Galacto-oligosaccharide (GOS) Market Trend Report

Galacto-oligosaccharide (GOS) Market Trend Analysis By Application (Food & Beverage, Dietary Supplements), By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), By Country, And Segment Forecasts, 2014 - 2025

Published: December 2016  |  70 Pages  |  Format: PDF  |  Report ID: 978-1-68038-300-3

Industry Insights

The global Galacto-oligosaccharide (GOS) market size was estimated at USD 643.3 million in 2015 and is likely to witness rapid growth over the forecast period owing to increasing penetration of the product in infant formulation. The product consists of properties similar to human milk, thereby providing a high level of nutrition to the infant.

Several oligosaccharides including lactosucrose, galacto-oligosaccharides, lactito, and lactulose are derived from lactose as raw material. Lactose is the major milk sugar, but there is the presence of other carbohydrates and saccharides (including oligosaccharides) in small quantities.

U.S. GOS market revenue by application, 2014 - 2025 (USD Million)

U.S. GOS market

The U.S. FDA considers GOS to be safe for consumption and have provided it with the GRAS (Generally Recognized As Safe) status under Federal Food, Drug, and Cosmetic Act (section 201(s)). According to the Regulation no 1924/2006 in EFSA, the product has been claimed to reduce potential pathogenic microorganisms and gastrointestinal discomfort.

Major manufacturing companies have been focusing on developing GOS with specific concentration and application in a cost effective manner. The North Carolina State University developed a new method for production of the product using recombinant galactosyl transferase.

Extensive R&D by manufacturers as well as organizations are likely to develop new opportunities for the market over the next nine years. However, increasing demand for Isomaltooligosaccharide (IMO) is anticipated to hamper growth.

Application Insights

Food and Beverage dominated the demand with a revenue share of over 90% in 2015. 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 driving an 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.

Global GOS market share by application, 2015 (%)

Global GOS market

Dietary supplement is likely to witness a significant growth of over 8% in 2015. 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 was the largest market in 2015 with a share of over 50%, in terms of revenue. 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.

As of 2013, 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, the presence of companies including Yakult Pharmaceutical Industry Co Ltd, Nissin Sugar Manufacturing Co Ltd, Samyang Genex Co, Taiwan Fructose Co Ltd, New Francisco Biotechnology, QindaoFtz 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 market demand over the forecast period.

Competitive Insights

The key players in this industry include Royal Fries land Campina, Yakult, Nissin, and Ingredion. The top four manufacturers account for the major industry share. Other companies include First Milk, Samyang, Wuxi, Taiwan Fructose, and Kerry.

R&D investment and new product development is the key strategy being adopted by the players in order to cater to rising demand. In October 2014, Ingredion launched new galacto-oligosaccharide, named BIOLIGO GL 5700 IMF, for application in infant formula, functional food, beverages, and other supplements.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014

Forecast period

2016 - 2025

Market representation

Revenue in USD Million, volume in kilo tons and CAGR from 2016 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America & MEA

Country scope

U.S., Germany, UK, China, Japan, Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis of the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the GOS market on the basis of application and region:

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Food & Beverages

    • Dietary Supplements

    • Others

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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