“The global rare sugar market is expected to grow at a CAGR of 6.5% from 2024 to 2031 to reach USD 1.5 billion by 2031.”
Asia-Pacific is projected to dominate the market during the forecast period. Key growth drivers include the rising demand for low-calorie and healthier sugar alternatives, increasing prevalence of diabetes and obesity, and the growing application of rare sugars in the food & beverage and pharmaceutical industries.
The rare sugar market has witnessed significant growth in recent years, driven by the shifting consumer preferences towards healthier and natural sweeteners. Rare sugars, such as allulose and tagatose, offer similar sweetness to regular sugar but with fewer calories and lower glycemic impact, making them attractive alternatives for health-conscious consumers and diabetic patients.
Growing Demand for Natural and Low-calorie Sweeteners Driving Market Growth
The rare sugar market is significantly influenced by the rising consumer awareness about the health implications of excessive sugar consumption. With the increasing prevalence of obesity, diabetes, and other lifestyle-related diseases, consumers are actively seeking healthier alternatives to traditional sugars. Rare sugars, being natural and low in calories, are gaining popularity as a preferred choice for sweetening food and beverages. The growing demand for clean-label and natural ingredients is further fueling the market growth for rare sugars.
Expanding Application Scope in Food & Beverage and Pharmaceutical Industries
The trend of using rare sugars in various food and beverage applications is gaining momentum. Rare sugars are being incorporated into a wide range of products, including baked goods, confectionery, dairy products, and beverages, to reduce calorie content and enhance nutritional value. The unique properties of rare sugars, such as their ability to provide bulk and texture, are also driving their adoption in the food industry.
In the pharmaceutical sector, rare sugars are finding applications in the development of drugs and therapies for diabetes, obesity, and other metabolic disorders. The low glycemic response and potential health benefits of rare sugars make them attractive ingredients for pharmaceutical formulations. For instance, in 2023, a leading pharmaceutical company launched a new diabetes drug containing D-allulose as a key ingredient.
High Production Costs and Limited Availability Hindering Market Growth
Despite the growing demand, the high production costs associated with rare sugars pose a challenge to market growth. The complex manufacturing processes and limited availability of raw materials contribute to the higher prices of rare sugars compared to regular sugars. This cost factor can limit the widespread adoption of rare sugars, particularly in price-sensitive markets.
Moreover, the limited production capacity and the lack of economies of scale also impact the availability of rare sugars. The market is currently dominated by a few key players, and the limited competition can affect the supply and pricing dynamics. Increasing investments in research and development to optimize production processes and expand production capacities will be crucial for overcoming these challenges.
D-Allulose Segment to Dominate the Market During the Forecast Period
The D-allulose segment is expected to hold the largest share of the rare sugar market during the forecast period. D-allulose, also known as psicose, is a monosaccharide that is naturally present in small quantities in foods like figs, raisins, and molasses. It offers 70% of the sweetness of regular sugar but with only 0.2-0.4 calories per gram, making it an attractive low-calorie sweetener.
The growing consumer preference for D-allulose can be attributed to its similar taste and functionality to regular sugar, along with its potential health benefits. Studies have shown that D-allulose can help regulate blood sugar levels, reduce body fat, and improve insulin sensitivity. These health benefits, coupled with its versatility in food and beverage applications, are driving the growth of the D-allulose segment.
In 2023, a major food company launched a new line of low-calorie snacks and beverages sweetened with D-allulose, targeting health-conscious consumers. The company collaborated with a leading rare sugar manufacturer to ensure a stable supply of high-quality D-allulose for its products.
Asia-Pacific to Lead the Rare Sugar Market
Asia-Pacific is expected to dominate the rare sugar market during the forecast period. The region's market growth is driven by the increasing consumer awareness about health and wellness, rising disposable incomes, and the growing prevalence of diabetes and obesity. Countries like China, Japan, and South Korea are leading the adoption of rare sugars in the region.
In 2024, a Japanese food conglomerate announced the expansion of its rare sugar production facility to meet the growing demand in the Asia-Pacific region. The company plans to double its production capacity for D-allulose and other rare sugars, aiming to cater to the increasing applications in the food, beverage, and pharmaceutical industries.
The Asia-Pacific rare sugar market is expected to grow at a CAGR of 7.5% from 2024 to 2031. China is the largest market for rare sugars in Asia-Pacific, accounting for over 30% of the regional market share in 2024.
In South Korea, the government has recently approved the use of D-allulose as a food ingredient, opening up new opportunities for the rare sugar market in the country. Local food and beverage companies are actively exploring the incorporation of D-allulose in their products to cater to the growing health-conscious consumer segment.
The rare sugar market is characterized by the presence of a few key players and several emerging startups. Leading companies in the market include Tate & Lyle PLC, Matsutani Chemical Industry Co., Ltd., Samyang Corporation, and CJ CheilJedang Corporation. These companies are focusing on expanding their production capacities, developing new rare sugar variants, and establishing strategic partnerships to strengthen their market position.
Emerging players are investing in research and development to improve the production efficiency and reduce the costs of rare sugars. Startups are also exploring novel applications of rare sugars in the functional food and nutraceutical segments. For instance, in 2023, a U.S.-based startup launched a new line of functional beverages containing rare sugars, targeting the health and wellness market.
The market is witnessing increasing collaborations between rare sugar manufacturers and food and beverage companies to develop innovative products and secure a stable supply chain. For example, in 2024, a leading beverage company entered into a long-term supply agreement with a rare sugar manufacturer to ensure a consistent supply of D-allulose for its low-calorie beverage portfolio.
The future outlook for the rare sugar market remains positive, with ongoing research and development efforts to improve production processes, expand applications, and reduce costs. However, market players need to focus on educating consumers about the benefits of rare sugars and establishing a strong value proposition to drive wider adoption.
The rare sugar market is poised for significant growth, driven by the increasing consumer demand for healthier and natural sweeteners. The rising prevalence of diabetes and obesity, coupled with the growing health consciousness among consumers, will continue to fuel the market growth. D-allulose, in particular, is expected to witness strong demand due to its superior taste and functional properties.
The Asia-Pacific region, with its large population base and increasing health awareness, presents significant growth opportunities for the rare sugar market. However, the high production costs and limited availability of rare sugars remain key challenges that need to be addressed to ensure sustainable market growth.
Collaborations between rare sugar manufacturers and food and beverage companies will play a crucial role in driving innovation and expanding the application scope of rare sugars. Investments in research and development to optimize production processes and reduce costs will be essential for market players to remain competitive.
Overall, the rare sugar market is expected to witness steady growth in the coming years, driven by the increasing demand for healthier sweeteners and the expanding applications in the food, beverage, and pharmaceutical industries. Companies that can effectively address the challenges of cost and availability while delivering high-quality rare sugar products will be well-positioned to capitalize on the market opportunities.
Tate & Lyle PLC
Matsutani Chemical Industry Co., Ltd.
Samyang Corporation
CJ CheilJedang Corporation
Bonumose LLC
Ingredion Incorporated
Roquette Frères
Südzucker AG
In February 2024, Tate & Lyle PLC announced the expansion of its allulose production facility in the United States to meet the growing demand for the rare sugar in the North American market.
In April 2024, Matsutani Chemical Industry Co., Ltd. launched a new line of rare sugar blends targeting the bakery and confectionery segments in Japan.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)*
5. COMPANY PROFILES
5.1. Tate & Lyle PLC
5.2. Matsutani Chemical Industry Co., Ltd.
5.3. Samyang Corporation
5.4. CJ CheilJedang Corporation
5.5. Bonumose LLC
5.6. Ingredion Incorporated
5.7. Roquette Frères
5.8. Südzucker AG
(*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Expanding Application Scope in Food & Beverage and Pharmaceutical Industries
6.1.2. Growing Collaboration between Rare Sugar Manufacturers and End-use Industries
6.1.3. Increasing Investments in Research & Development
6.2. Market Drivers
6.2.1. Growing Demand for Natural and Low-calorie Sweeteners Driving Market Growth
6.2.2. Rising Prevalence of Diabetes and Obesity Fueling Demand for Rare Sugars
6.2.3. Shifting Consumer Preferences Towards Healthier Sweetening Alternatives
6.3. Market Restraints
6.3.1. High Production Costs and Limited Availability Hindering Market Growth
6.3.2. Lack of Consumer Awareness and Understanding of Rare Sugars
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. D-Allulose
7.2. D-Tagatose
7.3. L-Arabinose
7.4. D-Xylose
7.5. Others (D-Ribose, L-Xylose, etc.)
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Food & Beverages
8.1.1. Bakery & Confectionery
8.1.2. Dairy & Frozen Desserts
8.1.3. Beverages
8.1.4. Others
8.2. Pharmaceuticals
8.2.1. Drugs
8.2.2. Supplements
8.2.3. Others
8.3. Cosmetics & Personal Care
8.3.1. Skincare
8.3.2. Haircare
8.3.3. Others
8.4. Others
9. BY DISTRIBUTION CHANNEL (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Direct Sales
9.2. Indirect Sales
9.2.1. Supermarkets & Hypermarkets
9.2.2. Specialty Stores
9.2.3. Online Retail
9.2.4. Others
10. BY REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)*
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. Europe
10.2.1. Germany
10.2.2. United Kingdom
10.2.3. France
10.2.4. Italy
10.2.5. Spain
10.2.6. Rest of Europe
10.3. Asia-Pacific
10.3.1. China
10.3.2. Japan
10.3.3. India
10.3.4. South Korea
10.3.5. Australia
10.3.6. Rest of Asia-Pacific
10.4. Latin America
10.4.1. Brazil
10.4.2. Argentina
10.4.3. Rest of Latin America
10.5. Middle East & Africa
10.5.1. Saudi Arabia
10.5.2. UAE
10.5.3. South Africa
10.5.4. Rest of Middle East & Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Type:
D-Allulose
D-Tagatose
L-Arabinose
D-Xylose
Others (D-Ribose, L-Xylose, etc.)
By Application:
Food & Beverages
Bakery & Confectionery
Dairy & Frozen Desserts
Beverages
Others
Pharmaceuticals
Drugs
Supplements
Others
Cosmetics & Personal Care
Skincare
Haircare
Others
Others
By Distribution Channel:
Direct Sales
Indirect Sales
Supermarkets & Hypermarkets
Specialty Stores
Online Retail
Others
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
We at Aurorawave Intellects Market Report gives total market analysis that suit our customer business need and permit decision maker to run organizations without any problem. We have accomplished greatness in giving start to finish market research arrangements. Our detachment of industry specialists accumulate key data and get ready substance that lines up with our customer's business/specialty.
We at aurorawaveintellects.com offer mainly 3 types of licenses:
• Single User: Research Report copy can be distributed to a single user only
• Multi User: Research Report distribution is restricted up to 5 users.
• Corporate License :Research Report can be distributed across the company.
Based on the nature of the topic or research, the formats vary. The different formats of the report are as following:
• Word Document
• PPT
Following modes are available for making the payment:
• Online Payment (Visa Card, Master Card, Stripe)
• Razorpay
• Net Banking
• Bank Wire Transfer
Our customer service and research specialist team are available by phone and by email. Customer service hours are 24X7 Indian Standard Time (IST). You may reach us at:
• Email: info@aurorawaveintellects.com
• United Kingdom: ++91 7382742511
