Galacto Oligosaccharides Market Size and Industry Forecast Report to 2030

The galacto oligosaccharides market size is projected to grow from US$ 560 million in 2022 to US$ 900 million by 2030; the market is expected to record a CAGR of 6.1% from 2022 to 2030.

Market Insights and Analyst View:

Galacto oligosaccharides are also known as oligo-galactosyl-lactose, oligo-galactose, oligo-lactose, or trans-galacto-oligosaccharides (TOS). They naturally occur in legumes such as chickpeas, lentils, and beans. The use of galacto oligosaccharides helps to stimulate immune functions, helps absorb essential nutrients, and produces antioxidants in the body. The awareness of benefits associated with galacto oligosaccharides is rising due to the shift in consumers' interest in the nutrient content. Hence, increasing awareness and adoption of galacto-oligosaccharides is a vital factor in driving market growth. In addition, it is increasing use as low-calorie sweeteners in different food and beverage products is further driving the market growth.

Growth Drivers and Challenges:

The use of galacto oligosaccharides in food & beverages and the healthcare sector is increasing owing to increased awareness regarding its various health benefits. Galacto oligosaccharides are derived from lactose and serve as a valuable ingredient in infant formula, promoting gut health and immune system development. These ingredients help to absorb essential nutrients, help stimulate immune function, and produce antioxidants in the body in various applications. In addition, their application in functional food and dietary supplements has surged due to their ability to selectively stimulate beneficial bacteria in the gut, contributing to overall well-being. Thus, increasing consumer awareness regarding health and nutrition ingredients has surged the demand for products containing galacto oligosaccharides, contributing to innovation and market growth.

Moreover, the expansion of galacto oligosaccharides application into pharmaceuticals and healthcare has further created a market growth opportunity. Surging research and development activities have discovered the potential health benefits of galacto oligosaccharides, ranging from immune system support to potential application in managing certain health conditions. As healthcare professionals and consumers alike recognize the importance of preventive health measures, the demand for products enriched with galacto oligosaccharides is likely to surge.                

However, the high price of galacto oligosaccharide products may hamper the growth of the market to some extent. In addition, the health concerns related to excessive consumption of galacto oligosaccharide products, such as stomach cramps, intestinal gas, bloating, and diarrhea, hinder the growth of the market.

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Galacto Oligosaccharides Market: Strategic Insights

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Report Segmentation and Scope:

The global galacto oligosaccharides market is segmented based on form, application, and geography. Based on form, the galacto oligosaccharides market is segmented into dry and liquid. Based on the application, the market is segmented into food and beverages, dietary supplements, and others. The food and beverages segment is further segmented into dairy products, infant nutrition, beverages, breakfast cereals, and others. Geographically, the market is segmented into North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

Segmental Analysis:

Based on application, the galacto oligosaccharides market is segmented into food and beverages, dietary supplements, and others. The food and beverages segment holds a significant market share, and dietary supplements are expected to grow fastest during the forecast period. The growing popularity of functional food & beverages is driving the galacto oligosaccharides market. The increasing demand for functional food is due to increased health issues among the population. According to the US Census 2020, 109 million Americans have been facing the lifestyle issues and conditions of aging, increasingly driving functional food sales in the US. The increasing consumption of functional foods has surged in order to maintain & promote gut health. These factors are expected to boost the future galacto oligosaccharides market growth for the food and beverages segment.

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Regional Analysis:

The galacto oligosaccharides market is segmented into five key regions—North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa. The global galacto oligosaccharides market was dominated by North America. Europe is the second major contributor to the market, and Asia Pacific is expected to grow substantially during the forecast period. In North America, an increasing number of individuals opting for healthier food, such as functional food and beverages, has contributed to the market growth in the region. Galacto oligosaccharides help to absorb essential nutrients, help stimulate immune function, and produce antioxidants in the body in various applications. The manufacturers of functional food & beverages are focusing on the requirements of the population and conducting surveys to forecast the demand for functional food & beverages. According to FlavorSum, LLC, a survey conducted on 15th July 2021, 63% of the US population and 74% of Canadians are willing to purchase functional food and beverages to adopt health & immunity. Further, since the COVID-19 pandemic, the population has been facing a rise in digestion and immune disorders. Hence, there is an increasing consumption of dietary supplements in the region. According to the US Council for Responsible Nutrition (CRN) survey, in 2019, 77% of Americans consumed dietary supplements. Hence, the increasing consumption of dietary supplements is driving the growth of the galacto oligosaccharides industry in North America.

Industry Developments and Future Opportunities:

Various initiatives taken by key players operating in the galacto oligosaccharides market are listed below:

1. In June 2022, FrieslandCampina Ingredients announced the product launch under the brand name Biotis GOS-OP High Purity. This product contains 90% galacto oligosaccharides. The launch was aimed to cater to the growing demand for functional ingredients.

COVID-19 Pandemic Impact:

The COVID-19 pandemic affected industries in various countries, influencing their economic conditions. Lockdowns, business shutdowns, and travel bans in leading countries in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) negatively affected the growth of various industries, including the food & beverages, and pharmaceutical & nutraceutical industries. The shutdown of manufacturing units disturbed global manufacturing activities, supply chains, delivery schedules, and sales of various essential and non-essential products. In 2020, various companies announced possible delays in product deliveries and a slump in future sales of their products. In addition, the bans imposed by various governments in Europe, Asia, and North America on international travel forced the companies to put their collaboration and partnership plans on a temporary hold. Additionally, lockdowns and disruption in the supply chain initially caused sourcing ingredients and packaging challenges. All these factors hampered the food & beverages and pharmaceuticals & nutraceuticals industry in 2020 and early 2021, thereby hindering the growth of various markets related to this industry, including the global galacto oligosaccharides market.

Many industries faced unprecedented challenges due to the COVID-19 outbreak in 2020. The food & beverage and pharmaceuticals & nutraceuticals industry declined due to the shutdown of manufacturing units and supply chain disruption. The pandemic disturbed the manufacturing processes with restrictions imposed by government authorities in various countries. During the initial phase of the pandemic, almost all countries proposed lockdowns in their respective economies, where people were restricted from going outside their houses. However, the demand for immunity-boosting functional food and beverages surged owing to increasing awareness regarding its health benefits. The use of galacto oligosaccharides in various products helped to maintain the gut health. Manufacturers' initiatives to increase production by implementing safety measures for workers propelled the growth of the galacto oligosaccharides market during the forecast period. Additionally, surging health-conscious consumers sought out healthier options, leading to the development of functional products with healthier ingredients.

Competitive Landscape and Key Companies:

AIDP, Inc.; Ingredion; Fonterra Co-Operative Group Limited; Kerry Group plc; Clasado Ltd; VITALUS NUTRITION INC; Yakult Pharmaceutical Industry Co., Ltd; Nissan Sugar Co. Ltd; Samyang Corporation; and FrieslandCampina are among the prominent players operating in the global galacto oligosaccharides market. These market players are adopting strategic development initiatives to expand, further driving the market growth.