Galacto‐oligosaccharides (GOS) Market Size, Share & Trends Report

Galacto‐oligosaccharides (GOS) Market Size, Share & Trends Analysis Report By Application (Food & Beverages, Dietary Supplements), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: May, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-300-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 100

Industry Insights

The global Galacto‐oligosaccharides (GOS) market size was estimated at USD 830.0 Million in 2018 and is expected to expand at a CAGR of 9.6% during the forecast period. Growing demand for infant formula is among the key factors driving the growth. Increasing child population is expected to increase the consumption of infant formula, thus positively impacting the demand for galacto-oligosaccharides.

Major application of galacto-oligosaccharides is in infant formula and baby food. Human milk is an abundant source of GOS which are known to induce high levels of bifidobacteria and significantly reduce the number of potential pathogenic bacteria in breast-fed infants. GOS has been given the Generally Recognized As Safe (GRAS) status under section 201(s) of the Federal Food, Drug and Cosmetic Act by the U.S. Food and Drug Administration (FDA). It received substantiated health claims in reference to reduction of gastro-intestinal discomfort and potential pathogenic microorganisms pursuant to Article 13 of Regulation (EC) no 1924/2006 by European Food Safety Authority (EFSA).

U.S. GOS market

According to estimates, world population of children aged 0 to 4 years was 642.2 Million in 2010 and is expected to reach 1018.3 Million by 2050. Increasing child population is expected to boost consumption of infant formula thus positively impacting the demand for galacto-oligosaccharides. Global baby food market generated over USD 50 billion in 2015 owing to high demand for infant formula, dried baby food, and prepared baby food.

U.S. led the North America Galacto‐oligosaccharides (GOS) market accounting for a volume share of 85.8% in 2018. Dairy products, especially beverages account for major market in U.S. functional food and beverage industry. Rising concern regarding aging, heart health, weight management, gut health, and immune function is likely to augment the demand for galacto-oligosaccharides in the country.

Rising concerns regarding chronic diseases coupled with rise in the aging population has led to increased demand for dietary supplements in the country, thus driving the galacto-oligosaccharides market. Increasing renovation and restructuring activities are likely to propel utilization of breathable antimicrobial coatings in construction sector. Presence of key market players is also expected to favor the growth of the U.S. GOS market over the forecast period.

Application Insights

On the basis of application, the market is segmented into three categories, namely, food and beverages, dietary supplements, and other applications. The food and beverage category is further divided into bakery products, dairy products, cereals, and others. The dietary supplement segment is further categorized into infant formula, elderly nutrition, and sports and clinical supplements. Growing demand for dairy products such as butter, yogurt, and cheese is expected to be the major driver for the food and beverage segment.

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 expected to boost the demand in the forthcoming years. Dietary supplements segment is also expected to expand at a healthy CAGR over the forecast period. 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.

Global GOS market

The demand for dietary supplements is driven by increasing geriatric population globally. Furthermore, advancements in technology with respect to encapsulation and nanotechnology have been favoring the segment growth. 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 growing demand for confectionery products. In addition, boom in the cosmetic and skin care industry is expected to be one of the key factors driving the market growth.

Regional Insights

Europe GOS market held the largest share in 2018 as it is the largest producer of milk and milk products. Europe witnessed highest demand for galacto-oligosaccharides in 2018 owing to the rapid growth of the baby food market. Presence of a sizable number of infant formula manufacturing companies including Danone, Humana, and Ordesa Group has resulted in Europe being a net exporter. The region accounted for 52% of the overall market share in terms of volume in 2018.

Asia Pacific held the second largest market share of 31% in 2018. The region is expected to grow significantly over the forecast year to claim 48.6% of overall revenues by 2025. The growth can be attributed to high consumption of galacto-oligosaccharides in applications such as bakery, cereals, functional foods, beverages, confectionery, and infant formula. In addition, presence of key market participants including Yakult Pharmaceutical Industry Co Ltd, Nissin Sugar Manufacturing Co Ltd, Samyang Genex Co, and Taiwan Fructose Co Ltd. is expected to increase the GOS consumption, thereby strengthening position of the regional segment.

Food Safety and Standards Act in India, Japan Health and Nutrition Food Association in Japan, and State Food and Drug Administration in China regulate use of various ingredients in functional food and beverages to ensure quality of food and safety of consumers. These organizations also promote consumption of nutritious food products and are involved in R&D activities. Rapidly growing beverage industry in economies including China, Indonesia, India, Thailand, and Vietnam are expected to positively impact the growth. Growing health awareness on account of prevalence of chronic diseases such as blood pressure and diabetes is expected further fuel the growth.

Galactooligosaccharides (GOS) Market Share Insights

Key market players are Royal Friesland Campina, Yakult, Nissin, Ingredion, Kerry Group, and Taiwan Fructose Co. Ltd. among others These companies score high in terms of product portfolio, global presence, and revenue.

The GOS industry was dominated by four companies, accounting for more than 60% of the market share in 2018. Friesland Campina is the largest manufacturer of galacto-oligosaccharides. The Netherlands based Friesland Campina is an integrated product manufacturer with a production base of lactose as well as GOS. Friesland Campina has a global presence through its brand Vivinal GOS, which is used in the formulation of infant formula and food additives.

Mergers and acquisitions is the key strategy adopted by the players to strengthen their market position. Companies have been trying to strengthen their foothold by developing innovative products. In addition, numerous manufacturers are collaborating with other companies to create new opportunities for their products. In addition, extensive R&D for the development of effective and high-quality products is being undertaken by the manufacturers.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million, Volume in Tons & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage

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

Country Scope

U.S., Canada, Germany, U.K., China, Japan, Australia, New Zealand, Brazil

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Segments Covered in the Report

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

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

    • Food & Beverages

      • Bakery Products

      • Dairy Products

      • Cereals

      • Others

    • Dietary Supplements

      • Infant Formula

      • Elderly Nutrition

      • Sports & Clinical Supplements

    • Other Applications

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

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • Japan

      • Australia

      • New Zealand

    • Central & South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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