Probiotics Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Probiotics Industry:

A whole new era of changes in sustainability are driven by forces of change by the governments, corporations, and consumers in terms of environmental, social and governance.

Industry leaders of the probiotic industry are promoting healthy lifestyle through engaging consumers through their products. There are a wide range of products in the market, ranging from food and beverages to dietary supplements, available in different forms such as tablets, capsules, drinks, liquids, and powders. These probiotic products are viewed as a natural solution to problems and disorders related to digestion and improving the immune system by the consumers.

The probiotics market creates an impact on two elements of ESG: the environment through the packaging and preservation process and the social pillar by creating an impact on community health.

ESG Trends

There are certain challenges in the market from an environmental perspective with the packaging used for preserving the products. The packaging used for preserving and increasing the shelf life of products is made up of polyethylene and polystyrene, which are essentially plastics used for preventing the oxygen from entering the package.

The usage of such plastics to preserve products are carbon intensive in terms of value chain, which includes production, logistics and usage. The extraction of plastic i.e., polyethylene is done from the oil and natural gas, where the dwelling and installing pipeline for the raw material causes land disturbances. The process of extraction of the raw materials as well as the plastics involve huge amounts of water consumption and the wastewater strains the environment. This gives rise to significant end-of-life plastic waste which increases the global plastic pollution.

Extraction of plastics from the natural gas and oils, produces carbon dioxide, which is a greenhouse gas. According to a report, at least 12.5 to 13.5 million metric tons of carbon dioxide is produced in the process of extracting and refining, transporting the plastics for the use of packing. It further states that manufacturing Polyethylene for the purpose of packing produces 184.3 to 213 million metric tons of carbon dioxide, making it one of the significant contributors to global warming. In line with the United Nations’ Sustainable Development Goals (UN-SDGs) this aspect creates a significant roadblock for companies in this market aiming to achieve SDG 13: Climate change.

Despite these challenges, the probiotics industry positively impacts the social aspect by improvising social health. Probiotic products are used for mainly improving health, although it impacts digestion mainly, treating illness related to digestion process, such as IBS and similar disorders. Further it has been reported that consumption of probiotics has impacted mental health in a significant manner, where anxiety and depression as well as OCD were treated effectively. Due to its impact on digestion, the probiotics products are reported to help reduce obesity and improve the immune system. In line with this, companies in this industry influence a significant positive impact on achieving UN SDG 3: Good Health and Well-being.

However, there are certain reported side effects of probiotics such as headache as the probiotics contain histamine, which levels when increased causes headache along with redness and swelling in the impacted area. There have also been reported side effects related to digestion causing bloating and irritation i.e., digestive unpleasantness.

Growth of the Probiotics Market:

The probiotics market at global scale is reported at an economical value of USD 58.18 billion as of 2021 and is expected to grow at a CAGR (compound annual growth rate) of 7.5% per annum from 2021 to 2030. Consumer’s awareness to improve health and prevent ill health are the key driving factors of the market, causing a positive impact on the scale of social health. Key leaders of the market are looking to overcome the packaging challenges that adversely impact the environment, thereby trying to make a positive impact on the environment as well.

Key Companies in this theme:

    • Aria Foods Inc

    • BioGaia AB

    • Danone

    • General Mills

    • Kerry

Scope of the Probiotics Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key aspects of the Probiotics Industry ESG Thematic Report:

    • Offers a global perspective of the probiotics industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.