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Galacto Oligosaccharides Market

The market for Galacto Oligosaccharides was estimated at $1.1 billion in 2025; it is anticipated to increase to $1.5 billion by 2030, with projections indicating growth to around $2.1 billion by 2035.

Report ID:DS1805012
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Life Science
Nutraceuticals
Galacto Oligosaccharides
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Report Summary
Market Data
Methodology
Table of Contents

Global Galacto Oligosaccharides Market Outlook

Revenue, 2025

$1.1B

Forecast, 2035

$2.1B

CAGR, 2026 - 2035

6.3%

The Galacto Oligosaccharides (GOS) industry revenue is expected to be around $1.1 billion in 2026 and expected to showcase growth with 6.3% CAGR between 2026 and 2035. The proposed growth indicates the value and importance of galacto oligosaccharides as a prebiotic ingredient to the global food and beverage industry, this is largely due to consumer interest in digestive health, infant formula and immune system support. Production from dairy sources brought in a revenue of $0.87 billion in the year 2025, this showing the strength of the reliance on dairy for lactose and the well established dairy supply routes. Galacto oligosaccharides are used in 83.2% of all products which are either functional foods or nutritional supplements. This is a key part of the ingredients used in premium foods that people take for health, in fortified foods and in drinks that are good for gut. The increasing focus on low calorie, natural products seen in low sugar and clean label food products reinforces the market for Galacto oligosaccharides in established and in developing regions.

Lactulose is a of indigestible oligosaccharide made from lactose through the use of an enzyme. This carbohydrate has an extremely high resistance to the effects of heat and acid, and has a relatively sweet taste. It mixes well with many kinds of foods including dairy products and those derived from plants. Beneficial bifidobacteria, which are present in the gut, are selectively stimulated by these substances taken before life. As a result, digestive health, the bodys absorption of minerals and the operation of the immune system are all helped. Because of this, these prebiotics could be used in a variety of applications, including baby formula, yoghurt, hospital food and nutritional supplements for adults. Galacto oligosaccharides are currently used in infant and toddler food, regular dairy products, dairy product substitutes made from plant, bakery goods and sports nutrition. They can be incorporated without affecting the taste, texture or shelf life. A current development in the market is the growing popularity of products which combine prebiotics with probiotics. Also companies are developing products with reduced ingredient lists and lactose free formulations. Moreover research into bespoke nutrition which may be tailored to meet individual needs through the use of prebiotics is an region of interest.

Galacto Oligosaccharides market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Galacto Oligosaccharides Market Outlook

Market Key Insights

  • The Galacto Oligosaccharides market is projected to grow from $1.1 billion in 2025 to $2.1 billion in 2035. This represents a CAGR of 6.3%, reflecting rising demand across Prebiotic Supplement in Functional Foods and Dietary Supplements for Managing Chronic Illnesses.

  • The leading players within this industry include AIDP Inc., Ingredion and Fonterra Co operative Group Limited. These companies have a considerable influence on the competitive landscape.

  • The US and Germany together account for the major share in the global galacto oligosaccharides market. Between 2025 and 2030 these two nations are predicted to have a growth rate per annum ranging from 4.1% to 6.0%.

  • The fastest expansion in demand is predicted to come from emerging markets which comprise China, India and Japan. These will develop at compound annual growth rates ranging from 7.2% to 8.7%.

  • A rising trend in the diet, such as the Galacto oligosaccharides consumption pattern in the US and Germany, brings about significant alterations to the countrys food market; by 2030 the Galacto oligosaccharides industry is projected to be boosted by $47 million in value.

  • Over the years, 2025 2035, the galacto oligosaccharides market is due to grow by $1 billion. One of the key region's where growth in the market is expected to take place is in the application for functional food and beverages and infant formula.

  • With

    rising gut health awareness and advanced enzymatic production technologies, and

    Expanding infant nutrition formulations incorporating clinically validated prebiotic fibers globally, Galacto Oligosaccharides market to expand 84% between 2025 and 2035.

galacto oligosaccharides market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Galacto Oligosaccharides - Country Share Analysis

Opportunities in the Galacto Oligosaccharides

There is growing interest in Europe for the low sugar and plant based beverages and foods which is providing a marketplace for plant derived Galacto Oligosaccharides. The global plant based galacto oligosaccharides market is expected to grow from $0.19 billion in the year 2025 to $0.28 billion by 2030. This will be the greatest increase of all galacto oligosaccharidess. Companies in the drinks industry can stand out with natural gut health features that are displayed on the label. This can be done through the use of plant derived enzymes. Also suppliers of ingredients can help in this cause. Products which contain plant derived GOS show the most growth.

Growth Opportunities in North America and Asia-Pacific

Growing demand for prebiotic components used in dietary supplements and food products that are nutritionally enhanced in North America is fuelling the galacto oligosaccharides market. This is largely driven by consumer interest in the benefits of the gut and immune system. Nutritional supplements have been the major application of galacto oligosaccharides to date. Major potential exists for synbiotic food supplement products, sports nutrition products with clean labels and in clinical animal nutrition chemical which Galacto oligosaccharides could be used as a fibre with a scientific backing that is prebiotic. The increasing rivalry in the market is being driven by the introduction of customised pre mixes by regional dairy firms and global suppliers of food ingredients for the various dairy brands. These firms are differentiating their products through purity, compatibility with plant based food products and efficiency of dosage. Sustained growth of prebiotic ingredients is underpinned by rising consumer awareness of microbiome related benefits, increasing recommendations by health practitioners and by regulatory clarity on the labelling of prebiotic products.
In the Asia Pacific, the galacto oligosaccharides market is dominated by infant formula, where GOS is a key ingredient in high quality infant milk formula and follow on formula products. Functional foods and drinks are becoming increasingly important in countries with lactose intolerance and digestive problems. Major business opportunities are in infant and toddler products that are fortified with nutrients, drinks that are dairy and non dairy and contain GOS and are formulated to suit the needs of the local population. The market for globally recognised osteogenic substances is dominated by regional and multinational producers of GOS. The latter are involved in adding this ingredient to variouss of baby food and drinks. These parties place a strong emphasis on both product reliability and cost. The key trends driving this market include consumers growing incomes, the premiumisation of infant and family nutrition, government campaigns to promote the health of young children and consumer acceptance of prebiotics in modern nutrition.

Market Dynamics and Supply Chain

01

Driver: Rising gut health awareness and advanced enzymatic production technologies

Growing consumer awareness around digestive health is also a primary growth factor for galacto oligosaccharides, particularly within functional foods and clinical nutrition. Increased diagnosis of gut imbalance, lactose intolerance, and metabolic disorders has also accelerated demand for scientifically backed prebiotics that selectively stimulate beneficial microbiota. Parallel to this, also advances in enzymatic synthesis technologies are also significantly improving GOS yield, purity, and consistency. Innovations such as optimized β-galactosidase strains, immobilized enzyme systems, and continuous bioprocessing are also lowering production costs while enabling tailored GOS profiles for specific health outcomes. These technologies support scalable manufacturing suitable for infant formula, medical nutrition, and precision synbiotics. Together, heightened health-driven consumption and production efficiency improvements are also reinforcing GOS adoption across premium nutrition segments, while enabling manufacturers to meet regulatory and functional performance requirements more reliably.
Infant nutrition remains a core growth driver for GOS due to their structural similarity to human milk oligosaccharides. Formula manufacturers are also increasingly incorporating GOS to support immune development, calcium absorption, and microbiome maturation in early life. Ongoing clinical validation and regulatory acceptance of specific GOS blends are also strengthening their role as standard functional ingredients in premium and specialized infant formulas. Technological refinement in blending ratios and thermal stability further supports their integration into liquid and powdered formulations, reinforcing sustained demand from global pediatric hospitals and nutrition brands.
02

Restraint: High production costs and dependence on specialized enzymes constrain scalable price competitiveness

Galacto oligosaccharides production relies heavily on high-quality lactose feedstock and specialized β-galactosidase enzymes, increasing operational costs. Fluctuations in dairy-derived raw material prices and enzyme sourcing directly affect manufacturing margins. Smaller producers often struggle to achieve cost efficiencies, limiting competitive pricing in mass-market food applications. As a result, GOS adoption remains concentrated in premium nutrition segments, restricting broader revenue expansion across conventional functional food categories.
03

Opportunity: Expanding infant formula applications in China and India using dairy-derived Galacto Oligosaccharides for microbiome support and High-value nutraceutical and sports nutrition products in North America leveraging synthetic GOS innovations

In China and India, infant nutrition is improving very quickly, thereby generating a market for the prebiotic ingredients such as Galacto oligosaccharides used in infant food which are of high quality. Projected annual revenue for dairy derived GOS in the world is predicted to rise to 1.15 billion US dollars by 2030. In 2025 the revenue for this product was 0.87 billion dollars. The increase in revenue is thought to be due to a large number of new products introduced in the Asia Pacific region. These products cater to several consumer demands including those for lactose free dairy products and for products which may reduce the risk of allergy. They also target the development of the microbiome. The greatest opportunities may lie in the production of synbiotic formulations and in cooperation with dairy businesses on a global scale. Furthermore, medical nutritional products for babies born prematurely should also attract a lot of business. It is also predicted that fortified dairy products with GOS will have the most rapid growth rate.
Microbiome benefits are provided by sports nutrition products and high performance nutraceuticals available in North America, that have synthetic prebiotic GOS. Though presently a small market, a predicted growth in demand for synthetic GOS will take the global market from 80 million dollars in the year 2025 to 120 million dollars by the year 2030. This expansion is because of advancements in GOS formulations which produce minimal bloating and are of high purity. There are unexploited opportunities in customised sachets, capsules and gummies as well as synbiotic formulations which include probiotic strains. Synthetic GOS is likely to be more popular in the adult performance, recovery and active ageing consumer region than other application region's.
04

Challenge: Regulatory variability and limited consumer understanding slow adoption across mainstream food applications

Regulatory frameworks governing prebiotic claims vary significantly across regions, creating compliance complexities for GOS producers. Restrictions on health claims in certain markets reduce marketing flexibility and slow product launches. Additionally, limited consumer understanding of GOS compared to more established fibers affects purchasing behavior. This combination dampens demand growth in general food and beverage applications, influencing volume sales and delaying wider market penetration beyond specialized nutrition sectors.

Supply Chain Landscape

1

Galacto Oligosaccharides Inputs

Fonterra Co-Operative Group LimitedKerry Group plcIngredion
2

GOS Prebiotic Production

Clasado LtdIngredionAIDP Inc
3

Functional Ingredient Formulation

Kerry Group plcIngredionAIDP Inc
4

Prebiotic Fiber Applications

Infant NutritionFunctional FoodsDietary Supplements
Galacto Oligosaccharides - Supply Chain

Use Cases of Galacto Oligosaccharides in Prebiotic Supplement in Functional Foods & Dietary Supplements for Managing Chronic Illnesses

Prebiotic Supplement in Functional Foods : Prebiotic Supplement adding GOS to foods and beverages is a valuable enhancement because of its prebiotic qualities that support digestion and enhance gut health overall. Incorporating GOS in foods helps with mineral absorption and boosts the immune system while also playing a positive role in managing weight effectively. Notable companies such as Yakult and Danone include GOS, in their drink recipes.
Dietary Supplements for Managing Chronic Illnesses : Because of its ability to enhance the system and reduce inflammation levels. GOS is known for its inclusion in supplements designed to support individuals with long term health conditions. It plays a role in maintaining a healthy gut flora which can be beneficial for those dealing with digestive issues and it might also be helpful for people with diabetes and heart problems, by helping to control cholesterol and blood sugar levels.

Recent Developments

Recent developments in galacto oligosaccharides emphasize stronger prebiotic fiber demand across functional foods and infant formula markets. Manufacturers are leveraging improved β‑galactosidase enzymatic synthesis and gut microbiome research to enhance product efficacy and purity, reinforcing GOS’s role in digestive health and immune support. A key market trend is the shift toward clinically validated prebiotic solutions, with targeted GOS blends tailored for specific consumer segments, boosting adoption in premium nutrition and synbiotic formulations.

November 2025 : In late 2024–2025, Ingredion Incorporated expanded its production capacity in the Asian region for galacto‑oligosaccharides to support rising demand from food and beverage formulators and infant nutrition manufacturers. This capacity expansion reflects the company’s strategic effort to strengthen supply reliability and regional availability of GOS ingredients.
May 2025 : In May 2025, Yakult Pharmaceutical Industry Co., Ltd. launched V‑Base dog food containing galacto‑oligosaccharides and Lactobacillus plantarum Planimal strain, expanding its GOS product portfolio into companion animal nutrition in collaboration with Japan Pet Communications Co., Ltd. This followed earlier expansions of its MediSuppli Galacto‑Oligosaccharide products for pets.
September 2023 : In September 2023, Fonterra Co‑operative Group Limited announced the commercial introduction of NZMP Galacto‑Oligosaccharides ingredient samples for the global infant formula market, produced at the Davidstow facility in the United Kingdom and aimed at digestive comfort and mineral absorption benefits.

Impact of Industry Transitions on the Galacto Oligosaccharides Market

As a core segment of the Nutraceuticals industry, the Galacto Oligosaccharides market develops in line with broader industry shifts. Over recent years, transitions such as Emergence of New Dietary Trends and Integration with precision nutrition have redefined priorities across the Nutraceuticals sector, influencing how the Galacto Oligosaccharides market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Emergence of New Dietary Trends

As rising consumer interest in prebiotics accelerates market change in the GOS sector, consumers are increasingly making the choice to use products containing prebiotic ingredients in their dietary supplements and foods for the health benefits to the gut and the immune system. In the US and Germany, food, drink and baby food producers are introducing GOS into infant milk formula and dairy products to create product lines and charge higher prices. A growing demand for prebiotic ingredients such as GOS by consumers is predicted to lead to a rise in sales for the GOS ingredient category by 2030 of $47 million. This trend is set to drive the development of the prebiotics industry as a whole, and will increase the pressure on food manufacturers to offer products with such ingredients.
02

Integration with precision nutrition

GOS are increasingly aligning with precision nutrition and synbiotic product development. Advances in microbiome research are enabling formulation of GOS types that selectively nourish specific bacterial strains. This transition is influencing probiotic, sports nutrition, and metabolic health industries, where customized gut health solutions are gaining traction. Ingredient suppliers are collaborating with biotech and diagnostics firms to design tailored nutrition platforms. This evolution shifts industry focus toward data-driven formulation strategies, strengthening long-term demand while reshaping competitive differentiation across functional nutrition markets.