Galacto-Oligosaccharide (GOS) Market - Global Market Share, Trends, Analysis and Forecast, 2023-2032

The global Galacto-Oligosaccharide (GOS) market was estimated to be US$ 0.61 Billion in 2022 and is expected to reach US$ 1.21 Billion by 2032 at a CAGR of 7.1%.

Galacto-oligosaccharide (GOS) is a type of prebiotic carbohydrate that consists of a chain of galactose molecules. It is classified as a non-digestible oligosaccharide, meaning it cannot be broken down by the enzymes in the human digestive system. GOS is naturally present in small amounts in human breast milk and some dairy products.

GOS is known for its prebiotic properties, meaning it serves as a food source for beneficial bacteria in the gut, specifically Bifidobacteria. These bacteria are considered probiotics and play a crucial role in maintaining a healthy digestive system. When consumed, GOS selectively stimulates the growth and activity of these beneficial bacteria, promoting a balanced gut microbiota.

Galacto-Oligosaccharide (GOS) Market Growth Drivers

Increasing consumer awareness of its health benefits

The global galacto-oligosaccharide (GOS) market is being driven by increasing consumer awareness of its health benefits. GOS, known for its prebiotic properties, promotes the growth of beneficial gut bacteria, improves digestion, enhances immune function, and supports overall gut health. Consumers are becoming more knowledgeable about these benefits, leading to a growing demand for GOS. For instance, a study found that GOS supplementation increased the population of beneficial gut bacteria in adults, raising awareness of its positive impact on gut health.

The food and beverage industry is experiencing a rising demand for prebiotic ingredients, including GOS. Prebiotics are recognized for their potential to support gut health and overall well-being. This has led to increased product development and market demand for prebiotic-rich food and beverage products.

Many companies are incorporating GOS into their formulations to enhance the prebiotic content. For example, a popular yogurt brand introduced probiotic yogurt with added GOS, capitalizing on the growing consumer demand for prebiotic-rich dairy products.

Additionally, GOS's popularity is evident in the infant formula sector, where it is commonly used to promote healthy gut flora development and improve digestive comfort in infants. Manufacturers have introduced baby formulas enriched with GOS to mimic the prebiotic composition of breast milk, providing a valuable nutritional option for parents seeking enhanced digestive support for their babies.

Source Segmentation of Global Galacto-Oligosaccharide (GOS) Market

Dairy-derived GOS is the largest source segment in the market

Among the three segments based on source lactose-derived GOS, whey-derived GOS, and dairy-derived GOS the largest segment is likely to be lactose-derived GOS. This can be attributed to several factors. Lactose is the primary sugar found in milk, and it serves as the main raw material for the production of GOS.

The availability and abundance of lactose in the dairy industry make it a readily accessible source for GOS production. Furthermore, the process of isolating and purifying lactose from milk is well-established and widely practiced. As a result, lactose-derived GOS has a relatively mature and developed production infrastructure.

Additionally, lactose-derived GOS has gained significant recognition and adoption in the infant formula industry. It is commonly used as an ingredient in infant formulas to mimic the prebiotic oligosaccharides naturally present in breast milk. The demand for infant formula with added GOS has been growing due to the increasing awareness of its potential benefits for infant gut health and overall development.

While whey-derived GOS and dairy-derived GOS also have their respective applications and market segments, the prevalence of lactose-derived GOS in the dairy industry and its prominence in the infant formula market likely contribute to its position as the largest segment among the three.

Regional Trends of the Global Galacto-Oligosaccharide (GOS) Market

Europe is a prominent market for GOS

Geographically, the global Galacto-Oligosaccharide (GOS) market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America.

Following are some of the major trends in these regions –

North America: In North America, the galacto-oligosaccharide (GOS) market has witnessed significant growth due to the increasing consumer awareness of gut health and the demand for functional food and beverages. The region has a well-established food and beverage industry that is incorporating GOS as a prebiotic ingredient in various products. Additionally, the rising popularity of infant formula with added GOS has further fueled the market growth in this region.

Europe: Europe is a prominent market for GOS, driven by factors such as the strong presence of dairy industries, high consumer awareness of gut health, and increasing demand for prebiotic ingredients. The region has witnessed extensive research and development activities in the field of prebiotics, leading to the introduction of innovative GOS-based products. The European market is also influenced by regulatory support for the use of prebiotics in food and beverages, further boosting the adoption of GOS.

Asia-Pacific: The Asia-Pacific region is experiencing substantial growth in the GOS market. The increasing disposable income, changing dietary patterns, and growing awareness of health and wellness are driving the demand for GOS-based products in this region. Rising urbanization, a large population base, and a shift toward Western dietary habits contribute to the market growth in Asia-Pacific. Moreover, the presence of major players in the infant formula industry and a rising trend of premium health products are shaping the GOS market in this region.

Middle East and Africa: The Middle East and Africa region have shown a gradual increase in the demand for GOS, primarily driven by the growing awareness of gut health and the rising adoption of healthier food options. While the market is relatively smaller compared to other regions, there is potential for further development with increasing investments and collaborations to introduce GOS-based products catering to the evolving consumer preferences in the region.

South America: South America is witnessing a steady growth in the GOS market, driven by factors such as the growing health-conscious population, increasing disposable income, and a focus on functional food and beverages. Market players are actively expanding their presence in South America to tap into the growing opportunities in the region.

Key players and market strategies:

Companies operating in the global galacto-oligosaccharide (GOS) market have implemented various growth strategies to strengthen their market position and expand their customer base.

Some of the major growth strategies adopted by these companies include:

Product Innovation and Portfolio Expansion: Companies have focused on continuous product innovation and expanding their GOS product portfolio to cater to evolving consumer needs and preferences. This includes developing new formulations, improving product functionalities, and introducing application-specific GOS variants. For example, a leading GOS manufacturer launched a new GOS powder with enhanced solubility and improved taste profile, targeting the dietary supplement market.

Strategic Partnerships and Collaborations: Companies have formed strategic partnerships and collaborations to leverage complementary strengths and expand their market reach. This includes collaborations between GOS manufacturers and food and beverage companies to incorporate GOS into their product formulations. For instance, a GOS producer partnered with a prominent yogurt brand to develop a range of probiotic yogurt products with added GOS for enhanced digestive health benefits.

Geographic Expansion: Companies have focused on expanding their geographical presence by entering new markets and regions with high growth potential. This includes establishing distribution networks, setting up production facilities, and forming alliances with local partners. For example, a GOS manufacturer expanded its operations into the Asia-Pacific region by setting up a production facility in a key market to meet the growing demand for GOS in infant formula and food applications.

Marketing and Promotional Activities: Companies have invested in marketing and promotional activities to create awareness about the health benefits of GOS and drive consumer demand. This includes advertising campaigns, product demonstrations, participation in industry trade shows, and engaging with healthcare professionals. For instance, a GOS company collaborated with health experts to conduct educational webinars and seminars to educate consumers and healthcare professionals about the role of GOS in gut health.

Acquisitions and Mergers: Some companies have pursued growth through acquisitions and mergers to strengthen their market position, acquire new technologies or intellectual property, and expand their customer base. This strategy enables companies to achieve rapid growth and gain a competitive edge. For example, a major food ingredient company acquired a GOS producer to broaden its portfolio of prebiotic ingredients and consolidate its position in the GOS market.

Arla Foods amba (Denmark), BASF SE (Germany), Clasado Biosciences Ltd. (United Kingdom), Dairy Crest Group plc (United Kingdom), Dextra Laboratories Ltd. (Thailand), DuPont de Nemours, Inc. (United States), FrieslandCampina (Netherlands), Ingredion Incorporated (United States), Kerry Group plc (Ireland), Koninklijke DSM N.V. (Netherlands), Leiber GmbH (Germany), Nestlé S.A. (Switzerland), Royal Cosun (Netherlands), Samyang Holdings Corporation (South Korea), Yakult Honsha Co., Ltd. (Japan) and many more.

Global Galacto-Oligosaccharide (GOS) Market Segmentation:

Based on Source:

• Lactose-Derived GOS
• Whey-Derived GOS
• Dairy-Derived GOS

Based on Form:

• GOS Powder
• GOS Liquid

Based on Application:

• Infant Formula
• Food and Beverages
• Dietary Supplements
• Pharmaceuticals
• Animal Feed

Based on End-User:

• Infants
• Adults
• Athletes
• Animals

Based on Distribution Channel:

• Online Retail
• Specialty Stores
• Supermarkets/Hypermarkets
• Pharmacies

Based on Region

• North America
  • United States
  • Canada
  • Rest of North America
• Europe
  • Germany
  • United Kingdom
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  
  • Japan
  • India
  • China
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  •  UAE
  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa
• South America
  • Brazil
  • Rest of South America