Human Milk Oligosaccharides (HMO) Market Size, Share & Trends Analysis Report By Application (Food Supplements, Functional Food & Beverages, Infant Formula), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Human Milk Oligosaccharides (HMO) market size was valued at USD 14.6 billion in 2017 and is projected to witness a CAGR of 21.9% from 2018 to 2025. Increasing awareness regarding HMO and its functions is expected to fuel the market growth over the forecast period. HMOs act as prebiotics in human body and help in maintaining gut health. They promote bacterial growth, especially bifidobacteria genus, in the gut, which helps in improving metabolic activity.

Incorporation of HMO in functional food and beverages not only promotes the growth of good bacteria but also eliminates harmful bacteria including salmonella, listeria, and campylobacter. The antimicrobial protection and prebiotic functions of HMOs make them a useful ingredient in various food products including pharmaceutical and medicinal food and infant formulas. Infant formula is the largest application segment in the global market.

Infant formulas play a vital role in brain development and memory enhancement. Elicityl SA, Inbiose, Glycom, and Jennewein Biotechnologie are some of the key manufacturers in the global HMO market. Most of these manufacturers are integrated across several stages of the value chain including the production of raw materials, such as lactose and sialic acid, used in the product manufacturing.

On the other hand, high R&D and production costs are the major restraints for the global market. Moreover, chemical synthesis for HMO production is a complex process due to the presence of several hydroxyl groups of similar chemical reactivity and amount of HMO produced is also quite limited. This factor may also have a negative impact on the market development.

Application Insights

Infant formula led the global market with a share of 79.7%, in terms of revenue, in 2017. Rising concerns regarding infant health and safety are the key factors likely to boost market growth over the forecast period. HMOs play a key role in overall development of infants. They are responsible for the development of healthy gut, brain, and immune system. Functional food and beverages is expected to witness a considerable growth over the forecast period.

Increasing demand for packaged foods and beverages coupled with investments by key industry participants for developing new products is likely to have a positive impact on segment growth. Moreover, changing dietary patterns coupled with modern lifestyles have fueled the need for proper nutrition and healthy food products, thereby augmenting the demand in this application. Rising health concerns and awareness regarding nutraceuticals are expected to play an important role in driving the dietary supplements segment.

Regional Insights

North America led the global market in 2017 and is projected to expand further in the years to come. Major companies, such as Glycom A/S, Inbiose NV, and Elicityl S.A., are focusing on R&D for the development of advanced technologies for commercial-scale HMO production. North America witnesses a high demand for donor human milk. However, there are only 11 milk banks in U.S. and Canada, which are not sufficient to meet the rising demand for donor milk. This is likely to facilitate a rise in the usage of HMO in infant formula to provide proper nutrition to the infants.

Asia Pacific is expected to be the fastest-growing region over the coming years. Rising concerns regarding chronic diseases, such as gut diseases, high blood pressure, diabetes, and rickets, have resulted in an increased demand for functional food and beverages, which is expected to propel the demand for HMO. India and China are the rapidly growing markets for dietary supplements and baby food. Thus, these countries are expected to drive the HMO market in APAC over the forecasts period.

In Europe, U.K. has the lowest breastfeeding rate owing to the lack of knowledge pertaining to the health benefits of breast milk and cuts in public health funding. According to the statistics published by the Public Health England, the aggregate breastfeeding rate was 44.4% at 6 to 8 weeks of childbirth in 2016. This data shows the potential market for HMO-based products.

Human Milk Oligosaccharides (HMO) Market Share Insights

Business expansion is one of the key strategies undertaken by key companies. In April 2018, Medolac Laboratories announced that it will be moving its corporate headquarters to the new facility in Boulder City, with increased production capacity. In the recent past, Glycom A/S expanded its Esbjerg baed VitaLys lysine factory and introduced a new process for HMO production. The new process was created using new Siemens PLCs Wonderware visualization system and the Au2mate Manufacturing Management system for MES functionality.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume 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 Human Milk Oligosaccharides (HMO) market report on the basis of application and region:

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

  • Infant Formula

  • Functional Food & Beverages

  • Food Supplements

  • Others

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

  • North America

    • U.S.

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa