Fructo-Oligosaccharides Market Outlook (2024 to 2034)

The Fructo-Oligosaccharides sales is valued at USD 2,880.9 million in 2024 and is projected to grow at a CAGR of 6.7% during the forecast period, to reach a value of USD 5,488.5 million by 2034.

An important portion of the worldwide FOS sales is accounted for by food and beverage sector. FOS is a common ingredient in many goods, including dairy goods, baked goods, drinks, candies, and dietary supplements. Consumers are increasingly looking for items that provide both nutritional value and health advantages, which is driving up demand for functional foods and beverages fortified with FOS.

Attributes Key Insights
Fructo-Oligosaccharides Market Size (2024E) USD 2,880.9 million
Fructo-Oligosaccharides Market Projected Size (2034F) USD 5,488.5 million
Value CAGR (2024 to 2034) 6.7%
Top 3 Countries Market Share 33.1%

The Global Fructo-oligosaccharides (FOS) industry has witnessed significant growth in recent years. Prebiotic dietary fiber includes a variety of foods and beverages, dietary supplements, and Fructo-oligosaccharides. These non-digestible carbohydrates promote the growth and functionality of good bacteria in the stomach, improving gut health as well as overall wellbeing.

Consumer awareness of the significance of digestive health, a growing need for functional food and beverages, and increasing interest in healthy and natural ingredients are some of the major drivers propelling the growth of the worldwide FOS sales. FOS is well known for its possible health advantages, which include enhanced immunity, less risk of contracting certain diseases, and improved digestion.

An important portion of the worldwide FOS sales is accounted for by the food and beverage sector. FOS is a common ingredient in many goods, including dairy goods, baked goods, drinks, candies, and dietary supplements. Consumers are increasingly looking for items that provide both nutritional value and health advantages, which is driving up interest in functional food and beverages fortified with FOS.

The Fructo-oligosaccharides industry is also growing outside of the food and beverage industry in areas like animal feed. FOS is being utilized more frequently in animal feed formulations to increase animal performance and support intestinal health.

Overall, it is anticipated that the industry for Fructo-oligosaccharides will continue to rise due to rising digestive health awareness, demand for dietary supplements, functional foods, and expanding FOS uses across a range of industries.

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Semi Annual Market Update

Particular Value CAGR
H1 6.9% (2023 to 2033)
H2 6.5% (2023 to 2033)
H1 6.6% (2024 to 2034)
H2 6.7% (2024 to 2034)

The above table presents the expected CAGR for the global Fructo-Oligosaccharides industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 6.9%, followed by a slightly lower growth rate of 6.5% in the second half (H2) of the same decade.

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 6.6% in the first half and remain relatively moderate at 6.7% in the second half. In the first half (H1) the industry witnessed a decrease of 30 BPS while in the second half (H2), the industry witnessed an increase of 20 BPS

Key Industry Highlights

Increasing Application of FOS in Bakery Sector

Fructo-oligosaccharides are low-calorie carbohydrates with sweetening and water retention characteristics equivalent to sorbitol and sucrose. They are ideal as sweeteners for fermented bakery products and plays an important role as direct fermented saccharides for yeast nutrition.

When compared to sucrose, the application of fructo-oligosaccharides as a humectant results in a quicker proof time in baked products. FOS are also recognized for enhancing the quality, texture, and shelf-life of baked products. Fructo-oligosaccharides are a low-cost sweetener option, making them significant addition in bread production.

Extensive Utilization of Fructo-Oligosaccharides in Functional Beverages

The increasing number of health-conscious consumers has fueled the expansion of functional beverages sector. Consumers are gradually shifting away from sugary beverages in favor of healthier options. Functional beverages are also known for having improved flavor and taste as well as nourishing qualities for satisfying health-conscious consumers.

FOS are increasingly being used as an energy source for diabetics since they may help with glycemic control due to their low glycemic index. They are used as flavor enhancers in functional beverages such as high fiber drinks, enhanced fruit drinks, RTD teas, and soy beverages that offer a sweet taste while also being low in calories. FOS offer a sweet taste in beverages similar to sucrose.

The widespread application of fructo-oligosaccharides in enhancing the flavor profile of functional beverages is expected to drive industry growth.

Rising Concerns Associated with Gut Health Fueling Demand for FOS

A growing number of people struggle with gut health issues, as shown by the high prevalence of gastrointestinal (GI) disorders in the Europe region. Changing lifestyles in developed as well as emerging economies have resulted in changes in food habits. Increasing consumption of high-sodium-content foods and evolving lifestyle trends have resulted in gut health emerging as one of the top health concerns on the global level.

Based on all these factors, people in Eastern Europe have become more concerned regarding their gut health. Consumption of prebiotics (fructo-oligosaccharides) has proven to improve gut health. Demand for FOS is growing across Russia, Poland, and the rest of the Eastern Europe countries. Yogurts fortified with fructo-oligosaccharides are among the most widely consumed products with digestive health claims in this region.

High Demand of Fructo-oligosaccharide for Diabetes Management

Diabetes is one of the most serious illnesses impacting the world today. The problem with using artificial sweeteners is that they contain fructose, which contributes to obesity. Sugar alternatives are always in high demand, given the negative consequences of artificial sweeteners and sugar. Fructo-oligosaccharides are a suitable alternative to traditional sweeteners.

It is an organic sweetener that has been used for many years as a sugar substitute. Fructo-oligosaccharides are usually mixed with other sweeteners, as they reduce calories present in sweeteners. Owing to their various health benefits, fructo-oligosaccharides are being widely used as a sugar substitute by people with diabetes.

A major cause of heart disease and diabetes is the high glycemic index of food products. Potatoes, white bread, pumpkin, rice cakes, rice macaroni, popcorn rice pasta, rice, rice macaroni, and cheese are high-glycemic-index foods.

Changes in Dietary Patterns Driven by Socioeconomic Growth

Economic growth is usually accompanied by improvements in a country's food supply and, eventually, the abolition of nutritional deficiencies. As a result, the country's overall nutritional status improves. People with higher socioeconomic status place emphasis on healthier dietary options.

Premium and special-purpose food products are more expensive than regular food products, which is why economic growth is an important factor contributing to the shift in dietary trends. Changes in lifestyles, particularly in terms of nutrition and exercise, are often associated with various factors such as education level, occupation, and income.

Fructo-oligosaccharide producers are anticipating robust demand as health-consciousness increases. The increasing number of individuals seeking sugar-free products and adhering to sugar-free diets is continuously growing, thereby bolstering the expansion of the fructo-oligosaccharides sales.

Increasing Awareness about Benefits of Fructo-Oligosaccharides

Consumers are now more conscious about the impact of their dietary choices on their health, leading to an increased demand for products that contain fructo-oligosaccharides. Food & beverage companies have responded by incorporating fructo-oligosaccharides into a numerous range of products, including energy bars, breakfast cereals, and yogurt.

This has not only provided consumers with more food options but has also helped standardize the consumption of fructo-oligosaccharides as part of a healthy diet. As the awareness about fructo-oligosaccharides continues to grow, consumers are becoming more perceptive about the quality and sourcing of products containing these ingredients.

They are looking for natural and organic options, free from artificial additives and preservatives. This has pushed manufacturers to prioritize quality in their product offerings.

Increased Utilization of Fructo-Oligosaccharides in Cosmetics

Fructo-oligosaccharides are natural prebiotic substances derived from fruits and vegetables. Fructo-oligosaccharides are now finding their way into the cosmetics industry owing to their significant properties. Cosmetics companies are incorporating fructo-oligosaccharides into their products for various reasons. One of the primary advantages of fructo-oligosaccharides in cosmetics is their ability to act as a moisturizer.

FOS molecules have a unique ability to bind water, providing deep hydration to the skin. This property helps to maintain the skin's moisture balance, preventing dryness, promoting a plum, and enhancing overall skin health. Moreover, fructo-oligosaccharides also act as humectants, attracting and retaining moisture from the environment.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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2019 to 2023 Fructo-Oligosaccharides Sales Outlook Compared to 2024 to 2034 Forecast

Fructo-Oligosaccharides demand grew at an 6.3% CAGR between 2019 and 2023. Looking ahead, the forecast for 2024 to 2034 indicates an even stronger growth trajectory, driven by several key factors.

The historical outlook for the global fructo-oligosaccharides sales reveals that the industry has been growing at a steady pace over the past few years. The future projections for the global fructo-oligosaccharides sales indicate that the industry is expected to continue growing at a similar pace over the next few years.

Fructo-oligosaccharides (FOS) are non-digestible carbohydrates that have been shown to promote gut health by selectively stimulating the growth of beneficial bacteria in the colon.

The historical outlook for the global fructo-oligosaccharides sales has been positive, with strong growth driven by rising awareness of the health benefits of FOS and their increasing use as a food ingredient. However, future projections for the industry are more uncertain, as tighter regulations on food ingredients and slowing economic growth could limit demand growth.

Market Concentration

The fructo-oligosaccharides (FOS) sales exhibits a notable concentration among key players, reflecting a structured competitive landscape where a few dominant companies hold significant shares. As of the latest data, the industry is segmented across three tiers based on industry share distribution, with Tier 1, Tier 2, and Tier 3 companies capturing 50.0%, 30.0%, and 20.0% respectively.

In terms of sales figures, Cargill Inc. emerges as the leader with a substantial 26.3% share, underscoring its strong position in the global FOS sales. Following closely is Tereos Group, holding 17.8% of the sales, while Ingredion Incorporated commands a notable 12.5% share. Baolingbao Biological Co., Ltd. and Sensus B.V. represent smaller but still significant players, with 1.5% and 1.7% industry shares, respectively.

The concentration of industry share among these key players indicates a competitive environment where larger companies leverage economies of scale, extensive distribution networks, and robust research and development capabilities to maintain their leadership positions.

These companies often have established relationships with major food and beverage manufacturers, pharmaceutical companies, and dietary supplement producers, which further solidifies their market presence.

Market concentration in the FOS industry also influences pricing dynamics and innovation trends. Larger companies typically have the resources to invest in technological advancements, product diversification, and regulatory compliance, allowing them to adapt swiftly to changing consumer preferences and sales demands. This capability to innovate and respond effectively to industry trends enhances their competitive edge and reinforces their industry share.

Moreover, the concentration of sales power among a few players may pose challenges for smaller competitors seeking to enter or expand within the FOS market. However, it also fosters opportunities for strategic partnerships, mergers, and acquisitions, which can enable smaller firms to gain access to resources and capabilities necessary for growth.

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Country-wise Insights

The following table shows the estimated growth rates of the top five geography sales. China and India are set to exhibit high Ginseng Extract consumption, recording CAGRs of 11.5% and 10.4%, respectively, through 2034.

Countries CAGR 2024 to 2034
United States 7.6%
Germany 8.6%
China 11.5%
Australia 9.1%
India 10.4%

How are the Fructo-Oligosaccharides affected in the North America?

Fructo-oligosaccharides are a type of carbohydrate that is found in a variety of fruits and vegetables. They are also added to some processed foods as a sweetener or for other purposes.

In the United States and Canada, fructo-oligosaccharides are not digested by the body and thus pass through the intestine unchanged. This can lead to bloating, gas, and diarrhoea in some people.

A small number of studies have been conducted on the effects of fructo-oligosaccharides on human health, but more research is needed. Overall, fructo-oligosaccharides appear to be safe for most people. However, those with digestive issues may want to avoid foods that contain them.

What is the various opportunity in India for a Fructo-Oligosaccharides?

In India, fructo-oligosaccharides (FOS) are considered to be an important functional food ingredient due to their unique health promoting properties. FOS have been shown to stimulate the growth of beneficial gut bacteria, which in turn leads to improved overall health.

There is a growing demand for FOS in India, as more and more people are looking for ways to improve their health. The Indian sales for FOS is expected to grow at a compound annual growth rate of 9.5% from 2018 to 2025.

There are numerous opportunities for companies that want to enter the Indian FOS industry. Due to the increasing demand for these products, there is a large potential sales for companies that can provide high-quality FOS products.

How Germany is controlling European Fructo-Oligosaccharides Market?

Germany is the largest producer of Fructo-Oligosaccharides (FOS) in Europe and has a significant share in the global industry. The country has been able to maintain its dominant position through strict quality control and efficient production processes.

FOS are commonly used as food additives and as ingredients in dietary supplements. They are also used in the pharmaceutical industry. Germany’s leading position in the European FOS sales is due to the strong demand from these industries.

The German government has put in place strict regulations on the production of FOS. These regulations have helped to ensure that only high-quality products are produced in the country. This has helped to boost the reputation of German-made FOS products globally.

Category-wise Insights

Powder Being a Convenient Solution Accounts For a Significant Share

Segment Form (Powder)
Value Share (2024) 83.1%

In 2024, powder form dominates the sales with an impressive 83.1% value share. This preference highlights its convenience in handling, storage, and incorporation across various industries. Powders offer versatility, enabling easy blending into recipes, formulations, and applications in food, beverages, and beyond.

Food & Beverage Category Accounting For Significant Shares

Segment Application (Food And Beverages)
Value Share (2024) 62.2%

The food and beverage sector commands a substantial 62.2% value share in 2024, underscoring its pivotal role in driving market demand. Powdered ingredients are integral to this sector, enhancing product stability, texture, and shelf life while meeting consumer preferences for convenience and nutritional fortification.

Competitive Landscape

Prominent market players are focusing on improvements related to yield and productivity by using different fermentation techniques and are looking for different microbial sources of FOS producing enzymes.

For holistic market growth, leading players in the FOS market are investing into Research and Development in order to widen the end use applications of FOS. In addition to it, companies are also focusing to expand their production capacities to meet the growing demand of FOS.

Leading Fructo-Oligosaccharides Brands

  • Beneo GmbH
  • Quantum Hi-Tech
  • Ingredion Incorporated
  • Sensus B.V.
  • Jarrow Formulas
  • Nutra Food Ingredients
  • New Francisco Biotechnology Corporation
  • Tata Chemicals Ltd.
  • Cosucra Groupe Warcoing SA
  • Tata Chemicals Ltd.
  • NOW Health Group, Inc.
  • Tereos Group
  • Cargill Inc.
  • Taiwan Fructose Co., Ltd.
  • Others

Key Segments of Market Report

By Form:

As per form the industry has been categorized into Powder and Liquid

By Application:

The segment is further categorized into Infant Formulation, Food and Beverages, Animal Feed, Dietary Supplements and Pharmaceuticals

By Source:

Source in further categorized into Sucrose and Inulin

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa

Frequently Asked Questions

How much worth is the Fructo-Oligosaccharides industry?

The Fructo-Oligosaccharides sales is estimated to reach sales nearly USD 2,880.9 million by 2024.

At what CAGR is the industry expected to expand through 2034?

Fructo-Oligosaccharides industry revenue is expected to increase at a CAGR of around 6.7% during the period 2024 to 2034.

How was the performance of Fructo-Oligosaccharides been over the past half-decade?

Fructo-Oligosaccharides sales increased a CAGR of around 6.3% over the past half-decade.

What will be the industry for Fructo-Oligosaccharides worth in 2034?

The global Fructo-Oligosaccharides industry value will be around USD 5,488.5 million in 2034.

Who are the key players operating in the market?

Beneo GmbH, Quantum Hi-Tech, Ingredion Incorporated, Sensus B.V. and Jarrow Formulas are expected to be the top players driving the industry growth.

Which are the top countries driving the Fructo-Oligosaccharides category demand?

Top countries driving the Fructo-Oligosaccharides demand are South Korea, China, India, Japan, and the USA.

What are the key factors affecting the Fructo-Oligosaccharides category growth?

Innovative applications, research formulations, and medicinal properties are the factors driving growth of Fructo-Oligosaccharides market.

Table of Content

1. Executive Summary

2. Industry Introduction, Including Taxonomy and Market Definition

3. Market Trends and Success Factors, Including Macro-economic Factors, Market Dynamics, and Recent Industry Developments

4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections

5. Pricing Analysis

6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034

    6.1. Form

    6.2. Application

    6.3. Source

    6.4. Region

7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Form

    7.1. Powder

    7.2. Liquid

8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application

    8.1. Infant Formulation

    8.2. Food And Beverages

    8.3. Animal Feed

    8.4. Dietary Supplements

    8.5. Pharmaceuticals

9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Source

    9.1. Sucrose

    9.2. Inulin

10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region

    10.1. North America

    10.2. Latin America

    10.3. Europe

    10.4. East Asia

    10.5. South Asia

    10.6. Oceania

    10.7. Middle East and Africa

11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

13. Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

16. Oceania Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

18. Sales Forecast 2024 to 2034 by Form, Application, and Source for 30 Countries

19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard

20. Company Profile

    20.1. Beneo GmbH

    20.2. Quantum Hi-Tech

    20.3. Ingredion Incorporated

    20.4. Sensus B.V.

    20.5. Jarrow Formulas

    20.6. Nutra Food Ingredients

    20.7. New Francisco Biotechnology Corporation

    20.8. Tata Chemicals Ltd.

    20.9. Cosucra Groupe Warcoing SA

    20.10. Tata Chemicals Ltd.

    20.11. NOW Health Group, Inc.

    20.12. Tereos Group

    20.13. Cargill Inc.

    20.14. Taiwan Fructose Co., Ltd.

    20.15. Others

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