The global xylooligosaccharide market is projected to expand with a CAGR of 7% and reach a valuation of USD 144.5 million by 2033. Sales in the market are expected to be worth USD 74 million in 2023. Owing to the consumer demand for natural ingredients in animal feed.
Since xylooligosaccharides have been associated with several positive health effects, such as better gastrointestinal health and reduced flatulence, consumer demand is likely to rise.
These dietary fibers help the digestion of a range of livestock, including chickens, cattle, horses, and pigs. Due to this, Future Market Insights (FMI) forecasts that the market shows a projected Y-o-Y growth of 3.9% in 2023.
The research and development efforts of food & beverage manufacturing corporations contribute highly to the market. They are heavily focused on enhancing the nutritional and multifunctional profiles of food products, which have considerable health advantages.
Also, in select regions, including North America and Europe, top manufacturing brands have contributed to increasing consumer knowledge of its prebiotic health benefits.
| Attributes | Details |
|---|---|
| Xylooligosaccharide Market CAGR (2023 to 2033) | 7% |
| Xylooligosaccharide Market Size (2023) | USD 74 million |
| Xylooligosaccharide Market Size (2033) | USD 144.5 million |
| Expected Y-o-Y Growth (between 2032 and 2033) | 1.03x |
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Demand in the market was expanding at 2.7% CAGR between 2018 and 2022, a huge downfall from a 12.3% CAGR from 2016 to 2021. Despite this downfall, the market is set to develop at a quicker rate. This is due to the increasing demand for natural ingredients in animal feed, along with the expansion of the livestock sector and packaged food.
| Year | Market Size |
|---|---|
| 2018 | USD 64 million |
| 2022 | USD 71.2 million |
| 2028 | USD 90.5 million |
| 2030 | USD 110.9 million |
| 2032 | USD 139.45 million |
Demand for xylooligosaccharides is expected to be driven by local sourcing and the development of downstream sales channels. Manufacturers of animal feed are preferring locally sourced ingredients instead of bulk ingredients available through global supply chains.
Similarly, feed additive makers are choosing local sources, and prioritizing nation and region-specific raw material sourcing. Most animal feed manufacturing companies are developing local distribution networks to protect their businesses from external forces and trade regulations.
This is creating growth opportunities for new entrants in the global xylooligosaccharide market. Additionally, increasing usage of compound feed, a combination of raw ingredients and additives, is expected to drive sales in the market. With an expected CAGR of 7% between 2023 and 2033.
Governments and various animal welfare organizations across the globe are launching several campaigns. To spread awareness regarding various diseases affecting companion animals. This helps owners to avoid animal-related diseases. This is expected to continue driving xylooligosaccharide sales in the market over the forecast period.
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Many regulatory agencies have strict rules governing the creation and sale of xylooligosaccharides. By making it more difficult for manufacturers to comply with them, these restrictions hamper the expansion of the market.
Consumers currently lack a general understanding of the advantages of xylooligosaccharides, which limit global demand. This results in a lack of investment in the market.
Multiple prebiotic products on the market, such as inulin and fructooligosaccharides, compete fiercely with xylooligosaccharides. This prevents consumers from using it since they can prefer other prebiotic products. This results in reducing the profit margins of xylooligosaccharide manufacturers.
| Country | Market Share (2022) |
|---|---|
| United States | 34% |
| Germany | 13% |
| Japan | 1.5% |
| Australia | 1.2% |
The United States is expected to account for a lion’s share in the North America xylooligosaccharide business over the assessment period. Increasing demand for various animal-derived products is boosting sales in the market.
Interestingly, the growing focus on the quality of ingredients used in animal feed is spurring demand for effective probiotics. Also, naturally sourced ingredients in the country result in high demand for xylooligosaccharides.
| Applications | Development |
|---|---|
| Cosmetics | As they are hydrating and anti-aging, xylooligosaccharides are frequently used in cosmetic and personal care products. Xylooligosaccharides are being developed as a primary ingredient in products like face creams and lotions. |
| Supplements | Producers are creating xylooligosaccharide supplements that can be consumed as powder or capsules. The purpose of these supplements is to maintain gut health and enhance digestion. |
| Combine Products | To create products that offer a wider range of health advantages, producers are combining xylooligosaccharides with other prebiotic components like inulin or fructooligosaccharides. |
China is expected to emerge as a lucrative pocket in the East Asia xylooligosaccharide sector, with a CAGR of 8.9% by 2033. This is owing to the presence of massive livestock and agriculture sectors. Growing demand for naturally sourced ingredients in the country is expected to augment the growth in the China market over the forecast period.
Xylooligosaccharides are a potential source of probiotics that improve the gut health of livestock animals. The high incidence of diseases in livestock animals in the country is expected to drive sales in the market over the assessment period, opines FMI.
Asian nations have a long history of using products made from plants for therapeutic and curative purposes. The demand for xylooligosaccharide as a dietary fiber and prebiotics application in functional foods across the region is projected to expand. This is due to the rising burden of chronic diseases, awareness of health wellness, and avoidance of lifestyle disorders.
In India, Xylooligosaccharides have attracted a lot of attention as prebiotics in recent years. This is a result of its numerous positive effects, particularly in preventing gastrointestinal problems. Its mild sweetness, stability over a wide range of pH and temperatures, and organoleptic qualities that make them acceptable for inclusion in foods also have an impact on demand.
These resources are inexpensive and in great supply in India. Due to the rising need for xylooligosaccharide as a rapidly expanding functional dietary additive. Moreover, inexpensive agricultural residues are also being taken into consideration and have been thoroughly examined. All these factors result in an expected CAGR of 10.8% by 2033.
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Based on form, sales in the dry form segment are projected to increase at a considerable pace over the forecast period. It dominated the market with a 69% share in 2022. Growth can be attributed to the increasing incorporation of natural ingredients in animal feed to improve the quality of these products.
Dry xylooligosaccharides are easy to incorporate into animal feed and other products. Being a source of probiotics, it is emerging as one of the key ingredients in animal feed to improve the gut health of animals. This in turn is fueling the adoption in the market.
In terms of product type, livestock segments lead the market with a share of 38% in 2022 and are projected to remain high over the forecast period. Expansion of the agriculture, animal husbandry, packaged food, dairy, and meat industries is expected to provide impetus to sales over the assessment period.
The xylooligosaccharide sector for livestock is anticipated to increase as a result of the rising demand for natural and sustainable feed additives. This is because it is a readily available and reasonably priced product made from agricultural residues.
The main growth tactics employed by market companies to increase sales are mergers, acquisitions, expansions, partnerships, and new product development. Also, to obtain a competitive advantage, players are investing in smart marketing and advertising solutions. To increase consumer awareness of their brands.
To satisfy growing consumer demand, producers are developing and introducing new types of xylooligosaccharide products. To enhance their position in the worldwide market, key companies are concentrating on implementing a variety of inorganic growth methods. A producer has a competitive edge by maintaining low production costs, which enables them to sell their goods for less than rivals do.
Recent Development:
The xylooligosaccharide market is anticipated to be worth USD 74 million in 2023.
The demand rate of xylooligosaccharide is 7% CAGR.
Increasing emphasis on the animal feed quality and increasing efforts by animal welfare organizations are fueling the market growth.
Strict regulatory laws and low product awareness are impinging upon the market growth.
The market competitors for xylooligosaccharide are HBTX, HFsugar, and Longlive.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form 5.1. Liquid 5.2. Dry 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Nutraceuticals & Pharmaceuticals 6.2. Food & Beverages 6.3. Animal Feed 6.4. Other Applications 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Anhui Elite Industrial Co., Ltd 15.2. YIBIN YATAI 15.3. Dongguan ALL Natural Plant Extracts Co. 15.4. Kangwei 15.5. HBTX 15.6. HFsugar 15.7. Longlive 15.8. YuHua 15.9. Shandong Bailong Chuangyuan Bio-tech Co., Ltd 15.10. VW-Ingredients 16. Assumptions & Acronyms Used 17. Research Methodology
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Xylooligosaccharide Market
