Galacto-oligosaccharide (GOS) Market (By Application: Food & Beverage, Dietary Supplements) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global galacto-oligosaccharide (GOS) market was estimated at USD 1.04 billion in 2022 and it is expected to surpass around USD 2.38 billion by 2032, poised to grow at a CAGR of 8.63% from 2023 to 2032. By application segment, the galacto-oligosaccharide (GOS) market in the United States was accounted for USD 91.7 million in 2022.

Key Pointers

• The food & beverages application dominated the market with a revenue share of more than 90.04% in 2022. 
• Dietary supplement is likely to witness a significant growth of over the forecast period. 
• Europe region dominated the market with a revenue share of more than 50.11% in 2022.
• Asia Pacific is expected to be the fastest growing market on account of high population, urbanization, and increasing demand for functional food products.

Report Scope of the Galacto-oligosaccharide (GOS) Market

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.

Application Insights

The food & beverages application dominated the market with a revenue share of more than 90.04% 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 50.11% 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.

Galacto-oligosaccharide (GOS) Market Segmentations:

By Application

• Food & Beverages
• Dietary Supplements
• Other Applications

By Regional

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
• Asia Pacific
  • China
  • Japan
  • Australia
  • New Zealand
• Central & South America
  • Brazil
• Middle East & Africa