Expanding East: Probi and Sinopharm partner on immunity and bone health probiotic supplements for Chinese market
29 Mar 2021 --- Swedish probiotic player Probi is partnering with China National Pharmaceutical Foreign Trade Corporation (Sinopharm), one of China’s largest pharmaceutical and healthcare companies, to launch three probiotic supplements within the immune health, bone health and iron absorption arenas.
The products will be based on Probi’s scientifically proven probiotic strains. The move is tapping into the premium probiotic offerings segment in the Chinese market, which is rapidly gaining momentum, according to the company.
“This collaboration and partnership is a testament to Probi’s scientifically proven probiotics and the acceptance amongst the consumers in both the APAC region, as well as in the Chinese market,” Tom Rönnlund, CEO at Probi, tells NutritionInsight.
“China’s probiotic market is growing quickly and there is a growing demand for high-quality science-backed probiotic products. To offer the consumers this type of product is at the core of Probi and with Sinopharm as a well-established partner in the market, we hope this will lead to additional consumers in China getting access to products based on Probi’s probiotics.”
The Chinese market
According to Rönnlund, China is a very significant market. “China is the second-largest probiotic market in the world and in the Asian region. China alone stands for approximately 50 percent of the consumption of probiotics in the region,” he explains.
“The probiotic market in China is growing fast and we expect it to continue to grow further in the next five years.”
“Moving forward, we assume that the dominating health areas for probiotics, such as gastrointestinal and immune health, will be coupled with additional health areas. This is driven by consumer needs and wishes to cater to specific health needs, like, for example, female-specific and senior health,” Rönnlund notes.
When it comes to which ingredients and supplement applications are more popular in China, Rönnlund says that there is no “one size fits all” for the country.
“However, the highly science-backed probiotic products will become more and more popular as the desire for products that lives up to its promise is one of the key drivers in the market. Currently, we still see powder drinks, in a sachet format, as the mainstream application.”
Boost for probiotics
According to Innova Market Insights’ Top Trends in Dairy 2021 report, foods fortified with probiotics are having a moment. The market researcher details that the mainstreaming of probiotics NPD have kept this sector buoyant.
The probiotic market in China is growing fast and expected to continue to grow in the next five years.Especially in the sports nutrition space, NPD with probiotic strains is flourishing, says Innova Market Insights. Its data shows a 87 percent average annual growth in Bifidobacterium bifidum in F&B, including supplements, tracked with an active health claim (Global CAGR 2017-2019).
Sinopharm’s strategic partnership with Probi, especially its R&D capability, helps Probi contribute with a positive impact to China’s consumer healthcare industry, says Zhang Jian Ge, director of the pharmaceutical and chemical division of Sinopharm.
“The products have clinically documented positive effects and will be introduced under a new brand to expand Sinopharm’s existing supplement portfolio,” Ge adds.
Veronica Dong, head of APAC for Probi says: “We are happy to partner with Sinopharm, which shares our vision of bringing scientifically supported products into China and the APAC region. With this partnership, Probi has demonstrated it is in a position to capture high growth markets in regions such as China.”
Growth trajectory
Probi’s financial forecast is to double its annual sales within five to seven years, according to its last-year financial results. The company is on a growth tract and is looking to expand its reach via numerous partnerships and collaborations.
In line with this, Probi and over-the-counter health and wellness player Perrigo signed a semi-exclusive agreement to bring premium probiotic digestive and immune health concepts to 14 European countries.
Meanwhile, the company acquired an almost 10 percent stake in Vital Nutrients Holdings for US$6 million. Probi is now the second-largest stakeholder in Vital Holdings, which offers clinically supported nutritional supplements to healthcare practitioners, healthcare institutions and their patients worldwide.
Moreover, the company entered into a collaboration with La Trobe University in Australia to investigate the relationship between the gut microbiome and bone health.
Lastly, Probi’s Rönnlund also commented on the recent news that the term “probiotic” can now be used in mandatory labeling information characterizing food supplements in the Netherlands. The company advocates for EU-wide harmonization amid “significant increase” in probiotic demand and awareness in the past decade.
By Kristiana Lalou
