Galacto-oligosaccharides Market To Reach $1.96 Billion By 2030

Galacto-oligosaccharides Market Growth & Trends

The global galacto-oligosaccharides market size is expected to reach USD 1.96 billion by 2030, registering a CAGR of 8.6% over the forecast period, according to a new report by Grand View Research, Inc. Augmenting demand for galacto-oligosaccharides (GOS) in infant formula across the globe is anticipated to drive the growth. Improved standard of living of the consumers has enabled them to spend more on baby foods, thereby driving the demand for GOS.

Another important factor bolstering the demand for GOS is the increasing instance of new product development. Galacto oligosaccharides are used in a wide range of products such as butter, cheese, curd, yogurt, breads, cakes, and many more. It helps improve liver condition and intestinal health, lower cholesterol level and risk of cancer and enhances overall human health. Spoonable yogurt, drinking yogurt, and liquid cultured milk are some of the new products developed in the recent past that make use of GOS.

The market growth, however, is slowed down by various factors. Prominent among them is the presence and increasing preference for substitute ingredients/materials. For instance, prebiotics such as isomaltooligosaccharides (IMO), which exhibit similar functionalities can be used as substitutes for GOS. Isomaltooligosaccharide (IMO) is a digestion resistant oligosaccharide present in cereal crops such as wheat, barley, corn, pulses, oats, tapioca, rice, potato and other starch sources. IMO can also be artificially-derived using starch.

Europe emerged as the largest market for GOS in 2018 with a share of 52%. The presence of prominent GOS manufacturers has favored the regional market growth. Some of the key market participants operating in the region are Clasado BioSciences, First Milk Ltd., FrieslandCampina, and Kerry Group. Prevalence of diabetes, obesity, and chronic diseases are likely to propel demand for nutritional functional food and beverages. Increasing adoption of the ‘food as medicine’ concept among the young population in the region is anticipated to drive the demand for GOS over the forecast period.

Asia Pacific is another region that has been witnessing significant demand for galacto-oligosaccharides. Rapidly growing beverage industry in economies including China, Indonesia, India, Thailand, and Vietnam are expected to have a positive impact on the market growth over the forecast period. Growing awareness regarding healthcare on account of rising prevalence of chronic diseases including blood pressure and diabetes is expected to have a positive impact on the market growth. Increased youth population coupled with rising interest in sports activities is expected to propel demand for GOS based beverage and food products in the region.

The Galactooligosaccharides (GOS) market is moderately fragmented with both domestic and international players sharing the market space. To sustain the competition, prominent players engage in product innovation and mergers and acquisitions as their key strategies. In addition, key players have been investing extensively in R&D activities in a bid to develop high quality and effective GOS ingredients. This is in reaction to an increasing need for product differentiation.

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Galacto-oligosaccharides Market Report Highlights

• In terms of application, food and beverages held the leading market revenue share of 91.6% in 2022. This segment is driven by increasing demand for dairy products, which have lactose as one of their key components

• Asia Pacific is expected to witness the fastest CAGR of 10.2% from 2023 to 2030. The high growth potential associated with the dairy industry is expected to contribute to regional growth.

• The market is characterized by intense competition among prominent market participants. The key players have been targeting countries such as China and Japan to set up their manufacturing facilities owing to the presence of a large consumer base

• Some of the key market players are Clasado BioSciences; Snow Brand Milk Products Co Ltd; FrieslandCampina; Yakult Honsha Co.; Nissin Sugar Co.; and Ingredion Inc. among others
  

Galacto-oligosaccharides Market Segmentation

Grand View Research has segmented the global galacto-oligosaccharides market on the basis of application, and region:

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

• Food & Beverages

• Dietary Supplements

• Other Applications

Galacto-oligosaccharides 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

List of Key Players in the Galacto-oligosaccharides Market

• 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