Galactooligosaccharides Market

Galactooligosaccharides Market Overview

Global Galactooligosaccharides Market acquired the significant revenue of 981.6 Million in 2023 and expected to be worth around USD 2,270.4 Million by 2033 with the CAGR of 8.8% during the forecast period of 2024 to 2033. The Galactooligosaccharides (GOS) is witnessing growth in its global market due to growth in importance of Prebiotics and functional food and ingredients especially in food and beverage industry, dietary supplements, and healthcare industry. FOS are a group of oligosaccharides mostly synthesised from lactose and are well known for their health enhancing properties especially in the support of healthy gut flora.

New products developed based on digestive health and immunity, together with the increasing focus on natural and plant-based ingredients, are fueling the market. Furthermore, GOS are now utilized in complementary feed for infants and in various dairy products and functional foods because of the improvement that may be made to their nutritional value. Demand for probiotics and prebiiotics due to increasing health consciousness among the consumers is expected to fuel GOS market growth on the global front.

Drivers for the Galactooligosaccharides Market

Rising Demand for Functional Foods

The customers themselves are wising up and looking for more than just what nutrients their food will provide. Therefore, the consumption of probiotics and prebiotics as part of this new industry trend has become quite popular thanks to their ability to maintain the gut health. GOS is just one of the prebiotics, which help to encourage the growth of the beneficial bacteria in the gut that can foster digestion, enhance immunity and overall gut health. This has taken place because of the growing focus on functional foods, and hence the increased incorporation of GOS in foods of different types such as dairy and infant formulas.

Manufacturers of dairy products are adding GOS to yogurts, milk and other dairy products as consumers seek products that enhance digestion. In infant formula, GOS are used, as in breast milk, to stimulate the proper colonization of the gastrointestinal tracts of newborns with a beneficial microbial flora.

Restraints for the Galactooligosaccharides Market

Lactose Intolerance Concerns

Despite galactooligosaccharides (GOS) being derived from lactose, which is a natural sugar found in milk, some individuals with lactose intolerance may still avoid products containing GOS due to concerns about digestive discomfort. Lactose intolerance occurs when the body lacks sufficient lactase enzyme to properly digest lactose, leading to symptoms like bloating, gas, and diarrhea when lactose is consumed. While GOS is generally considered easier to digest for many individuals compared to lactose, some lactose-intolerant consumers may still associate GOS-containing products with potential digestive issues, leading them to steer clear of such items. This hesitancy can limit the market potential of GOS in specific segments, particularly among consumers who are highly sensitive to dairy-related ingredients, even if the actual effects of GOS on these individuals are less severe than those of pure lactose.

Opportunity in the Galactooligosaccharides Market

Innovation in Functional Foods and Beverages

The increasing awareness of the importance of gut health and overall well-being has created a growing demand for functional ingredients like galactooligosaccharides (GOS) across a wider range of food categories. Traditionally used in dairy products and infant formulas, GOS is now finding new applications in beverages, snacks, and ready-to-eat meals. These food categories are experiencing a shift as more consumers, particularly those in health-conscious demographics, seek products that offer added health benefits beyond basic nutrition. Integrating GOS into beverages such as smoothies, juices, and even flavored waters allows consumers to easily incorporate prebiotics into their daily routines, supporting digestive health while maintaining convenience.

Similarly, snacks like protein bars, granola, and crisps can be enhanced with GOS to provide gut-health benefits, making them more appealing to consumers looking for functional on-the-go options. Ready-to-eat meals, which are becoming increasingly popular due to their convenience, can also benefit from the addition of GOS to improve the nutritional profile and cater to the demand for gut-supporting ingredients.

Trends for the Galactooligosaccharides Market

Growth in Plant-Based Products

The rising popularity of plant-based diets is significantly expanding the market for galactooligosaccharides (GOS), particularly as a key ingredient in vegan and vegetarian food products designed to support gut health. As more consumers adopt plant-based eating habits, either for health, environmental, or ethical reasons, there is an increasing demand for functional ingredients that enhance the nutritional value of plant-based foods. GOS, a natural prebiotic derived from lactose, supports the growth of beneficial gut bacteria, improving digestion and overall gastrointestinal health. For plant-based food manufacturers, GOS offers a valuable addition to products like plant-based dairy alternatives (such as almond or oat milk), vegan snacks, and meat substitutes, all of which are growing in popularity.

Segments Covered in the Report

By Source

o   Synthetic

o   Plant-based

o   Bovine Milk Oligosaccharides

o   Human Milk Oligosaccharides

o   Other Sources

By Application

o   Dietary Supplements

o   Functional Foods and Beverages

o   Infant Formula

o   Pharmaceuticals

o   Other Applications

By Function

o   Prebiotics

o   Anti-Inflammatory

o   Immunomodulators

o   Cognitive Enhancement

o   Other Functions

By End-User

o   Adults

o   Children

o   Infants

o   Other End-Users

Segment Analysis

By Source Analysis

On the basis of source, the market is divided into synthetic, plant-based, bovine milk oligosaccharides, human milk oligosaccharides, and other sources. Among these, plant-based segment acquired the significant share in the market owing to the increasing demand for plant-based products driven by shifting consumer preferences toward vegan, vegetarian, and environmentally sustainable diets. As more consumers adopt plant-based lifestyles, there is a growing need for functional ingredients that align with these dietary choices. Plant-based GOS, derived from sources like legumes or non-dairy alternatives, provide a natural prebiotic option for consumers looking to improve gut health without relying on animal-based products. This aligns with the global trend toward clean-label, non-dairy, and plant-based food products.

By Application Analysis

On the basis of application, the market is divided into dietary supplements, functional foods and beverages, infant formula, pharmaceuticals, and other applications. Among these, infant formula segment held the prominent share of the market due to the increasing focus on infant nutrition and the rising demand for formulas that closely mimic the benefits of breast milk. GOS, known for its prebiotic properties, plays a vital role in infant formula by supporting the development of a healthy gut microbiome, which is crucial for the immune system and digestive health in newborns. As parents and caregivers become more aware of the benefits of gut health for infants, there is a growing preference for infant formulas enriched with prebiotics like GOS to mimic the natural prebiotic effects of human breast milk.

By Function Analysis

On the basis of function, the market is divided into prebiotics, anti-inflammatory, immunomodulators, cognitive enhancement, and other functions. Among these, prebiotics segment held the prominent share of the market. As prebiotics, GOS helps stimulate the growth and activity of beneficial gut bacteria, which is essential for maintaining a healthy digestive system. The growing consumer awareness of the importance of gut health, particularly in relation to immunity, digestion, and overall well-being, has driven significant demand for prebiotic ingredients like GOS.

By End-User Analysis

On the basis of end-user, the market is divided into hypermarket & supermarket, online channels, convenience stores, and, other end-users. Among these, hypermarket & supermarket segment held the prominent share of the market. Hypermarkets and supermarkets are key distribution channels for functional foods, beverages, and dietary supplements that contain GOS, as they offer a wide variety of products under one roof, allowing consumers to easily access and purchase items that support gut health and overall well-being. The convenience of shopping for these products in physical stores, where consumers can compare different brands and types of health-focused products, has led to the dominance of this segment.

Regional Analysis

North America Dominated the Market with the Highest Revenue Share

North America held the most of the share of 34.1% of the market. In North America, there is a strong consumer focus on health and wellness, driving the popularity of prebiotics like GOS. The region has a well-established healthcare infrastructure, high levels of consumer awareness regarding gut health, and a growing trend toward natural and clean-label ingredients in food products.

Additionally, the significant presence of leading food and beverage manufacturers, as well as the increasing incorporation of GOS in infant formula and dairy products, has contributed to North America's prominent market position. The rising demand for probiotics and prebiotics, coupled with a large consumer base that is increasingly health-conscious, supports the continued growth of the GOS market in this region.

Competitive Analysis

The global galactooligosaccharides (GOS) market is highly competitive, with several key players striving to capitalize on the increasing demand for prebiotics in the food, beverage, dietary supplements, and infant formula sectors. Major market players are focused on product innovation, expanding their product portfolios, and improving production capacities to meet the growing consumer demand for gut-health-promoting ingredients. Companies are also investing in research and development to create new, more efficient methods for producing GOS from various sources, such as plant-based materials, to cater to the rising trend of plant-based and clean-label products.

Recent Developments

In June 2021, International Flavors & Fragrances introduced Nurica in the U.S., a product designed to lower sugar and lactose levels while imparting sweetness and natural milk-like notes. This product can be directly incorporated into milk processing, ensuring a consistent end product, as the GOS (Galactooligosaccharides) fibers it contains remain stable throughout the product's shelf life.

In March 2021, FrieslandCampina introduced Biotis Gas-O, a dairy-derived product designed to enhance digestive, mental, and physical health. The primary ingredient, galacto-oligosaccharides, offers prebiotic benefits and can be incorporated into various drink formats and functional foods to support overall well-being.

Key Market Players in the Galactooligosaccharides Market

o   Archer Daniels Midland Company

o   Danone

o   Ingredion Incorporated

o   BeneoOrafti

o   Kerry Group plc

o   Tate Lyle

o   Abbott Laboratories

o   Yili Group

o   Mead Johnson Nutrition

o   Cargill

o   FrieslandCampina Ingredients

o   Nestle

o   Royal DSM N.V.

o   Other Key Players