Probiotics are rapidly gaining traction in India, with supermarket shelves featuring a growing range of products promising gut health and immunity benefits. While traditional dairy-based offerings like curd, buttermilk, and yoghurt dominate the market, companies like Amul, Mother Dairy, Heritage Foods, etc, are leading innovation with probiotic buttermilk and curd. However, non-dairy probiotic products face challenges. Yakult, despite its global success, initially struggled in India due to consumer unfamiliarity and competition from established dairy brands. A study from Indira Management Review highlighted how Yakult’s lack of artificial flavors and unconventional format impacted its acceptance. Although Yakult has now grown to become one of the giants in the space, the non-dairy probiotic space remains challenging. Let’s take a closer look at the obstacles facing non-traditional probiotic product manufacturers in India.
Probiotics are rapidly gaining traction in India, with supermarket shelves now featuring a variety of products promising gut health and immunity benefits. From traditional curd and buttermilk to innovative probiotic beverages, supplements, and functional foods, the market is witnessing an influx of offerings influenced by global trends. The growing awareness of digestive health, preventive care and the rise of wellness-conscious consumers have fueled this expansion.
In terms of traditional formats, MilkyMist, a Tamilnadu-based startup, very recently introduced the world’s first long-life probiotic buttermilk with SIG and AnaBio Technologies, while Sid’s Farm unveiled Probiotic Natural Curd in Telangana, and Amul introduced probiotic yogurt with Lactobacillus acidophilus. On the other hand, in the non-traditional formats aisle, Yakult Danone India recently launched Yakult Light Mango Flavor and a variant with added vitamins and reduced sugar, while Bangalore-based MicrobioTx and Haryana-based Sova-X launched personalised probiotic solutions for targeted wellness. Additionally, headquartered in Mumbai, HRX, a fitness and lifestyle brand in collaboration with The Good Bug, introduced a metabolism-boosting probiotic. These innovations highlight the increasing prominence of probiotic dairy and non-dairy products in the Indian market.
“Probiotics, though still in their early stages, are rapidly gaining traction—especially in the dairy industry. A recent consumer study identified gut health as the top health concern among Indians, aligning perfectly with Ayurveda and holistic wellness, which place gut health at the core of overall well-being. With the rise of eating out and food delivery, dietary habits are evolving, often straining digestive health. As awareness of probiotics grows, we are witnessing remarkable adoption of our innovations in this space at Heritage Foods. In under a year, probiotic buttermilk already accounts for 15 per cent of our total buttermilk sales, while probiotic curd is one of our fastest-growing products,” commented Srideep Kesavan, CEO, Heritage Foods.
Speaking about Heritage Foods’ commitment to spreading awareness about the benefits of its dairy-based probiotics products, Kesavan added, “We are committed to building super-healthy products that seamlessly integrate into Indian diets. Taking probiotic Buttermilk not only enhances gut health, but it also serves as the perfect food-pairing beverage, balancing the bold flavours of Indian cuisine. We are encouraging consumers to choose this functional, health-boosting alternative over aerated beverages, which were designed for a Western culinary context. To further drive awareness, celebrity nutritionist Ryan Fernando is championing our Probiotic Buttermilk, reinforcing its role as a smart and delicious choice for a healthier lifestyle.”
Probiotic products, especially dairy-based items like curd, buttermilk, and yogurt, have long been integral to Indian diets. Companies that are experimenting with flavors, textures and other elements undoubtedly hold a significant share of the Indian market. However, non-dairy probiotic products and supplements have struggled to gain similar traction in the Indian market to date. For instance, Yakult, a globally recognised probiotic beverage, despite its global success, faced challenges in India, primarily due to consumer unfamiliarity with non-traditional probiotic formats. A case study published in Indira Management Review by the Scholars in the Department of Civil Engineering, Indian Institute of Technology, New Delhi, talks about the challenges faced by Yakult in the Indian market. According to this study, Yakult encountered competition from established Indian dairy brands like Amul and Mother Dairy, which offered traditional probiotic-rich products such as curd and buttermilk. Yakult’s unique product positioning without artificial flavors also contrasted with Indian consumers’ preference for flavored dairy products, impacting its acceptance.
In today’s context, with its rigorous multifaceted strategy over the years, Yakult has been leading the probiotics business in the Indian market. Today, Yakult is making Rs 350 crore+ in revenue in India with just one 65ml probiotic milk as a product. The company has come a long way by betting high on its marketing strategy. However, to date, this space remains challenging for most of the brands that are offering or innovating in the non-traditional probiotic formats. Although new products are increasingly adding up on the shelf, does the demand exist? Let’s dig deeper into the challenges faced by such probiotics product manufacturers in the Indian market.
The Awareness Divide
Despite the increasing availability of non-dairy probiotic products in India, consumer awareness remains a significant hurdle. While traditional dairy-based probiotics like curd and buttermilk are deeply embedded in Indian dietary habits, the concept of probiotics in non-dairy formats — such as fortified drinks, supplements, and snack bars — is still unfamiliar to many.
A narrative review by the researchers from Mount Carmel College, Bengaluru, found that while awareness of probiotics has increased over the past decade, technical knowledge among Indians remains limited. The study also noted that the Indian probiotics market predominantly offers dairy-based products, with few non-dairy options available, indicating a gap in consumer awareness and product availability. In a region specific study by the National Institute of Food Technology Entrepreneurship and Management, focusing on consumer awareness and willingness to purchase probiotic food and beverage products, researchers conclude that that while there is an increasing demand for dairy probiotic products due to their health benefits, awareness and acceptance of non-dairy probiotic products remain limited in Sonipat, Haryana.
While reflecting her thoughts on this aspect, Dr Mitravinda Savanur, Assistant Professor, Mount Carmel College, Bengaluru, said, “Consumer knowledge remains largely limited, especially regarding non-dairy probiotics options. A lack of understanding about their benefits, coupled with the perception that they are unnecessary for good health, hinders their acceptance. Bridging this awareness gap and promoting the advantages of diverse probiotic products is key to expanding their reach and fostering better gut health across all demographics in India.”
For instance, let’s explore plant-based probiotic yogurt as a case study. Epigamia, one of the leading Greek yogurt brands in India, launched a dairy-free coconut milk yogurt, marking one of the country’s first plant-based yogurt offerings. However, various pieces of evidence suggest that the actual willingness of consumers to buy such alternatives to traditional probiotic dairy products is significantly lower in India. A comprehensive survey conducted by Good Food Insatiate, India, revealed that while 49 per cent of respondents were familiar with plant-based dairy products, only 23 per cent had actually tried them. This indicates that despite increasing visibility, actual consumer engagement remains limited.
This is not only about Epigamia’s plant based yogurt options, but also true for various other formats including probiotic beverages like kombucha, water kefir, and probiotic-infused juices; probiotic snacks such as granola bars, fermented nut butters, and probiotic chips; supplements available in the form of capsules, gummies, and powders; fermented plant-based foods like kimchi, sauerkraut, miso, and tempeh; and functional foods, including probiotic chocolates, ice creams, and dairy-free desserts. This collectively suggests that for companies eyeing this segment, consumer education will remain a critical investment to unlock future growth.
“Brand companies know that beneficial live bacteria are not available in our yogurts and, to some extent, in the curd that is consumed in India; however, they fail to get this point across to mainstream consumers. A national education campaign, funded in part by the government, could help remedy the gap in understanding. Different delivery formats utilizing probiotics can also win over consumers, as traditional capsules and tablets would be seen for more medical purposes. In other parts of the world, drinks, candies, and pastries contain probiotics,” opined Shaheen Majeed, Global CEO and managing director, Sami-Sabinsa Group while highlighting the need for government interventions in the probiotics awareness drive in India.
The Premium Tag
In India, non-dairy probiotic products often face the perception of being luxury items, limiting their widespread acceptance. This perception is influenced by factors such as higher pricing, limited consumer awareness, and entrenched cultural preferences for traditional dairy-based probiotics. Non-dairy probiotic products often come with higher production costs due to specialised ingredients and manufacturing processes. These increased costs are typically reflected in retail prices, positioning these products as premium offerings. Consequently, price-sensitive consumers may opt for traditional dairy-based probiotics, perceiving non-dairy alternatives as unnecessary luxuries.
Traditional dairy-based curd is a staple in many households, offering an affordable source of probiotics. Products like Nandini Curd (500 ml for Rs 25), Mother Dairy Classic Plain Curd (1 kg for Rs 75), and Amul Masti Dahi Plain Curd (400 g for Rs 35) provide cost-effective options for consumers. In contrast, non-dairy probiotic alternatives are priced significantly higher. For instance, Nourish You Vegan Curd (450 g for Rs 99) is a premium choice catering to the plant-based market, while Pure Nutrition Probiotic Supplement (60 capsules for Rs 1,264) targets health-conscious consumers seeking specific gut health benefits. Moreover, probiotic supplements from Carbamide Forte, Wellbeing Nutrition, Dr Morepen, Velbiom, etc have premium-priced offerings. The elevated costs of non-dairy options stem from specialised ingredients, complex production processes, and a limited market base, contributing to their luxury perception in India.
Pariksha Rao, Director- Nutrition and Medical Affairs, The Good Bug, while addressing the issue of luxury perception in Indian non-traditional probiotics market, said, “The challenge of consumer perception around probiotics in India is indeed significant, especially in price-sensitive markets. To position probiotics as essential rather than premium, brands can focus on educating consumers about the specific health benefits that probiotics offer beyond traditional fermented foods. Highlighting benefits such as improved gut health, immunity support, and targeted digestive solutions can create a deeper connection with consumers seeking long-term wellness solutions.
Further, while suggesting strategic interventions in handling luxury beliefs related to such products, Pariksha Rao added, “Brands should also consider offering different pricing tiers or smaller, more affordable packaging to make probiotics more accessible. By emphasising the added value of standardised, scientifically-backed formulations and the convenience of ready-to-consume products, probiotic brands can differentiate themselves from homemade alternatives like curd or buttermilk. To bridge the cost perception gap, partnerships with healthcare professionals or influencers can help communicate the health benefits in an accessible, relatable way. Offering promotions or value packs may also reduce the entry barrier for first-time users, allowing them to experience the product without a large initial investment. Over time, this can help establish probiotics as a valuable, everyday health solution rather than a luxury.”
Gut Health Vs General Wellness
In India, the burgeoning health and wellness market has led to a proliferation of dietary supplements, including synthetic options that claim to address gut health alongside other benefits. This trend poses significant challenges for probiotic supplement manufacturers, as consumers often perceive synthetic supplements as more comprehensive solutions. A study examining factors influencing consumer behavior in functional dairy foods revealed that probiotics held a substantial share of 28.3 per cent in 2019. However, the Asia-Pacific region, including India, dominated the functional food market with a 46.8 per cent share, indicating a broader preference for various functional foods beyond probiotics.
For example, Pure Nutrition’s Progut Probiotic, where each capsule of this probiotic supplement delivers 50 billion units of beneficial bacteria from 14 probiotic strains, exclusively supports digestion and reduces gut inflammation. Such supplements focus on delivering specific strains of beneficial bacteria to improve gut health. In contrast, synthetic dietary supplements often combine probiotics with other ingredients, such as prebiotics, vitamins, and minerals, to offer a broader range of health benefits. For example, Zingavita’s Multivitamin Tablets with Probiotics & Prebiotics, which contains 13 essential vitamins and minerals like Vitamins A, C, D, E, Zinc, and Iron, claimed to improve immunity, energy, and vitality, also has 10 billion CFU of probiotics per tablet to support a healthy gut microbiome. Therefore, synthetic supplements may target multiple health aspects simultaneously, including digestion, immunity, and overall wellness. Consumers are more likely to prefer them over specialised probiotic supplements for targeted gut health support. Moreover, when studying the cost factor associated with these two, we could find out that the synthetic supplements offering overall wellness, including gut health benefits with probiotics, are priced nearly half or way lesser as compared to probiotics supplements. This could be one of the key decision-making points for the Indian consumers choosing between such supplements.
“With increasing health awareness, Indian consumers are shifting towards supplements that offer comprehensive wellness benefits. Rather than focusing solely on single-purpose products, they prefer formulations combining probiotics, prebiotics, vitamins, and minerals. This holistic approach aligns with the growing emphasis on preventive healthcare and overall well-being. Brands that cater to this demand by offering multifunctional solutions are likely to gain a competitive edge in the evolving nutraceutical market,” said Karan Khurana, Founder & CEO, Wishnew Wellness.
This preference is further influenced by aggressive marketing strategies employed by manufacturers of synthetic supplements, which often highlight multiple health benefits. The convenience of consuming a single supplement that purportedly addresses various health concerns appeals to consumers seeking holistic health solutions.
Hurdles in the Journey from Lab to Shelf
Another crucial aspect in this space is that the development of non-traditional probiotic alternatives presents unique research and development (R&D) challenges. From selecting appropriate probiotic strains to ensuring product stability and consumer acceptance, the lengthy and expensive process limits innovations in the sector.
“The probiotic sector is experiencing significant growth due to increased consumer awareness about gut health and overall wellness, with innovation being key to this progress. However, limited investment in R&D for basic identification studies, clinical research across demographic populations, claim validation, and scaling efforts hampers further advancement. This also restricts the exploration of emerging probiotic strains, product formats, delivery systems and industry collaborations. Maintaining the genome and consistency of the probiotic culture also adds to the challenge. These barriers slow down breakthroughs and restrict the sector’s ability to address evolving consumer needs and emerging trends,” opined Anurag Chadha, Director, Food & Beverage Biosolutions for South Asia, Novonesis.
Further adding to this, Chadha said, “Probiotics are also sensitive to environmental factors and require specialised packaging, storage and transportation options to maintain viability of the genome. Their production also requires the use of high-quality raw materials and specialised fermentation processes, adding to the cost. These costs may be passed onto consumers but will make accessibility a challenge. Organisations need to innovate with biosolution experts to create high-quality products that remain affordable, ensuring they are accessible to all consumers.”
For instance, in terms of probiotic-enhanced fruit and vegetable juices, incorporating probiotics into its acidic environments requires extensive R&D to maintain microbial viability and achieve desirable sensory attributes. When it comes to probiotic-infused cereals and snack bars, ensuring probiotics remain viable in dry, shelf-stable products necessitates advanced microencapsulation techniques, increasing development complexity. Moreover, creating fermented plant-based based probiotic-rich drinks from soy, almond, or coconut bases involves selecting compatible strains and optimising fermentation processes to ensure stability and palatability.
Probiotics on shaky grounds
India’s diverse demographics play a significant role in the challenges faced by the probiotic supplements market. The country’s vast population spans different regions, cultures, dietary habits, and income levels, leading to varied perceptions and consumption patterns regarding health and wellness products. In southern states, fermented foods like buttermilk, curd, and dosa batter naturally contain probiotics, making people more receptive to dairy-based probiotics. However, northern states may rely more on traditional medicines like Ayurveda for gut health. Premium probiotic supplements may appeal to urban, high-income consumers but remain inaccessible to rural or low-income populations. While metropolitan areas are seeing a rise in awareness due to better healthcare access and digital marketing, rural regions often lack exposure to the concept of probiotics. Moreover, many Indians trust traditional remedies over supplements. Ayurvedic and herbal solutions for digestive health are often preferred, contributing to the slow adoption of probiotics. To overcome these challenges, companies must adopt localised marketing strategies, offer affordable product variants, and collaborate with regional healthcare professionals to enhance probiotic awareness.
Additionally, conducting further R&D to create culturally relevant products may help improve acceptance across India’s diverse demographic landscape. Adding to this, Riya Gupta, Market Research Analyst, Chandigarh University, said, “India lags behind global markets in R&D investments for probiotic strains and formulations suited to its population. Bridging this gap is essential for innovation and product effectiveness. Additionally, the lack of clear regulations on labeling, health claims, and manufacturing standards challenges both consumers and producers. Establishing transparent policies will boost consumer trust and support industry growth. Addressing these issues will enable the development of accessible and effective probiotic products tailored to India’s diverse needs.”
The Indian market surely has potential for probiotics, the current scenario requires companies to be highly strategic when introducing new products. The market is still in a nascent stage, slowly shaping to go with the global flow.
Mansi Jamsudkar
mansi.jamsudkar@mmactiv.com