The global chitosan oligosaccharides market is estimated to be worth USD 3.1 billion in 2024 and is projected to reach a value of USD 10.9 billion by 2034, expanding at a CAGR of 13.4% over the assessment period of 2024 to 2034
Chitosan oligosaccharides (COS) are small sugar molecules that are made from chitosan, which comes generally from the shells of shrimp and crabs. They are known for their health benefits, such as improving gut health and supporting the immune system. COS also helps with weight management by reducing fat intake. Moreover, they are also used in agriculture to promote plant growth and in food products for preservation and nutrition.
Chitosan oligosaccharides (COS) come in different forms, such as powder, liquid, gel, and granules. This range makes it easy for manufacturers to use them in many types of products. For instance, powders can be added to supplements, liquids can be used in drinks, gels are known to be good for skincare, and granules can be mixed into animal feed. As they can fit into so many products, the demand for COS is growing across different industries, from food to cosmetics and agriculture.
| Attributes | Description |
|---|---|
| Estimated Global Chitosan Oligosaccharides Business Size (2024E) | USD 3.1 billion |
| Projected Global Chitosan Oligosaccharides Business Value (2034F) | USD 10.9 billion |
| Value-based CAGR (2024 to 2034) | 13.4% |
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for global chitosan oligosaccharides market.
This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the market growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 12.4% (2023 to 2033) |
| H2 | 12.9% (2023 to 2033) |
| H1 | 13.0% (2024 to 2034) |
| H2 | 13.7% (2024 to 2034) |
The above table presents the expected CAGR for the global chitosan oligosaccharides demand space over semi-annual period spanning from 2024 to 2034. In the first half (H1) of the year 2023, the business is predicted to surge at a CAGR of 12.4%, followed by a slightly higher growth rate of 12.9% in the second half (H2) of the same year.
Moving into year 2024, the CAGR is projected to increase slightly to 13.0% in the first half and remain relatively moderate at 13.7% in the second half. In the first half (H1 2024) the market witnessed a decrease of 18 BPS while in the second half (H2 2024), the market witnessed an increase of 25 BPS.
Evolution in Biotechnology
Advancements in biotechnology are making it possible to make synthetic chitin and chitosan oligosaccharides (COS) in innovative ways. Which means more COS can be produced, further it will be available more for various uses.
With these innovations, companies can explore different applications for COS in food, medicine, and cosmetics. As a result, the market for chitosan oligosaccharides is likely to grow, as more products can include these ingredients, meeting the needs of different industries and consumers.
MycoTechnology uses fermentation to produce various ingredients, including chitosan, from fungi. They are planning to create sustainable and innovative food solutions.
Growing Use of COS, in Beauty Industry
The beauty and skincare industry is moving towards using more natural and organic ingredients in products. Chitosan oligosaccharides (COS) as an ingredient are gaining popularity because they help in moisturizing the skin and promotes healing.
As consumers are looking for safer and healthier options, many skincare brands are adding COS to their products. This is boosting sales in the beauty and skincare industry, as more individuals want effective skincare solutions that are made from natural ingredients, further leading to the growing demand for COS in cosmetics.
MediDerm specializes in dermatological products, which also use chitosan in its formulations to enhance skin health.
Companies Preferring to go with Sustainable Sourcing
As more individuals and companies focus on being environmentally friendly, the demand for chitosan made from renewable sources is rising. Chitosan can be sourced from shrimp shells and insects, which are sustainable sources. This attracts consumers who want to support eco-friendly products and practices. Due to this interest in sustainability, many industries, including food, cosmetics, and agriculture, are increasingly using chitosan.
Use of COS in Animal Feed for Better Health
COS is being added to animal feed as they boost growth and strengthen the immune system of livestock. This means animals can grow better and stay healthier, which is important for farmers. Due to which, the demand for COS in animal feed is increasing, further leading to higher sales in the animal feed market as more farmers are adopting these innovations.
Kemin Industries offers a range of animal feed additives that include COS which enhances animal health, growth, and immune function.
Principal Consultant
Global Chitosan Oligosaccharides sales increased at a CAGR of 10.7% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on Chitosan Oligosaccharides will rise at 13.4% CAGR
Regulatory support for natural ingredients is increasing in many industries, including food, pharmaceuticals, and cosmetics. Governments and organizations are acknowledging the benefits of using safe, natural substances like chitosan oligosaccharides (COS).
This support motivates manufacturers to include COS in their products as they meet safety and quality standards. Due to this more companies are willing to use COS in their formulations, knowing they meet up with regulations. This is driving sales across various industries, as consumers prefer products made with natural ingredients.
In the United States, FDA has recognized chitosan as Generally Recognized As Safe (GRAS) for use in food products, which supports its inclusion in various food and dietary supplement formulations.
There is a rising interest in functional foods, which provide health benefits beyond basic nutrition. Individuals are looking for products that can help improve their health, such as supporting digestion and supporting weight management.
Chitosan oligosaccharides (COS) are being used in food-grade dietary supplements and health products because they are known to help with these issues. As more consumers seek out foods that can enhance their well-being, manufacturers are gradually including COS in their products.
Tier 1 companies comprise market leaders with market revenue of above USD 40 million securing significant sales domain share of 40% to 50% in the global sphere. These business leaders are known for high production capacity and a wide product offering.
These trade leaders are distinguished by their extensive expertise in manufacturing and reforming across multiple packaging formats and a broad geographical reach, supported by a robust consumer base. They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality.
Prominent companies within tier 1 include ChitoLytic, Alpha Chitin, HuminRich, Dora Agri, BZ Oligo Biotech Co., Ltd, TCI America, VWR International, and Qingdao Yunzhou Biochemistry Co., Ltd.
Tier 2 companies include mid-size players with revenue of USD 10 to 40 million having presence in specific regions and highly influencing the local retail space. These are characterized by a strong presence overseas and strong consumer base knowledge.
These industry players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Heppe Medical Chitosan GmbH, Golden-Shell Pharmaceutical Co., Ltd, Qingdao BZ Oligo Biotech Co., Ltd, Yaizu Suisankagaku Industry Co., Ltd, Bioline Corporation, and Kunpoong Bio Co., Ltd.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche demand space having revenue below USD 10 million. These companies are notably oriented towards fulfilling local marketplace demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized field, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The following table shows the estimated growth rates of the top sales domains. India and China are set to exhibit high chitosan oligosaccharides consumption, recording CAGRs of 11.2% and 12.3%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 8.2% |
| United Kingdom | 9.0% |
| Germany | 10.1% |
| India | 11.2% |
| China | 12.3% |
The ecosystem for Chitosan Oligosaccharides in the United States is projected to exhibit a CAGR of 8.2% during the assessment period. By 2034, revenue from the sales of Chitosan Oligosaccharides in the country is expected to reach USD 607.5 million.
As more individuals want to improve their health simply by what they are consuming. Chitosan oligosaccharides (COS) are being added to these products as they are known to help with gut health and offer other benefits, which makes them popular among health-conscious consumers.
Moreover, the FDA has approved chitosan as Generally Recognized As Safe (GRAS). Which means that it is considered safe for use in food and supplements. This encourages manufacturers to include COS in their products, leading to increased demand in the market for functional foods and dietary supplements.
Chitosan Oligosaccharides demand in Germany is calculated to rise at a value CAGR of 10.1% during the forecast period (2024 to 2034). By 2034, Germany is expected to account for 19.5% of Chitosan Oligosaccharides sales in Europe.
Germany has a growing nutraceutical domain, where individuals are looking for products that blend nutrition with health benefits. Chitosan oligosaccharides (COS) fit well into this as they offer various health benefits, such as improving digestion and supporting weight management.
Moreover, Germany is home to many research institutions and universities that research about food science and nutrition. These institutions often conduct ongoing research on COS, further exploring their benefits and uses. This research helps create new and innovative products, increasing interest and demand for COS in the nutraceutical market.
| Segment | Insect Sources (Sources) |
|---|---|
| Value Share (2024) | 22.7% |
There is an increasing curiosity in alternative protein sources as individuals are becoming more aware of the environmental problems caused by traditional animal farming. Insects are seen as a sustainable option because they require much less land, water, and food to raise compared to cows or pigs. This makes them a preferred choice for those looking to reduce their environmental impact.
In addition to being sustainable, insects are also rich in protein and other important nutrients. The chitosan derived from insects can provide health benefits similar to those from chitosan sourced from shrimp or crabs. This makes insect-based COS appealing for use in functional foods and dietary supplements, as they can help in improving health while also being environmentally friendly.
| Segment | Industrial Grade (Grade) |
|---|---|
| Value Share (2024) | 21.3% |
Chitosan oligosaccharides (COS) are gaining popularity in water treatment as they can effectively remove contaminants and improve water quality. Various industries are looking for more efficient and eco-friendly ways to manage wastewater, and COS provides a natural solution to this problem.
In agriculture, COS are also known as natural biopesticides. They help in protecting plants from pests and diseases without the harmful effects of synthetic chemicals. Which makes them appealing to farmers who practice organic and sustainable farming. By using COS, farmers can keep their crops healthy while being careful for environment, which is increasingly important to consumers.
Market players are focusing on investing in R&D to develop functional ingredients with enhanced health benefits and sensory properties. They are diversifying product portfolios to meet diverse consumer needs and forming strategic partnerships with firms, to leverage expertise and accelerate innovation.
These strategies help them stay competitive in the evolving chitosan oligosaccharides market. Further, many companies are adopting sustainable practices in sourcing and production.
For instance
This segment is further categorized into marine sources (shrimp, crab, lobster), insect sources:(beetles, other arthropods), fungal sources, and other sources (squid pen, synthetic chitin (derived from biotechnological processes)
This segment is further categorized into Food Grade, Pharmaceutical Grade, Cosmetic Grade, and Industrial Grade.
As end user, the ecosystem has been categorized into pharmaceutical companies, food and beverage manufacturers, cosmetic and personal care brands, agricultural companies, water treatment and environmental firms, and animal feed manufacturers.
This segment is further categorized into powder, liquid, gel, and granules.
Industry analysis has been carried out in key countries of North America, Latin America, Eastern Europe, Western Europe, East Asia, South Asia & Pacific, Central Asia, Balkan and Baltic Countries, Russia & Belarus and the Middle East & Africa.
The global Chitosan Oligosaccharides industry is estimated at a value of USD 3.1 billion in 2024.
Sales of Chitosan Oligosaccharides increased at 10.7% CAGR between 2019 and 2023.
ChitoLytic, Alpha Chitin, HuminRich, Dora Agri, BZ Oligo Biotech Co., Ltd, and TCI America are some of the leading players in this industry.
The North America domain is projected to hold a revenue share of 32.5% over the forecast period.
Europe holds 25.3% share of the global demand space for Chitosan Oligosaccharides.
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Chitosan Oligosaccharides Market
