Global Protective Cultures Market: Current Analysis and Forecast (2020-2027)

Report Description

The global protective culture market was valued at US$ 133.42 Million in 2019 and is projected to expand significantly with a CAGR of 22.5% from 2021 to 2027. Preservation and safeguarding of food have been the major objective for the fermentation of foods. While wholesomeness, acceptability, and quality concerns are some of the additional and valued features to the consumers. Protective Cultures consists of bacteria that act as food additives and are specifically selected for their ability to inhibit the growth of pathogenic organisms or microbiological spoilage agents and have GRAS (generally regarded as safe) status. Spoilage is one of the reasons for food wastage. Protective cultures, therefore, help the dairy manufacturers to be added to the foods that can extend shelf life. It also leads to meeting the consumer needs for more natural and clean label products. Improved shelf life aims to reduce waste, contributes to a more sustainable world, and gives producers the opportunity for geographical expansion.

With the world’s population expected to reach 9 billion by 2050, sustainability and the level of dairy food waste globally continue to influence the dairy industry’s path. Food waste can occur at any point in the food chain, but it has been observed that the levels are highest at the consumption stage. It has been estimated that around 10-20% of the production of milk and dairy products in developed countries is lost or wasted, and 50% of this waste occurs post-purchase when products reach consumers’ refrigerators, with shelf-life restrictions or microbial spoilage cited as the main reasons.

Also, with growing pressure for natural dairy foods, the ‘clean label’ trend has been gaining traction in the dairy industry. Although the dairy producers used artificial additives and preservatives, to extend product shelf life and protect fresh dairy products from contamination, the use of these ingredients has led to intense scrutiny from millennials and families with children, on the risks posed by artificial ingredients.

With the growing demand for health and hygiene, health-conscious consumers also seek a greater understanding of the ingredients used in dairy products through more transparent product labeling. Thus, clean label products containing natural, simple, and familiar ingredients are witnessing the growing preference. It has been further observed that consumers greater willingness to pay for clean label products, with 1 in 2 people ready to pay at least 10% more for yogurt that is free from artificial preservatives.

Per capita food waste of selected countries worldwide, Kilograms per year, 2017

Chr Hansen (Denmark), Kerry Group PLC, Bioprox (France), DuPont (US), Royal DSM N.V. (Netherlands), Sacco S.R.L (Italy), Meat Cracks Technology GmbH (Germany), Biochem S.R.L (Italy), Dalton Biotechnologies (Italy) are some of the prominent players operating in the global protective culture market. Several M&A’s along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.

Insights Presented in the Report

“Amongst Product type, Freeze-Dried segment holds the major share”

Based on product type, the market is fragmented into freeze-dried and frozen protective cultures. Freeze Fried dominated the global protective culture market with a share of 46.1% in 2019 and are expected to maintain its dominance during the forecast period owing to the better health benefits of protective cultures and their growing application in food and beverages as it enhances the taste and textures of the food products.

“Amongst Target Micro-Organisms segment, yeasts and molds sub-segment dominated the market in 2019”

The target microorganisms’ segment is further subdivided into yeasts& molds and bacteria. The yeasts and molds dominated the market in 2019 and are expected to maintain its dominance during the forecast period. Yeasts& Molds are one of the major contributors to the protective cultures market at the global level. They help in preventing spoilage thereby enhancing the shelf life of food and beverage products

“Amongst the Composition segment, Multi-Strain Mixed segment is expected to grow at the highest CAGR during the analyzed period”

Based on the composition segment model, the market is bifurcated into multi-strain mixed, single strain, and multi-strain. The multi-strain mixed segment dominated the market with a share of 77% in 2019 and is expected to maintain its dominance during the forecast period. The market for the multi-strain mixed protective cultures is witnessing an uptick because each microorganism in the protective culture domain performs specific functions that benefit human health and target different micro-organisms.

“Amongst Applications, Dairy and Dairy Products dominated the market in 2019”

Based on the application, the market is segmented into dairy and dairy products, meat and poultry products, seafood products. In 2019, dairy and dairy products accounted for around 50.8% of the market revenue share and dominated the market. Dairy products have changed eventually as the consumers now prefer more natural and better sustainable products. Surging application of food cultures can be witnessed in various dairy products ranging from buttermilk, cheese to yogurt.

“Europe indicates one of the largest markets of protective cultures market”

For a better understanding of the market dynamics of the protective cultures market, a detailed analysis was conducted for different regions across the globe including North America (US, Canada, and Rest of North America), Europe (Germany, UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), and Rest of World has been conducted. Europe dominated the market and generated revenue of US$ 52.84 Million in 2019 owing to the surging growth in exports of dairy products from the countries in the region and growing preference for clean and green label products by dairy and meat producers in the region.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Global Protective Cultures Market were the three major steps undertaken to create and analyze the adoption of protective cultures across various food and beverages industry in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the FMCG sector. Post assumption and validation of market numbers through primary interviews, we employed a top-down approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Protective Cultures through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Protective Cultures market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as the product form, target micro-organisms, composition, and application. Further, country-level analyses were conducted to evaluate the overall adoption of Protective Cultures in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Protective Cultures. Further, we conducted factor analysis using dependent and independent variables such as the surging food wastages across the globe, rise in the demand for food hygiene, growing preference for shell life of the dairy products, and the accelerating working population. A thorough analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, and product launches in the Protective Cultures industry across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Protective Cultures market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e. top-down approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of Protective Cultures across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Protective Cultures market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Protective Cultures Market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of product type, target microorganisms, composition, and application of the Protective Cultures market.

The main objective of the Protective Cultures Market Study

The current & future market trends of Protective Cultures were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Protective Cultures in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of product type, target microorganisms, composition, and application
• Defined analysis of the regulatory framework for the Protective Cultures industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Protective Cultures for the major regions
• Major regions studied in the report include North America (United States, Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and Rest of APAC), and Rest of World
• Company profiles of the Protective Cultures market players and the growth strategies adopted by them to sustain in the fast-growing market
• Deep dive regional level analysis of the industry