Rare Sugar Market Report 2025

The rare sugar market size has grown steadily in recent years. It will grow from $1.93 billion in 2024 to $2.01 billion in 2025 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to sugar reduction initiatives, expansion of functional confectionery, supportive regulatory environment, increased use in pharmaceuticals, increase prevalence of diabetes.

The rare sugar market size is expected to see steady growth in the next few years. It will grow to $2.41 billion in 2029 at a compound annual growth rate (CAGR) of 4.6%. The growth in the forecast period can be attributed to consumer demand for natural sweeteners, expansion of personalized nutrition, continued research on health benefits, alternative sweeteners in foodservice, diversification of rare sugar product portfolio. Major trends in the forecast period include innovations in rare sugar production, research and development in food technology, natural and clean label products, collaborations and partnerships, health and wellness trends.

The rising incidence of diabetes is anticipated to drive growth in the rare sugars market in the future. Diabetes is a chronic condition that occurs when the pancreas fails to produce enough insulin or when there is insulin resistance. Rare sugars can serve as substitutes for table sugar for diabetic patients, as they do not raise blood glucose levels. Additionally, regular consumption of rare sugars may help reduce the risk of obesity and type 2 diabetes. For example, in June 2024, the National Health Service (NHS), a UK government department, reported an increase in diabetes cases among individuals under 40, rising from 173,166 in 2022 to 216,440 in 2023. This notable increase underscores a troubling trend within this age group, indicating a swift rise in diabetes prevalence among younger populations. Consequently, the growing incidence of diabetes is fueling the expansion of the rare sugars market.

The growing awareness of healthy eating is expected to boost the rare sugars market in the coming years. A healthy diet consists of a balanced eating pattern that provides essential nutrients, enhances overall health, and helps lower the risk of chronic diseases. Health organizations stress the importance of reducing sugar consumption in dietary guidelines, encouraging both consumers and food manufacturers to consider alternative sweeteners like rare sugars. For example, a report from the International Food Information Council in April 2023 indicated that about 52% of Americans followed specific eating patterns or diets in the past year, maintaining the same level as the previous year. Notably, Gen Z (66%) and Millennials (63%) were more likely than Gen X (50%) and Boomers (41%) to embrace these dietary practices. Interestingly, Boomers saw a significant rise in diet adherence, increasing from 29% in 2022 to 41% currently. The most popular dietary choices included clean eating (16%), mindful eating (14%), and calorie counting (13%). Thus, the increasing focus on healthy diets is driving the growth of the rare sugars market.

Technological advancements play a pivotal role in driving the rare sugars market's popularity, with major industry players actively embracing innovation to maintain their market standing. One notable example is Bonumose Inc., a US-based food ingredient manufacturer, which, in March 2023, unveiled a state-of-the-art manufacturing and research and development facility. The facility employs a novel and cost-effective proprietary enzymatic process for producing tagatose, involving the conversion of fructose 6-phosphate (F6P) to tagatose 6-phosphate (T6P) catalyzed by an epimerase, and subsequent conversion of T6P to tagatose catalyzed by phosphatase, all within a single reaction vessel. This ATP-free process results in tagatose, a sweetener that is 90% as sweet as table sugar but with 62% fewer calories and no harsh aftertaste.

Major companies in the rare sugars market are prioritizing technological innovations, such as rare sugar plants, to improve production efficiency and satisfy increasing consumer demand. Rare sugar plants are specialized facilities or cultivation methods aimed at producing rare sugars, which are naturally occurring sugars found in limited amounts in certain fruits, vegetables, and other plant sources. For example, in March 2023, Bonumose, Inc., a US-based early-stage food ingredient manufacturer, began producing tagatose, a low-calorie sugar alternative. This cutting-edge plant employs a proprietary enzymatic process to transform plant-based starches into tagatose, which provides 92% of the sweetness of regular sugar while containing only 38% of the calories. The initiative aims to address the rising demand for healthier sweetening options across various food and beverage industries, bolstered by strategic partnerships with major companies like Hershey and ASR Group.

In November 2023, Hovione, a Portugal-based company specializing in assisting pharmaceutical customers with new and off-patent drugs, made an undisclosed acquisition of ExtremoChem Lda. This strategic move provides Hovione with access to high-performance functional materials from ExtremoChem, demonstrating potential in stabilizing biopharmaceuticals throughout manufacturing, purification, formulation, and distribution. ExtremoChem Lda, based in Portugal, is recognized for producing rare sugars, including bioinspired synthetic sugar.

Major companies operating in the rare sugar market include ASTRAEA Allulose LLC, Douglas Laboratories Inc., DuPont de Nemours Inc., Hebei Huaxu Pharmace, Cosun Beet Company, Bunge Limited, Cargill Incorporated, ED&F Man Commodities Sp Z.O.O., Louis Dreyfus Company, Mitr Phol Sugar Corporation, Nordzucker AG, Südzucker AG, Tereos SAS, Wilmar International Limited utical Co. Ltd., Matsutani Chemical Industry Co. Ltd., Nature Supplies Co. Ltd., Sanwa Starch Co. Ltd., Specom Biochemical Co. Ltd., Sweet Cures Limited, Tate & Lyle plc, Bonumose Inc., CJ CheilJedang Corp., Ingredion Inc., International Flavors & Fragrances Inc., Jinan Shangbo Biotech Co. Ltd., Samyang Corporation, Illovo Sugar Limited, Associated British Foods plc, Archer Daniels Midland Company, ASR Group.

North America was the largest region in the rare sugar market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global rare sugar market during the forecast period. The regions covered in the rare sugar market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rare sugar market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Rare sugars are monosaccharides and their derivatives found in limited quantities in nature. As a low-calorie sweetener, they offer the sweet taste and texture of sugar without the associated calorie content.

The primary types of rare sugars include D-mannose, allulose, tagatose, D-xylose, L-arabinose, L-fucose, D-psicose, and others. D-mannose, a sugar related to glucose, is naturally present in fruits and the human body. These rare sugars are accessible through various distribution channels such as supermarkets, hypermarkets, convenience stores, pharmacies, and online platforms. They find applications in diverse industries including dietary supplements, cosmetic and personal care products, pharmaceuticals, and the food and beverage sector.

The rare sugar market research report is one of a series of new reports that provides rare sugar market statistics, including rare sugar industry global market size, regional shares, competitors with a rare sugar market share, detailed rare sugar market segments, market trends and opportunities, and any further data you may need to thrive in the rare sugar industry. This rare sugar market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The rare sugars market consists of sales of L-rhamnose, L-glucose, D-mannoheptulose, D-lyxose, and D-galactose. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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