Galacto-Oligosaccharide Market Report 2025

This Galacto-Oligosaccharide market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The galacto-oligosaccharide market size has grown strongly in recent years. It will grow from $0.85 billion in 2024 to $0.93 billion in 2025 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to increased health awareness, increased demand for prebiotics, increased research on gut health, expansion in applications in functional foods and beverages, increased demand for functional foods, growth in infant nutrition sector, and heightened consumer interest in gut health.

The galacto-oligosaccharide market size is expected to see strong growth in the next few years. It will grow to $1.33 billion in 2029 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to increasing consumer awareness of gut health benefits, rising demand for prebiotics in functional foods, expanding applications in infant nutrition, heightened investment in R&D for health supplements, growing preference for natural and clean-label ingredients, and the increasing prevalence of digestive disorders. Major trends in the forecast period include advancements in production technology, advancements in food and beverage formulations, advancements in food technology, advancements in prebiotic research, and advancements in formulations.

The increasing incidence of premature births is expected to drive the growth of the galacto-oligosaccharide (GOS) market in the coming years. Premature birth refers to the delivery of an infant before completing the typical 37 weeks of gestation, which can lead to health complications due to the underdevelopment of organs and systems. Several factors, such as delayed maternal age, lifestyle choices, medical interventions, and underlying health conditions, are contributing to the rise in premature births. Galacto-oligosaccharides (GOS) can help reduce the risks associated with preterm birth by promoting a healthy gut microbiota, which in turn can reduce inflammation and improve pregnancy outcomes. For example, in December 2022, Tommy's, a UK-based charity focused on pregnancy and baby loss, reported that the premature birth rate in England and Wales reached 7.9% in 2022, an increase from 7.5% in 2021, marking a steady rise over the past two years. The North West of England had the highest rates at 8.5%, while the South West had the lowest at 7.5%. The premature birth rate among Black babies was recorded at 8.5%, with Black Caribbean babies experiencing the highest rate at 10.2%. As a result, the rise in premature births is driving the growth of the galacto-oligosaccharide market.

Leading companies in the galacto-oligosaccharide market are concentrating on advancing the enzymatic synthesis process in GOS production to enhance efficiency, optimize yields, and improve product quality. Enzymatic synthesis involves using enzymes to convert lactose into galacto-oligosaccharides, resulting in better prebiotic benefits. For instance, FrieslandCampina Ingredients launched Biotis GOS-OP in June 2022, which boasts a higher concentration of accessible GOS with a content of 94%, surpassing typical ranges found in other prebiotics. This innovation offers a prebiotic supplement with exceptional purity, reduced lactose levels, and formulation flexibility, catering to the gut health supplement sector's needs.

In February 2022, Kerry Group, an Ireland-based company, acquired two biotechnology firms, c-LEcta GmbH and Enmex. These acquisitions are intended to accelerate Kerry’s innovation in developing solutions, enhancing its expertise and manufacturing capabilities to address the increasing demand for biotechnological applications in the food and health sectors. c-LEcta GmbH is a biotechnology company based in Germany, while Enmex is a US-based enzyme manufacturer.

Major companies operating in the galacto-oligosaccharide market are Cargill Incorporated, Royal Friesland Campina, Fonterra Cooperative Group Limited, Saputo Dairy UK, DuPont De Nemours, DSM, Kerry Group plc, Wacker Chemie AG, Ingredion Incorporated, Meiji Holdings Co. Ltd., Morinaga Milk Industry Co. Ltd., Yakult Honsha Co. Ltd., Samyang Corporation, Tate & Lyle, Nissin Sugar Co. Ltd., BENEO, Danone India, Biosynth, Clasado Biosciences, AIDP Inc., ZuChem Inc., Inbiose NV, VW-Ingredients, Lactose India Limited, Bioven Ingredients.

Europe was the largest region in the galacto-oligosaccharide market in 2024. The regions covered in the galacto-oligosaccharide market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the galacto-oligosaccharide market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Galacto-oligosaccharides (GOS) are short chains of galactose molecules, known as prebiotic fibers derived from lactose found in milk. They undergo an enzymatic process to be produced. GOS are recognized for their ability to stimulate the growth of beneficial gut bacteria such as bifidobacteria and lactobacilli, leading to improved digestive health and a stronger immune system. These fibers are often added to infant formulas, dietary supplements, and functional foods to promote gut health, support immunity, and enhance calcium absorption.

The primary forms of galacto-oligosaccharides are liquid and powder. Liquid GOS is a prebiotic fiber dissolved in a liquid medium, utilized in various food and beverage applications. It is sourced from plants, animals, and microorganisms and serves different functions such as prebiotic and sweetening agents in food and beverages, pharmaceuticals, personal care products, animal feed, and other industries.

The galacto-oligosaccharide market research report is one of a series of new reports that provides galacto-oligosaccharide market statistics, including the galacto-oligosaccharide industry global market size, regional shares, competitors with galacto-oligosaccharide market share, detailed galacto-oligosaccharide market segments, market trends, and opportunities, and any further data you may need to thrive in the galacto-oligosaccharide industry. These galacto-oligosaccharide market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The galacto-oligosaccharide market consists of sales of functional foods, dietary supplements, and infant formulas. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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