Interpretation of the 100 billion food probiotic industry

On July 27, the "first share" of probiotics-Beijing Ketuo Hengtong Biotechnology Co., Ltd. sounded the opening bell on the Shenzhen Stock Exchange and successfully listed on the ChiNext. According to the listing prospectus of Ketuo Bio, the 2017-2019 revenue of Ketuo Bio will be 284 million yuan, 318 million yuan and 308 million yuan, respectively. The company achieved net profits of 71,347,700 yuan, 91.193 million yuan and 93.2841 million yuan at the same time. Yuan, showing a steady growth year by year.

Coincidentally, Qiaqia Foods also released the "Nut+" strategy the day before. On July 26, Qia Qia Foods at the 2020 Qia Qia Strategic New Product Cloud Launch Conference and the Hefei Institute of Material Science of the Chinese Academy of Sciences established the Probiotics Research Institute, and launched the new "Nut+" strategic product including the probiotic Daily Nut , Cut the product line into the field of probiotics.

Ketuo's listing and the strategic layout of Qiaqia Food have activated the attention to the food probiotic industry. Taking this opportunity, 35 Dou will conduct a brief analysis of the food probiotic industry and plan to discover the business opportunities in it.


The century-old probiotic industry has entered a stage of rapid development

The concept of probiotics was first based on the research of Russian scientist Mechenikov in 1907. After years of development and research on probiotics, the United Nations Food and Agriculture Organization and the World Health Organization officially defined it in 2001: Probiotics are living microorganisms, and when ingested in sufficient quantities, they can exert a healthy and beneficial effect on the host.

There are more than 400 kinds of probiotics in the human body. Probiotics have a variety of functional properties such as helping digestion, improving immunity, and promoting growth. They play an important role in the body's normal metabolism. If the human body's probiotics are disordered, it will have a serious impact on human health. Therefore, various probiotic supplement products have emerged in the market, mainly edible probiotic products.

In 2010, the notice issued by the General Office of the Ministry of Health on the issuance of the "List of Bacteria Can be Used in Food" clearly stipulated the following 21 kinds of bacterial strains that can be used in food (see the table below). Since then, the list of probiotics has been expanded.

The probiotics market is large and has sufficient potential. Since 2005, the growth rate of the global probiotics market has remained stable at 10-15%. The Asia-Pacific region has the largest market share, reaching 46% in 2016, followed by Europe with 22%, North America at 16.5% and the Middle East at 6.5%.

In 2018, the global probiotic market was about 49.4 billion U.S. dollars, and by 2026, the probiotic market will reach about 78 billion U.S. dollars. In 2014, the capacity of my country's probiotics market reached 42.3 billion yuan, with an average growth rate of about 17%. It is estimated that the domestic probiotics market consumption scale can reach 85 billion yuan in 2020.



Monopoly by giants, obvious advantages in strains and channels

At present, the international probiotic market is mainly monopolized by traditional probiotic development powers such as Russia, Japan, and the United States. The upstream raw material supply is also monopolized by oligopolys such as Danish Hansen and DuPont of the United States. The largest proportion of domestic probiotic raw materials is DuPont (50%) and Danish Kohansen (35%), and the remaining manufacturers are about 15%.


DuPont

DuPont was founded in 1802 and is a global enterprise based on scientific research. DuPont has a history of probiotic fermentation for more than one hundred years, and runs through the entire history of probiotic development. It has strong technical accumulation in the development and production of bacteria, and the quality of the bacteria is excellent. DuPont has a large number of probiotic strains and has launched a variety of probiotic products that are beneficial to immune health and digestive health, which is a fast-growing market area for DuPont.

DuPont’s strategy for probiotic products is to "use different strains or combinations to solve different health problems", rather than "a strain to cure all diseases". This is also the main reason why DuPont is leading the field of probiotics and is unique in the world. Strong research and development capabilities provide a strong guarantee for DuPont's words. Today, DuPont's business covers more than 90 countries and regions around the world, and about one-third of the world's probiotic raw materials come from DuPont.


Hansen

In 1874, Danish pharmacist Christian D.A. Hansen founded Khansen, headquartered in Horsham, Denmark. Hansen has a history of more than 130 years of bacterial species research, and has the world's largest and most powerful bacterial species factory.

Hansen has GMP pharma & food, Kosher, QC, HACCP, ISO 9002 and other qualifications in factories in 5 countries around the world. The probiotic factory "Air 7" in Denmark is currently the world’s largest probiotic factory and has Bifidobacterium strain with the most clinical literature.

Hansen's products are sold in 140 countries and regions around the world, and more than 1 billion people consume products containing Hansen every year. Hansen's products include enzymes, probiotics, natural pigments, etc. Among them, fermented probiotics are the main business of Hansen, accounting for two-thirds of the company's total sales.

In 2018, the global probiotic market was about 49.4 billion U.S. dollars, and by 2026, the probiotic market will reach about 78 billion U.S. dollars. In 2014, the capacity of my country's probiotics market reached 42.3 billion yuan, with an average growth rate of about 17%. It is estimated that the domestic probiotics market consumption scale can reach 85 billion yuan in 2020.


Monopoly by giants, obvious advantages in strains and channels

At present, the international probiotic market is mainly monopolized by traditional probiotic development powers such as Russia, Japan, and the United States. The upstream raw material supply is also monopolized by oligopolys such as Danish Hansen and DuPont of the United States. The largest proportion of domestic probiotic raw materials is DuPont (50%) and Danish Kohansen (35%), and the remaining manufacturers are about 15%.


DuPont

DuPont was founded in 1802 and is a global enterprise based on scientific research. DuPont has a history of probiotic fermentation for more than one hundred years, and runs through the entire history of probiotic development. It has strong technical accumulation in the development and production of bacteria, and the quality of the bacteria is excellent. DuPont has a large number of probiotic strains and has launched a variety of probiotic products that are beneficial to immune health and digestive health, which is a fast-growing market area for DuPont.

DuPont’s strategy for probiotic products is to "use different strains or combinations to solve different health problems", rather than "a strain to cure all diseases". This is also the main reason why DuPont is leading the field of probiotics and is unique in the world. Strong research and development capabilities provide a strong guarantee for DuPont's words. Today, DuPont's business covers more than 90 countries and regions around the world, and about one-third of the world's probiotic raw materials come from DuPont.


Hansen

In 1874, Danish pharmacist Christian D.A. Hansen founded Khansen, headquartered in Horsham, Denmark. Hansen has a history of more than 130 years of bacterial species research, and has the world's largest and most powerful bacterial species factory.

Hansen has GMP pharma & food, Kosher, QC, HACCP, ISO 9002 and other qualifications in factories in 5 countries around the world. The probiotic factory "Air 7" in Denmark is currently the world’s largest probiotic factory and has Bifidobacterium strain with the most clinical literature.

Hansen's products are sold in 140 countries and regions around the world, and more than 1 billion people consume products containing Hansen every year. Hansen's products include enzymes, probiotics, natural pigments, etc. Among them, fermented probiotics are the main business of Hansen, accounting for two-thirds of the company's total sales.