Global Alpha-Glucan Oligosaccharide Market - 2024-2031

Overview

Global Alpha-Glucan Oligosaccharide Market reached US$ 80.12 million in 2023 and is expected to reach US$ 157.32 million by 2031, growing with a CAGR of 8.8% during the forecast period 2024-2031.

The market for alpha-glucan oligosaccharides (AGO) has grown steadily in recent years due to growing consumer demand for functional food and beverage products as well as increased awareness of the significance of gut health. AGO is well known for its prebiotic qualities, which encourage the growth of healthy gut bacteria and enhance digestive health. It is obtained from sources like tapioca, corn, or wheat.

Manufacturers are adding AGO to a variety of food and beverage compositions as consumers look for items that provide health advantages beyond basic nutrition. This tendency is especially noticeable in markets for dairy products, baked goods, drinks, and dietary supplements, where AGO is used as a useful ingredient to improve the nutritional profile and draw in health-conscious customers.

The food and beverage segment in the alpha-glucan oligosaccharide market accounts for over one-third of the market share. Similarly, North America dominates the alpha-glucan oligosaccharide market, capturing the largest market share of over 1/3rd. Products fortified with AGO, such as yogurt, cereal bars, and beverages, are gaining traction due to their perceived health benefits, contributing to the overall demand for AGO in the region.

Dynamics

Increasing Consumer Awareness of Gut Health

Consumer interest in goods that promote digestive health is on the rise based on the number of surveys. For instance, a poll by the International Food Information Council (IFIC) Foundation revealed that while choosing foods and beverages, 70% of American consumers took the benefits of their digestive health into account. The probiotic and prebiotic product industries have grown significantly in the last several years, which suggests that consumers are becoming more interested in keeping their gut microbiome in good condition.

Prebiotics such as AGO provide nourishment to the good bacteria that probiotics bring to the gut, encouraging their growth and activity. Health-conscious customers are increasingly drawn to functional foods and beverages, which provide extra health advantages beyond basic nutrition. Ingredients like AGO are frequently used in these products to provide targeted health benefits including better digestion or stronger immune system performance.

Health organizations, nutritionists, and food manufacturers are actively engaged in educational initiatives aimed at raising awareness about the importance of gut health and the role of prebiotic ingredients like AGO. Events like Gut Health Month and educational campaigns conducted by food companies serve to inform consumers about the benefits of incorporating prebiotics into their diets. By empowering consumers with knowledge, these initiatives drive demand for products that support digestive health.

Expansion of the Prebiotic Ingredients

The trend toward functional foods and beverages has gained momentum as consumers seek out products that offer added health benefits. Prebiotic ingredients like inulin, oligosaccharides, and resistant starches are commonly incorporated into functional food and beverage formulations to enhance their nutritional profile. These products appeal to health-conscious consumers looking to address specific health concerns, such as digestive health and immune support.

Food and beverage manufacturers are increasingly recognizing the potential of prebiotic ingredients to differentiate their products in the market. As a result, there has been a proliferation of prebiotic-fortified products across various categories, including dairy, bakery, cereal, snacks, and beverages. This expansion of product offerings has contributed to the overall growth of the prebiotic ingredients market.

According to NutritionOutlook data, the prebiotics market is expanding both within and beyond digestive health. Researchers are uncovering new routes by which prebiotics can act on both the gut and the brain, creating new opportunities for prebiotic products that target different pathways. Product formulators are starting to view prebiotics as an ingredient category in its own right rather than an extension of the probiotics category. This, in turn, is spurring interest in some exciting applications.

High Cost of Production and Processing

Enzymatic hydrolysis of starch or polysaccharides is one of the complex processes commonly involved in the formation of alpha-glucan oligosaccharides. Precise control over parameters like temperature, pH, and reaction time, along with specialized equipment and staff, are necessary for these operations. Because of this, compared to other constituents, the production costs of AGO can be somewhat high.

However, to provide an approximate estimate, production costs for AGO could range from $3 to $5 per kilogram. Price changes driven by weather, crop harvests, and market demand might affect the major raw materials used in the production of AGO, such as starch derived from tapioca, corn, or wheat. AGO is vulnerable to volatility in commodity markets since changes in the pricing of raw materials have a direct effect on the company's overall cost of production.

Segment Analysis

The global alpha-glucan oligosaccharide market is segmented based on origin, form, application, distribution channel and region.

The Surging Demand for Functional Ingredients in the Global Market

Well-known for their prebiotic qualities, alpha-glucan oligosaccharides provide good bacteria in the gut with nourishment, therefore supporting intestinal health. The market for food and beverage items fortified with prebiotics like AGO is expanding as consumer knowledge of gut health grows.

Foods that have extra health advantages beyond just sustenance are in higher demand and are collectively referred to as functional foods. Products with targeted health benefits-like better digestion or immunological support-are in high demand from consumers. Manufacturers aiming to improve the nutritional profile of their products find AGO to be a desirable addition due to its prebiotic qualities.

In January 2023, Cocos Organic announced the launch of a series of new products, including the UK's first organic coconut milk yogurt tubes and a brand-new light organic natural yogurt. Further, the company claims that organic coconut milk yogurt tubes are dairy-free, gluten-free, and free from nuts and refined sugar, but include an amount of ago and designed for kids over six months old. While their Cocos organic range is claimed to be organic, all-natural, made from whole ingredients, and free from dairy, gluten, and soya.

Geographical Penetration

Increasing Trend of Digestive Health in North America

There has been a growing movement in North America toward better lives and a greater understanding of the significance of gut health. Alpha-glucan oligosaccharides are one of the functional ingredients that consumers are actively looking for in products because of their prebiotic qualities, which promote digestive health and general well-being.

According to a medical agency report in 2023, digestive diseases are a serious health problem in the United States, affecting 73% of adults ages 18-44 at least a few times a month. The digestive tract, or gastrointestinal (GI) tract, is made up of the following organs - esophagus, stomach, large and small intestines, liver, pancreas, and gallbladder. Therefore, the demand of the market is increasing because of the digestive health awareness.

Consumer tastes are shifting in favor of natural and clean-label products, especially in the food and beverage sector. These preferences are well-matched by alpha-glucan oligosaccharides, which are sourced from natural sources such as plants and are therefore used in a variety of food and beverage compositions.

COVID-19 Impact Analysis

The global market for alpha-glucan oligosaccharides has been impacted by the COVID-19 epidemic in many ways. Alpha-glucan oligosaccharide synthesis and distribution were initially hampered by supply chain interruptions and manufacturing activity constraints at the start of the epidemic. Lockdown measures taken by several nations to stop the virus's spread caused manpower scarcity and logistical snags, which made the supply chain disruptions much worse.

Furthermore, the pandemic-induced economic downturn resulted in lower consumer expenditure on non-essential products, such as functional foods and dietary supplements that contain alpha-glucan oligosaccharides. However, the pandemic's heightened emphasis on well-being and health led to a rise in consumer demand for goods that support gut microbiome balance and immunological health, which in turn raised the need for alpha-glucan oligosaccharides.

Russia-Ukraine War Impact Analysis

Significant geopolitical tensions brought about by the Russia-Ukraine war had several effects on the worldwide alpha-glucan oligosaccharide industry. First, the conflict may cause delays in the transit of raw materials and completed goods, which would impact the supply chain of alpha-glucan oligosaccharides by interfering with trade routes and logistical activities. Price and availability swings could also be caused by instability in important areas that are involved in the production and export of agricultural commodities, which are the main sources of alpha-glucan oligosaccharides.

Furthermore, investor and consumer confidence may be undermined by geopolitical concerns, which could result in a cautious approach to spending on non-essential products, including functional ingredients like alpha-glucan oligosaccharides. However, given the geopolitical unpredictability, there may be a renewed focus on homegrown production, which will increase demand in the future.

By Origin

• Plant-Based
• Microbial
• Synthetic

By Form

• Powder
• Liquid
• Granular
• Others

By Application

• Food and Beverage
• Pharmaceuticals
• Cosmetics & Personal Care
• Industrial
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Online Retail
• Specialty Stores
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In July 2023, the Boots Company PLC, launched a premium skincare line without premium prices with the ingredients mentioned are Water (Aqua/Eau), Glycolic Acid, Propanediol, Hydrogenated Castor Oil, PEG-40 Hydrogenated Castor Oil, Betaine, Glycerin, Sodium Hydroxide, Polyquaternium-10, Phenoxyethanol, Benzyl Alcohol, Alpha-Glucan Oligosaccharide, Citronellyl Methylcrotonate, Panthenol, Sodium Benzoate, Tetraselmis Suecica Extract, Lactic Acid, Potassium Benzoate.
• In April 2023, Swiss skincare brand Verdilab made its travel retail debut at TFWA Asia Pacific (7-11 May). The brand introduced its range of skincare solutions, which include 14 products divided into five dermo protocols: natural cleansing, skin hydration and cellular pollution protection, glowing skin activation, anti-aging care and radiant complexion, and skin perfection with their main ingredient as alpha-glucan oligosaccharide.

Competitive Landscape

The major global players in the market include ADM, Clasado Biosciences, Yakult Danone Pvt. Ltd., Beneo GmbH, Nexira, Kowa Europe GmbH, Tereos, New Francisco Biotechnology Corporation,Quantum Hi-Tech (China) Biological Co., Ltd. and SpecialChem.

Why Purchase the Report?

• To visualize the global alpha-glucan oligosaccharide market segmentation based on origin, form, application, distribution channel, and region as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of alpha-glucan oligosaccharide market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global alpha-glucan oligosaccharide market report would provide approximately 70 tables, 66 figures, and 209 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies