Allulose Market Size, Share, and Industry Analysis By Type (Powder, Liquid, and Crystal), By Nature (Organic and Conventional), By Application (Food [Bakery & Confectionery, Sause & Dressings, Dairy Products, Frozen Desserts, and Others], Beverages, and Pharmaceuticals), and Regional Forecast till 2032

The global allulose market is witnessing significant growth due to the growing trend of sugar reduction in the food sector. Allulose is a type of sugar naturally derived from wheat, raisins, figs, maple syrup, and molasses. It closely resembles the texture and taste of sugar. Owing to its low-calorie content, it is widely used as a low-intensity sweetener in a variety of food products.

Government organizations and health associations are raising awareness of the negative health impact of consuming excess sugar in daily diets. For instance, the U.S. Department of Agriculture (USDA) recommends limiting added sugar to less than 10% of the total daily calories in its 2020-2025 dietary guidelines for America. Furthermore, the surge in technological advancements and increasing industrial investments to expand the usage of allulose in various applications is likely to escalate the growth of the market.

The COVID-19 pandemic had a significant impact on the food and beverages industry. It enhanced the importance of immunity-enhancing and natural food products. Health-related issues such as obesity, diabetes, and other chronic disorders were more prone to coronavirus. This notably increased health awareness among people regarding reducing sugar intake. The post-pandemic situation affirmed the growing demand for natural food products with low-calorie sweeteners, which further had a positive impact on market growth.

Allulose Market Driver

Increasing Popularity of Low-calorie Sweeteners to Fuel the Demand

Over the past few years, consumers have been significantly moving toward a healthy lifestyle. Changing consumer food preferences is attributed to increasing health awareness worldwide. Growing awareness regarding the negative impact of high sugar consumption has increased the demand for low-calorie sweeteners, such as allulose. Allulose is low in calories and, therefore, has minimal impact on blood sugar levels. It has become a popular choice for consumers seeking health-beneficial food products to prevent or treat obesity, diabetes, and other health issues.

Allulose Market Restraint

Availability of Alternative Products at Lower Prices to Restrict the Market Growth

The market is saturated with a wide range of sugar substitutes utilized across the food and beverage industry. The presence of alternative low-intensity sweeteners such as sorbitol, maltitol, xylitol, mannitol, erythritol, and others is anticipated to restrict the market growth. Allulose is a rare sugar derived naturally from the plant extracts. The production method involves numerous steps, resulting in the high production cost. Therefore, the commercial production of allulose requires high industrial investment. On the other hand, the easy availability of low-cost alternatives is one of the major challenges that might affect the growth of the market during the forecast period.

Allulose Market Opportunity

Rising Demand from Numerous End-use Industries to Open Doors to New Opportunities

The global allulose market is projected to have lucrative growth opportunities owing to the increasing demand from various end-use industries, such as food & beverages, pharmaceuticals, and others. The manufacturers are focusing on the development of innovative products that are low in calories and taste such as sugar to cater to the ever-increasing popularity of sugar-free products in the market. For instance, in October 2023, the leading manufacturer of sweeteners and baking mixes, Lakanto, launched a new allulose blend in combination with its original line of Monk Fruit's natural sweetener. The company aimed to expand its line of sweeteners by offering consumers an alternative to natural sugar.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Parent Market


• Supply Chain Analysis


• Regulatory Analysis


• Industry SWOT Analysis


• Key Industry Developments


• Qualitative Analysis Related to COVID-19

Analysis by Type

Based on type, the market is segmented into powder, liquid, and crystal.

The powder segment is expected to hold the largest share of the market. The increasing popularity of the segment is attributed to its flexibility and convenient application in beverages, confectionery products, and other food items. The powdered allulose dissolves rapidly and uniformly, resulting in a fine texture, increasing its consumption in the food and beverage industry.

The liquid segment is anticipated to show significant growth owing to its versatility and wide range of commercial applications. The liquid form of allulose is commonly used in the manufacturing of dairy products, frozen desserts, and baked goods. Additionally, the growing traction from the pharmaceutical industry due to the low glycemic index of allulose is another factor propelling the segment growth.

Analysis by Nature

Based on nature, the market is segmented into organic and conventional.

The conventional segment is expected to hold the largest market share. The availability of conventional raw materials such as corn fructose or crystalline fructose are available at lower prices and are easily accessible. Conventional allulose raw materials require a low cost of production as compared to organic ones. Therefore, it is utilized at the commercial level across the end-use industries.

The organic segment is expected to show the fastest growth over the forthcoming years. The growing demand for organic food ingredients and the rising development of clean-labeled products in the market is significantly influencing the product demand. Emerging organic trends in the food industry force key players to adopt organic ingredients. This will enhance the organic category allulose demand in the near future.

Analysis by Application

Based on application, the market is fragmented into food, beverages, and pharmaceuticals.

The food segment is anticipated to hold the largest market share due to the increasing demand for low-calorie food products. The growing popularity of confectioneries and bakery items produced using sweeteners with low sugar content among young individuals is expected to fuel segmental growth. Furthermore, the increasing investments from the manufacturers to cater to the consumers seeking healthy alternatives is one of the major factors set to propel the segment growth during the forecast period.

The beverages segment is expected to show significant growth owing to the growing acceptance of sugar substitutes in carbonated drinks. Health-conscious individuals are increasingly preferring beverages with low-calorie formulas. Increasing expansion of the beverage industry coupled with growing innovations with functional ingredients, such as allulose is projected to accelerate the segment growth.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is expected to hold the largest market share. The growth of the market in the region is attributed to the increasing consumer preference for natural and organic food products. A larger number of populations are practicing low-carb diet regimes for weight management and overall well-being is fueling product demand across the region. Furthermore, the key manufacturers in the region are involved in R&D activities to improve the production efficiency of allulose and cut down additional costs. For instance, in November 2023, Mars, Inc., the multinational manufacturer in the food industry, unlocked a cost-effective path for allulose production. The new method bypassed the traditional production process by eliminating the numerous and costly steps required in allulose manufacturing. With the implication of this cost-effective method, the company aimed to broaden the potential applications in beverages, confectioneries, bakery items, and other food products. 

The Asia Pacific market is anticipated to show significant growth during the forecast period due to rising economic development, increasing disposable income, and changing dietary habits in developing economies. Furthermore, the expansion of the food and beverage industry in China, India, and Japan is one of the major factors driving the regional growth.

Key Players Covered

The global allulose market is highly competitive in nature, with the presence of global players operating across the regions. The companies are emphasizing new product launches, strategic partnerships, mergers & acquisitions, and others to expand their market share.

The report provides the profiles of the following key players:

• Anderson Global Group, LLC (U.S.)


• Bonumose, Inc. (U.S.)


• Tate & Lyle (U.K.)


• Matsutani Chemical Industry Co. Ltd. (China)


• CJ CHEILJEDANG CORP. (South Korea)


• Blue California (U.S.)


• Simply Good Food (U.S.)


• HealthGarden (U.S.)


• Heartland Food Products Group. (U.S.)


• Merck KGaA (Germany)

Key Industry Developments

• In September 2020, the leading producer of botanical extracts and specialty ingredients, Blue California, launched its allulose product created from proprietary bioconversion technology using natural substrates to produce a natural sweetener. The company aimed to offer nature-based allulose at a competitive price to the food and beverage manufacturers, thereby scaling up the commercialization of rare sugar allulose.


• In July 2020, the global food company Whole Earth Brands, Inc. announced the launch of new Whole Earth® Allulose Baking Blends. The company aimed to meet the growing demand from consumers seeking plant-based, zero-calorie, and sugar-free baking solutions.