Galacto-oligosaccharide Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

The Galacto-oligosaccharide Market was valued at USD 776.54 Million in 2024, and is projected to reach USD 1.00 Billion by 2030, rising at a CAGR of 4.60%. Galacto-oligosaccharides are prebiotic fibers derived from lactose, known for their ability to support digestive health, enhance immune function, and promote the growth of beneficial gut bacteria such as bifidobacteria and lactobacilli. Growing consumer awareness around gut health and the broader health benefits of prebiotics has significantly contributed to the rising adoption of GOS in a wide range of products.

These include infant formula, dairy products, dietary supplements, functional beverages, and even animal nutrition. However, the market does face certain challenges. Fluctuations in the price and availability of raw materials, particularly lactose, can impact production costs. Additionally, competition from alternative prebiotic fibers - such as fructo-oligosaccharides (FOS), inulin, and newly developed synthetic HMOs - poses a potential threat to market share.

Key Market Drivers

Growth in Food & Beverage Industry

The global Galacto-oligosaccharide (GOS) market is experiencing robust growth, significantly driven by the ongoing expansion and diversification of the food and beverage (F&B) industry. Total revenue in the Food & Drink market reached USD 2.00 billion in 2022. A global analysis identified the United States as the leading contributor to this revenue. As consumer preferences continue to shift toward functional, health-enhancing, and gut-friendly products, food manufacturers are increasingly incorporating prebiotic ingredients like GOS into their product portfolios.

GOS, a type of non-digestible carbohydrate with strong prebiotic properties, has gained widespread attention for its ability to support digestive health, improve immunity, and promote the growth of beneficial gut bacteria. In 2024, a randomized, double-blind clinical trial with 63 patients suffering from functional constipation demonstrated that GOS supplementation significantly increased bowel movement frequency and improved stool consistency. These health benefits make it an attractive ingredient across a range of F&B applications, including infant formula, dairy products, nutritional supplements, functional beverages, and bakery items.

Key Market Challenges

Availability of Raw Materials

One of the critical challenges confronting the global galacto-oligosaccharide (GOS) market is the availability and consistency of raw materials, primarily lactose, which is the key substrate for GOS production. The supply of high-quality lactose is heavily dependent on dairy industry outputs, which can be influenced by factors such as seasonal variations, fluctuations in milk production, and geopolitical issues affecting trade and logistics. These variables can lead to supply constraints or increased raw material costs, impacting production schedules and pricing strategies for GOS manufacturers.

Furthermore, as demand for lactose-based ingredients grows across multiple industries, competition for raw materials intensifies, potentially exacerbating supply chain vulnerabilities. Manufacturers must therefore invest in supply chain diversification and develop strategic partnerships with dairy producers to mitigate risks associated with raw material availability. Addressing this challenge is essential to maintaining stable production volumes, controlling costs, and meeting the rising market demand for GOS-based products globally.

Key Market Trends

Growth in Infant Nutrition Applications

A significant trend shaping the global Galacto-oligosaccharide (GOS) market is the accelerated growth in infant nutrition applications. With increasing awareness among parents and healthcare professionals regarding the importance of early-life gut health and immunity, GOS is becoming a preferred ingredient in infant formula and related products. New research in 2025 indicates that infants consuming a more diverse range of plant-based foods develop a more mature gut microbiome, establishing a foundation for improved long-term health.

Galacto-oligosaccharides closely mimic the functional properties of human milk oligosaccharides (HMOs), which are naturally present in breast milk and known to support the development of a healthy gut microbiome in infants. This similarity makes GOS an essential additive in infant formulas, where it helps promote the growth of beneficial bifidobacteria and enhances digestive comfort, reducing common issues such as colic and constipation.

Key Market Players

• VITALUS NUTRITION INC.
• Ingredion
• Fonterra Co-operative Group Limited
• Clasado
• Shandong Bailong Chuangyuan Bio-Tech Co., Ltd.
• Snow Brand Milk Products Co. Ltd.
• Royal FrieslandCampina
• Kerry Group
• Kowa Europe GmbH

Report Scope

In this report, the Global Galacto-oligosaccharide Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Galacto-oligosaccharide Market, By Form:

• Syrup
• Powder
• Others

Galacto-oligosaccharide Market, By Application:

• Food & Beverage
• Animal Feed
• Cosmetics
• Others

Galacto-oligosaccharide Market, By Region:

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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Galacto-oligosaccharide Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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