Rare Sugar Market By Product (Tagatose, D-Xylose, L-Arabinose, D-Mannose, Allulose, L-Fucose, and Others), Application Pharmaceuticals, Dietary Supplements, Cosmetics & Personal Care, Food & Beverages), Distribution Channel (Offline and Online) and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Rare Sugar Market was valued at USD 1.2 billion in 2022 and is anticipated to reach USD 1.9 billion by 2032 at a CAGR of around 4.2% between 2023 and 2032.

The food industry and human health have been revolutionized by the rise of rare sugars. These uncommon sweeteners, such as D-allulose, D-allose, and D-Tagatose, are being embraced as low-calorie options by consumers and the food industry alike. The growing trend towards healthy lifestyles, combined with the increasing prevalence of diabetes and awareness of healthier alternatives to table sugar, is driving the expansion of the market.

The increasing demand for weight management and digestive health solutions has also fueled the market's growth. The industrial use of rare sugars is further encouraged by strict government regulations on sugar content in food additives. The rise in health awareness among consumers has led to the growth of honey and artificial sweeteners, as well as a preference for more nutritious, healthier foods.

Furthermore, the growing inclination towards natural products is driving the growth of the rare sugar market. Low-calorie sweeteners, such as intense sweeteners, polyol sweeteners, and rare sugars, are expected to increase in popularity as their uses and health benefits become better known. The rise in diseases associated with high sugar consumption has increased the demand for low-calorie or no-calorie sweeteners, and the demand for nutrient-dense foods is expected to continue to drive the market during the forecast period.

Key Insights

• Based on the product, the D-mannose segment held the largest market share
• Based on application, the food & beverage segment generated the highest revenue
• By distribution channel, the online segment is expected to dominate over the forecast the period
• On the basis of region, North America accounted for the largest market share

Rising Health Issues Associated with Excessive Consumption of High-calorie Sugar May Augments Market Growth

The harmful effects of excessive sugar consumption have become a major concern, with links to obesity and non-communicable diseases such as diabetes and dental disease. Despite progress in preventing and treating dental disease, it continues to cause pain, stress, functional limitations, and social barriers. To address this issue, many food manufacturers are seeking to replace high-calorie sugars like sucrose, glucose, or fructose with alternative sweeteners like fibers, polyols, or intense sweeteners. However, these alternative sweeteners can also have negative health effects, such as loss of appetite and glucose intolerance.

The rise in diseases associated with unhealthy lifestyles has led to increased demand for nutrient-dense foods, which is expected to drive the market during the forecast period. In response, low-calorie sweeteners like intense sweeteners, polyol sweeteners, and rare sugars are expected to become more popular as their uses and health benefits become better known. The goal is to find sweetening solutions that are healthier, lower in calories, and free from adverse side effects.

Inclination Towards a Healthy Lifestyle Drives Market Growth

The increasing focus on health and nutrition has led to a growing desire for nutritional supplements, including rare sugar. Rare sugar is gaining attention as a unique alternative to traditional sweeteners due to its numerous metabolic and caloric benefits, such as weight loss, reduced insulin resistance, and improved sugar balance. This has helped to strengthen its position in the market and attract the interest of various scientific and dietary supplement groups.

Industry players are investing in the development of high-quality, low-calorie, and sustainable products that align with the growing focus on health and wellness. The rise in diseases linked to excessive sugar consumption has also increased the need for low-calorie or no-calorie sweeteners, further fueling the rare sugar market growth. Additionally, the trend toward natural products is playing a key role in driving the growth of the rare sugar market.

In order to take advantage of the emerging trends in the rare sugar market, industry players are adopting profitable strategies. They are developing products with healthy slogans and promoting their benefits to consumers in order to capitalize on the growing demand for rare sugar. The focus is on providing consumers with healthy and nutritious options that support a balanced diet and healthy lifestyle.

Stringent Regulatory Compliance Poses as a Challenge for the Market

Strict government regulations and compliances aimed at safeguarding consumer interests through stringent labeling and manufacturing practices in the industry are likely to pose a major challenge to industry players. The U.S. Food and Drug Administration has already set guidelines for the number of calories in allulose for use in nutrition and supplements, requiring manufacturers to adhere to strict standards for their products to be labeled as low-sugar or low-calorie. These factors are expected to impede the growth of the rare sugar market. Balancing the functional benefits of rare sugar with consumer demand for reduced sugar and dietary standards is a persistent issue for food scientists, limiting the growth of the market.

Recent Developments

In January 2022: DouxMatok collaborated with ingredient manufacturer Blommer Chocolate Company to produce chocolate with much less sugar. The new chocolate-flavored chips, available to Blommer's customers in North America, taste like a regular chocolate bar but contain fewer calories, more fiber, and 50% less sugar.

In October 2022: BRAIN Biotech AG partnered with Bonumose to increase the performance of many enzymes that catalyse cascade reactions in the continuous manufacture of naturally occurring low-calorie, ultra-low-glycemic sweeteners.

In January 2021: Codex, Inc., and Tate expanded and deepened their operations with the production of the newest sweeteners. The new enzyme variants, which replace the existing Codexis enzymes, are converted to raw materials into refined stevia and allulose, lowering the already very competitive production costs of these two products.

Segmentation Analysis

Based on product, the market is segmented into Tagatose, D-xylose, L-arabinose, D-mannose, allulose, L-fucose, and others.  The D-mannose segment had the largest share due to the increased demand for the rare sugar produced from fruits and vegetables. It also exists naturally in some human body cells, making it safe to consume, and is commonly employed in the production of medications to treat carbohydrate-deficient glycoprotein syndrome and urinary tract infections.

Based on application, the global rare sugar market is segmented into pharmaceuticals, dietary supplements, cosmetics & personal care, and food & beverages. Wherein, the food & beverage segment is the dominating segment, which is primarily driven by the growing demand for healthy products with the use of rare sugar sweeteners. These solutions are easy to mix and are suitable for various natural substances as manufacturers are focusing on offering low calories to satisfy consumers' desire for healthier foods and beverages.

North America is Dominating the Market Due to the Growing Need for High-Quality Ingredients and the Rapid Adoption of Low-Calorie Food

North America holds a significant share of the global rare sugars market and is expected to retain its dominance during the forecast period. The region's growing demand for healthy food and beverage options, due to the increasing rates of obesity and diabetes, is driving the market growth. Rare sugars, with their lower calorie count compared to traditional table sugar, are being embraced as a healthy alternative to packaged foods. Additionally, the metabolism-boosting and digestive benefits of rare sugars are attracting more customers.

The ready availability of beauty products containing rare sugars, due to efficient distribution channels such as grocery stores and online platforms, makes it convenient for consumers to switch to these healthier options. The market is further boosted by the increasing incidence of skin problems like dry skin and rosacea among young people.

The government's positive initiatives toward promoting healthy food and beverage options have also played a key role in the market's growth in the region. In the United States, consumers are seeking plant-based, zero-calorie sweeteners to support a healthier lifestyle. The high disposable income of the countries in North America and the growing awareness of the negative effects of sugar and the benefits of its substitutes have also contributed to the region's leadership in the market.

Asia Pacific is the Fastest Growing Market Owing to the Increased Application across Personal Care, Nutritional Supplements, and Pharmaceutical Industries

The Asia Pacific region is poised to become the largest market for rare sugars during the forecast period, owing to the rising demand from the personal care, nutritional supplement, and pharmaceutical industries. The region's growth is driven by China and India, where the personal care sector is expanding and consumers are becoming more health-conscious. The aging population in countries such as Japan and the increasing consumption of personal healthcare products will also drive market demand.

The desire to maintain good health and boost metabolism through dietary supplements is expected to drive the market share of the dietary supplements end-use segment. Additionally, the trend towards healthier lifestyles and the changing eating habits of consumers, which include a preference for low-calorie foods and beverages, are contributing to the growth of the rare sugar market in the Asia Pacific region.

The growth of honey and artificial sweeteners is primarily driven by an increase in health awareness and a desire for healthier and more nutritious food options. The increasing preference for natural products is also fueling the market's expansion. The prevalence of diseases caused by unhealthy lifestyles has led to an increased demand for nutrient-dense foods, which is expected to influence the market over the forecast period.

Competitive Landscape

• Bonumose, Inc.
• Cargill, Incorporated
• DouxMatok
• Ingredion
• International Flavors & Fragrances Inc.
• Lifestream Group Pte Ltd
• Matsutani Chemical Industry Co., Ltd.
• Tate & Lyle
• BRAIN Biotech AG
• SAMYANG CORPORATION

The global rare sugar market is segmented as follows:

By Product

• Tagatose
• D-Xylose
• L-Arabinose
• D-Mannose
• Allulose
• L-Fucose
• Others

By Application

• Pharmaceuticals
• Dietary Supplements
• Cosmetics & Personal Care
• Food & Beverages

By Distribution Channel

• Offline
• Online

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
  • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America