Being a non-digestible food ingredient, Prebiotics stimulate the growth and activity of bacteria in the digestive system which is beneficial to health. Being a functional food component, this becomes a very well suited ingredient for food and drugs. Being instantly dispersible and clear in solution, it can be easily handled in various food and beverage systems. In addition, being heat and acid stable, it is cost effective in process and storage. Being concerned about 'Gut health', consumers are choosing prebiotic food ingredients which prevent them from gastro intestinal illness. This is an important reason why it is largely used in pharmaceutical industry as a drug and supplement.. In addition, being health conscious, consumers these days prefer food with less sugar, calories and fat. Due to this reason, food manufactures prefer prebiotics as an ingredient in many health and food manufacturing processes. It is an important ingredient for dairy industry as it helps to improve calcium absorption in milk and this calcium helps to develop peak bone mass accrual during adolescence. Due to this reason, its demand in dairy industry is mounting.