In recent years, the global probiotics market has steadily grown, with the market size in 2021 estimated at $61.1 billion, according to data from Markets and Markets. The global probiotics market is projected to continue growing at a compound annual growth rate (CAGR) of 8.3% from 2021 to 2026, reaching $91.1 billion by 2026.
Competition in the probiotics sector is primarily concentrated in the three major regions of Asia, North America, and Europe. Data from the Probiotics Branch of the China Food Science and Technology Society shows that the Asia-Pacific region has the highest probiotics consumption globally, accounting for approximately 44.4%, surpassing Europe (23.5%) and North America (17.8%). This highlights the thriving development of the probiotics industry in the Asia-Pacific region.
According to data from the China Health Care Association, the overall market size of probiotic products in China was approximately ¥87.98 billion in 2020. International data from Euromonitor indicates that the current consumption market size of probiotics in China has surpassed Italy, ranking second globally. Moreover, it continues to grow rapidly at an annual rate of 11-12%, revealing significant market potential against the backdrop of policy support and industry regulation.
Founded in 2003, Ketao Biotechnology initially focused on the trade of food additives. In 2010, they acquired the company, and Dr. Sun Tiansong, a Ph.D. supervisor and professor at Inner Mongolia Agricultural University’s School of Food Science and Engineering. Dr. Sun, known as the “Pioneer of Chinese Probiotics,” had a strong belief in the market for compounded food additives and possessed unique resources, including his spouse, Zhang Heping.
In establishing the probiotic strain resource library, Ketao Biotechnology rapidly built the largest lactic acid bacteria strain resource library in Asia. Currently, the company holds 56 invention patents related to probiotics, including over 20,000 strains of lactic acid bacteria (including probiotics), with 68 strains already industrialized.
In a previous interview, Ketao Biotechnology stated, “High-quality strains are very precious and constitute our most significant asset, embodying the efforts of scientists. Currently, Ketao Biotechnology has five star strains, which are our flagship ‘Chinese strains’.”
As China’s probiotics industry enters a rapid development phase, Ketao Biotechnology’s revenue from edible probiotic products has maintained a high growth rate in recent years. The company’s research and development investment reached ¥27.15 million in 2021, accounting for 7.45% of its revenue. The compound annual growth rate from 2017 to 2020 was 119.85%, with a year-on-year growth of 123.01% in the first half of 2021. The company achieved an operating income of approximately ¥3.65 billion in 2021. Notably, Ketao Biotechnology’s major customer is Inner Mongolia Yili Industrial Group Co., Ltd. In 2020, business with Yili accounted for 73.43% of the company’s revenue.
Perhaps, Ketao Biotechnology’s current business composition and product layout have not yet allowed it to truly break the dominance of foreign capital in the upstream probiotics market. Nevertheless, we hope that Ketao Biotechnology can uphold the facade of “Chinese strains”, enabling more Chinese people to use probiotics that are better suited for their needs.