Growth rate of Isomalto-Oligosaccharide market remains steady at 8.1% Compound Annual Growth Rate (CAGR) until 2034.
In the dynamic world of food ingredients, the Isomalto-Oligosaccharide (IMO) market is poised for a remarkable expansion over the next decade. According to recent projections, the market is expected to grow from USD 75.1 million in 2024 to USD 163.6 million by 2034, with a steady compound annual growth rate (CAGR) of 8.1%.
North America currently leads the IMO market, accounting for approximately 41.2% of the market and generating USD 30.9 million in revenue in 2024. The food and beverage sector holds a dominant market position, capturing more than a 53.4% share. Within the food and beverage sector, the liquid form of IMO holds a dominant market position, capturing more than a 66.8% share.
The driving force behind this growth is the rising consumer demand for healthier, low-sugar, and functional food ingredients. Key factors include the increasing health consciousness among consumers, the expanding use of IMO as a natural sugar substitute and prebiotic dietary fiber in confectionery, bakery, and nutraceutical products, and the trend toward clean-label and natural ingredients in food manufacturing.
One example of this trend is SmartSweets, a food company that reformulated its products in 2024 to replace allulose with IMO. This move was aimed at improving taste, texture, and aligning with the mission to reduce sugar consumption while enhancing product appeal. This highlights how IMO supports innovation in healthier confectionery options.
The growing demand for functional polyols and natural ingredients like IMO in global markets, including emerging markets such as Turkey and Malaysia, further supports market expansion. Manufacturers are adopting advanced technologies to improve purity and functionality of these ingredients to cater to health-focused consumers, thus bolstering IMO demand.
IMOs are short-chain glucose oligomers derived enzymatically from starches like corn, wheat, potato, or tapioca. They have a low glycemic index and about 50% of sucrose's sweetness, making them ideal for reducing sugar in processed foods and beverages. Additionally, IMOs promote beneficial gut microbiota, reduce inflammation, improve lipid profiles, and support metabolic health, as supported by clinical and animal studies.
Notable developments in the IMO market include BioNeutra's VitaFiber, which received U.S. FDA GRAS status in 2009, followed by approvals as a novel food ingredient by Health Canada and the EU. Corn holds a dominant market position in the IMO market by source, capturing more than a 54.9% share.
While exact numerical growth projections to 2034 are not available in the sources, the consistent emphasis on health trends, sugar reduction, product innovation, and use of IMO in leading confectionery brands suggests a robust upward trend in demand through 2034 driven by these health and functional benefits.
- The growth in the IMO market is not limited to health-and-wellness, as this ingredient is also gaining popularity in the medical-conditions sector due to its potential benefits for gut health and metabolic health.
- The expanding use of IMO in therapies-and-treatments, particularly in the nutraceutical industry, is expected to drive market growth further.
- With climate-change becoming a global concern, the environmental-science industry is also taking an interest in IMO, as it can be derived from renewable resources like corn and tapioca, reducing the reliance on fossil fuels.
- As the IMO market expands, it is attracting the attention of investors in the finance and business sectors, with opportunities for investing in IMO production and distribution enterprises becoming more prominent.
- The sports-and-exercise industry can also benefit from the incorporation of IMO in sports drinks and energy bars, providing athletes with a healthier alternative for sustained energy and improved performance.
- In the field of basketball, for instance, incorporating IMO in sports-drinks could potentially improve player endurance and recovery, contributing to the overall fitness-and-exercise industry.
- Sports-analysis could also benefit from the use of IMO, as a healthier diet may lead to improved athletic performance, allowing analysts to make more accurate predictions and assessments.
- With the global data-and-cloud-computing industry on the rise, companies in this sector may also find opportunities in analyzing and managing the data generated by the IMO market, helping businesses make more informed decisions.
- Personal-finance management can also be impacted by the growth in the IMO market, as increased demand for this ingredient could potentially lead to job creation and economic growth in the related industries, improving overall financial health.