Fructooligosaccharides (FOS) Market by Source (Sucrose and Chicory), Form (Liquid and Powder), Application (Infant Formulation, Food & Beverages, Dietary Supplements, and Pet/Animal Feed), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Fructooligosaccharides (FOS) Overview

Fructooligosaccharides (FOS) are prebiotic fibers naturally found in specific fruits and vegetables. These unique compounds consist of fructose molecules linked with a glucose molecule. In spite of the fact that the human body cannot process them, they are crucial in feeding useful microbes within the gastrointestinal tract. FOS has gained popularity due to its prebiotic properties, which contribute to healthy intestine flora and support proper digestion. Moreover, FOS has been related to potential benefits such as increased absorption of fundamental minerals like calcium and magnesium, the promotion of anti-inflammatory short-chain fatty acids, immune system support, and assistance with weight management by promoting feelings of fullness.

Global Fructooligosaccharides (FOS) Market Analysis

The global fructooligosaccharides (FOS) market size was $2.61 billion in 2022 and is predicted to grow with a CAGR of 8.6%, by generating a revenue of $5.65 billion by 2032.

COVID-19 Impact on Global Fructooligosaccharides (FOS) Market

The COVID-19 pandemic had a mixed impact on the fructooligosaccharides (FOS) market. There was a positive effect as the focus on health & wellness increased during the pandemic. Consumers became more interested in functional foods and ingredients that supported their immune systems, leading to a higher demand for FOS. In addition, with more people cooking at home and paying attention to their nutrition, the demand for FOS as an ingredient to enhance the nutritional value of homemade meals and beverages also increased.

However, the FOS market faced challenges due to the disruptions in supply chains caused by lockdown measures and reduced manufacturing capacities. These disruptions led to potential shortages and price fluctuations in FOS products. Moreover, the economic downturn resulting from the pandemic, including job losses and reduced purchasing power, impacted consumer behavior. Some individuals may have cut back on discretionary spending, including dietary supplements and specialty food products containing FOS, which affected the demand for such products.

Growing Awareness About Health & Wellness to Drive the Market Growth

One of the significant factors driving the growth of the market is the rising awareness about health & wellness among consumers. As people become more conscious regarding the importance of a healthy slim down and lifestyle, they actively seek more nutritious alternatives to sugar and manufactured sweeteners. Fructooligosaccharides, with their natural composition and low-calorie content, are gaining popularity as a healthier option. The rising demand for functional foods is crucial in driving the FOS market expansion. Consumers are increasingly interested in foods that provide additional health benefits beyond essential nutrition. FOS, a prebiotic fiber, is widely used in the food & beverage industry to improve human intestine health and enhance the nutritional profile of products. Moreover, digestive disorders, such as bad-tempered bowel disorders and stoppage, are rising. FOS has shown promising effects in alleviating these issues by promoting healthy gut bacteria growth. This, in turn, contributes to the growing demand for FOS as a dietary supplement.

Limited Consumer Awareness to Restrain the Market Growth  

The fructooligosaccharides market is still relatively niche, and many consumers are not aware of its benefits and uses. Low consumer awareness could slow down demand for FOS products. Furthermore, fructooligosaccharides are expensive compared to other sweeteners and dietary fibers, which hinders their uptake, especially among price-sensitive consumers and manufacturers. Also, the availability of alternative products, such as artificial sweeteners and other prebiotic fibers, may compete with FOS and limit the market growth. In addition, regulatory challenges related to using fructooligosaccharides in food & beverages are expected to hinder market expansion. Limited production capacity, raw material sourcing challenges, and health and safety concerns are factors projected to hamper the FOS market growth.

Increasing Demand in the Pharmaceutical Industry to Drive Excellent Opportunities

FOS is also finding applications in the pharmaceutical industry. It can be used as an ingredient in nutritional supplements and medicines targeting digestive health and immune system support. The demand for FOS in the pharmaceutical sector is likely to grow as this industry continues to focus on preventive healthcare & wellness products. In addition, the demand for functional food ingredients is increasing, raising awareness of the health benefits of FOS consumption. As health awareness grows, consumers demand healthier food options, leading to an increase in demand for functional ingredients like FOS. Its prebiotic properties, which improve digestive health by promoting the growth of beneficial intestinal bacteria, make FOS an attractive option for incorporating into various food & beverage products. In addition, the expansion of the functional food market creates opportunities for FOS as an ingredient in fortified products.

Global Fructooligosaccharides (FOS) Market Share, by Source, 2022

The chicory sub-segment accounted for the highest market share in 2022. Chicory has emerged as a dominant force in the fructooligosaccharides (FOS) market, primarily due to its abundance and availability as a rich source of inulin. Extracted from chicory roots, inulin is a raw material for FOS production. This natural appeal aligns with the growing consumer demand for clean-label ingredients. Moreover, chicory-derived FOS offers various functional benefits, acting as a prebiotic that supports gut health and digestion. Its versatility and compatibility with different food applications have also contributed to its popularity among manufacturers. Extensive research and scientific support have further solidified the credibility and consumer confidence in chicory-derived FOS.

Global Fructooligosaccharides (FOS) Market Share, by Form, 2022

The liquid sub-segment accounted for the highest market share in 2022. The ease of incorporating liquid FOS into food & beverage products is the major factor driving the segment growth. Unlike solid forms, liquid FOS can be seamlessly mixed into liquids without altering the texture or appearance of the final product. In addition, liquid FOS offers a more uniform distribution throughout the product, ensuring consistent levels of FOS in each serving. This characteristic is essential in beverages and liquid nutritional supplements where even distribution is crucial. Moreover, the versatility of liquid FOS allows it to be easily blended with other liquid ingredients, offering flexibility in product formulation. Liquid FOS also exhibits enhanced stability, less prone to clumping or caking compared to powders or solids. Liquid FOS products, such as syrups or concentrates, provide convenience to consumers as they can be easily incorporated into beverages or used as sweeteners in cooking.

Global Fructooligosaccharides (FOS) Market Share, by Application, 2022

The infant formulation sub-segment accounted for the highest market share in 2022. The growing awareness among parents and caregivers of the importance of early breastfeeding and the role of prebiotics such as her FOS in promoting infant health is driving the segment growth. This increased awareness has increased the demand for infant formula containing FOS. Scientific research has also provided evidence of FOS benefits in infant nutrition, specifically supporting gut health, immune function and general well-being. These positive findings have further increased the demand for infant formula containing FOS. In addition, infant formula manufacturers have identified FOS as a desirable ingredient to emphasize its similarities to the prebiotics found in breast milk, and to appeal to parents looking for a nutritionally complete alternative to breastfeeding has been actively promoted.

Global Fructooligosaccharides (FOS) Market by Region, 2022

The Europe fructooligosaccharides (FOS) market generated the highest revenue in 2022. European countries have been at the forefront of technological advancements in FOS production, developing high-quality products. Europe benefits from a strong agricultural sector that provides a steady supply of raw materials required for FOS production, ensuring cost-effectiveness. Europe's stringent food safety regulations and standards also instill consumer confidence and facilitate market growth. The region has also witnessed a growing awareness of the health benefits of FOS, driving its consumption in various food & beverage applications. Furthermore, Europe's well-established distribution network enables efficient supply across the region and beyond. Collaborations between academia, research institutions, and the industry foster innovation and knowledge exchange, further strengthening Europe's market position.

Competitive Scenario in the Global Fructooligosaccharides (FOS) Market

Investment and agreement are common strategies followed by major market players. Some of the leading fructooligosaccharides (FOS) market players are Beneo, COSUCRA, Sensus, Galam, Ingredion, Meiji Holdings Co., Ltd., Tata Chemicals, Baolingbao Biological Co., Ltd., SAMYANG CORPORATION, and Shandong Bailong Chuangyuan Bio-tech Co., Ltd.

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