A recent market study published by Fact.MR states that the galacto oligosaccharide market is likely to grow at a booming 9.3% value CAGR during the forecast period 2018-2028. The study predicts that galacto oligosaccharide revenues will double over the next decade, despite challenges posed by stringent regulations on the use of prebiotics as a functional ingredient and other labeling regulations. The Fact.MR study offers analysis on wide-ranging macro and microeconomic factors influencing the galacto oligosaccharide market.
Growing demand for label-friendly and natural dietary fibers, such as galacto oligosaccharides, continues to create numerous opportunities for stakeholders despite the ambiguity of using prebiotic ingredients in food products. Galacto oligosaccharides exhibit nearly similar composition to human milk, which in turn is propelling its adoption in infant formula. As galacto oligosaccharide can offer benefits of both fibers and prebiotics, it is likely to gain popularity among consumers.
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The U.S. Food and Drug Administration (FDA) recently approved galacto oligosaccharides to be considered a dietary fiber, which is likely to contribute enormously to the unprecedented growth of the galacto oligosaccharides market. Leading manufacturers of galacto oligosaccharides are leveraging a massive rise in the number of health-conscious consumers and making it a priority to respond quickly to the recent market developments.
Food and beverage continues to remain the largest end-use application of galacto oligosaccharides, as consumers are becoming highly aware of the health benefits of consuming dietary fibers such as galacto oligosaccharides. Despite the challenges associated with adding fibers to beverages, recent developments in nutritional beverages is coaxing manufacturers to introduce galacto oligosaccharides in liquid form. Eventually, the demand for liquid galacto oligosaccharides is expected to remain higher than that its powder counterpart.
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Anticipating the rise in demand for special nutrition and sports drinks, Vitalus Nutrition Inc., a Canadian supplier of nutri-functional proteins, introduced VITAGOS™ – a highly-soluble galacto oligosaccharide syrup. To cater to increasing needs for gluten-free and vegan-friendly nutrition drinks, a majority of manufacturers are introducing galacto oligosaccharides in liquid form, which is likely to remain a popular trend in the foreseeable future.
“Prominent consumer trends in the food & beverage industry are providing a multitude of opportunities for stakeholders in the galacto oligosaccharide market. Investing in R&D to stay ahead changing consumer needs and emerging trends in the F&B space will prove to be an underlying strength for manufacturers in galacto oligosaccharide market, in the upcoming years. Investing in advanced tools to establish a stronger connect with consumers can enable market players to offer better products and stand out in the highly-competitive galacto oligosaccharide market. Thereby, apart from gaining certifications and approvals from governing bodies, staying highly adoptive to the constantly-changing consumer trends is expected to remain the most popular trend in the galacto oligosaccharide market,” says a lead analyst at Fact.MR.
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Capitalizing on innovations with the help of a knowledge base on consumer needs is becoming a popular strategy among manufacturers in the galacto oligosaccharide market. Ingredion Incorporated – a U.S.-based ingredient provider – announced that product innovations based on consumer needs remains a strong pillar for the company’s growth, helping it “win” a stronger position in the galacto oligosaccharide market.
Kerry Group – another influential manufacturer in the galacto oligosaccharide market – is reaping the benefits of investing heavily in the Asian galacto oligosaccharide market. In 2017, Kerry invested over €500 million by acquiring seven ingredient manufacturers including two Chinese companies. In order to ensure steady and long-term growth in the galacto oligosaccharide market, the company is adopting a five-year growth strategy which involves an acquisition spree in the developing markets in Asia.