Xylooligosaccharides Market

The market for Xylooligosaccharides was estimated at $86.3 million in 2025; it is anticipated to increase to $124 million by 2030, with projections indicating growth to around $178 million by 2035.

Report ID:DS1805010

Author:Debadatta Patel - Senior Consultant

Published Date:January 2025

Datatree

Life Science

Nutraceuticals

Xylooligosaccharides

Customization Available

Xylooligosaccharides - 2025-2035

Market Outlook
Market Key Insights
Growth Opportunity
Market Dynamics
Application
Recent Development
Impact Analysis

Report Summary

Market Data

Methodology

Table of Contents

Report Summary

Market Data

Methodology

Table of Contents

Global Xylooligosaccharides Market Outlook

Revenue, 2025

$86.3M

Forecast, 2035

$177M

CAGR, 2026 - 2035

7.5%

The Xylooligosaccharides (XOS) industry revenue is expected to be around $86.3 million in 2026 and expected to showcase growth with 7.5% CAGR between 2026 and 2035. The market for xylooligosaccharides is becoming increasingly significant within the prebiotic fibre sector, driven by an increasing need from the food and drinks industry for products which promote digestive health and are backed by scientific evidence. Applications in the food and beverage as well as the dietary supplement sectors together accounted for 63.6 % of overall demand. This reflects the fact that the trend in formulation is to include Xylooligosaccharides in products such as nutraceuticals, food and beverages in order to assist with the maintenance of the correct balance of bacteria and in order to alleviate digestive problems caused by lifestyle. The powder form currently leads the market in product form, accounting for 59.03 million dollars in revenue in the year 2025. Its preference stems from its improved flow, the flexibility it gives to the manufacturer in formulation and its compatibility with synbiotics and clean labels. The powder forms relevance is also due to its use in dairy base pet food and other niche applications.

Prebiotic fibres that are short chain xylan derived, known as xylooligosaccharides, exhibit both excellent thermal and pH stability along with a low effective dose which makes them fermented selectively by the beneficial bacteria present in the gut. Their properties make them ideal for adding to foods and drinks which are designed to be functional and to dietary supplements. Key characteristics include a mild sweetness and low calorie count, making them suitable for reduction of sugar and enrichment with fibre in a variety of food products. They can be used in the bakery, dairy, beverage, confectionery and health food sectors. Furthermore, they can be used in nutraceuticals and therapeutic nutrition. Increasing the demand for XOS is being driven by the rapid growth of the synbiotics sector, which combines these sugars with probiotics. Key market trends also include premium nutritional formulations for animals, the trend towards clean label and plant based products, and growing research into how prebiotics can be used to improve health and immunity. There is considerable industry interest in the role that prebiotics play in the gut microbiome, in metabolic health, and in the formulation of immune system supporting products.

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

Market Key Insights

The Xylooligosaccharides market is projected to grow from $86.3 million in 2025 to $178 million in 2035. This represents a CAGR of 7.5%, reflecting rising demand across Functional Food Ingredient, Dietary Supplements, and Animal Feed Additives.
The competitive landscape of the market is dominated by companies such as Anhui Elite Industrial Co. Ltd., YIBIN YATAI and Dongguan ALL Natural Plant Extracts Co. leading the field.
The markets in both the United States and China are the largest in the market for xylooligosaccharides, with growth expected to be between 4.9 and 7.2% annually from 2024 to 2030.
The fastest growth rates are expected to be seen in the emerging markets of India, Mexico and Brazil, with growth rates of between 8.6% and 10.3% per annum.
The shift toward natural sweeteners is likely to generate an extra $4 million in sales for the xylooligosaccharides market by 2030.
Over the period 2025 2035, the market for xylooligosaccharides is expected to increase by $91.6 million. Animal feed and pharmaceutical sectors are expected to gain greater market share.
With
rising gut health awareness and clean label innovation across food nutrition sectors, and
Expansion of Antibiotic Reduction Strategies in Livestock Nutrition Systems, Xylooligosaccharides market to expand 106% between 2025 and 2035.

Xylooligosaccharides - Country Share Analysis

Opportunities in the Xylooligosaccharides

In North America and Europe, a growing number of urbanised young people are searching for prebiotic fibre in ready to eat, functional foods. This is also causing demand for xylooligosaccharides to rise sharply. In food and beverages such as low sugar beverages, sports nutrition bars, dairy alternatives, manufacturers can market xylooligosaccharides as being versatile prebiotics that promote good health of the gut. This segment is expected to generate approximately 59.03 million dollars worldwide by the year 2025. The powder form is anticipated to grow the fastest. It is because it benefits from innovative synbiotic formulations and probiotics which make clean label positioning and targeted gut health claims. These are aimed at younger consumers.

Growth Opportunities in North America and Asia-Pacific

In America and Canada the market for xylooligosaccharides is mainly driven by the sales of dietary supplements. These are supplements that are rich in prebiotic fibres which are used for maintaining good gut health. Key region's of interest include Xylooligosaccharides of high purity which can be used in the production of capsules, gummy products and synbiotics. Furthermore, there is also a growing interest in extending the use of clean labels to sports nutrition products and to products which promote healthy ageing. Increasing competition exists among companies which supply functional food ingredients, manufacturers of nutraceuticals on contract and private label companies who are quickly expanding their prebiotic ranges to differentiate products on clinical evidence and efficacy. Key drivers are regulatory openness to science based health claims, the strong adoption of XOS in dietary supplements sold through e commerce and professional channels, and the consumer awareness of the microbiome. Xylooligosaccharides are also emerging as a potential adjunct or active in pharmaceuticals or as pharmaceutical excipients in gut therapies. In a strategic sense, the main focus should be on clinical validation, plus targeted formulations for digestive health and immunity, and co development of products with big medical nutrition and supplement firms to ensure long term partnerships.

Asia Pacific is the market that is most likely to be the largest user of Xylooligosaccharides in the food and beverages industry, driven by the fact that there is a rapid growth in the use of functional food ingredients. These food ingredients are used in dairy products, beverages and bakery products. They are consumed for their benefits to family nutrition and digestive wellness. Innovative possibilities are numerous with the use of xylooligosaccharides as low cost, non digestible fibre supplements in the food industry, in infant food products and also in beverages with nutritional supplements. Another sector in which tailored solutions can be created is the organic animal feed industry. The market for prebiotics is a competitive one, with regional companies that mix ingredients, local food companies, and large global businesses all competing against one another. They compete on the basis of price, on the stability of the products, and on how well they work in complex mixes. They also compete to be used in food and drink products which are popular in their region. Key drivers of the market are the increase in disposable incomes and urbanisation driven demand for convenient products that support gut health. Furthermore, there is a shift in policies in favour of raising animals without antibiotics and the growing awareness among younger consumers of the importance of maintaining a healthy balance of microbes in the gut. Production of xylooligosaccharides on a large scale should be the focal point. Formulations tailored to the region for dairy snacks and fermented drinks, partnerships with regional feed and food companies and education led marketing to portray xylooligosaccharides as a safe prebiotic are also key.

Market Dynamics and Supply Chain

Driver: Rising Gut Health Awareness and Clean Label Innovation Across Food Nutrition Sectors

Growing scientific evidence linking gut microbiota to immunity, metabolism and mental well being is also significantly boosting demand for xylooligosaccharides. Consumers increasingly seek clinically supported prebiotics that deliver benefits at low dosages without digestive discomfort, positioning XOS favorably against traditional fibers. Simultaneously, clean label formulation trends are also accelerating adoption, as XOS can also be derived from plant based agricultural byproducts and processed with minimal chemical modification. Food and supplement manufacturers are also reformulating products to reduce sugar content while enhancing functional value, where XOS also serves both nutritional and formulation needs. also advances in enzymatic hydrolysis and purification technologies have also also improved yield consistency and cost efficiency, encouraging broader commercialization across functional foods, beverages and targeted nutrition applications.

The global push to reduce antibiotic use in animal farming is also a major driver for XOS adoption in feed additives. Regulators and integrators are also promoting gut health focused nutritional solutions to maintain productivity and animal welfare. XOS supports balanced intestinal microbiota, enhances nutrient absorption and improves feed efficiency, making it an effective alternative to antibiotic growth promoters. Ongoing research and on farm trials validating performance benefits are also encouraging large scale inclusion by commercial feed producers, particularly in poultry and swine operations.

Restraint: Cost Sensitivity and Limited Price Competitiveness Versus Established Prebiotic Alternatives

Xylooligosaccharides face pricing pressure when competing with more established prebiotics such as inulin and fructooligosaccharides. Higher production costs linked to raw material sourcing, enzymatic processing and purification can limit adoption in cost sensitive food and feed applications. This restraint impacts revenue growth in emerging markets, where manufacturers often prioritize lower cost functional ingredients over premium performance benefits.

Opportunity: High-purity XOS for gut health nutraceuticals targeting aging populations in Japan and South Korea and Expansion of Xylooligosaccharides in premium animal feed additives across Brazil’s commercial poultry industry

The populations of Japan and South Korea are ageing and there is an increasing desire from these older consumers to ensure the balance of their gut microbiota is maintained. XOS are becoming sought after as a nutraceutical because they have been scientifically proven to be effective. Supplement manufacturers can market high purity powder XOS for capsules, powdered sachets and ready to drink shots targeted at digestive comfort and immune system support. Worldwide, the segment in powder form is expected to experience the greatest growth and could reach 83.57 million dollars by 2030 from a 2030 figure of 59.03 million dollars. This growth will be due to the development of prebiotic ingredients and differentiated synbiotic formulations tailored to the requirements of healthcare professionals and pharmacists and local regulations.

Researchers in Brazil are looking at Xylooligosaccharides, next generation prebiotic fiber in animal nutrition, to see if it can increase feed efficiency and lower antibiotic use in the poultry industry which is booming. By 2025, the global market for liquid xylooligosaccharides will be worth approximately 27.27 million dollars. This is set to rise at a compound annual growth rate, CAGR of 8.14% up to 2030. Feed mills and integrators are among the sectors which could adopt this product. The greatest growth will be witnessed in liquid inclusions used in high density premixes and water soluble feed additives. This growth is most likely to be seen when the products are used in combination with other prebiotic ingredients and organic acids to control the gut microbiota.

Challenge: Regulatory Complexity and Inconsistent Health Claim Approvals Across Global Markets

Regulatory approval processes for novel fibers and prebiotic claims vary significantly across regions, creating commercialization delays for XOS. In some markets, limited recognition of XOS specific health benefits restricts on pack communication, reducing consumer awareness and demand. These regulatory inconsistencies increase compliance costs and slow product launches, directly influencing market expansion strategies and return on investment for manufacturers.

Supply Chain Landscape

Biomass Sourcing

KangweiHBTX

Xylooligosaccharides Production

Anhui Elite Industrial Co. LtdYIBIN YATAI

Food-Grade Formulation

Dongguan ALL Natural Plant ExtractsAnhui Elite Industrial Co. Ltd

Prebiotic Applications

Functional foodsDietary supplementsAnimal feed additives

Biomass Sourcing

KangweiHBTX

Xylooligosaccharides Production

Anhui Elite Industrial Co. LtdYIBIN YATAI

Food-Grade Formulation

Dongguan ALL Natural Plant ExtractsAnhui Elite Industrial Co. Ltd

Prebiotic Applications

Functional foodsDietary supplementsAnimal feed additives

Xylooligosaccharides - Supply Chain

Use Cases of Xylooligosaccharides in Functional Food Ingredient & Animal Feed Additives

Functional Food Ingredient : Naturally integrated into modern gut health formulations, short chain xylooligosaccharides derived from hardwood and corn cobs are predominantly used in functional foods. They are incorporated into beverages, dairy alternatives, bakery products and nutrition bars to selectively stimulate beneficial gut bacteria at low inclusion levels. Their strong heat and pH stability gives formulators flexibility during processing. Leading players such as FrieslandCampina Ingredients, Shandong Longlive Bio Technology and Yakult Honsha leverage robust R&D and regulatory expertise to maintain strong positions in premium functional nutrition markets.

Dietary Supplements : Widely adopted in capsules, powders and sachets, high purity short chain XOS are the preferred form for dietary supplements targeting digestive and immune health. These ingredients deliver effective prebiotic benefits at low dosages, making them suitable for daily supplementation. Their low sweetness and minimal gastrointestinal discomfort enhance consumer compliance. Companies like DuPont Nutrition and Biosciences, Longlive Bio Technology and Baolingbao Biology benefit from global distribution networks, clinically supported claims and consistent quality, strengthening their competitiveness in the rapidly expanding supplement segment.

Animal Feed Additives : Increasingly used in livestock nutrition, technical grade XOS are incorporated into poultry, swine and aquaculture feeds to support gut health and improve feed conversion ratios. They act by promoting beneficial intestinal microbiota and reducing pathogen load, helping producers lower antibiotic reliance. Their thermal stability allows smooth integration into pelleted feeds. Key suppliers including Longlive Bio Technology, Shandong Bailong Chuangyuan and New Francisco Biotechnology hold strong positions through cost efficient production, large scale fermentation capabilities and established relationships with feed integrators.

Recent Developments

Recent market dynamics for xylooligosaccharides (XOS) reflect rising prebiotic ingredient adoption, expanding into functional foods, supplements and animal nutrition driven by stronger gut health awareness and enhanced production technologies. Demand for high-purity XOS with heat and acidity stability is increasing, boosting inclusion in beverages and fortified products. Manufacturers are investing in biotechnological extraction and enzymatic synthesis to improve yield and reduce costs. Asia-Pacific continues to dominate production and consumption, while clinical research validating microbiome benefits strengthens global market confidence.

September 2025 : Shandong Bailong Chuangyuan Bio-tech Co. showcased its comprehensive portfolio of oligosaccharides including xylo-oligosaccharides at a major global exhibition, attracting interest from international food and ingredient partners and strengthening its European market presence.

July 2025 : Shandong Bailong Chuangyuan Bio-tech Co. expanded its production capabilities with an automated large-scale prebiotic ingredient line (not XOS specific but within its core functional sugar business), demonstrating ongoing capacity growth that supports its oligosaccharide segment.

Impact of Industry Transitions on the Xylooligosaccharides Market

As a core segment of the Nutraceuticals industry, the Xylooligosaccharides market develops in line with broader industry shifts. Over recent years, transitions such as Shift towards Natural Sweeteners and Integration into Sustainable Bioeconomy Models have redefined priorities across the Nutraceuticals sector, influencing how the Xylooligosaccharides market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

Shift towards Natural Sweeteners

The trend of replacing artificial sugars with natural sweeteners is driving demand for XOS. By 2030, it could be worth an additional four million dollars. With consumers more and more focused on consuming low calorie, clean label products that provide noticeable digestive and metabolic biomarker benefits, XOS are gaining traction as a prebiotic dietary fibre ingredient with potential as a low calorie sweetener. Food and drinks businesses are being encouraged by this trend to modify their products so they contain less sugar, and to introduce health benefits such as promotion of beneficial gut bacteria. This has encouraged adoption of xylo oligosaccharides across these applications. Companies that quickly modify their research and development processes as well as their production planning and their marketing will have the best chance at capturing this profit.

Integration into Sustainable Bioeconomy Models

Another major transition involves positioning XOS within circular bioeconomy frameworks. Producers are increasingly sourcing raw materials from agricultural and forestry byproducts, aligning XOS production with sustainability goals. This transition supports reduced waste, lower carbon footprints and improved supply chain resilience. Food, feed and nutraceutical companies are responding by favoring ingredients with traceable, sustainable origins. The shift is also encouraging investments in green processing technologies and regional production hubs, impacting related sectors such as biomass processing and industrial enzymes.