The Australian Human Milk Oligosaccharides market is estimated to be worth USD 0.3 million by 2025 and is projected to reach a value of USD 0.7 million by 2035, growing at a CAGR of 9.6% over the assessment period 2025 to 2035
| Metric | Values |
|---|---|
| Industry Size (2025) | USD 0.3 million |
| Industry Value (2035) | USD 0.7 million |
| Value-based CAGR (2025 to 2035) | 9.6% |
The human milk oligosaccharides (HMO) market is among the fast-growing segments of the global interest in functional ingredients, derived from human milk, primarily in infant nutrition. HMOs are complex carbohydrates that naturally occur in human breast milk and are known for their prebiotic effects to support gut health, immunity, and brain development.
With increased awareness of the health benefits of HMOs, especially among parents and healthcare providers, the demand for HMO-enriched products is increasing, especially in infant formula and dietary supplements.
The importance of HMOs in Australia can further be understood given its focus on infant health and wellness. The rich healthcare infrastructure, a high standard of living, and better healthcare access make parents seek products that can mimic the benefits of breast milk. Consequently, the Australian market is witnessing increased adoptions of HMOs in infant formula, functional foods, and dietary supplements to develop overall gut health and immunity.
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The table below offers a detailed comparative assessment of the changes in the compound annual growth rate (CAGR) over six months for the base year (2024) and the current year (2025) specifically for the Australian Human Milk Oligosaccharides market.
This semi-annual analysis highlights crucial shifts in market dynamics and outlines revenue realization patterns, providing stakeholders with a more precise understanding of the growth trajectory within the year. The first half of the year, H1, covers January to June, while the second half, H2, spans July to December.
H1 signifies the period from January to June, and H2 Signifies the period from July to December.
For the Australian market, the Human Milk Oligosaccharides sector is predicted to grow at a CAGR of 8.4% during the first half of 2025, increasing to 10.2% in the second half of the same year. In 2024, the growth rate is anticipated to slightly decrease to 7.2% in H1 but is expected to rise to 9.3% in H2. This pattern reveals a decrease of 15 basis points from the first half of 2024 to the first half of 2025, followed by an increase of 20 basis points in the second half of 2025 compared to the second half of 2024.
This therefore depicts an Australia Human Milk Oligosaccharides (HMO) market with an active dynamic change that comes through several elements of regulation changes, shifting consumers, and also evolving technologies that would determine how to produce the best HMOs.
An every-other-half year report becomes fundamental for firms with an eye for the trend so that strategies will be fine-tuned as expectations come according to market size in this country. This will allow companies to make informed decisions, optimize their product offerings, and stay competitive in a market driven by innovation and increasing consumer demand for HMO-enriched products.
| Date | Development/M&A Activity & Details |
|---|---|
| January 2024 | DSM-firmenich reported that it had received permission for four further HMO components for use as nutritional additives in infant formula products in Australia and New Zealand. With this clearance from Food Standards Australia New Zealand (FSANZ), dsm-firmenich becomes the region's first HMO manufacturer to apply for and gain approval for these specific HMOs. |
| 2023 | Kyowa Hakko Bio, a Kirin Holdings company, partnered with the Agency for Science, Technology, and Research (A*STAR) to research Human Milk Oligosaccharides. This partnership intends to increase understanding and implementation of HMOs which could lead to innovative products in the Australian market. |
Technological Advancements in HMO Production
Studies on the biotechnological synthesis of Human Milk Oligosaccharides are becoming more economical and scalable, and Australia is witnessing this trend. As companies invest in more advanced fermentation technologies coupled with advanced enzyme-based methods for higher yield and quality HMOs, they become more accessible to the Australian market.
Significant production efficiency, lower cost, and customization of oligosaccharide profiles in various nutritional applications will be seen in the case of large-scale production of HMOs via precision fermentation.
The technological factors would directly be affecting the cost structure of the HMO product in the Australian market, resulting in greater affordability and wider consumption, especially among infant formula products. As production becomes smoother and more streamlined, it is going to open up innovation of product offerings with tailored solutions specific to health issues such as gut health, immunity, and cognitive function.
Expansion of HMO Applications beyond Infant Nutrition
The application of Human Milk Oligosaccharides continues to expand, reaching beyond their traditional use in infant formula for application in adult nutrition, in products targeting the gut and its related immune-supporting functions.
The interest among the Australian populace regarding HMO-enriched supplements and functional foods that benefit digestive health is gaining momentum along with improving immunity, and other benefits such as better management of chronic conditions including inflammatory bowel diseases. Such applications take advantage of the prebiotic properties of HMOs, which selectively promote the growth of beneficial gut bacteria.
This is likely to increase demand among health-conscious consumers in Australia for adult nutrition products containing HMOs. Expansion in the HMO-based dietary supplement, functional snack, and beverage markets can be expected. Companies will introduce new product formats, such as ready-to-drink beverages, powders, and capsules.
% share of Individual categories by Product Type and End Use in 2025
Fucosylated HMOs: The Leading Driver of Nutritional Innovation in Australia
The fucosylated segment of HMOs was the leading trend in the Australian HMO market, mainly based on its singular health benefits as well as pivotal role in the nutrition of infant. Fucosylated HMOs, especially 2'-Fucosyllactose and Lacto-N-fucopentaose I, function as prebiotics, activating the growth of beneficial gut flora while inhibiting the growth of pathogenic flora, thus they play a great role in gut health and infant immune system.
Due to their well-documented capability to enhance immunity and prevent infections, fucosylated HMOs have been one of the most in-demand ingredients in infant formula, thus becoming a major differentiator in the competitive nutrition market in Australia. Because of this growing awareness about fucosylated HMOs in Australia, companies are expected to invest greatly in research and production of these oligosaccharides.
Infant Formula: The Catalyst for Growth in the Australian HMO Market
The infant formula segment of the Human Milk Oligosaccharides market is currently leading in Australia due to growing demand for scientifically advanced and nutritionally superior products which replicate the benefits seen with breastfeeding.
The fair-mindedness of Australian parents toward health benefits in infant nutrition has led their interest in HMO-enriched formulas, which most closely resemble the properties of immune-boosting and gut health from the breast.
This trend is attributed to increased awareness of the role of HMOs in supporting the immune system, enhancing gut health, and promoting cognitive development in infants. The market is very open, and there are a lot of opportunities for product innovation, whether in terms of formulation or how it is accessible to consumers.
Note: The above chart is indicative in nature
Tier 1 companies in the Australian Human Milk Oligosaccharides (HMO) market constitute the global giants, who spearhead the study, production, and distribution of HMO. Such companies like Jennewein Biotechnologie, DSM-Firmenich, and Nestlé Health Science have managed to corner the industry with their superiority in technological strength, significant amount of research carried out, and a well-set supply chain network.
Tier 2 comprises regional companies and mid-scale companies that continue to expand within the Australian HMO market. These companies are DuPont, Thai Kyowa Biotechnologies, among others, which, by offering specialized HMOs tailored for individual regional needs, have gained high market shares by themselves.
Tier 3 players are smaller, emerging companies carving out niches in the Australian HMO market. These niche players, such as Carbosynth and Dextra Laboratories, are often specialized in niche applications of HMOs that include custom synthesis, specific formulations for health conditions, or the production of innovative HMO derivatives.
By 2025, the Australian Human Milk Oligosaccharides market is expected to grow at a CAGR of 9.6%.
By 2035, the sales value of the Australian Human Milk Oligosaccharides industry is expected to reach USD 0.7 million.
Key factors propelling the Australian Human Milk Oligosaccharides market include increasing awareness of hmos’ health benefits among parents, surge in premium infant formula demand, and integration of HMOs in adult dietary supplements.
Prominent players in Australia Human Milk Oligosaccharides manufacturing include Jennewein, Thai Kyowa Biotechnologies Co., Ltd., DSM-Firmenich, Nestle Health Science, DuPont, zuChem Inc., Elicityl SA, BASF SE, Dextra Laboratories Limited, and Carbosynth, among others. These companies are noted for their innovation, extensive product portfolios, and strategic market positioning.
The industry includes various product type such as fucosylated, silylated, and non-fucosylated neutral.
As per the end use segment, the market is segregated into food dietary supplements, and infant formula.
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Australia Human Milk Oligosaccharides Market
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