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Allulose sweetener is a low-calorie sugar alternative that has a similar taste and texture to sucrose but with only 10% of the calories. It is considered a rare sugar because it is naturally found in small amounts in some fruits such as figs and raisins. Allulose sweetener has been approved by the FDA in the United States since 2019 and has been gaining popularity among consumers who are looking for healthier and natural options to reduce their sugar intake.
This article will provide a detailed analysis of the market prospect of allulose sweetener, which countries or regions have the greatest demand for allulose sweetener and what are the causes.
Market Size and Growth
According to some market reports, the global allulose sweetener market is expected to grow at a compound annual growth rate (CAGR) of 11.8% from 2023 to 2030. The market size was valued at USD 1.2 billion in 2022 and is projected to reach USD 3.1 billion by 2030.
The major factors driving the market growth are:
- The increasing demand for low-calorie sweeteners due to rising health awareness among consumers, the growing prevalence of obesity and diabetes, and the favorable regulatory policies for allulose sweetener.
- The growing consumer preference for natural and plant-based ingredients over artificial sweeteners, as well as the clean label trend that requires transparency and simplicity in product labels.
- The technological advancements and innovations in the production and application of allulose sweetener, such as enzymatic conversion, fermentation, and blending with other natural sweeteners.
Market Segmentation
The global allulose sweetener market can be segmented by type, application, and region.
By Type
The market can be divided into two types: liquid allulose and powder allulose. Liquid allulose is more soluble and stable than powder allulose, and is suitable for beverages, dairy products, syrups, and sauces. Powder allulose is more convenient and versatile than liquid allulose, and is suitable for bakery products, confectionery, cereals, and snacks.
The liquid allulose segment accounted for the largest market share in 2022, owing to its high demand in various applications. However, the powder allulose segment is expected to witness the fastest growth rate during the forecast period, due to its ease of use and storage.
By Application
The market can be categorized into several applications: beverages, dairy products, bakery products, confectionery, cereals, snacks, sauces, and others.
Beverages include carbonated drinks, juices, sports drinks, energy drinks, tea, coffee, and alcoholic drinks. Dairy products include milk, yogurt, cheese, ice cream, and butter. Bakery products include breads, cakes, cookies, pies, pastries, muffins, and donuts. Confectionery includes chocolates, candies, gums, and mints. Cereals include breakfast cereals, granola bars, oatmeal, and porridge. Snacks include chips, crackers, popcorns, and nuts. Sauces include ketchup, mayonnaise, barbecue sauce, and salad dressing.
The beverages segment dominated the market in 2022, due to the high consumption of sugary drinks and the increasing demand for low-calorie alternatives.
The bakery products segment is expected to register the highest growth rate during the forecast period, due to the rising popularity of baked goods and the need for sugar reduction in this category.
By Region
The market can be divided into five regions: North America, Asia Pacific, Europe, the United States of America, and China.
North America is expected to dominate the market share due to the high consumption of processed foods and beverages, the presence of key players in the region, and the increasing adoption of keto and low-carb diets.
Asia Pacific is expected to witness the fastest growth rate due to the rising disposable income, changing consumer preferences, and growing awareness of natural sweeteners.
Europe is also expected to see a significant growth in demand for allulose sweetener as a new ingredients consortium is seeking approval from the European Food Safety Authority (EFSA) and the UK Food Safety Authority to sell allulose sweetener in these markets. The ANFC expects to submit its novel foods petition within one year’s time.
China is also a promising market for allulose sweetener, as it has a large population of consumers who are seeking healthier and natural alternatives to sugar. China is also the largest producer of allulose sweetener in the world, accounting for more than 80% of the global production capacity. However, the market penetration of allulose sweetener in China is still low, due to the lack of consumer awareness, high price, and limited distribution channels.
The United States of America is the largest consumer of allulose sweetener in the world, as it has a high demand for low-calorie and natural sweeteners. The US market is driven by the increasing prevalence of obesity and diabetes, the growing popularity of keto and low-carb diets, and the favorable regulatory environment for allulose sweetener. The FDA has exempted allulose from being counted as added sugars on the Nutrition Facts label, which has boosted the consumer acceptance and confidence in allulose sweetener.
Market Challenges and Opportunities
The global allulose sweetener market faces some challenges and opportunities that may affect its growth and development.
Some of the challenges are:
- The high cost of production and processing of allulose sweetener, which makes it more expensive than other natural sweeteners such as stevia and monk fruit.
- The limited availability and supply of allulose sweetener, as it is a rare sugar that requires complex extraction and purification methods.
- The lack of consumer awareness and education about the benefits and safety of allulose sweetener, especially in emerging markets such as Asia Pacific and Europe.
- The potential regulatory hurdles and delays in obtaining approval for allulose sweetener in some regions such as Europe and Canada.
Some of the opportunities are:
- The increasing consumer demand for low-calorie and natural sweeteners that can offer a similar taste and functionality to sugar without compromising on health and wellness.
- The rising innovation and research in developing new applications and products that can use allulose sweetener as a key ingredient, such as beverages, dairy products, bakery products, confectionery, cereals, snacks, sauces, and others.
- The expanding distribution channels and partnerships that can enhance the accessibility and availability of allulose sweetener in various markets and regions.
- The growing support from industry associations and organizations that can promote the awareness and adoption of allulose sweetener among consumers and manufacturers.
Conclusion
Allulose sweetener is a low-calorie sugar alternative that has a similar taste and texture to sucrose but with only 10% of the calories. It is a rare sugar that is naturally found in some fruits such as figs and raisins. It has been approved by the FDA in the United States since 2019 and has been gaining popularity among consumers who are looking for healthier and natural options to reduce their sugar intake.
The global allulose sweetener market is expected to grow at a CAGR of 11.8% from 2023 to 2030. The market size was valued at USD 1.2 billion in 2022.