Xylo-oligosaccharide (XOS) is a low degree sugar polymer considered as potential non-digestible sugar and known for its characteristic dietary fibers. Xylo-oligosaccharides were in use since ancient time but it were not popular compared to other carbohydrates such as sugar and edible polymer. Xylo-oligosaccharides are naturally found in fruits, vegetables, bamboo shoots, milk, honey and others. Utility of xylo-oligosaccharides are not only limited for its neutraceuticals properties but it is also widely used in food and beverages industry and as a source of animal feed.
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Xylo-oligosaccharides have economic benefits as it can be produced from agricultural waste. The waste generated from agro industries mainly consists of plant biomass that can be converted into non-digestible sugars. XOS have great potential as a prebiotic, which helps in reduction of LDL cholesterol, maintaining intestinal pH value, and improves immunological systems.
Xylo-oligosaccharide has wide applications in neutraceuticals & pharmaceuticals and food & beverages industry. In food & beverages industry, XOS is used as an additive in soy milk, soft drinks, jams, honey, tea, cocoa drinks, and dairy products (such as milk and yoghurt) to formulate healthy food. XOS has prebiotic potential and its exceptional health benefits include enhancing absorption of calcium, reduces risk of colon cancer, improvement in bowel function, and act as an antioxidant. These health benefits will drive growth of the global xylo-oligosaccharides market.
Popularity and increasing consumption of prebiotics is projected to boost demand for xylo-oligosaccharide in the forecast period. According to U.S. Department of Health & Human Services, the consumption of prebiotics and probiotics by adults in the U.S. has increased by four times during 2012 – 2007.
However, production of xylo-oligosaccharides requires large amount of investment and costly & specialized equipment. Moreover, production of xylo-oligosaccharides generates unwanted products such as furfural and hydroxymethyl furfural in the mixture of XOS which can cause skin allergy, such disadvantages may restraint growth of the xylo-oligosaccharides market.
Among applications, neutraceuticals & pharmaceuticals segment accounted for the highest market share in the global xylo-oligosaccharides market in 2017. This is due to various advantages of XOS such as water binding capacity, sweetening ability, and fat replacement value. Moreover, xylo-oligosaccharides have a host of health benefits such as it act as an anti-allergic, antioxidant, and anti-inflammatory. Such advantages will attract more pharmaceuticals & neutraceuticals companies to adopt xylo-oligosaccharides as a non-digestible sugar in their products.
North America held the highest market share in the global xylo-oligosaccharides market in 2017 and is projected to remain the dominant region during the forecast period. This is due to rising health awareness among consumers. According to U.S. Department of Health & Human Services, 3.9 million adult population consumed prebiotic or probiotic products in 2016.
Asia Pacific is projected to be the fastest growing region in the market over the forecast period, owing to increasing number of pharmaceutical industries and rising incidence of diabetes in the region. For instance, according to Indian Brand Equity Foundation (IBEF), pharmaceutical industry is the third-largest industry in India in terms of volume and accounted for around 20% of the global pharmaceutical industries in 2017. Asia is home to most diabetic patients in the world. In 2017, according to International Diabetes Federation, diabetic population of India and China accounted for 8.8% and 10.9% of the total adult’s diabetic population of the respective countries.
Key Players in Global Xylo-oligosaccharides market
Key players operating in the global xylo-oligosaccharides market include Fengyuan Zhongke, Hebi Taixin, Hengfeng Sugar, Huaian Baimai Keyu, Kanwei Biologic, Longlive, Suntory,Suzhou Xiankuo, and Yatai.
Manufacturers are innovating and launching new types of xylo-oligosaccharide products in order to meet rising demand from consumers. For instance, in March 2018, Wonder Drink Company launched Prebiotic Kombucha, an innovated drink that adds prebiotic in its existing product.
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Key players are focusing on adopting various inorganic growth strategies such as mergers and acquisitions, joint ventures, partnerships, marketing, and new product launches to strengthen their foothold in the global xylo-oligosaccharides market. For instance, in April 3, 2018, UAS Laboratories LLC, a probiotic company acquired Nebraska Cultures, a neutraceuticals company. This merger will help UAS Laboratories to cater the market of nutraceuticals and the company will continue the production of spore-based probiotics, Lactobacillus acidophilus DDS-1 and ProDura.
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