Galacto Oligosaccharides Market

Galacto Oligosaccharides Market Outlook

The galacto oligosaccharide market is likely to boom at 9% value CAGR by garnering a market value of US$ 2.24 Bn during the forecast period 2022-2032.

Global sales of galacto oligosaccharide exceeded US$ 950 Mn by 2022. Increasing prevalence of lactose intolerance along with inclination towards a healthier lifestyle is surging the demand for galacto oligosaccharides.

Report Scope

Market Size Value in 2022	US$ 950 Mn
Project Market Forecast Value in 2032	US$ 2.24 Bn
Global Growth Rate (2022-2032)	9%
Market Share of Europe	45%
Key Companies Profiled	Yakult Pharmaceuticals Pvt. Ltd Royal Friesland Campina N.V Nissin Sugar Co. Ltd. Ingredion Incorporated Kerry Inc. Quantum Hi-Tech (China) Biological Co., Ltd. Saputo Dairy UK Baolingbao Biology Co., Ltd. Samyang Corporation New Francisco Biotech Company

Demand Analysis of Galacto Oligosaccharides from 2016 to 2020 Vs Market Projections for 2021 to 2031

As per Fact.MR’s report, over the last five years, from 2016 to 2020, the sales of galacto oligosaccharides surged at a CAGR of 7%. Growing demand for label-friendly and natural dietary fibres, such as galacto oligosaccharides, continues to create numerous opportunities for stakeholders despite the ambiguity of using prebiotic ingredients in food products.

Galacto oligosaccharides exhibit nearly similar composition to human milk, which in turn is propelling its adoption in infant formula. As galacto oligosaccharide can offer benefits of both fibers and prebiotics, it is likely to gain popularity among consumers.

Thus, due to the aforementioned factors, the sales of Galacto Oligosaccharides are expected to surpass US$ 1.2 Bn by registering a CAGR of 9% in the assessment period.

Consumer Trends Shaping Demand for Galacto Oligosaccharides?

The U.S. Food and Drug Administration (FDA) recently approved galacto oligosaccharides to be considered a dietary fiber, which is likely to contribute enormously to the unprecedented growth of the galacto oligosaccharides market. Leading manufacturers of galacto oligosaccharides are leveraging a massive rise in the number of health-conscious consumers and making it a priority to respond quickly to the recent market developments.

Prominent consumer trends in the food & beverage industry are providing a multitude of opportunities for stakeholders in the galacto oligosaccharide market. In addition, investment in R&D to stay ahead of the changing consumer needs and emerging trends in the F&B space will prove to be an underlying strength for manufacturers in galacto oligosaccharide market, in the upcoming years.

Furthermore, companies are investing in advanced tools to establish a stronger connect with consumers that enable market players to offer better products and help them to stand out in the highly-competitive galacto oligosaccharide market. Thereby, apart from gaining certifications and approvals from governing bodies, staying highly adoptive to the constantly-changing consumer trends is expected to remain the most popular trend in the galacto oligosaccharide market.

Market Players Adopting Plant-based Galacto Oligosaccharide to Broaden their ‘Lactose Intolerant’ Product Portfolio?

According to a journal published by the National Center for Biotechnology Information (NCBI) in 2017, around 70% of the world’s population suffer from lactose intolerance due to a genetically programmed gradual decline in lactase expression, known as lactase non-persistence (LNP).

Thus, galacto oligosaccharide (GOS) is gaining significant uptake in the infant nutrition industry on account of positive perception about its therapeutic effect on gut health and immunity development. In addition, increase in the number of lactose intolerant population continues to be a challenge for policy makers.

The availability of plant-based galacto oligosaccharide has proven to be highly beneficial with regards to meeting the nutritional requirements of the lactose intolerant population. Furthermore, the infant nutrition industry will be looking to capitalize on the opportunity presented by commercialization of plant-based galacto oligosaccharides.

FDA Approval Likely to Provide the Much-needed Fillip to Galacto Oligosaccharide Demand?

The broader trends impacting the dietary fibres industry have a profound impact on the prospects of galacto oligosaccharide industry. The recent FDA approval on eight dietary fibres, including galacto oligosaccharide is likely to create a scramble for launching new products.

With this approval, key manufacturers are broadening the horizon of galacto oligosaccharide that could help them seize premium opportunities. Key dairy cooperative companies are using galacto oligosaccharide in beverages owing to its stability, as addition of fibres in beverages still remains a challenge due to their insolubility or grittiness.

How is Use of Galacto Oligosaccharide in the Nutraceuticals Industry Gaining Strong Momentum for Sales?

The demand for galacto oligosaccharide in nutraceuticals is likely to grow at a steady clip during the assessment period. The stability of galacto oligosaccharide in high temperatures and low pH applications makes it an ideal fit for nutraceutical products.

Prominent nutritional supplement products such as Bimuno, which is meant for the well-being of gut health, contains galacto oligosaccharide in its ingredient profile. The composition for galacto oligosaccharide in nutraceutical products might vary according to the chain length and linkage type between the monomer units.

Country-wise Analysis

Increasing Lactose Intolerance Influencing Galacto Oligosaccharide Sales Positively in Europe?

Countries such as Finland, France and Germany have the highest rate of lactose intolerance. This, in turn, is propelling digestive disorders and problems in the region. Thus, working professionals are paying special attention to including food and beverages that would improve their gut health and provide balanced nutritional diet.

Moreover, people from the region have shown a growing inclination towards investing in nutritious food products. Thus, due to the factors mentioned above, Europe is expected to dominate the galacto oligosaccharide by accumulating 45% market share in the assessment period 2022-2032.

High Rate of Lactose Intolerance Enhancing Galacto oligosaccharide Sales in Asia

According to Britannica Procon, 61% people in India, 73% people in India, 85% people in China, 98% people in people suffer from lactose intolerance. Dairy products are a huge part of the everyday diet of these countries. Thus, lactose intolerance has increased by leaps and bounds in the last few years.

Furthermore, growing inclination towards vegetarianism and veganism is boosting the demand for galacto oligosaccharide. Also, vegan products are giving the same amount of nutrition as their dairy counterparts. In addition, penetration of vegan companies in these countries is positively influencing the sales of galacto oligosaccharide. Thus, Asia is expected to account for more than 25% of market share for galacto oligosaccharide.

Category-Wise Insights

Soluble Properties of Liquid Galacto Oligosaccharide Making it Popular?

The liquid galacto oligosaccharide finds extensive applications across food products such as beverages, fermented milk, & so on. Moreover, in comparison to powder, liquid galacto oligosaccharide dissolves easily in the water.

In addition, it does not change the taste of the beverage and maintains the food quality. The powder galacto oligosaccharide is expected to grow on a relentless rate with its use as an additive in infant formula and nutraceuticals. Thus, according to Fact.MR, liquid galacto oligosaccharide is foreseen to hold around 59% of the global market share by 2031.

Health Benefits Augmenting Demand from Food and Beverage Industry for Galacto Oligosaccharides?

Food and beverage continue to remain the largest end-use application of galacto oligosaccharides, as consumers are becoming highly aware of the health benefits of consuming dietary fibers such as galacto oligosaccharides. Despite the challenges associated with adding fibers to beverages, recent developments in nutritional beverages are coaxing manufacturers to introduce galacto oligosaccharides in liquid form. Eventually, the demand for liquid galacto oligosaccharides is expected to remain higher than that its powder counterpart.

Anticipating the rise in demand for special nutrition and sports drinks, Vitalus Nutrition Inc., a Canadian supplier of nutri-functional proteins, introduced VITAGOS™ – a highly-soluble galacto oligosaccharide syrup. To cater to increasing needs for gluten-free and vegan-friendly nutrition drinks, a majority of manufacturers are introducing galacto oligosaccharides in liquid form, which is likely to remain a popular trend in the foreseeable future. Thus, the food and beverage industry is expected to possess more than 50% of market share for galacto oligosaccharides.

Competitive Landscape

Manufacturers operating in the galacto oligosaccharide market are extensively focusing on R&D activities to enhance their product portfolio and to keep up with the emerging trends of galacto oligosaccharide market.

• Yakult Pharmaceutical industry Co., a leading player in the galacto oligosaccharide market, is vying to expand its services in various countries such as China, Vietnam, USA, Brazil, India, Mexico, Myanmar and Middle East. The company had launched Yakult Light, a low-calorie variant of fermented milk, to offer product differentiation as per diverse customer needs.
• Royal Friesland Campina N.V., another prominent player in the galacto oligosaccharide market, established a new production facility for Vivinal GOS in Borculo, Netherlands for responding to surging demand of high quality ingredient in infant nutrition. Also, the company collaborated with Glycosyn to introduce next-generation infant nutrition products.

Key Segments Covered in Galacto Oligosaccharides Industry Report

• Product Type

  • Liquid Galacto Oligosaccharides
  • Powder Galacto Oligosaccharides

• Primary Function Type

  • Galacto Oligosaccharides as Prebiotics
  • Galacto Oligosaccharides as Sweeteners

• End Use Type

  • Galacto Oligosaccharides for Food and Beverage
    • Dietary Supplement
    • Bakery Products
    • Dairy Products
    • Others
  • Galacto Oligosaccharides for Animal Feed
  • Galacto Oligosaccharides for Pharmaceutical & Personal Care