Industry Insights
The global Human Milk Oligosaccharides (HMO) market size was valued at USD 60.0 million in 2015 and is expected to grow further over the forecast period. Increasing awareness regarding HMO as a functional ingredient in infant formula, for maintaining proper functioning of immune system, is expected to remain a favorable growth driver.
Global Human Milk Oligosaccharides (HMO) market revenue, by application, 2013 - 2024 (USD Million)
Moreover, increased spending on health and fitness in countries, such as U.S. and Germany, will keep the market buoyant over the next few years. Efforts taken by leading companies to spread awareness regarding maintaining muscular strength and endurance will have a positive impact on market growth.
HMO is incorporated in the formulation of functional foods to protect individuals from cardiovascular diseases, type 1 diabetes, and infectious diseases like Human Immunodeficiency Virus (HIV). Growing preventive healthcare expenditure in emerging markets, such as China and India, along with increased visibility of nutraceuticals in retail shops and e-commerce portals is expected to support reach of the prebiotic ingredients.
HMOs contain necessary enzymes that are protective in action and provide better immunity to infants, thereby reducing the number of infant deaths. Major functions of HMO include prevention of infection and supply of sialic acid for brain development. Infant formulas, being derived from bovine milk, contain less concentration of oligosaccharides compared to human milk.
The prebiotic function of oligosaccharides is induced in infant formulas by addition of Galacto and Fructo Oligosaccharides (GOS and FOS). HMO are produced through processes, which involve the use of several ingredients, such as fucosyltransferases, glycosyltransferases, sialyltransferases, and trans-sialidases. Manufacturing processes, such as enzymatic and whole-cell microbial biotransformation are complex and require testing equipment and laboratory set-up.
Segmentation by Application
• Infant Formula
• Functional Food & Beverages
• Food Supplement
• Others
Infant formula was the largest application segment for HMOs. The segment accounted for over 70.0% of the global Human Milk Oligosaccharides (HMO) market share in 2015. HMO not only promotes metabolic health in infants but also improves their immunity. Moreover, these types of ingredients, when fortified with nutraceuticals, play a vital role in brain development and memory enhancement.
Owing to applications similar to HMO; galacto and fructo oligosaccharides, and inulin that mimic prebiotic effects of human milk; are used in manufacturing various food supplements. Therefore, rising application of the abovementioned prebiotic ingredients may hamper market growth over the forecast period.
Segmentation by Region
• North America
• Europe
• Asia Pacific
• Latin America
• MEA
Europe was the largest regional Human Milk Oligosaccharides (HMO) market, accounting for over 35.0% of global volume share in 2015. It is expected to remain a leading region over the forecast period. Rising demand for baby food and the presence of infant formula manufacturers is one of the observed traits in the market. North America followed Europe in 2015, accounting for over one-fifth of the market share.
Asia Pacific is expected to be a potential growth market for HMO over the forecast period. Growing demand for infant formulas from countries, such as India and China is expected to have a positive impact on market expansion. Rapidly growing target population in these economies is also likely to contribute to regional demand. In 2017, 17.23 million infants were born in china, where fertility rate is above 1.24%.
Competitive Landscape
The global Human Milk Oligosaccharides (HMO) market is at niche stage of development. The manufacturers have developed extensive R&D set-ups to initiate economical production of HMO on a large scale. In December 2017, European regulatory affairs approved an equivalent dossier for 2’FL by DuPont as a novel food.
2’FL, 3’FL, 3’SL and 6’SL are some of the majorly produced HMOs. The trend of establishing new tie-ups to develop customized infant formulations is expected to remain a crucial success factor for the industry participants. Some of the key manufacturers in the market are Inbiose; Jennewein Biotechnologie; Elicityl SA; Glycom A/S; ZuChem, Inc.; Medolac Laboratories; and Glycosyn LLC.
