Europe Galacto-oligosaccharide (GOS) Market Size (2025–2030)

The market was valued at USD 520 million in 2024 and is expected to reach approximately USD 850 million by 2030, growing at a CAGR of around 8.5% during the forecast period.

Galacto-oligosaccharides are prebiotic fibers derived primarily from lactose through enzymatic conversion and play a crucial role in enhancing digestive health by promoting the growth of beneficial gut bacteria. Europe remains one of the largest markets globally due to strong consumer awareness, regulatory support for health-promoting ingredients, and a robust dairy and food processing industry. The adoption of clean-label and non-GMO products has further accelerated GOS utilization across Europe. Additionally, innovations in extraction techniques and ingredient formulation have improved the stability and solubility of GOS, expanding its application in beverages, confectionery, and nutraceuticals. The market’s growth is also reinforced by strong research investments in human microbiota studies and the development of infant nutrition products with proven health claims. Overall, the European GOS market presents strong prospects, driven by evolving dietary preferences, technological advancements in dairy ingredient production, and the increasing acceptance of prebiotics in daily nutrition.

Key Market Insights

Increasing demand for prebiotic ingredients in infant formula and dietary supplements is a major growth driver.

Germany and the UK account for over 45% of the regional market share due to strong food and beverage industries.

The dairy-derived GOS segment dominates the market owing to the region’s advanced dairy processing capabilities.

The food and beverage industry remains the leading end-use sector, followed by pharmaceuticals and animal feed applications.

Consumer preference for clean-label and plant-based products is encouraging innovation in lactose-free GOS formulations.

Technological advancements in enzymatic synthesis and microbial fermentation are enhancing yield and cost efficiency.

The market is moderately consolidated, with major players focusing on R&D, partnerships, and product differentiation strategies.

Over 90% of dietitians surveyed in southern and western Europe believe in the benefits of probiotics and prebiotics, and many think fermented foods with live microbial cultures should be part of dietary guidelines. Awareness is high, but there is also a demand for better evidence and clearer guidance.

Market Drivers

Rising Demand for Prebiotics in Functional Foods and Beverages is driving the market growth

One of the major factors driving the Europe Galacto-oligosaccharide market is the increasing integration of prebiotics in functional foods and beverages. European consumers are becoming more conscious of gut health and immunity, leading to higher consumption of dietary fibers, probiotic yogurts, and prebiotic-enriched drinks. GOS plays a vital role in maintaining intestinal flora balance and supporting digestive wellness, making it a key ingredient in various food formulations. Food manufacturers across Europe are actively reformulating products to include GOS to attract health-conscious consumers. This demand is further encouraged by scientific studies highlighting the role of GOS in enhancing mineral absorption and reducing the risk of gastrointestinal disorders. The increasing popularity of fortified and health-based beverages in markets such as Germany, the UK, and France has also strengthened demand. Furthermore, the post-pandemic focus on preventive health measures has intensified consumer awareness of digestive health, making GOS a preferred prebiotic component in multiple product lines.

Growing Application in Infant Nutrition and Formula Development is driving the market growth

Infant nutrition represents one of the largest applications of GOS in Europe. The structural similarity of GOS to oligosaccharides found in human milk makes it a key prebiotic component in infant formula products. The European infant formula industry, driven by strict quality and safety standards, has increasingly adopted GOS to replicate the functional benefits of human milk. Regulatory approvals from the European Food Safety Authority (EFSA) and other health agencies have further boosted market growth. Manufacturers are introducing GOS-fortified infant nutrition products designed to improve gut microbiota composition and enhance immunity in infants. The rising birth rate in certain regions, coupled with growing awareness among parents regarding early-stage nutrition, has resulted in higher adoption of GOS-based formula products. Moreover, advancements in enzymatic production have made it possible to produce GOS that mimics the structure of human milk oligosaccharides more accurately, further expanding its application scope in the European baby food sector.

Market Challenges and Restraints

High Production Costs and Limited Raw Material Availability is restricting the market growth

Despite strong demand, the production of galacto-oligosaccharides involves complex enzymatic processes that contribute to high manufacturing costs. The reliance on lactose derived from milk creates vulnerability to fluctuations in dairy prices and raw material availability. European dairy industries face occasional disruptions due to climate conditions and supply chain inefficiencies, affecting cost structures. The enzymatic synthesis process requires precise temperature control and specific β-galactosidase enzymes, which adds to operational expenses. This cost challenge makes GOS less affordable for small-scale manufacturers and limits its adoption in cost-sensitive markets such as Eastern Europe. Furthermore, while alternative production methods using microbial fermentation are under development, large-scale commercialization remains limited due to yield inefficiencies and regulatory barriers. These factors collectively restrain the growth potential of the market, particularly in the low-cost food manufacturing sector.

Market Opportunities

The Europe Galacto-oligosaccharide market presents strong opportunities in plant-based product innovation, personalized nutrition, and functional food expansion. With the ongoing transition toward vegan and lactose-free diets, there is significant potential for the development of GOS derived from non-dairy sources using plant-based fermentation methods. Manufacturers investing in alternative enzymatic pathways could cater to a broader segment of health-conscious consumers. Furthermore, the growing interest in personalized nutrition provides an opportunity for GOS producers to collaborate with nutrigenomics companies and healthcare providers to offer customized prebiotic solutions tailored to individual gut microbiota profiles. The food and beverage industry is witnessing an expansion of GOS integration into ready-to-drink products, protein shakes, and dietary bars, aligning with the consumer demand for convenience and health. Additionally, the increasing research into the potential therapeutic roles of GOS in managing conditions like irritable bowel syndrome, obesity, and inflammatory bowel disease could open new pharmaceutical applications. The market is also expected to benefit from government support for sustainable ingredient sourcing and technological advancements in fermentation and enzyme engineering that reduce costs and improve yield efficiency. These developments position GOS as a pivotal ingredient in Europe’s evolving health and wellness ecosystem over the next decade.

EUROPE GALACTO-OLIGOSACCHARIDE (GOS) MARKET REPORT COVERAGE:

Europe Galacto-oligosaccharide (GOS) Market Segmentation

Europe Galacto-oligosaccharide (GOS) Market By Source:

Dairy-derived Galacto-oligosaccharides
Plant-based Galacto-oligosaccharides

The dairy-derived GOS segment dominates the European market due to abundant milk processing facilities and advanced enzymatic conversion technologies. Dairy sources remain the preferred choice for large-scale GOS production because of high lactose content and established supply chains across major European nations. However, with growing lactose intolerance and vegan trends, the plant-based segment is gaining traction, supported by research into sustainable fermentation techniques using legumes or sugar beets.

Europe Galacto-oligosaccharide (GOS) Market By Application:
Food & Beverages
Infant Formula
Dietary Supplements
Animal Feed

Food and beverages hold the largest share of the market, driven by increasing consumption of prebiotic yogurts, fortified drinks, and bakery items. The application of GOS in infant formula continues to rise due to its close resemblance to natural oligosaccharides in breast milk. Additionally, dietary supplements are rapidly gaining market share as consumer focus shifts toward digestive and immune system support.

Europe Galacto-oligosaccharide (GOS) Market By End Use Industry:
Food Industry
Pharmaceutical Industry
Animal Nutrition Industry

The food industry remains the dominant end-use sector owing to the widespread inclusion of GOS in functional food and beverage formulations. The pharmaceutical industry is also expanding its use of GOS in developing gut health therapies and nutritional supplements, while the animal nutrition segment utilizes GOS to improve feed efficiency and animal health, especially in livestock and poultry production.

Europe Galacto-oligosaccharide (GOS) Market Regional Segmentation

UK
Germany
France
Italy
Spain
Rest of Europe

Germany dominates the Europe Galacto-oligosaccharide market with the largest share, driven by its advanced food processing sector, strong dairy industry, and increasing investments in prebiotic R&D. The country’s regulatory framework supports the integration of health-enhancing ingredients into everyday foods, promoting GOS usage. The UK follows closely due to the rising demand for gut health supplements and functional beverages. France and Italy also represent strong markets with growing infant nutrition industries. Spain and the Rest of Europe regions are witnessing steady adoption, primarily supported by growing awareness of digestive health and the entry of global prebiotic brands expanding their distribution networks across these countries.

Europe Galacto-oligosaccharide (GOS) Market COVID-19 Impact Analysis

The COVID-19 pandemic had a mixed impact on the Europe Galacto-oligosaccharide market. While supply chain disruptions initially slowed production and distribution, the pandemic accelerated consumer awareness regarding immune health and gut wellness. This shift drove a substantial increase in demand for prebiotic ingredients in dietary supplements, functional beverages, and health foods. Manufacturers experienced a surge in sales of GOS-fortified products as consumers sought preventive nutritional solutions to strengthen their immune systems. However, restrictions on logistics and labor availability temporarily affected dairy and enzyme processing operations. The post-pandemic period has seen rapid recovery, with companies investing in digital supply chain management and regional production facilities to reduce import dependency. Moreover, ongoing research linking gut microbiota health to immune response during COVID-19 has strengthened the role of GOS in preventive healthcare. The European market is now experiencing a long-term boost as consumers continue to prioritize gut health and overall well-being, marking the pandemic as a turning point that reshaped the demand landscape for prebiotic ingredients like galacto-oligosaccharides.

Latest Trends/Developments

The Europe Galacto-oligosaccharide market is undergoing notable transformation with innovations in production technologies, sustainability initiatives, and product diversification. Manufacturers are increasingly adopting enzymatic bioprocessing and microbial fermentation techniques that enhance yield while reducing waste. There is growing interest in producing plant-based and lactose-free GOS to align with vegan and allergen-free product trends. Food and beverage brands are incorporating GOS into functional dairy alternatives, ready-to-drink nutrition products, and plant-based yogurts. Personalized nutrition is another emerging trend, with GOS formulations being customized for specific microbiome needs. Moreover, partnerships between ingredient manufacturers and biotechnology firms are expanding, focusing on new applications of GOS in pharmaceuticals and medical nutrition. Sustainability remains a central focus, with producers exploring renewable raw materials and eco-efficient production systems to meet Europe’s green transition goals. The integration of digital traceability and transparent labeling is also gaining traction, enabling consumers to make informed health choices. Collectively, these trends indicate a dynamic phase of innovation, positioning GOS as a central ingredient in Europe’s evolving health, nutrition, and sustainability-driven food ecosystem.

Key Players

1. FrieslandCampina Ingredients
2. Yakult Honsha Co. Ltd.
3. Nissin Sugar Co. Ltd.
4. Clasado Biosciences Ltd.
5. Kerry Group plc
6. Ingredion Incorporated
7. Carbosynth Ltd.
8. Royal DSM
9. Nexira SAS
10. Tata Chemicals Europe

Market News

1. On October 23, 2024, Clasado Biosciences launched Bimuno® Pet, entering the pet nutrition market in the UK with its human health prebiotic ingredient now branded for pet food formulators.
2. On May 19, 2025, BENEO and WACKER announced a global partnership to launch the human-milk oligosaccharide (HMO) 2’-Fucosyllactose (2’-FL), with production in Europe and the product becoming available to the European market in the following weeks.
3. In 2022-08 (August 24, 2022), FrieslandCampina launched its Biotis GOS-OP High Purity prebiotic ingredient in the Asia-Pacific region, aiming to fill market gaps and support supplement innovation with higher purity GOS (> 90%) content.
4. On a date in 2025 (April 30, 2025), FrieslandCampina Ingredients unveiled novel product concepts at Vitafoods Europe, including GOS-enriched gummies for children’s health.