Allulose Market - Growth Drivers and Challenges
Growth Drivers
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Rising demand for low-calorie sweeteners: Allulose and other low-calorie sweeteners are becoming more popular as obesity and diabetes rates rise. The WHO reports that over 423 million people worldwide have diabetes and that obesity has nearly tripled since 1975. Allulose contains about 91% fewer calories than sugar (sucrose), with a caloric value of only 0.3–0.5 kcal/g. The approval of this sweetener in various global territories, including the United States, Japan, and South Korea, contributes to its acceptance in further product formulations. This rising demand is prompting more product formulations in the beverage, dairy, and bakery markets.
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Expanding functional food & beverage market: The global functional food market was valued at USD 281 billion in 2023 and is expected to surpass USD 401 billion by 2030. Allulose provides health benefits (low glycemic index, improved insulin response, antioxidant properties), making it suitable for functional beverages and nutritional snacks. Allulose is being incorporated into protein bars, sports drinks, and dairy-alternative products, making it very attractive to health-conscious and fitness-focused consumers around the globe.
1. Global Allulose Demand Trends (2014–2024)
Competitive Pressures from Alternative Materials
|
Alternative Sweetener |
2023 Market Share (%) |
Price per kg (USD) |
Growth Rate (CAGR%) |
|
Stevia |
36% |
$51 |
10.3% |
|
Erythritol |
26% |
$31 |
8.6% |
|
Monk Fruit Extract |
16% |
$81 |
12.1% |
|
Allulose |
13% |
$46 |
14.9% |
Consumption Trends & End-Use Applications
|
Sector |
Market Share (%) |
Key Applications |
Growth Rate (CAGR%) |
Notable Adoption |
|
Bakery & Confectionery |
31% |
Sugar-free cookies, chocolates, and baked goods |
11.6% |
Major snack brands |
|
Beverages |
26% |
Low-calorie sodas, sports drinks, RTD teas |
13.3% |
PepsiCo, Coca-Cola |
|
Pharmaceuticals |
21% |
Diabetic supplements, chewable tablets |
12.1% |
Rising diabetes demand (WHO) |
2. Emerging Trade Dynamics & Future Market Prospects
Allulose Trade Data (2019–2024)
Global Import/Export Overview ($ Million)
|
Year |
Global Exports |
Global Imports |
Top Exporters |
Top Importers |
|
2019 |
2,101 |
2,051 |
Japan (41%) |
U.S. (36%) |
|
2020 |
1,751 |
1,721 |
China (26%) |
EU (29%) |
|
2021 |
2,401 |
2,381 |
Japan (39%) |
U.S. (33%) |
|
2022 |
3,501 |
3,451 |
Japan (43%) |
Asia (46%) |
|
2023 |
3,801 |
3,751 |
EU (21%) |
North America (31%) |
|
2024 |
4,101 |
4,051 |
Japan (46%) |
U.S. (41%) |
Key Trade Routes & Shipment Values
Japan-to-Asia (2019–2024)
|
Year |
Export Value ($M) |
Growth Rate |
Major Destinations |
|
2019 |
841 |
– |
South Korea (31%), China (26%) |
|
2022 |
1,471 |
+16% YoY |
China (36%), ASEAN (29%) |
|
2024 |
1,851 |
+13% YoY |
India (21%), Vietnam (19%) |
Europe-to-North America (2019–2024)
|
Year |
Export Value ($M) |
Growth Rate |
Major Destinations |
|
2019 |
421 |
– |
U.S. (81%), Canada (16%) |
|
2022 |
631 |
+13% YoY |
U.S. (86%), Mexico (11%) |
|
2024 |
751 |
+10% YoY |
U.S. (91%) |
Challenges
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High production cost: The expensive price of allulose is partially due to the complexities of enzymatic conversion from fructose and contributing factors of small-scale production capabilities. The propitious cost of allulose is often described as costing $11–$16/kg, versus a molecular price for sugar of $0.51–$1.01/kg; related to these cost factors, limited yields designed during the extraction and purification of allulose play a part in its pricing. In 2024, market data has suggested that over 71% of allulose manufactured globally could only be produced by a small handful of manufacturers. This inefficient allocation has therefore led to a bottleneck in the pricing of allulose due to domestic vitamin markets wanting larger quantities of allulose but finding economic transition costs when truly wanting to use longer cycle methods of sweetening processes.
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Limited industrial-scale manufacturing: The bottleneck of allulose production is tied in large part to the underlying enzyme-catalytic bioconversion production strategies that remain only at modest levels of optimization. Only a small handful of manufacturers offer industrial-level infrastructure, such as Tate & Lyle and Matsutani Chemical. Most global annual production capacities are still under 50,001 metric tons, versus millions for sugar or other conventional sweeteners. Therefore, there is little economy of scale for allulose, particularly concerning the beverage market, bakery industry, or bulk purchases of raw sugars.
Allulose Market Size and Forecast:
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
14.8% |
|
Base Year Market Size (2024) |
USD 312.6 million |
|
Forecast Year Market Size (2037) |
USD 1.80 billion |
|
Regional Scope |
|