The global Human Milk Oligosaccharides (HMO) market is undergoing a dramatic transformation, driven by innovation, rising consumer health consciousness, and the surging demand for infant nutrition and gut-friendly functional foods. Valued at USD 199 million in 2022, the HMO market is projected to soar to USD 556 million by 2027—growing at an impressive CAGR of 22.7%.

What’s Driving This Growth?

The increasing global birth rate and growing preference for high-quality infant formula are central to HMO’s accelerating adoption. HMOs, naturally found in human breast milk, mimic the protective and gut-nourishing benefits of breastfeeding. As more consumers lean into health-forward lifestyles, HMOs are finding new applications beyond infant formulas—especially in functional foods, beverages, and dietary supplements.

Asia Pacific at the Forefront

Asia Pacific is projected to dominate the HMO market, reaching USD 321.8 million by 2027. The region accounted for nearly 59% of global market share in 2021. Countries like China, India, Japan, and Australia are experiencing an uptick in demand due to:

• A growing infant population
• Increasing health awareness
• Advancements in local manufacturing technologies

This regional momentum is further supported by urbanization, changing dietary habits, and the rising middle-class consumer base seeking premium nutrition products.

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A Wave of Innovation: Animal-Based Milk Oligosaccharides

Emerging alternatives to HMOs, such as bovine, goat, and camel milk oligosaccharides, are opening new doors in infant nutrition. For instance:

• Goat milk-based infant formulas have shown prebiotic properties comparable to human milk.
• UAE-based Camelicious has developed camel milk-based baby formulas rich in iron for toddlers.

These innovations are expected to further diversify the infant formula ingredients landscape, offering natural alternatives to conventional formulas.

Dietary Supplements: Riding the Gut Health Wave

Consumer interest in digestive health has exploded. According to DSM, gut health interest has tripled in the past five years. HMOs, known for boosting immunity and supporting the microbiome, are now key ingredients in the growing dietary supplement sector. With over 74% of consumers aiming to eat for a healthier gut, HMO-based prebiotic products are rapidly gaining popularity.

Their benefits include:

• Enhanced satiety and weight management
• Immunity boosting
• Fiber-rich, soluble formulations for easier absorption

Digitalization Accelerates Market Access

The rise of online retail is making HMO-based products more accessible than ever. Consumers are increasingly shopping for infant formula and gut health products online, drawn by the ease of access and product variety. Smartphone penetration, e-commerce apps, and expanding digital payments have all contributed to the accelerated adoption of HMO-enriched consumer products.

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Advanced Processing Technologies Fuel Product Development

The functional food industry is embracing new-age manufacturing techniques that preserve the nutritional integrity of ingredients like HMOs. Innovations such as:

• Nanoencapsulation
• Pulsed electric fields
• High hydrostatic pressure

are enabling manufacturers to incorporate HMOs in novel, highly bioavailable forms into everything from probiotics to ready-to-drink supplements.

Key Players Powering the Market

Major HMO companies driving innovation and expansion include:

• DSM (Netherlands)
• BASF SE (Germany)
• Chr. Hansen Holding A/S (Denmark)
• DuPont (US)
• Royal FrieslandCampina N.V. (Netherlands)

These industry leaders are investing in R&D and product diversification to capture the growing consumer demand for gut-friendly, immune-supporting, and infant-specific nutrition products.