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Global Galacto-Oligosaccharide Market Dynamics: Demand Drivers, Challenges, and Growth Path to 2029

9 Sep, 2025

Insight by Abdul Wasay, Chief Operating Officer at The Business Research Company

In response to fluctuating tariffs and geopolitical trade developments, the Galacto-Oligosaccharide Market Outlook 2025 analyses how businesses are adapting through supply chain diversification and strategic sourcing.

What Is the Forecasted Market Size and CAGR for the Galacto-Oligosaccharide Market?

The market size of the galacto-oligosaccharide has experienced substantial growth in the past few years. It is set to increase from $0.85 billion in 2024 to $0.92 billion in 2025, with a compound annual growth rate (CAGR) of 8.8%.

What Is the Forecasted CAGR for the Galacto-Oligosaccharide Market by 2029?

The galacto-oligosaccharide market is projected to grow to $1.29 billion by 2029, with a compound annual growth rate (CAGR) of 8.7%.

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What Are the Market Drivers in the Galacto-Oligosaccharide Industry?

The key drivers in the galacto-oligosaccharide market are:

• Rising rates of preterm births globally
• The role of galacto-oligosaccharides in promoting healthy gut microbiota
• A growing awareness of the health benefits of galacto-oligosaccharides in pregnancy outcomes
• Widespread geographic variations and racial disparities in preterm birth rates, offering opportunities for targeted interventions.

What Is the Segment-Wise Breakdown of the Galacto-Oligosaccharide Market?

The galacto-oligosaccharidemarket covered in this report is segmented –
1) By Product: Liquid, Powder
2) By Source: Plants, Animals, Microorganisms
3) By Primary Function: Prebiotic, Sweetener
4) By Application: Food And Beverage, Pharmaceuticals, Personal Care, Animal Feed, Other Applications

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Which Emerging Trends Are Driving Growth in the Galacto-Oligosaccharide Sector?

The key trends in the galacto-oligosaccharide market are:

• The focus on enhancing the enzymatic synthesis process in GOS production among major companies is an emergent trend in this market.
• There is an upward trend in improving the quality and yield of GOS products by using enzymes to transform lactose into galactooligosaccharides.
• An emerging trend in the market is the innovation in gut health supplements, such as introducing prebiotics with high-purity galacto-oligosaccharides.
• There is a trend towards reducing lactose levels and increasing flexibility in formulation in the creation of prebiotics in the market.

Which Companies Are Dominating the Galacto-Oligosaccharide Market in Terms of Revenue?

Major players 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

What Are the Regions Driving Demand in the Galacto-Oligosaccharide Market?

Europe was the largest region in the galacto-oligosaccharide market in 2024

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