Market Overview
The global rare sugar market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 4.56% during the forecast period (2023-2030).
Rare sugars are considered monosaccharides, and their derivatives are obtained only in trace amounts. These sugars are extracted with the help of the process of fermentation of natural products and enzyme conversion. Rare sugars have important functional properties that make them useful for food and beverage applications. They are sweeteners that impart a clean taste profile and have antioxidant properties. Rare sugars are incorporated as exfoliants and humectants in the cosmetic industry and are used to produce anti-cancer drugs in the pharmaceutical industry. Also, they are extensively used in the food and beverage industry because they possess low glycemic index and can be given to diabetes patients.

Market Dynamics: The inclination towards a healthy lifestyle is increasing the rare sugar market
Increasing inclination to dietary supplements that enhance nutrition and rising awareness of health & nutrition is likely to boost rare sugar demand. Rare sugar solutions are widely used in manufacturing high-quality & low-calorie products that boost the metabolic system and improve overall health. Rare sugars suggest monosaccharides and their derivatives in limited amounts in various food sources, including certain vegetables and fruits, honey, and grains. These sugars could serve as unique alternatives to sweeteners as they offer both metabolic and caloric benefits, from weight loss to lowering insulin resistance and enhancing glycemic control, improving the industry outlook in recent years.
Notably, industry players have been implementing profitable strategies to capitalize on emerging trends in the rare sugar market, thereby augmenting business growth. Industry players are rapidly investing in developing high-quality products with taglines such as low calorie, sustainable, and healthy in an attempt to capitalize on emerging trends in the market sphere. For instance, on 15 October 2022, Bonumose developed a patented process for producing rare sugars that eliminates some processing steps and significantly increases yields. The developed process utilizes multiple ingredients as a feedstock (beyond commodity corn starch), such as by-products of plant-based protein products that have not been valorized.
Strict government regulations & compliances to protect consumer interest through stringent labeling and manufacturing practices in the industry are likely to pose a significant challenge to industry players. For instance, in April 2019, the U.S. Food and Drug Administration issued guidelines on the number of calories in allulose for nutrition and supplement application. Through this regulation, manufacturers must adhere to strict standards for their products to be labeled as low-sugar or low-calorie products. Therefore, these various factors are expected to hinder the growth of the rare sugar market.

Market Segmentation: The food and beverage segment had the highest share in the global rare sugar market
D-tagatose, allulose, and other natural sweeteners serve as low-calorie sweeteners. These sweeteners are replacing table sugar in the food industry. The global population is inclined toward low-calorie sweeteners due to the rise in chronic disorders such as diabetes, blood pressure, and cardiovascular diseases. Furthermore, developments in rare sugar will offer lucrative scope for the food industry. Whole Earth Brands is a global food company enabling healthier lifestyles and providing access to premium plant-based sweeteners, flavor enhancers and other foods through their diverse portfolio of trusted brands and delicious products, including Whole Earth Sweetener?, Wholesome?, Swerve?, Pure Via?, Equal? and Canderel?. With food playing a central role in people’s health and wellness, Whole Earth Brands’ innovative product pipeline addresses the growing consumer demand for more dietary options, baking ingredients and taste profiles.

Geographical Penetration: North America the dominating region during the forecast period.
North America accounted for the high market share of the global rare sugar market, and the region is also expected to maintain its dominance over the forecast period. The increasing prevalence of obesity and diabetes makes consumers opt for healthy food & beverage alternatives. The items are used in prepackaged nourishment as a sound other option, as they contain fewer calories than table sugar. The market request will develop as these sugars helps in boosting the metabolic rate by expanding stomach-related adequacy, which is pulling in more clients. Simple accessibility of beautifying agents containing uncommon sugars in the market inferable from effective dispersion channels, for example, grocery stores and online retail locations, makes it simple for the customer to switch. The market should observe progress as the rising commonness of basic skin issues, for example, dry skin and rosacea, among youthful clients.
The North America region is growing as a leading region in the global rare sugar market due to the presence of the most important players and businesses investing in new Sources and exporting to other countries. For instance, on 12 March 2021, the food ingredient start-up Bonumose partnered with the French drug services firm Novasep to manufacture rare sugars with tagatose and allulose. The low-calorie sugars are naturally present in some fruits but only in small quantities. They have a sweetness similar to that of sucrose. Bonumose uses an enzymatic process to produce them in large amounts from plant-based feedstocks. Production will be in Virginia, where Bonumose is based. For instance, the trade-weighted index (TWI) measures the strength of the US dollar relative to the currencies of US trading partners. As the dollar appreciates, downstream industries can purchase sugar produced abroad at a lower cost, reducing industry revenue. The TWI is expected to increase in 2022. However, an expected depreciation of the US dollar moving forward represents a potential opportunity for the industry.

Competitive Landscape:
The leading players in the rare sugar market are investing heavily in R&D activities to innovate new combinations and formulations packed with health and nutrition. Dietary supplements and nutritional drinks have been adding on to the product profile. These foods and drinks contain rare sugar, which acts as a natural sweetener and promotes low-calorie intake. The competition to expand the market presence has led to strategic collaborations with mergers, acquisitions, joint ventures, partnerships, and startups. Some key players operating in the rare sugar market are ASTRAEA Allulose, Douglas Laboratories, DuPont de Nemours Inc., Hebei Huaxu, Matsutani Chemical Industry Co. Ltd., Naturesupplies, Sanwa Starch, Specom Biochemical, Sweet Cures and Tale and Lyle.

For instance, on 15 January 2021, Tate & Lyle and Codexis extended and deepened their partnership to enhance the production of two of Tate & Lyle’s newest sweeteners: DOLCIA PRIMA? Allulose and TASTEVA? M Stevia Sweetener. Codexis’ latest novel enzyme products are generated closely with Tate & Lyle’s experts. It will enable additional production efficiencies and further enhance Tate & Lyle’s ability to accelerate sugar and calorie reduction with the best-tasting, cost-effective sweeteners. The new enzyme variants, which replace existing Codexis enzymes, are expected to allow Tate & Lyle to convert raw material into more finished stevia and allulose, reducing the already highly competitive cost of goods on the two products.
For instance, on 30 November 2021, Cosun Beet Company, Ingredion Incorporated, Matsutani Chemical Industry and Samyang Corporation announced a new consortium to bolster allulose uptake in the EU and UK markets and support its nutritional labeling as a carbohydrate. Allulose is a monosaccharide usually only found in small quantities in wheat, fruit, raisins, figs, and other foods, such as molasses, maple syrup, and brown sugar.

COVID-19 Impact: Positive impact on the global rare sugar market
The demand for rare sugar increased during the covid-19 spread, owing to its wide application, such as dietary supplements, pharmaceuticals, food & beverages, and others. Moreover, escalating health consciousness among consumers owing to continuous increasing COVID-19 cases worldwide will further propel the demand for rare sugar over the forecast period. Due to growing consumer awareness, the growing demand for low calories and healthy food resulted as a supportive factor for product growth during the pandemic.

The global rare sugar market report would provide access to approximately 61 market data tables, 55 figures and 170 pages