Rare Sugar Market Report 2026

The rare sugar market size has grown strongly in recent years. It will grow from $2.02 billion in 2025 to $2.13 billion in 2026 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to rising prevalence of lifestyle-related disorders, increased demand for sugar substitutes, early adoption in functional food products, expansion of specialty ingredient manufacturing, availability of rare sugar production technologies.

The rare sugar market size is expected to see strong growth in the next few years. It will grow to $2.61 billion in 2030 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to increasing focus on sugar reduction policies, rising demand for clean-label sweeteners, expansion of functional beverage applications, growing investments in enzymatic sugar production, increasing adoption in pharmaceutical formulations. Major trends in the forecast period include growing demand for low-calorie sweeteners, rising adoption in diabetic-friendly foods, expansion of functional sugar alternatives, increasing use in nutraceutical formulations, enhanced focus on sugar reduction solutions.

The rising prevalence of diabetes is expected to propel the growth of the rare sugars market going forward. Diabetes is a chronic condition that occurs when the pancreas does not produce sufficient insulin or when the body cannot effectively use insulin. Rare sugars are increasingly used as substitutes for conventional table sugar in diabetic diets, as they have minimal impact on blood glucose levels. Additionally, regular consumption of rare sugars can help reduce the risk of obesity and type 2 diabetes. For instance, in June 2024, according to the National Health Service (NHS), a UK-based government department, the number of people under the age of 40 diagnosed with diabetes increased from 173,166 in 2022 to 216,440 in 2023, highlighting a rapid rise in diabetes prevalence among younger populations. Therefore, the increasing prevalence of diabetes is driving the growth of the rare sugars market.

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 are 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 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the rare sugar market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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.

This product will be delivered within 1-3 business days.