Global Short-chain Fructooligosaccharides Market - 2023-2030

Market Overview

The global short-chain fructooligosaccharides (scFOS) market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 9.87% during the forecast period (2023-2030)

Short-chain fructooligosaccharides (scFOS) are naturally occurring prebiotics in wheat, tomatoes, asparagus, chicory, and other vegetables and fruits. It is a common ingredient in dietary supplements as it promotes the production of microbiota in the gastrointestinal tract, thereby reducing intestinal ailments. Mounting incidences of infectious diseases around the world have reinforced the importance of consuming healthy food, which has driven the demand for scFOS in recent years.

Rising consumer awareness about nutritional benefits and practical uses of short-chain fructooligosaccharides (scFOS) will likely support industry advancement. Key aspects such as the product's low calorific value aid in lowering phospholipids, triglycerides, and cholesterol levels. Moreover, ScFOS also enhances calcium and magnesium absorption in the body.

Market Dynamics: Growing short-chain fructooligosaccharides (scFOS) market with shifting trends toward natural ingredients

The market for scFOS is expected to grow owing to the rising use of functional foods, particularly from aging populations in industrialized countries, along with the increased desire for healthy foods and beverages in many parts of the world. Because of their convenience, ease of distribution and storage, and ability to combine desirable nutrients and bioactive, beverages are the most popular functional food category. Also, biodiversity is increasingly interested in functional beverages, further boosting the scFOS demand in this category.

Moreover, prominent industry players employ lucrative expansion strategies to benefit from emerging market trends, which have favorably altered the business landscape. For instance, in April 2021, Ingredion Incorporated, a leading ingredient solutions provider, announced the acquisition of KaTech, a German company specializing in stabilization and texturization solutions for the food industry.

Market Segmentation: Inulin segment has high demand in the global short-chain fructooligosaccharides (scFOS) market.

The short-chain fructooligosaccharides market size from the inulin segment exceeded USD YY million in 2021. During the forecast period, the demand for inulin will likely be fuelled by the expanding popularity of prebiotic components and rising awareness of low-fat and calorie reduction. Inulin has also been designed as a GRAS (generally recognized as safe) product by the US FDA, which is likely to have a favorable influence on the market expansion. The dairy sector is the main source of demand, as it is utilized in cheese, ice creams, and yogurt compositions. Moreover, the segment is likely to benefit from rising infant formula consumption in China and India and capacity expansion by baby food producers such as Danone and Nestle. For instance, in March 2021, Meiji Co. Ltd., a Japan-based confectionery firm, and Danone, a global food company, launched infant formula milk in tablet format under Danone's leading brand, Aptamil, in the UK. The infant formula tablets are easy to carry, hygienic, and eliminate the need to measure the supplement.

On the other hand, the dietary supplement segment held a considerable share of the global short-chain FOC market in 2021. Shifting consumer preferences, rising health awareness, a growing senior population, and the population adopting a balanced diet are all driving the market for dietary supplements. The convergence of important business trends has created new opportunities for key industry participants. One of the elements fuelling the need for dietary supplements is changing lifestyles and food habits. These factors will result in the growth of short-chain fructooligosaccharides (FOS).

Geographical Penetration: Asia Pacific the dominating region during the forecast period.

Positive outlook from nutritional supplements and dietary fibers application will drive the short-chain fructooligosaccharides market in the Asia Pacific region. Short-chain fructooligosaccharides (scFOS) supplements have been proven to improve the human body's nutrition utilization, growth, and disease resistance. Changes in dietary choices, a lack of physical activity, and a rise in sedentary lives have contributed to lifestyle diseases, including diabetes and high blood pressure. Consumers are beginning to appreciate the significance of nutritional supplements in bridging nutritional gaps as it is not possible through usual diets, increasing dietary supplement sales in the region. These factors will propel the scFOS demand in the Asia Pacific.

Competitive Landscape:

The short-chain fructooligosaccharides market is fragmented due to the large presence of domestic manufacturing companies. The major players are Beneo-Orafti, Jarrow Formulas Inc., Sensus B.V., Ingredion, Galam, Cosucra Groupe Warcoing SA and Tereos. Manufacturers are involved in capacity expansion and new product development strategies, targeting a specific application to enhance their market share. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies, along with new Source development, as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Further, market key players are also planning to strengthen their distribution relationships with firms across various regions by merging or acquiring to leverage the customer base for future Source launches.

For instance, in June 2020, Galam announced two new scFOS production plants in Israel and Spain for an investment of USD 20 million. The Israel plant would specialize in scFOS production in powder form and exports worldwide, whereas the plant in Spain will specialize in liquid scFOS production for the market.

For instance, on 18 June 2020, Beneo expanded its chicory root fiber and rice starch ingredient portfolio with two organic solutions. The latest additions, an organic waxy rice starch, Remyline O AX DR, and organic chicory root fiber, Orafti Organic, strengthen the company's position in the naturality space as consumers increasingly look for organic ingredients. According to Beneo, one in four consumers are willing to pay a premium price for organic products.

COVID-19 Impact: Positive impact on the global short-chain fructooligosaccharides (scFOS) market

Strong growth potential for the dietary supplement industry over the forecast timeframe will drive the growth of the short-chain fructooligosaccharides market. Key benefits of scFOC include mental health improvement, prebiotic impacts, and gut health improvement. The prevalence of cardiovascular disease and diabetes has enhanced the COVID-19 pandemic and consumer health consciousness, thus enhancing the demand for dietary supplements. According to the Commercial Managing Director of Beneo GmbH, following the global panic buying surrounding COVID-19, a range of issues, such as supply chain robustness, raw material production and consistency, have been brought into focus for consumers and producers alike. With the impact of COVID-19, globally, 64 percent of consumers said they are now more conscious about immune health. Even consumers who previously deemed themselves to have a good immune system are now questioning their vulnerability to disease and illness.

The global short-chain fructooligosaccharides (scFOS) market report would provide access to approximately 61 market data tables, 55 figures and 170 pages