Xylo-oligosaccharide Market Size to Achieve USD 90.28 Mn in 2025

Xylo-oligosaccharide Market Surges as Prebiotic Demand and Wellness Trends Accelerate

The global xylo-oligosaccharide market size is projected to witness strong growth from USD 90.28 million in 2025 to USD 170.22 million by 2034, reflecting a CAGR of 7.3% over the forecast period from 2025 to 2034. Increasing awareness of gut health, rising demand for prebiotic ingredients in functional foods and supplements, and the shift toward natural, fiber-rich additives are fueling market expansion.

Last Updated: 11 July 2025 Category: Dietary and Nutraceutical Supplements Insight Code: 5714 Format: PDF / PPT / Excel

Xylo-oligosaccharide Market Size, Share and Growth Forecast

The global xylo-oligosaccharide market size was estimated at USD 84.14 million in 2024 and is expected to rise from USD 90.28 million in 2025 to nearly reaching USD 170.22 million by 2034, growing at a CAGR of 7.3% during the forecast period from 2025 to 2034. Rising gut health awareness, demand for probiotics, growing pharmaceutical and cosmetic industry driving the market.

Xylo-oligosaccharide Market Size 2025 to 2034

Key Highlights

  • By region, Asia Pacific dominated the global market with the largest share of 40% in 2024. Market has fueled by a rising middle class and heightened health awareness.
  • By region, North America is expected to grow at a notable CAGR from 2025 to 2034. Market thrives due to a strong awareness of health and wellness trends, increasing the demand for foods and supplements rich in prebiotics.
  • By source type, corncob segment held the major market share of 40-50% in 2024. Corncobs are an easily accessible and economical lignocellulosic resource abundant in xylan, a polysaccharide that can be transformed into xylose and later into XOS. 
  • By source type, sugarcane bagasse segment is expected to grow at a CAGR in between 2025 and 2034. The sugarcane bagasse source category is seeing the highest growth in the market because of its plentiful supply, eco-friendliness, and affordability as a raw material. 
  • By form, powder segment contributed the biggest market share of 60-65% in 2024. Powdered XOS is preferred due to its stability, ease of incorporation into diverse food items, extended shelf life, and greater convenience for handling and storage.
  • By form, liquid/syrup segment is expanding at a significant CAGR in between 2025 and 2034. The liquid format is witnessing the highest growth because of its convenience in drinks and liquid supplements.
  • By purity level, 85-95% purity segment dominated the market in 2024 by holding the share of 50%. The 85-95% purity range is a crucial part of the market, particularly for uses such as nutritional and dietary items, supplements, and functional foods. 
  • By purity level, above 95% purity segment is expected to grow at a significant CAGR over the projected period. Its high purity renders it a preferred option for sectors where accuracy and concentration are crucial.
  • By application, food and beverages segment held the major market share of 40% in 2024. The growing consumer knowledge about the health advantages of XOS, especially its function as a prebiotic, is also boosting demand in this area. 
  • By application, nutraceuticals segment is expected to grow at a CAGR in between 2025 and 2034. Nutraceuticals are progressively gaining popularity worldwide as consumers grow more cognizant of their numerous health benefits.
  • By end use industry, human nutrition segment contributed the largest market share of 55% in 2024. Global health awareness is increasing as individuals are becoming more mindful of their dietary selections due to which market has boosted. 
  • By end use industry, animal nutrition segment is expanding at a significant CAGR in between 2025 and 2034. As awareness increases regarding animal health and wellness, the global demand for animal nutrition is escalating.
  • By distribution channel, B2B (bulk sales) segment dominated the market in 2024 by holding the share of 70%. This supremacy is fueled by the functional characteristics of XOS, which are integrated into numerous products throughout these industries.
  • By distribution channel, B2C (online sales) segment is expected to grow at a significant CAGR over the projected period. This segment has undergone considerable expansion driven by elements such as the growth of e-commerce, greater internet and smartphone access.

Industry Coverage

Study Coverage Details
Growth Rate from 2025 to 2034 CAGR of 7.3%
Market Size in 2025 USD 90.28 Million
Market Size in 2026 USD 96.87 Million
Market Size by 2034 USD 170.22 Million
Largest Market Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Key Drivers of the Xylo-Oligosaccharide (XOS) Market

Xylo-oligosaccharides (XOS) are functional oligosaccharides derived mainly from the hydrolysis of xylan-rich materials (e.g., corn cobs, sugarcane bagasse, wheat bran). They are prebiotic compounds that selectively stimulate the growth of beneficial gut bacteria, especially Bifidobacteria, and have a wide range of applications in functional food, animal feed, nutraceuticals, and pharmaceuticals. The market is driven by the growing awareness of gut health, clean-label ingredients, and demand for low-calorie sweeteners. 

  • The market for xylo-oligosaccharides is witnessing strong expansion due to increasing consumer knowledge of prebiotic health advantages. This trend is notably significant in the functional food and drink industry, where the demand for gut health items is skyrocketing. 
  • The increasing preference for natural and organic components further drives this trend, as consumers look for healthier food choices. Consumers are more frequently seeking functional foods and dietary supplements that enhance digestion, boost immunity, and support microbiome harmony. Research shows the advantages of prebiotics, prompting food and beverage companies to incorporate xylo-oligosaccharides into their offerings. 
  • With consumers pursuing plant-based and vegan options, XOS sourced from wood, corn cobs, and various natural materials is becoming popular. This trend corresponds with the increasing demand for sustainable, plant-based ingredients in the food sector. Xylo-oligosaccharides an innovative possible source of prebiotics. 
  • Increasing awareness within the animal husbandry sector about the quality of animal feed is leading to a significant demand for novel prebiotics. This is anticipated to accelerate the use of xylo-oligosaccharides. Users generally prefer categories that have distinct labels and a list of components, which is why xylo-oligosaccharides align with modern preferences, leading to its inclusion in numerous foods and beverages. 
  • Improvements in extraction and purification techniques have significantly contributed to the expansion of the xylo-oligosaccharides market. Advancements in enzymatic hydrolysis and biorefinery techniques have allowed producers to create high-purity xylo-oligosaccharides in a more efficient and economical manner. 

Market Opportunity 

Growing XOS Application in Various Sector Expanding the Market

The increasing application of xylo-oligosaccharides in pharmaceuticals and animal nutrition opens up new business opportunities. In the pharmaceutical sector, XOS is utilized in formulations to enhance gut health, strengthen immunity, and address metabolic disorders. At the same time, the animal feed industry is adopting XOS as a natural prebiotic substitute for antibiotics, thereby enhancing digestion and overall cattle well-being. This growth in both sectors is fueled by increasing consumer and industry demand for safer, more sustainable, and health-enhancing ingredients. Furthermore, the increasing popularity of personalized nutrition presents a valuable opportunity for tailored prebiotic solutions such as XOS that address specific health requirements

Market Challenge 

Higher Cost and Competition from Alternatives Impeding the Market

A significant obstacle in the Xylo-oligosaccharide (XOS) market is the elevated production expenses. The process of extracting from natural sources can be complicated and costly, potentially restricting its broad adoption in consumer goods and curtailing market expansion, particularly for small and medium-sized enterprises. The market encounters considerable rivalry from other established prebiotics such as inulin, fructo-oligosaccharides, and galacto-oligosaccharides. These options are frequently more acknowledged and utilized in the market, creating a challenge for XOS to acquire market share. 

Regional Insights 

Asia Pacific Dominated the Xylo-oligosaccharide (XOS) Market in 2024. 

The xylo-oligosaccharides market in the Asia-Pacific region is expanding rapidly, fueled by a rising middle class and heightened health awareness. The area's growing food and beverage sector, coupled with increasing demand for functional ingredients in animal feed, drives market expansion. Furthermore, the growing emphasis on health and wellness in nations such as China and India encourages the use of XOS in multiple applications. With regional governments and health organizations promoting healthier lifestyle options and food reformulations, the market is experiencing a rise in R&D investments and product innovations. Moreover, the increasing elderly population and occurrence of gastrointestinal issues are boosting the attractiveness of prebiotic fibers such as XOS.

Xylo-oligosaccharide Market Share, By Region, 2024 (%)

China represents the largest market for XOS, holding a significant portion, and is anticipated to experience ongoing growth due to elements such as rising demand for infant formula, functional foods, and dietary fiber. This is due to the existence of large livestock and agricultural sectors. The increasing demand for naturally sourced ingredients in the nation is anticipated to boost growth in the China market during the forecast period. Longlive Biotechnology (China) is the main producer of XOS in Asia and obtained Generally Recognized as Safe certification in 2013. 

North America Expects Significant Growth During the Forecast Period. 

The Xylo-oligosaccharides Market thrives due to a strong awareness of health and wellness trends, increasing the demand for foods and supplements rich in prebiotics. The area's strong food and beverage sector, along with an emphasis on digestive wellness, drives market expansion. Moreover, the rising use of functional ingredients in pet care and animal feed aids in the growth of XOS applications across different industries. 

The increasing recognition of the health advantages linked to xylo-oligosaccharides is a major factor propelling the US xylo-oligosaccharide (XOS) market industry. Reports from the National Institute of Health indicate that approximately 70 million Americans suffer from digestive diseases, highlighting the growing consumer emphasis on gut health and dietary fiber. This growing concern has resulted in an increased demand for functional food components that enhance gut health, such as xylo-oligosaccharides. The increasing demand for natural and organic products is a significant reason motivating manufacturers to add xylo-oligosaccharides to their products. This is consistent with the wider movement towards more nutritious food selections among consumers in the US. 

Segmental Insights 

Source Type Insights

Which Source Type Dominated the Xylo-Oligosaccharide (XOS) Market in 2024?

Corncob segment led the xylo-oligosaccharide (XOS) market in 2024. Corncobs are an easily accessible and economical lignocellulosic resource abundant in xylan, a polysaccharide that can be transformed into xylose and later into XOS. The xylan concentration in corncobs varies between 30-35%, which makes them an ideal raw material for producing XOS. Xylo-oligosaccharides derived from corn are widely utilized in food, feed, and pharmaceutical sectors, as producers employ sophisticated enzymatic hydrolysis methods to enhance yield and purity. 

Sugarcane Bagasse Segment is Observed to Grow at the Fastest Rate During the Forecast Period. 

The sugarcane bagasse source category is seeing the highest growth in the market because of its plentiful supply, eco-friendliness, and affordability as a raw material. Sugarcane bagasse, a residue from sugar manufacturing, is abundant in hemicellulose, which is effectively transformed into XOS. This coincides with the increasing need for sustainable and renewable resources across multiple sectors, rendering it a favored option for XOS manufacturing. Using sugarcane bagasse to produce XOS advances a circular bioeconomy by enhancing agricultural waste value and decreasing dependence on new materials, leading to a reduced environmental impact. 

Form Insights

Which Form Held the Dominating Share of the Xylo-Oligosaccharide (XOS) Market in 2024?

Powder segment held the dominating share of the xylo-oligosaccharide (XOS) market in 2024. Powdered XOS is preferred due to its stability, ease of incorporation into diverse food items, extended shelf life, and greater convenience for handling and storage. This form is commonly used in dietary supplements, functional foods, and drinks, contributing to its market dominance.

Liquid/Syrup Segment is Seen to Grow at a Notable Rate During the Predicted Timeframe. 

The liquid format is witnessing the highest growth because of its convenience in drinks and liquid supplements. The solubility and quick dispersion of the liquid form make it perfect for these uses, whereas dry XOS is preferred for its extended shelf life and adaptability in different food and supplement products. 

Purity Level Insights

Which Purity Level Segment Dominated the Xylo-Oligosaccharide (XOS) Market with the Largest Share in 2024?

85–95% purity segment dominated the market with the largest share in 2024. The 85-95% purity range is a crucial part of the market, particularly for uses such as nutritional and dietary items, supplements, and functional foods. XOS exhibits stronger and more consistent prebiotic properties at elevated purity levels, rendering the 85-95% range appealing for products focused on enhancing gut health and overall wellness.

Above 95% Purity Segment is Expected to Grow at the Fastest Rate in the Market During the Forecast Period. 

Consists of a highly pure variant of xylo-oligosaccharides, at a concentration of 95%. This targeted segment focuses on applications that need a strong and sophisticated XOS profile, guaranteeing optimal effectiveness in enhancing gut health and providing prebiotic advantages. Its high purity renders it a preferred option for sectors where accuracy and concentration are crucial.

Application Insights

Why Food & Beverages Segment Held the Largest Share of the Xylo-Oligosaccharide (XOS) Market in 2024?

Food & beverages segment held the largest share of the market in 2024. The main reason is the flexibility of XOS, which can be readily integrated into various food and drink products such as yogurt, dairy, baked goods, and beverages. The growing consumer knowledge about the health advantages of XOS, especially its function as a prebiotic, is also boosting demand in this area. A large segment of consumers globally is interested in and buy probiotics. Investigation from Chr. Hansen discovered that 75% of participants know about probiotics, while 48% use them every day or nearly every day.

Nutraceuticals Segment is Observed to Grow at the Fastest Rate During the Forecast Period. 

Nutraceuticals are progressively gaining popularity worldwide as consumers grow more cognizant of their numerous health benefits. The acknowledgment of these products' ability to avert or postpone several health issues has driven their increasing popularity. Additionally, people are leaning towards natural and alternative methods for sustaining health and wellness, which enhances their popularity even more. Xylo-oligosaccharides are small-chain oligomers that have garnered significant research interest in recent years because of their remarkable prebiotic properties in the nutraceutical field. 

End Use Industry Insights

Which End Use Industry Dominated the Xylo-Oligosaccharide (XOS) Market in 2024?

Human Nutrition segment dominated the xylo-oligosaccharide (XOS) market in 2024. Global health awareness is increasing as individuals are becoming more mindful of their dietary selections and more focused on maintaining healthier lifestyles. This is boosting the need for food items such as health supplements, enhancing the development of human nutrition. Their usage in functional foods, dietary supplements, and various nutritional products is on the rise, fueled by consumer demand for gut health and natural, fiber-dense components. XOS are typically acknowledged as safe (GRAS) by regulatory agencies such as the FDA and have undergone safety evaluations for numerous food uses. 

  • In March 2023, Goli® Nutrition Inc., the inventors of the First Apple Cider Vinegar Gummy, is ventured into probiotics and launched the First 3-in-1 Pre+Post+Probiotics Gummy globally. Every gummy is crafted with an exceptional blend of prebiotics, probiotics, and postbiotics. This dynamic trio, consisting of postbiotic Lactobacillus paracasei MCC1849, probiotic strain Bacillus Subtilis DE11®, and the prebiotic XOS, collaborates effectively to deliver numerous advantages. (Source: PR Newswire)

Animal Nutrition Segment is Seen to Grow at a Notable Rate During the Predicted Timeframe. 

As awareness increases regarding animal health and wellness, the global demand for animal nutrition is escalating. Animal nutrition enhances growth and development by boosting the immune system and digestive health. XOS, a form of prebiotic, is becoming popular as an affordable and advantageous supplement for enhancing animal health, feed efficiency, and overall productivity. Certain studies have associated XOS supplementation with enhancements in meat quality, including decreased drip loss and elevated protein levels. XOS may potentially lessen the reliance on antibiotics in animal production by enhancing gut health and strengthening immunity. 

Distribution Channel Insights

Which Distribution Channel Held the Biggest Share of the Xylo-Oligosaccharide (XOS) Market in 2024?

B2B (bulk sales) segment held the biggest share of the market in 2024. This channel features a committed sales team that interacts directly with prospective clients, enabling tailored engagements and a significant level of oversight over the sales procedure. The Business-to-Business (B2B) sector, where major participants concentrate on areas such as food and drink, pharmaceuticals, and livestock feed. This supremacy is fueled by the functional characteristics of XOS, which are integrated into numerous products throughout these industries.

B2C (online sales) Segment is Expected to Grow at the Fastest Rate in the Market During the Forecast Period. 

This segment has undergone considerable expansion driven by elements such as the growth of e-commerce, greater internet and smartphone access, and changing consumer tastes. B2C e-commerce provides around-the-clock customer assistance, flexible payment methods, home delivery, and straightforward return policies, enhancing its attractiveness even more. Consumers possess greater technological knowledge, have elevated buying power, and are in search of distinctive products, fueling the demand for B2C e-commerce.

Recent Developments in the Xylo-oligosaccharide Market

EW Nutrition

  • Launch: In March 2024, EW Nutrition, a prominent innovator in the animal nutrition sector, officially unveiled its latest product, Axxess XY, at VICTAM 2024, held at the BITEC Exhibition Center in Bangkok. Axxess XY is a naturally thermostable xylanase that degrades both the soluble and insoluble fiber parts from feed components like wheat, corn, oilseed meals and grain by-products. (Source: ew nutrition)

Shandong Bailong Chuangyuan Bio-Tech Co.

  • Announcement: In February 2025, Shandong Bailong Chuangyuan Bio-Tech Co., Ltd. announced financial results for the complete year concluding on December 31, 2024. For the entire year, the company announced sales of CNY 1,151.64 million, up from CNY 868.26 million the previous year. Net profit totaled CNY 249.36 million, up from CNY 193 million the previous year. (Source: MarketScreener)

Xylo-oligosaccharide Market Leading Companies

Xylo-oligosaccharide Market Companies

Segments Covered in the Report

By Source Type 

  • Corncob 
  • Sugarcane Bagasse 
  • Wheat Bran 
  • Others (e.g., Rice Husk, Beechwood, Birchwood) 

By Form 

  • Powder 
  • Liquid / Syrup 

By Purity Level 

  • Above 95% Purity 
  • 85–95% Purity 
  • Below 85% Purity 

By Application 

  • Food & Beverages 
  • Dairy Products 
  • Bakery & Confectionery 
  • Functional Beverages 
  • Cereals & Snacks 
  • Dietary Supplements / Nutraceuticals 
  • Capsules 
  • Tablets 
  • Sachets / Powders 
  • Animal Feed 
  • Livestock 
  • Poultry 
  • Aquaculture 
  • Pharmaceuticals 
  • Digestive Health 
  • Immunity Boosters 
  • Anti-inflammatory Use 
  • Cosmetics & Personal Care 
  • Skin Moisturizers 
  • Microbiome-Targeting Products 

By End-User Industry 

  • Human Nutrition 
  • Animal Nutrition 
  • Pharmaceutical Companies 
  • Cosmetic & Personal Care Brands 
  • Industrial / Bulk Ingredient Buyers 

By Distribution Channel 

  • B2B (Bulk Sales) 
  • B2C (Retail / Online Sales) 
  • Direct Sales (Manufacturer to Buyer) 
  • Distributors / Wholesalers 

By Region 

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The market is expanding at a CAGR of 7.3% from 2025 to 2034, driven by rising demand for gut-health-focused ingredients, clean-label prebiotics, and increased application in functional foods, nutraceuticals, and animal feed.

Asia Pacific holds a 40% share due to a rising middle class, expanding health awareness, and robust demand in China and India for prebiotics in food, supplements, and animal feed formulations.

Powdered XOS dominates with over 60% market share in 2024 due to its high shelf life, formulation versatility, and ease of storage and handling in supplements and functional foods.

This ultra-pure category is favored for high-end pharmaceutical, nutraceutical, and precision gut-health products, where stringent standards and efficacy are paramount.

Food and beverages led with a 40% share in 2024, owing to rising consumer preference for prebiotic-enriched dairy, bakery, and functional beverages targeting digestive health.

B2B remains dominant with 70% share, supporting bulk use in food and pharma, while B2C e-commerce is growing rapidly, fueled by health-conscious consumers and online supplement demand.

High extraction and purification costs and strong competition from established prebiotics like inulin and FOS remain major barriers for small firms and slow down market penetration.

Key trends include increasing demand for plant-based, sustainable prebiotics; innovation in personalized nutrition; improved biorefinery processes; and rising awareness of gut health benefits.