Galacto-oligosaccharide (GOS) Market Size, Share & Trends Analysis By Application (Food & Beverage, Dietary Supplements), By Region (Europe, Asia Pacific, North America), And Segment Forecasts, 2023 - 2030

Galacto-oligosaccharide Market Trends

The global galacto-oligosaccharide (GOS) market size was valued at USD 1.01 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 8.6% from 2023 to 2030. The growth is attributable to increasing penetration of the product in infant formulation. The product consists of properties similar to human milk, thereby providing a high level of nutrition to the infant. Several oligosaccharides including lactosucrose, galactooligosaccharides, lactito, and lactulose are derived from lactose as raw material. Lactose is the major milk sugar, but there is the presence of other carbohydrates and saccharides (including oligosaccharides) in small quantities. 

The U.S. FDA considers GOS to be safe for consumption and have provided it with the GRAS (Generally Recognized As Safe) status under Federal Food, Drug, and Cosmetic Act (section 201(s)). According to the Regulation no 1924/2006 in EFSA, the product has been claimed to reduce potential pathogenic microorganisms and gastrointestinal discomfort.

Major manufacturing companies have been focusing on developing GOS with specific concentration and application in a cost-effective manner. The North Carolina State University developed a new method for production of the product using recombinant galactosyl transferase.

Extensive R&D by manufacturers as well as organizations are likely to develop new opportunities for the market over the next nine years. However, increasing demand for Isomaltooligosaccharide (IMO) is anticipated to hamper growth.

Application Insights

The food & beverages application dominated the market with a revenue share of more than 90% in 2022.The highest market share is attributable to the increasing demand for the product dairy products, ice creams, and cereals is anticipated to propel demand. Increasing consumer awareness regarding healthy eating is expected to propel the demand over the next nine years.

It helps in improving the digestive health of middle and old aged consumer, thereby propelling increase in consumption of fortified foods among people from all age groups. GRAS recognition of the product is also anticipated to augment its use in dairy products, bars, fruit drinks, fruit preparations, waters/quenchers, milk beverages, and baby foods.

Dietary supplement is likely to witness a significant growth of over the forecast period. Ability to enhance the human immune system and digestive health is expected to have a positive impact on the growth. Sedentary working style coupled with increased stress is likely to fuel the demand over the forecast period. Increased disposable income of working women in emerging economies of India and China are further expected to benefit the dietary supplements segment.

Regional Insights

Europe region dominated the market with a revenue share of more than 50% in 2022. This is attributable to the high old age population coupled with the presence of numerous infant formula companies including Humana, Danone, and Ordesa is likely to propel the demand over the forecast period. Japan and Europe are leading producers and consumers of GOS. 

Japanese companies dominated the worldwide galacto oligosaccharide production and development activity. However, European interest in GOS based products has witnessed a significant rise with several companies currently producing or planning to produce GOS mixtures.

Asia Pacific is expected to be the fastest growing market on account of high population, urbanization, and increasing demand for functional food products. In addition, presence of companies including Yakult Pharmaceutical Industry Co Ltd, Nissin Sugar Manufacturing Co Ltd, Samyang Genex Co, Taiwan Fructose Co Ltd, New Francisco Biotechnology, Qindao Ftz United International Inc, Abo Switzerland Co Ltd, Terio Co and Wuxi Cima Science Co Ltd. is expected to have a positive impact on demand. 

Demand in North America is driven by rising consumption of low-fat milk products, yogurt, and low-fat tea & coffee. Infant formula manufacturers catering to the regional as well as global market including Mead Johnson is further expected to result in increased GOS demand during the forecast period.

Key Companies & Market Share Insights

The global GOS market is fragmented with the presence of numerous global and regional players. Some prominent players in the global galacto-oligosaccharide (GOS) market include:

• Clasado BioSciences

• Snow Brand Milk Products Co Ltd

• Royal FrieslandCampina

• Yakult Honsha

• Nissin Sugar Co., Ltd.

• Ingredion

• First Milk Ltd.

• Kerry Group

• Kowa Europe GmbH

• Samyang

Galacto-oligosaccharide (GOS) Market Report Scope 

Global Galacto-oligosaccharide (GOS) Market Report Segmentation

This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis on the market trends in each of the sub-markets from 2018 to 2030. For this study, Grand View Research has segmented the global galacto-oligosaccharide market report on the basis of application, and region:

• Application Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • Food & Beverages

  • Dietary Supplements

  • Other Applications

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

    • Australia

    • New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa