The global tagatose market size is expected to expand from USD 155.0 million in 2023 to USD 243.0 million in 2033. Over the forecast period, global demand for tagatose is projected to grow at a 4.6% CAGR.
| Attributes | Key Insights |
|---|---|
| Estimated Global Tagatose Market Size (2023E) | USD 155.0 million |
| Projected Market Value (2033F) | USD 243.0 million |
| Value-based CAGR (2023 to 2033) | 4.6% |
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Tagatose is gaining immense popularity as a food sweetener. It is widely used as a low- or no-calorie substitute for sugar, suitable for consumers' diets. Tagatose is also known for its prebiotic properties, making it preferable for consumers facing gut health issues.
Tagatose is gaining importance as it was tough to produce chocolate earlier without sucrose or sugar. Nowadays, chocolate, confectionery, or any ice cream product can be created using tagatose. Its anhydrous crystalline form, stability, and high melting point make it a perfect and healthy substitute for sugar and sucrose.
Rising awareness about the advantages of tagatose is emerging as a critical factor that will boost the worldwide tagatose market. Tagatose is used as a sugar substitute in a diverse range of food and beverage products and the pharmaceutical industry.
Tagatose is a low-calorie and low glycemic index alternative to traditional sugar. It is getting popular due to increasing health awareness among consumers.
Growing emphasis of manufacturers on product innovation and production processes is expected to trigger tagatose sales. To attract consumers, companies are introducing new and innovative products with low sugar that do not differ in taste.
Companies are also focusing on getting approvals from regulatory bodies. For instance, Bonumose got approval from the USDA and Health Canada for the low-glycemic, rare sugar tagatose in 2022.
Manufacturers of food and beverages are trying to adopt natural and healthy sugar substitutes, including tagatose, in an effort to reduce the amount of sugar in their products. This is because consumers are becoming aware of the potential health risks of artificial sweeteners.
The expanding food and beverage sector is anticipated to raise demand for tagatose during the assessment period. Further, rising interest in low-carbohydrate diets and other health-related trends are expected to increase demand for tagatose as a sugar substitute.
The tagatose market is anticipated to rise faster due to the growing popularity of functional food, which offers additional health benefits. During the assessment period, demand for tagatose as a natural sugar alternative is set to increase due to consumer awareness of the adverse effects of sugar consumption on health.
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From 2018 to 2022, the global market for tagatose experienced a CAGR of 3.7%. In the assessment period, the worldwide market for tagatose is forecast to rise at a 4.6% CAGR.
| Historical CAGR (2018 to 2022) | 3.7% |
|---|---|
| Forecast CAGR (2023 to 2033) | 4.6% |
As consumers become health-conscious and seek healthy substitutes for sugar, the demand for tagatose is expected to rise. Besides that, increasing diabetes and other health issues related to sugar consumption will contribute to the market growth.
Tagatose is promoted as a natural sweetener that is healthier than regular sugar and certain artificial sweeteners. The use of tagatose in a variety of food and beverage products, such as dairy, baked goods, and confections, is set to bolster sales through 2033.
Companies are investing in research and development activities concentrated on enhancing tagatose manufacturing procedures and broadening its uses. Efforts are also being made to understand the effects of tagatose on gut health and its potential as a prebiotic.
Requests for regulatory authorization are made in several locations for the use of tagatose as a food additive. The food and beverage industry's adoption and utilization of sweeteners depend on obtaining regulatory permission. Hence, increasing approvals from regulatory bodies will create opportunities for tagatose manufacturers.
The section covers a comparative view of three businesses similar to the tagatose market. As per estimations, the sugar-free sweet market would lead out of the three businesses. The demand for tagatose is set to surge at a CAGR of 4.6% by 2033. The sugar-free sweet and low-calorie sweetener markets are expected to rise at CAGRs of 4.9% and 4.7%, respectively, in 2033.
Tagatose Market:
| Attributes | Tagatose Market |
|---|---|
| CAGR (2023 to 2033) | 4.6% |
| Growth Factor | Growing consumer demand for foods low in calories and sugar is expected to positively impact tagatose sales. |
| Restraining Factor | Tagatose is costly to produce, which could make it less affordable than other sweeteners. |
| Key Trends | Several people are switching to sugar-restricted ketogenic diets, creating opportunities for tagatose manufacturers. |
Sugar-free Sweet Market:
| Attributes | Sugar-free Sweet Market |
|---|---|
| CAGR (2023 to 2033) | 4.9% |
| Growth Factor | Rising popularity of low-calorie diets, which necessitates sugar-free product consumption, will likely boost the growth of the sugar-free sweet market. |
| Restraining Factor | The potential rise of sugar-free sweets can be impeded by lack of consumer knowledge. |
| Key Trends | Sugar-free sweets are becoming increasingly popular amid rising prevalence of diabetes and obesity. |
Low-Calorie Sweetener Market:
| Attributes | Low-Calorie Sweetener Market |
|---|---|
| CAGR (2023 to 2033) | 4.7% |
| Growth Factor | Rising awareness about several health problems, including diabetes and obesity, is expected to drive demand for low-calorie sweeteners. |
| Restraining Factor | Consumer preferences for alternative sweeteners may have an effect on the market, depending on things like affordability and health benefits. |
| Key Trends | Competitors are trying to improve their product offerings by including low-calorie sweeteners like natural and cholesterol-free stevia in their product line. |
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The table below highlights the anticipated growth rates of different countries. Among these, the United States is expected to remain a highly lucrative market for tagatose, exhibiting a CAGR of 4.9%. Japan and India are anticipated to follow with CAGRs of 4.0% and 4.1%, respectively.
| Countries | Value-based CAGR |
|---|---|
| United States | 4.9% |
| United Kingdom | 3.9% |
| China | 3.6% |
| India | 4.1% |
| Japan | 4.0% |
The United Kingdom tagatose market is expected to reach a valuation of USD 12.4 million by 2033. It will likely hold a prominent value share of around 24.5% in the Europe tagatose market.
In the United Kingdom, consumers are becoming conscious about their sugar intake and are seeking substitutes that can provide sweetness without excessive calories. This is increasing the demand for sugar substitutes like tagatose in the United Kingdom.
Food manufacturers in the United Kingdom have started using tagatose as a sweetener to reduce calories and maintain the same taste. This increases the use of tagatose in confectionery products such as chocolates, candies, and ice creams.
Tagatose is becoming an ideal option for consumers seeking affordable natural sugar substitutes. This is due to tagatose's low cost compared to other sweeteners like Splenda and stevia.
Increasing number of individuals following Keto and other carb diets is expected to boost sales of tagatose in the United Kingdom. This is because these people refrain from consuming traditional sugars and are inclined towards sugar substitutes like tagatose.
The United States tagatose industry is poised to exhibit a CAGR of 4.9% during the assessment period. By 2033, the United States market is expected to reach USD 32.1 million. This is attributable to rising preference for low-calorie sweeteners and increasing approvals from regulatory bodies.
Unlike other sugar substitutes, tagatose is approved by the USA Food and Drug Administration and GRAS (Generally Recognized as safe). This adds credibility amongst consumers who prefer using ingredients certified safe by regulatory bodies, thereby driving tagatose demand.
The market for sugar-free sweeteners, including tagatose, is expanding rapidly across the United States. This is because consumers in the United States are choosing sugar-free lifestyles for weight management and blood sugar control.
Tagatose-based products like sugar-free beverages are broadly offered in supermarkets and online stores in the United States. This makes them more accessible to consumers and will boost tagatose-based product sales revenue in the country.
Tagatose demand in India is anticipated to rise at a CAGR of 4.1% during the forecast period. By 2033, India is likely to hold a market share of 31.3% in the South Asia tagatose market. This is attributable to growing incidence of diabetes and other health problems due to sugar consumption.
In India, consumers are shifting towards healthy lifestyle choices as they become health conscious. They have started opting for sugar alternatives like tagatose, which is expected to boost the target market.
Tagatose offers sweetness similar to sugar and contains fewer calories. This is making it a preferred choice among health-conscious populations and fueling its demand.
In India, diabetes is a significant health concern, which is leading to an increase in demand for sugar-free products tremendously. As tagatose has a negligible effect on blood sugar levels and is not glycaemic, it is a suitable alternative for individuals with diabetes.
The beverage industry in India is booming due to consumers changing preferences and increased disposable income. Tagatose is widely used to make low-calorie drinks and desserts, which attracts health-conscious consumers as well.
Key tagatose manufacturers in India have been constantly working to market their products to reach as several potential customers as possible. These factors are integral to the growing tagatose sales in the Indian market.
Sales of tagatose in China are predicted to rise at a CAGR of 3.6% during the forecast period. This is due to booming food & beverage industry and growing demand for healthier, low-calorie sweeteners.
With rising health awareness, consumers across China are looking for healthier, lower-calorie sweeteners. This is expected to drive demand for alternative sweeteners in China, including tagatose.
Changes in consumer perceptions of sugar and artificial sweeteners is also affecting tagatose acceptability in China. This will improve China’s tagatose market share globally during the assessment period.
The regulatory landscape significantly influences the market outlook for sweeteners like tagatose in China. Modifying laws governing food additives and sweeteners may impact the market and create growth prospects for tagatose manufacturers.
Japan tagatose market is set to grow at 4.0% CAGR during the forecast period. It will likely hold a dominant share of the East Asia tagatose market by the end of 2033. This is due to growing applications of tagatose in the thriving food & beverage sector.
The food sector in Japan is conducting research and development, which could result in the release of new goods that include tagatose. Partnerships between academic institutions and business leaders fuel innovation and drive tagatose demand.
Growing consumer awareness regarding the uses and advantages of tagatose may impact the market's acceptance of the product in Japan. The distribution and accessibility of tagatose-containing items in retail channels, such as supermarkets and health food stores, is influencing consumer accessibility.
The below section shows the powder tagatose segment dominating the global market in terms of form. It is anticipated to total USD 158.9 million in 2033. Based on application, the food & beverage segment is poised to exhibit a 5.1% CAGR through 2033.
| Form | Powdered Tagatose |
|---|---|
| Projected Value (2033) | USD 158.9 million |
Based on the form, demand for powder tagatose will remain high during the assessment period. With a market share of around 47.8%, the powder segment is projected to reach a valuation of USD 158.9 million in 2033. This is due to multiple advantages of powdered tagatose.
Tagatose's powder form is easily soluble in water. It dissolves and blends with other ingredients, making it a popular choice among consumers.
Considering tagatose powder is less likely to absorb moisture than liquid, it can be used to prevent caking and lumping, extending the product's shelf life. During the projection period, this factor can boost the growth of the powdered tagatose segment in the market.
Growing popularity in potential regions, including Latin America and Asia Pacific, is expected to increase demand for powdered tagatose. Key leaders and companies are developing and launching new powdered products based on consumer preferences and tastes to maximize revenues.
| Application | Food and beverage |
|---|---|
| Projected Value (2033) | USD 102.5 million |
The food and beverage segment is expected to register a CAGR of 5.1% during the assessment period. It will likely total USD 102.5 million by 2033, making it a highly lucrative application of tagatose.
In the food and beverage industry, tagatose is used for its functional properties, such as the extension of shelf life and moisture retention. It improves the quality and stability of the food and beverage products, which is more appealing to consumers.
Tagatose usage is increasing as a flavor enhancer in beverages, dairy, and confectionery products. This is because it helps to bring out natural flavors of the ingredients. It is also being used for browning baked goods or any desired effect.
Tagatose has a low glycemic index and minimal impact on blood sugar levels. Hence, it is considered a diabetic-friendly sweetener. By incorporating tagatose, food and beverage companies can develop formulations suitable for individuals with specific dietary requirements or health conditions.
Leading tagatose manufacturers are focusing on expanding and upgrading their portfolios to meet the growing demand for low-calorie and diabetic-friendly sweetener options. They are investing in research and development to develop new tagatose products that offer improved taste and texture compared to earlier versions.
Key players are also expanding their production capabilities and distribution networks to ensure sufficient supply and availability of tagatose in the food and beverage industry. Certain manufacturers are partnering with food and beverage companies to incorporate sugar alcohol, like tagatose, into their products.
Recent Developments in the Tagatose Market:
| Attribute | Details |
|---|---|
| Estimated Tagatose Market Size (2023) | USD 155.0 million |
| Projected Market Value (2033) | USD 243.0 million |
| Anticipated Growth Rate (2023 to 2033) | 4.6% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Volume (MT) and Value (USD million) |
| Key Regions Covered | Latin America; North America; Europe; South Asia; East Asia; Oceania; and Middle East and Africa |
| Key Countries Covered | Canada, United States, Mexico, Brazil, Chile, Peru, Argentina, Germany, France, Italy, Spain, United Kingdom, Netherlands, Belgium, Nordic, Russia, Poland, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Central Africa, and others |
| Key Market Segments Covered | Form, Application, and Region |
| Key Companies Profiled | Damhert Nutrition NV; CJ Cheiljedang Corporation; Bonumose LLC; Silver Fern; Santa Cruz Biotechnology, Inc.; Zhejiang Yixin Pharmaceutical Co., Ltd.; Living Fuel, Inc.; Sukrin; Arla Foods; Tokyo Chemical Industry Co., Ltd. (TCI) |
The tagatose market is estimated to reach a valuation of USD 155.0 million in 2023.
The global tagatose market value is projected to reach USD 243.0 million by 2033.
Global tagatose demand is expected to increase at a CAGR of 4.6% through 2033.
South Asia is expected to have a market share of 28.9% by 2033.
The target market registered a CAGR of 3.7% from 2018 to 2022.
It is 90% to 92% as sweet as sugar.
It is produced by chemically or enzymatically isomerizing D-galactose, which is obtained by hydrolyzing lactose.
1. Executive Summary 2. Market Overview 3. Market Dynamics 4. Value Chain Analysis 5. Global - Pricing Analysis 6. Global Market Size (in Value (USD million) and Volume (MT) Analysis 2018 to 2022 and Forecast, 2023 to 2033 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form 7.1. Liquid 7.2. Powder 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Food and Beverage 8.1.1. Confectionery 8.1.2. Dairy and Desserts 8.1.3. Snacks 8.1.4. Beverages 8.2. Pharmaceuticals 8.3. Personal Care 8.4. Retail 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia 9.6. Oceania 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Country-level Market Analysis, 2022 18. Market Structure Analysis 19. Competition Analysis 19.1. Damhert Nutrition NV 19.2. CJ Cheiljedang Corporation 19.3. Bonumose LLC 19.4. Silver Fern 19.5. Santa Cruz Biotechnology, Inc. 19.6. Zhejiang Yixin Pharmaceutical Co., Ltd. 19.7. Living Fuel, Inc. 19.8. Sukrin 19.9. Arla Foods 19.10. Tokyo Chemical Industry Co., Ltd. (TCI) 19.11. Other Players (On Additional Requests) 20. Assumptions and Acronyms Used 21. Research Methodology
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Tagatose Market
