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Galacto-Oligosaccharide Market Size to Grow at a CAGR of 6.22% During the Forecast Period 2020–2025


iCrowdNewswire   Nov 5, 2020  12:00 AM ET

Galacto-oligosaccharide Market size is valued at $832.1Mn by 2019, and is anticipated to grow at a CAGR of 6.22% during the forecast period 2020-2025. The Galacto-oligosaccharide Market growth rate is attributed to the applications of galacto oligosaccharides in major nutraceutical products, which aids in lower pH and better stability in higher temperature conditions are expected to be the major driving factor of Galacto-oligosaccharides industry. Galacto-oligosaccharides, also called transgalactosylated oligosaccharides, transgalactooligosaccharides and oligogalactosyl-lactose, are medium length non-digestible oligosaccharides. Galacto oligosaccharide is a chain of galactose compounded with glucose molecules, which are primarily found in lactose present in cow’s milk a number of root vegetable species, and bean varieties. Galacto oligosaccharides move in an undigested form to the colon, supporting the growth of healthy bacteria and bowel movement. Galacto-oligosaccharides are available in formulations to withstand different pH conditions to resolve the enzyme ineffectiveness. The infant nutrition industry will be looking to capitalize on the opportunity presented by commercialization of plant-based galacto oligosaccharides. Consequently, the development of plant based galacto oligosaccharides has proven to be effective in meeting the nutritional requirements for the population of lactose intolerant people. This trend is also expected to have a positive influence in commercialization in infant nutrition products. Manufacturers are also pushing for new production facilities, strategic collaborations, and research and development activities to strengthen their portfolios in a competitive industry, which is anticipated to propel the Galacto-oligosaccharide Market during the forecast period 2020-2025.

Product Type – Segment Analysis

Syrup segment held the largest share in the market. The syrup form is preferred over the powder form as they easily dissolve and can be easily mixed with food products. Because of such advantages of the syrup form of galacto-oligosaccharide, vendors are focusing on developing new formulations, which supports the growth of the syrup segment in the global galacto-oligosaccharide market. In addition, the syrup is the most consumed product as it easily dissolves during the intake and can be easily mixed with food products. GOS syrups are easy to consume even by the children and have excellent solubility. The syrups easily dissolve and blend with the food ingredients without changing the food properties and are widely used as a sweetener in cooking.
However, powder segment is set to grow at a CAGR of 4.31% of the overall revenue in 2019 and are anticipated to foresee significant growth as these products aid in use for dairy products, food supplements, beverages, confectionery and more, which is expected to augment the growth of the powder segment during the forecast period 2020-2025.

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Application Type-Segment Analysis

On the basis of application, food &beverage segment held the major share of the market in terms of revenue and is expected to grow with a CAGR of 5.1%. This is attributed to the Growing demand for dairy products such as butter, yogurt, and cheese. Furthermore, galacto?oligosaccharides help maintain digestive health and prevent several diseases and disorders. Besides, growing awareness about the importance of GOS, particularly in the Asia Pacific and Central and South America is anticipated to augment demand over the forecast period.
However, the application of dietary supplements is anticipated to grow at a significant CAGR owing to the increasing geriatric population globally. Furthermore, advancements in technology with respect to encapsulation and nanotechnology have been favoring the segment growth. Infant nutrition formula is the most important application within in this segment. Growing awareness about the importance of GOS in baby foods and infant dietary formulas is expected to drive the segment over the forecast period. Other applications of galacto-oligosaccharides include confectionery, meat replacers, and cosmetics. Although these applications account for a smaller market share, their importance cannot be underestimated. This segment is majorly driven by the growing demand for confectionery products.

By Geography – Segment Analysis

Europe dominated the Galacto-oligosaccharide Market with a share of 39% in 2019. The application of Galacto-oligosaccharide has grown rapidly over the last few years owing to the rapid growth of the baby food market. The presence of a sizable number of infant formula manufacturing companies including Danone, Humana, and Ordesa Group has resulted in Europe being a net exporter is anticipated to promote the market over the forecast period. Furthermore, Europe galacto-oligosaccharides market size driven by Spain, UK, Italy, France and Germany should witness a significant growth during the foreseeable timeframe. Growing consumer health consciousness and willingness to spend on dietary supplements is set to augment the product growth. Moreover, rising geriatric population in the region is likely to drive demand for various dietary supplements as they suffer from various age-related ailments and are prone to malnutrition owing to eating disorders arising from old age, thereby driving the regional GOS demand.

Drivers – Galacto-oligosaccharide Market

Rising Demand For Lactose Intolerance Cases Drive Demand for Plant Based GOS:

With rising demand for galacto oligosaccharides are rapidly gaining in terms of adoption rates for the global infant nutrition sector, which can be attributed to awareness about therapeutic effects on immunity and gut health. The rise in the incidences of lactose intolerance on the other hand is restricting the use of animal based galacto oligosaccharides. Consequently, the development of plant based galacto oligosaccharides has proven to be effective in meeting the nutritional requirements for the population of lactose intolerant people. This trend is also expected to have a positive influence in commercialization in infant nutrition products. Spurred by this, the demand for both liquid and powder GOS is expected to rise in the coming years.

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Challenges – Galacto-oligosaccharide Market

Broader Regulations Pertaining to Use of Prebiotic Ingredients:

The major challenge for the market is attributed to the strict regulations and legislations related to the use of prebiotic ingredient can be a key factor hampering use of galacto oligosaccharide. Any product before receiving the recognition as a prebiotic or probiotic is consistently subjected to multiple validations and has to persistently prove its efficacy. It cannot be directly labeled as such, until and unless it is approved by the concerned agencies. Being operating in the food ingredient industry, galacto oligosaccharide is exposed to similar kind of legislations by various food regulation authorities such as FDA and food and agriculture organization. This might create hurdles for prosperity of galacto oligosaccharide, thereby impacting the galacto oligosaccharide market landscape.

Galacto-oligosaccharide Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Galacto-oligosaccharide Market. In 2019, Galacto-oligosaccharide Market share is fragmented by the top ten players present in the market. Galacto-oligosaccharide Market top 10 companies are Royal Friesland Campina, Yakult, Nissin, Ingredion, Kerry Group, Dairy Crest., Baolingbao Biology Co. Ltd., Samyang Corporation, New Francisco Biotech Company, Taiwan Fructose Co. Ltd. and others.

Key Takeaways

Europe dominated the Galacto-oligosaccharide Market with a share of 39% in the year 2019.

The factors such augmenting demand for GOS in infant formula across the globe coupled with the improved standard of living of the consumers that has enabled them to spend more on baby foods are amongst the major factor projected to impel growth of Galacto-oligosaccharide Market.

Increasing instance of new product development, key players have been investing extensively in R&D activities in a bid to develop high quality and effective GOS ingredients and high disposable income are the key factors owing to the growth in the segment during forecast period 2020-2025.

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