ExamplesofNewProductLaunches2-16

DairyYoghurtsandYoghurtDrinksMarket2-16

OtherFoodandBeverageProbioticProducts2-17

DietarySupplementProbioticProducts2-17

PharmaceuticalandPersonalCareProbioticProducts2-18

ExamplesofTechnologyandProductDevelopments2-18

ChrHansenA/S2-18

DaniscoA/S2-18

IndustryStructure2-20

IndustryStructureandGeographicalTrends2-20

Licensers2-20

ExclusiveEndUsers2-21

LicenserEndUsers2-21

MultinationalIngredientCompanies2-21

BulkManufacturersforPrivateLabels2-22

GeographicalDistribution2-22

GeographicalAttitudestoHealthBenefitsAssociatedwithYoghurtConsumption2-24

Legislation2-25

EuropeanLegislativeIssues2-25

Country-specificTrends2-26

ResearchDevelopments2-27

AcademicandResearchDevelopments2-27

ExamplesofKeySuppliers2-30

ExamplesofKeySuppliers2-30

ArlaFoodsAmba(OwnerofMedipharmAB)2-30

BioGaiaAB2-30

CentroSperimentaledelLatteS.r.L.2-31

Chr.HansenA/S2-31

CSKFoodEnrichmentBV2-32

DaniscoA/S2-32

DSM2-33

InstitutRosellLallemand2-33

MeadJohnsonNutritionals2-34

MedipharmAB2-34

ProtexinHealthCare(PIL)2-35

Sigma-TauPharmaceuticalsInc.2-35

ValioLtd2-35

GlossaryAbbreviationsandReferences2-36

GlossaryofTerms2-36

Acidophilus2-36

Bacteria2-36

BacterialSpecies2-36

Bacteriotherapy2-36

Bifidobacteria2-36

ColonyFormingUnits(CFU)2-36

Culture2-36

DietarySupplement2-37

FunctionalFood2-37

Lactobacilli2-37

Nutraceutical2-37

Pathogen2-37

Prebiotic2-37

Probiotic2-38

Prophylactic2-38

Proteolysis2-38

Strain2-38

Synbiotic2-38

Symbiotic2-38

Therapeutic2-38

ViableBacteria2-38

Yoghurt2-39

ListofAbbreviations2-39

References2-40

Chapter3

IndustryChallenges

ExamplesofIndustryChallenges3-1

StabilityofStrainsDuringStorageandProductShelf-lifeLimitstheirMarketApplication3-2

ReductionintheSupplyofMilkIncreasesPriceofRawMaterialsandLimitsAvailabilityofSupplyinto

theMarket3-2

ConsumerPerceptionofHealthClaimsDiffersThroughoutEurope，MakingMarketingSpendNecessary

inVariousEuropeanRegions3-3

TimeandCompanyAdjustmenttoNewly-introducedRegulatoryDevelopmentsMayRestricttheir

InitialMarketDevelopment3-3

LackofStandardsintheMarketCreatetheNeedforDevelopmentofIndependentQualityControlsand

RegularProductEvaluationtoMaintainQualityAcrosstheProbioticsIndustry3-4

Claimson'Nutricosmetics'or'Skingestibles'MayAffectValidityorRestrictGrowthinFunctionalFood

Probiotics3-4

InternationalRegulatoryGuidelinesforProbioticProductsRequiredforLong-termMarket

DevelopmentandStability3-5

Chapter4

AnalysisoftheTotalFoodandBeverageProbioticsMarket

IntroductiontotheTotalFoodandBeverageProbioticsMarket4-1

MarketOverview4-1

BenefitsofProbiotics4-2

ProblemsAssociatedwithProbiotics4-3

ResearchScope4-4

MarketDrivers4-4

CompanySpendingonPromotionalMarketCampaignsDrivesMarketGrowth4-5

ConsumerInterestinNaturalandAlternativeMedicineDrivesSalesintheMarket4-6

DiscoveryofNovelStrainsandStrainCombinationsDrivesProductInnovationandNewProductDevelopment4-6

SuccessfulCombinationofTasteandScienceinProductFormulationsDrivesNewProductDevelopment4-6

MarketingSimpleNamesforStrainsDrivesMarketGrowthbyEasierBrandInformationRetention，PromotingEasy

AssociationwithProducts4-7

DevelopmentofProbioticsStandardswillDriveGrowthofEffectiveProductsintheMarketplacewithanAssociation

ofProductQuality4-7

IncreasingAmountofDocumentationonBenefitsofProbioticStrainsDrivesPossibilitiesforApplicationintoNew

Products4-7

OrganisationsSetUpinRecentYearstoPromoteCommunicationwillDrive

AwarenessandStimulateMarketGrowth4-8

MarketRestraints4-8

RelativelyHighCostofProbioticsasPremiumFunctionalFoodsTargetonlyHigher-incomeConsumers4-9

LegislativeRestrictionsonProbioticHealthClaimsRestrainsMarketGrowth4-9

ManufacturerDifficultiesinProductDifferentiationRestrainsProbioticMarketDevelopment4-10

ProfitMarginSqueezebytheFoodManufacturingIndustryRestrictsR&DSpend4-10

VariationsinCustomerSpecificationsforProbioticsfromDifferentManufacturers

RequiresBespokeFormulations4-11

MistrustfromtheGeneralPublicontheEfficacyofProbioticsRestrainsMarketExpansion4-11

PerceptionofEfficacyofProbioticsisDifferentfortheDifferentTypesofProductsontheMarket4-12

LimitedStabilityofProbioticsImpedestheirAcceptance4-12

ForecastsfortheTotalFoodandBeverageProbioticsMarket4-13

MarketEngineeringMeasurementAnalysis4-13

MarketForecastsandTrends4-13

RevenuesbyProductType4-15

PricingAnalysisandTrends4-17

ProvisionofHealthClaimswithStrain4-19

YieldorTypeofStrainandtheRequirementforProtection4-19

ConcentrationofCells4-19

FormofCellPresentation4-19

PacksizeorPackagingRequirements4-20

DistributionCycleofStrain4-20

ProductandApplicationAnalysis4-20

ProductConsumptionTrends4-21

IndustryDynamics4-26

CompetitiveFramework4-26

ThreatofNewEntrants4-27

DegreeofCompetition4-28

ThreatofSubstitutes4-28

SupplierPower4-29

BuyingPower4-30

IndustryPartnerships4-30

20074-30

20064-32

20054-32

20044-33

20014-33

MergersandAcquisitions4-33

20074-33

20064-34

20054-35

20044-35

20034-35

CompetitiveAnalysis4-36

CompetitiveStructure4-36

TiersofCompetition/TypesofCompetitors4-37

BasicBacteriaorYeastManufacturers4-38

DairyCo-operatives/SupplementorCapsuleManufacturers/FoodandBeverageManufacturers4-38

EncapsulatorsorStrainProtectors4-39

CompetitiveFactors4-39

Price4-39

TechnicalFormulationAdvice4-39

ManufacturerReputationandVisibility4-40

RequirementforProtectionofaStrainProduct4-40

Chapter5

AnalysisoftheDairyYoghurtandYoghurtDrinkProbioticsMarket

IntroductiontotheDairyYoghurtandYoghurtDrinkProbioticsMarket5-1

MarketOverview5-1

MarketDrivers5-2

AcceptanceofProbioticYoghurtandDrinksasHealthyConvenienceFoodsPromotesMarketDevelopment5-3

MarketingCampaignsforDairyDrinksIncreasetheMarketAcceptabilityoftheseProducts5-3

CombinationofProbioticsMarketwithOrganicSectorasaDualApproachMaximisesUseofthePremiumValue

ConceptforProducts5-4

CombinationofProbioticswithOtherFunctionalFoodIngredientsDrivesGrowthofMultiple-impactProducts5-4

IncreasedActivityofCheeseandMilkApplicationswillIncreaseGrowthintheDairyProbioticsMarket5-4

DevelopmentofNewTexturesandDistributionMechanismsStimulateFurtherProductPenetrationWithinthe

ProbioticsMarket5-5

IntenseCompetitioninDairyMarketSectoraidsMarketGrowthandDevelopment5-5

InnovativeEthnicandLactose-intolerantDairyProbioticProductsStimulateGrowthinNicheMarkets5-5

MarketRestraints5-6

IncreasesinGlobalRawMaterialPricesCreateDifficultiesforDairyProcessors5-6

IncreasingTrendforDairyFarmerstoLeavetheIndustryHindersRawMaterialSupply5-7

AdaptationtoHealthClaimsLegislationinAdvanceofLegislationEnforcement

CausesConfusionintheMarket5-7

ProductswithaShortShelf-lifeCauseLogisticalSupplyDifficulties5-8

RelativelyHighCostofProbioticDairyProductsRelativetoOtherYoghurtsRestrictsMarketDevelopmentto

SpecificPopulationSectors5-8

AcquiredTasteNecessaryforSomeProbioticProductsRestrictsMainstreamMarketDevelopment5-8

InabilitytoGuaranteeEfficacyThroughoutShelf-lifePeriodRaisesConcernfromConsumerAssociations5-9

ForecastsoftheDairyYoghurtandYoghurtDrinkProbioticsMarket5-9

MarketEngineeringMeasurementAnalysis5-9

MarketForecastsandTrends5-10

EuropeanSurveyofYoghurtConsumption5-14

PricingAnalysisandTrends5-15

DairyIndustryPricingTrends5-16

CompetitiveAnalysis5-16

CompetitiveStructure5-16

TypesofCompaniesandTiersofCompetition5-17

ExpansionsandAcquisitions5-18

KeyEnd-userGroups5-18

CompetitiveFactors5-18

MarketShareAnalysis5-19

Chapter6

AnalysisoftheNon-dairyFoodandBeverageProbioticsMarket

IntroductiontotheNon-dairyFoodandBeverageProbioticsMarket6-1

MarketOverview6-1

MarketDrivers6-2

FruitJuicesRepresentIdealHealthyVehiclestoDriveGrowthSurgeinFoodandBeverageProbiotics6-2

HealthyFoodandBeverageProductsareFirst-stepVehiclestoIntroduceExplosiveGrowthDevelopmentTrendfor

Probiotics6-3

ImprovementsinProtectionTechniquesandSpray-dryingDevelopmentTechnologiesPromoteLargerNumberof

Applications6-3

GrowthinDemandforOrganicProduceDrivesDevelopmentsinFoodProbioticsMarket6-4

RapidDevelopmentofYoghurtDrinksMarkethasEasedtheWayforFutureProductApplications6-4

ProbioticInclusioninFoodsandBeveragesChangesDirectionofGrowthintheProbioticsMarketDevelopment6-4

MarketRestraints6-5

PrebioticsCompeteasAlternativeFunctionalIngredientstoRestrictGrowthoftheProbioticsMarket6-6

LackofAwarenessofProbioticsinFoodandBeverageSectorLimitsMarketGrowth6-6

ProductDiversificationRequiresDifferentTechnologicalInnovationswhichareLimitedintheirAvailability6-7

StrainStabilityIssuesinManyFoodandBeverageProductsReduceOpportunitiesforProbioticInclusion6-7

ConsumerPredispositionsMayLimitProbioticsAcceptabilitytoDairyApplications6-7

ForecastsoftheNon-DairyFoodandBeverageProbioticsMarket6-8

MarketEngineeringMeasurementAnalysis6-8

MarketForecastsandTrends6-9

FruitJuices6-10

InfantFormulaProducts6-10

CerealProbioticProducts6-11

OtherProducts6-12

TechnologicalDevelopments6-13

PricingAnalysisandTrends6-15

CompetitiveAnalysis6-16

CompetitiveStructure6-16

TypesofCompaniesandTiersofCompetition6-16

ExpansionsandAcquisitions6-17

KeyEnd-userGroups6-17

CompetitiveFactors6-18

MarketShareAnalysis6-18

Chapter7

AnalysisoftheDietarySupplementProbioticsMarket

IntroductiontotheDietarySupplementProbioticsMarket7-1

MarketOverview7-1

MarketDrivers7-2

MoreConcentratedNatureofDietarySupplementProbioticsShouldDriveGrowthofTheseProductsinMarket7-3

FocusonSpecificDietaryAilmentsClearlyDefinesMarketforSupplementProbioticsandAllowsProduct

Differentiation7-3

HigherConsumerSpendonProductsfromaMarketTargetedTowardsSpecialisedConditionswillDriveRevenue

Growth7-4

LongerShelf-lifeandNatureofSupplementProbioticProductsAddConvenienceandFlexibilitytotheProduct

Offering7-4

DietarySupplementsDoNotRequireRefrigerationthusareEasiertoHandle7-4

AdvertisingandMarketingNecessarytoDriveAcceptanceofSupplementProbioticsinEurope7-5

GeographicalDifferencesinMarketDistributionforProbioticDietary

SupplementsCreatesOpportunityforGrowth7-5

GuaranteeofHighQualityProductswillEnsureLong-termSuccessandDriveGrowthinProbioticSupplements

Market7-6

MarketRestraints7-6

ConsumerPreferenceforFoodProbioticProductsRestrainsGrowthinSupplementMarket7-7

LowAwarenessofDietarySupplementProductsinMarketHamperstheirMarketDevelopment7-7

MarketingSpendonProbioticDietarySupplementProductswillTargetFocusonIncreasingSales7-8

CarefulStrainChoiceandSynergismTestingNecessaryforOptimalEfficacyinSupplementProducts7-8

QualityProductAssuranceStandardsVitaltoSustainLong-termMarketGrowth7-9

ProductTransportandStorageRequirementsforRefrigerationRequiresResearchandDevelopmenttoIdentify

OptimalConditions7-9

StrictControlsRequiredtoImproveLowEfficacyofDietarySupplementProductsinResearchLiterature7-9

ForecastsoftheDietarySupplementProbioticsMarket7-10

MarketEngineeringMeasurementAnalysis7-10

MarketForecastsandTrends7-10

PricingAnalysisandTrends7-15

CompetitiveAnalysis7-16

CompetitiveStructure7-16

TypesofCompaniesandTiersofCompetition7-17

KeyEnd-userGroups7-17

CompetitiveFactors7-17

MarketShareAnalysis7-18

Chapter8

AnalysisoftheOtherProbioticsApplicationsMarket

IntroductiontotheOtherProbioticsApplicationsMarket8-1

MarketOverview8-1

MarketDrivers8-2

CreationofNewMarketOpportunitiesforProbioticsBroadensandExpandsPotentialMarketValue8-2

TargetingProbioticsatSpecificAge，EthnicorConsumerGroupsIncreasesPenetrationoftheConsumerMarket8-3

StrainandTechnologicalAdvancementsCreateNewOpportunitiesforMarketGrowthDevelopmentThroughNew

ProbioticApplications8-3

DevelopmentofNewCosmeceuticalandNeutraceuticalProbioticProductsStimulatesInterestfromPersonalCare

Companies8-4

CollaborationofProbioticsManufacturerswithLargeDrugCompaniesCreatesFurtherOpportunitiesforMarket

Expansion8-4

StringentTestinginClinicalTrialsBeforeProductsareSoldIncreases

ConfidenceinEfficacyofMedicalProbiotics8-5

MarketRestraints8-5

LackofAwarenessofProbioticProductsforMedicalandPersonalCareApplicationsRestrictsMarketGrowth8-6

NewTechnologicalLimitationsforPersonalCareProductApplicationsNecessitatesDevelopmentofDifferent

ProtectionSystems8-6

MarketConfusionastoWhatConstitutesaPharmaceuticalProbioticLimitsGrowthoftheseProducts8-7

UnclearLegislativeRequirementsforPharmaceuticalApplicationsineachCountryhasResultedinLackofMarket

Clarity8-7

LittlePreviousHistoryofCollaborationwithPharmaceuticalDrugCompanies

LimitsGrowthofMedicalProbiotics8-7

ForecastsoftheOtherProbioticsApplicationsMarket8-8

MarketEngineeringMeasurementAnalysis8-8

MarketForecastsandTrends8-8

MedicalNutrition8-10

PersonalCareProducts8-12

OralHealthProducts8-12

PricingAnalysisandTrends8-13

CompetitiveAnalysis8-14

CompetitiveStructure8-14

TypesofCompaniesandTiersofCompetition8-15

KeyEnd-userGroups8-15

CompetitiveFactors8-15

MarketShareAnalysis8-16

Chapter9

MarketEngineeringStrategies

CriticalSuccessFactorsintheTotalFoodandBeverageProbioticsMarket9-1

FocusonAdvertisingandBrandPromotionattheRetailLeveltoStrengthenBrandDevelopment9-2

OfferingaCompleteProductPortfolioforKeyMarketSegments9-2

MonitoringNewLegislativeDevelopmentsandRegulationsRelevantto

ProbioticsasFoodIngredients9-2

FormationofStrategicAlliancesandJointVenturePartnerships9-3

AbilitytoEducateConsumersandOfferTechnicalandAfterSalesSupport9-3

#B956-88?2007Frost&Sullivanwww.frost.comAugust2007xiii

PromotionofCommunicationbetweenIndustryandAcademic

ResearcherstoDisseminateInformation9-4

SetupQualityControlandRegulatoryGuidelinesforProbiotics9-4

CombinationofProbioticStrainswithOtherActiveSupplementsNeeded9-4

FoodandBeverageProbioticsMarketingMix9-5

StrategicRecommendations9-7

RecommendationstoIntroduceQualityControlTrademarksandStandards9-7

RecommendationsforMinimisingtheThreatofNewMarketEntrants9-8

RecommendationsforMinimisingthePriceofDairyRawMaterials9-8

RecommendationsforReducingtheEffectofInternalRivalry9-9

RecommendationsforCompaniesLookingtoEntertheMarket9-10

Chapter10

DatabaseofKeyMarketParticipants

ExamplesofKeyIndustryParticipants10-1

ExamplesofKeyIndustryParticipants—ManufacturersandDistributors10-1