Fructooligosaccharide (FOS) Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, Germany, China, UK, Japan - Size and Forecast 2024-2028

Fructooligosaccharide Market Size 2024-2028 

The fructooligosaccharide (FOS) market size is forecast to increase by USD 2.73 billion at a CAGR of 11.6% between 2023 and 2028.  Fructooligosaccharides (FOS), a type of dietary fiber, have gained significant attention in various industries due to their numerous health benefits. The global market is witnessing steady growth, driven by its increasing usage in food and beverages, dietary supplements, and animal feed. FOS is known to promote gut health by selectively stimulating the growth of beneficial bacteria, such as bifidobacteria, in the colon. This, in turn, enhances the health of colorectal mucosal cells. Moreover, FOS possesses a low calorific value, making it an attractive alternative to sugar in food and beverage applications. Its ability to improve cholesterol levels and reduce triglycerides is another key factor fueling market growth. The rising demand for FOS from emerging economies, particularly in Asia Pacific, is expected to boost market expansion. However, the high cost of FOS production remains a significant challenge for market growth. The production process involves complex fermentation techniques using chicory roots or other sources, which increases the overall production cost. Despite this, the market is expected to continue its upward trajectory due to the numerous health benefits associated with FOS.

What will be the Size of the Market During the Forecast Period?

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Fructooligosaccharides (FOS) are a type of dietary fiber that possess prebiotic properties. These complex carbohydrates are not digested by the human body, making their way to the colon, where they serve as a food source for beneficial gut bacteria, such as bifidobacteria and lactobacilli. This process promotes a healthy balance of gut microbiota and enhances digestive function. FOS have gained significant attention in various industries due to their health benefits. In the food and beverage sector, they are used as functional food ingredients, particularly in the production of low-calorie and low-sugar products.

Moreover, FOS contributes to the sweet taste of these products without adding calories from sugars, making them an attractive alternative to traditional sweeteners. The dietary supplement industry also leverages FOS for their prebiotic properties. These supplements are marketed to support digestive health and promote a healthy gut microbiome. FOS have been shown to improve the growth of beneficial gut bacteria, which can help alleviate gastrointestinal disorders and support overall health. Animal feed manufacturers have recognized the potential of FOS in enhancing animal health and productivity. By incorporating FOS into animal feed, farmers can improve the health of their livestock, leading to better growth rates and increased efficiency in livestock production.

Furthermore, the FOS are naturally found in various sources, including fruits and vegetables. However, the demand for FOS far outstrips their availability in natural sources. As a result, industrial production of FOS has become a significant market. FOS are produced through the hydrolysis of inulin, which is extracted from chicory root. FOS have a low calorific value and do not contain any phospholipids, triglycerides, or cholesterol. These characteristics make FOS an attractive alternative to other dietary fiber sources. Furthermore, FOS have been shown to have a positive impact on colorectal mucosal cells, which can help prevent obesity and related health issues.

In conclusion, the market for FOS is driven by the health-conscious trend and the growing demand for natural sweeteners and fiber supplements. FOS offer numerous health benefits, including improved digestive function, enhanced gut health, and a low calorific benefit. As a result, FOS are expected to continue gaining popularity in various industries, including food and beverages, dietary supplements, and animal feed. To capitalize on this trend, businesses can explore opportunities in the production and distribution of FOS. This can include the development of new FOS-based products, the expansion of existing product lines, and the exploration of new markets and applications for FOS.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Infant formula
  • Food and beverages
  • Animal feed
  • Dietary supplements
  • Others
• Geography
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • Japan
  • North America
    • US
  • South America
  • Middle East and Africa

By Application Insights

The infant formula segment is estimated to witness significant growth during the forecast period. The market in the United States is projected to expand substantially in the upcoming years, particularly in the infant formula sector. This growth can be attributed to the rising demand for FOS in this application due to its advantages, such as promoting calcium and magnesium absorption, enhancing prebiotic properties, and offering low-calorie sweetening options. FOS is a type of soluble fiber derived from chicory root, inulin, or through enzymatic hydrolysis. It is available in both liquid and powder forms. Infant formulas, designed for infants under one year old, are a significant market segment for FOS. The demand for these formulas is increasing due to their benefits, including supporting immune system function, cognitive development, and gut health.

Regulatory bodies, including the Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA), have established guidelines for the composition of baby food to ensure quality and safety. FOS is a prebiotic, meaning it promotes the growth of beneficial bacteria in the gut, improving overall digestive health. It is also low in calories, making it an attractive alternative to sugar for those seeking to reduce their caloric intake. Additionally, FOS has a lower carbon footprint compared to other sweeteners, making it an eco-friendly choice for manufacturers and consumers alike. In the US market, FOS is often used as a functional ingredient in various industries, including food and beverages, animal feeds, and dietary supplements.

Its versatility and health benefits make it a valuable addition to these products, contributing to their overall nutritional value and consumer appeal. The FOS market is expected to continue growing as consumers become increasingly health-conscious and seek out natural, functional ingredients to enhance their diets.

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The infant formula segment was valued at USD 1.13 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European market is experiencing growth due to the expansion and diversification of various industries, including food and beverages, dietary supplements, animal feeds, and pharmaceuticals. Consumer awareness regarding the prevention of chronic diseases, such as rickets and diabetes, is driving the demand for FOS products. In the food and beverage sector, FOS, as a type of prebiotic, is commonly used in low-fat yogurts, ice creams, dairy desserts, and milk beverages to enhance texture and taste. Inulin, a form of prebiotic that includes FOS, is utilized as a fat replacer in mousse emulsions due to its stabilizing properties. The health-conscious trend in North America is also contributing to the increasing usage of FOS in preventive healthcare, particularly in the treatment of gastrointestinal disorders. In infant formulations, FOS plays a crucial role in maintaining gut microbiota balance and improving digestive function.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

The health benefits of FOS is notably driving market growth. Fructooligosaccharides (FOS), a type of short-chain fructans, are non-digestible carbohydrates that serve as prebiotics in the human body. These complex sugars are not absorbed in the small intestine but instead reach the large intestine, where they act as food for beneficial bacteria. The fermentation of FOS by these bacteria produces short-chain fatty acids, which play a significant role in maintaining gut health. Gut health is essential for various bodily functions, and FOS helps keep the gastrointestinal system in check. They promote the balance and diversity of intestinal bacteria, increasing the population of beneficial bacteria like lactobacillus and Bifidobacterium.

Furthermore, these bacteria contribute to numerous health benefits, such as reducing the risk of cancer, improving mental health, controlling weight and appetite, enhancing bowel regularity, strengthening the immune system, and increasing mineral absorption. The health-conscious trend and the growing awareness of preventive healthcare have fueled the demand for natural sweeteners like FOS. They are increasingly being used in food and beverage applications and infant formulations to improve the nutritional value and overall health benefits of these products. The prebiotic properties of FOS make them an attractive alternative to sucrose and other artificial sweeteners. Therefore, the global market for FOS is expected to witness significant growth during the forecast period. Thus, such factors are driving the growth of the market during the forecast period.

Market Trends

Rising demand for FOS from emerging countries is the upcoming trend in the market. The market for Fructooligosaccharides (FOS) is experiencing growth due to the rising demand for functional food and beverages, as well as dietary supplements. Consumers in both emerging and developed countries are increasingly focusing on the nutritional value and health benefits of the products they consume. In emerging economies such as China, Brazil, India, and Russia, this trend is particularly prominent. FOS producers are expanding their presence in these markets to meet the growing demand for nutritional products. FOS, a prebiotic fiber, is known to promote the growth of beneficial bacteria in the gut, including bifidobacteria, which in turn supports gut health.

FOS has a low calorific value and does not contain triglycerides, phospholipids, or cholesterol, making it an attractive option for health-conscious consumers. Manufacturers are investing in research and development to enhance the technical capabilities and production capacities required to meet the increasing demand for FOS. The health benefits associated with FOS, such as improved gut health and digestive function, are driving consumer interest and demand. The global FOS market is expected to continue its growth trajectory in the coming years.

Market Challenge

The high cost of FOS production is a key challenge affecting the market growth. Fructooligosaccharides (FOS), a type of prebiotic sweetener, are derived from natural sources such as fruits and vegetables. Blue agave and polyfructose are common sources of FOS. Due to their prebiotic properties, FOS have gained popularity in the market as they aid in the growth of beneficial bacteria in the gut, contributing to overall health and wellness. However, the production of FOS is costly as it involves the enzymatic treatment of raw materials like lactose, sucrose, and plant derivatives. The yield of FOS is low, which adds to the production costs. Consequently, manufacturers invest in research and development to enhance the yield and explore more efficient production methods.

Despite these efforts, FOS remains expensive. In various industries, including food and beverage, pharmaceuticals, and infant formula, FOS are used for their nutritional applications, particularly in managing chronic disorders such as diabetes and rickets.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Beneo GmbH - The company offers fructooligosaccharides such as Orafti inulin and Oligofructose.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Biocare Ltd.
• Biosynth Ltd.
• BOCSCI Inc.
• BRENNTAG SE
• Cargill Inc.
• DANA Dairy Group Ltd.
• Galam
• Ingredion Inc.
• Jarrow Formulas Inc.
• Megazyme Ltd.
• Meiji Holdings Co. Ltd.
• Merck KGaA
• Nutriagaves Group
• Pastry ua
• Quantum Hi-tech
• Sensus
• Tata Chemicals Ltd.
• Tereos Participations

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Fructooligosaccharides (FOS), a type of prebiotic dietary fiber, have gained significant attention in various industries due to their numerous health benefits. These complex carbohydrates, naturally found in chicory root, garlic, artichokes, and onions, are increasingly used in food and beverages, dietary supplements, and animal feed. FOS acts as food for beneficial gut bacteria, particularly bifidobacteria, promoting gut health and immune system function. With a low calorific value, FOS offer a sweet taste without adding significant calories, making them an attractive alternative to sucrose and other high-calorie sweeteners. FOS have been linked to improved calcium and magnesium absorption, as well as heart health, weight management, and digestive wellness.

Furthermore, FOS also exhibits prebiotic properties, stimulating the growth of beneficial gut bacteria and maintaining gut microbiota balance. In the food industry, FOS is available in both liquid and powder forms, making them versatile ingredients for various applications. The health-conscious trend, coupled with the rising demand for low-calorie sweeteners and natural sources of dietary fiber, is driving the growth of the FOS market. FOS is also used in infant formulations to support digestive health and prevent gastrointestinal disorders. Additionally, they have potential applications in functional food ingredients, nutritional supplements, and nutritional products for managing chronic disorders such as diabetes, obesity, and rickets. However, raw material shortages and increasing production costs may pose challenges to market growth.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Europe, APAC, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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