Tagatose Market

Tagatose Market Outlook (2024 to 2034)

Fact.MR, in its newly published study, says that the global tagatose market is pegged at US$ 162.1 million in 2024. Global demand for tagatose is forecasted to increase at 6% CAGR and reach a market value of US$ 289.2 million by the end of 2034.

Increasing global concerns about obesity and health are predicted to stimulate demand for low-calorie and natural sweeteners as sugar alternatives. Tagatose fits well in this category owing to its natural origin and low calorie content. Health-conscious consumers are opting for healthier food & beverages. Tagatose as a natural sweetener is adopted because of its low glycemic index, which is predicted to appeal to health-conscious individuals, especially those seeking weight-control products.

The prebiotic properties of tagatose are believed to help stimulate the growth of beneficial bacteria in the gut. This aspect is predicted to lead to increased adoption of tagatose in functional foods & beverages. Constant R&D activities are conducted by prominent players to improve the manufacturing process and discover new applications of tagatose, including personal care products, pharmaceuticals, and food. In addition, players are also focusing on minimizing manufacturing costs and, subsequently, product prices to get a competitive edge.

• Sales of tagatose in the United States are predicted to rise at a 5.4% CAGR and reach US$ 48.8 million by the end of 2034.
• Demand for tagatose for use in food & beverages is forecasted to increase at a CAGR of 5.9% and reach a market value of US$ 96 million by 2034-end.

Manufacturers are aiming to get certifications and regulatory approvals from regulatory bodies and health organizations to attract more consumers. Increased acceptance of tagatose as a safe ingredient and supportive regulatory decisions are predicted to stimulate adoption in several industries, including food & beverages and pharmaceuticals.

More health-conscious consumers are adopting clean-label and natural ingredients in their food & beverages. As a naturally derived ingredient, tagatose is predicted to align with this trend, thereby contributing to market growth.

Report Attributes	Details
Tagatose Market Size (2024E)	US$ 162.1 Million
Forecasted Market Value (2034F)	US$ 289.2 Million
Global Market Growth Rate (2024 to 2034)	6% CAGR
East Asia Market Share (2034F)	24.1%
Demand Growth in Japan (2024 to 2034)	7% CAGR
China Market Value (2034F)	US$ 51.9 Million
Sales of Powdered Tagatose (2034F)	US$ 163 Million
Revenue Share of Food & Beverages Segment (2034F)	33.2%
Key Companies Profiled	Damhert Nutrition NV Bonumose LLC CJ Cheijedang Corporation Silver Fern Living Fuel, Inc. Richest Group Sukrin Santa Cruz Biotechnology, Inc. Tokyo Chemical Industry Co., Ltd. Zhejiang Cruz Biotechnology, Inc. Arla Foods

Which Tagatose Market Trends are Opening New Opportunities for Manufacturers?

“Growing Demand for Antidiabetic Food Products”

In recent years, there has been a significant increase in the cases of diabetes across the globe. These cases are predicted to contribute to the popularity of antidiabetic food products on a larger scale. This is predicted to lead to the introduction of multiple food products with antidiabetic features.

More food manufacturers are shifting to low-calorie sugar substitutes, including tagatose instead of sugar. This is predicted to help consumers to manage their insulin response and blood sugar. These antidiabetic properties of tagatose are predicted to stimulate its adoption in the pharmaceutical sector, thereby contributing to tagatose market growth.

“Rising Adoption of Healthy Snacking Practices”

Consumers concerned about their health are opting for easy ways to nourish their bodies while involved in their hectic schedules. The growing consumer preference for healthier food options and the ongoing trend of snacking throughout the day have led to an increased demand for healthier snacks. Because of its prebiotic effects and low-calorie content, tagatose is predicted to become one of the prominent components utilized to manufacture several nutritious snacks.

Tagatose is adopted in several dairy foods and baked goods, including chocolate, truffles, cookies, and Greek yogurt. Therefore, its rising adoption in several healthful sweet treats is anticipated to contribute to the tagatose market share.

“Inclusion of Tagatose as Beneficial Ingredient in Functional Beverages”

Several functional beverages are becoming popular among health-conscious consumers owing to their improved nutritional properties, flavor, and taste. Tagatose is adopted as one of the prominent ingredients in these drinks with a low glycemic index.

Based on its prebiotic benefits, it is predicted to contribute to the enhanced quality of several functional beverages. Moreover, it is also consumed to improve the flavor of several functional drinks, including RTD (ready-to-drink) teas, high-fiber drinks, fruit drinks, and soy beverages.

Why is Demand for Tagatose Not Increasing as Expected?

“Higher Prices of Tagatose Compared to Sugar”

The tagatose manufacturing process is closely associated with higher costs in comparison to sugar. In addition, a limited production outcome with comparatively less supply is predicted to result in increased costs of tagatose. Higher prices of tagatose compared to sugar are predicted to adversely impact its consumption, especially in developing regions, as monetary aspects play a significant role in determining the purchasing of food ingredients and food products.

What Strategy Should Start-ups Incorporate to Enhance Their Market Presence?

“Product Innovation is Key to Gaining Competitive Edge”

There has been a significant increase in the demand for tagatose with novel formulations and applications. Start-ups can explore opportunities with product innovations by manufacturing unique products or enhancing existing ones. This initiative is predicted to involve the development of tagatose blends in combination with new formulations or natural sweeteners for application in several industries, including pharmaceuticals, food and beverages, and personal care, thus contributing to the expansion of the tagatose market size.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, asserts in its newly published study that East Asia is predicted to hold a 24.1% share of the global market by 2034. Increased per-capita food expenditure, along with rising cases of diabetes, is predicted to stimulate demand for sugar substitutes in the region, including tagatose.

What is the Scenario of the Market in the United States?

“Increasing Tagatose Approvals by Regulatory Bodies”

Attribute	United States
Market Value (2024E)	US$ 28.8 Million
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 48.8 Million

The United States is predicted to account for 81.6% of the North American market by 2034. Unlike other sugar substitutes, GRAS (Generally Recognized as Safe) and the United States Food and Drug Administration have approved the consumption of tagatose. This is predicted to add credibility among health-conscious consumers, who prefer certified ingredients. The rising preference for sugar-free sweeteners, including tagatose for blood control and weight management, is predicted to attract trends in the market.

What is Projected to Trigger Demand for Tagatose in China?

“Favorable Modifications in Laws Governing Use of Sweeteners and Food Additives”

Attribute	China
Market Value (2024E)	US$ 27.9 Million
Growth Rate (2024 to 2034)	6.4% CAGR
Projected Value (2034F)	US$ 51.9 Million

China is forecasted to hold a 74.5% share of East Asia market revenue by 2034. Increased sales of tagatose in China are attributed to rising demand for low-calorie and healthier sweeteners and the booming food & beverages industry. In addition, owing to growing health awareness, more consumers in China are adopting healthier sweeteners. Modifications in laws governing sweeteners and food additives are forecasted to positively impact growth prospects for suppliers of tagatose.

Category-wise Insights

Based on application, global demand for tagatose is projected to rise significantly in the food and beverage sector, driven by its advantageous functional properties. It helps in moisture retention and extension of shelf life to improve the stability and quality of food & beverages.

Which Form of Tagatose is Becoming Popular among End Users?

“High Powdered Tagatose Use Due to Easy Water Solubility and Reduced Moisture Retention”

Attribute	Powder
Segment Value (2024E)	US$ 90 Million
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 163 Million

The powdered form of tagatose is forecasted to hold 56.2% of the tagatose market share by 2034. The powdered form of tagatose is easily soluble in water. It blends and dissolves with other ingredients easily, thus contributing to its increased popularity among consumers.

Compared to the liquid form, tagatose powder is predicted to absorb less moisture and can be utilized to prevent lumping, thus extending the shelf life of the product. Further, prominent manufacturers of tagatose are investing in developing new powdered products according to consumer preferences.

Which Application of Tagatose is Set to Occupy a Leading Market Share?

“Tagatose Emerging as Diabetic-friendly Sweetener in Food & Beverage Industry”

Attribute	Food & Beverages
Segment Value (2024E)	US$ 54 Million
Growth Rate (2024 to 2034)	5.9% CAGR
Projected Value (2034F)	US$ 96 Million

The food & beverages segment is predicted to occupy a 33.2% share of the global market by 2034. Functional properties of tagatose, including moisture retention and shelf life extension, are projected to stimulate its demand. Moreover, the consumption of tagatose improves the stability and quality of food & beverages making them more appealing.

The low glycemic index and minimum impact of tagatose on blood sugar levels are forecasted to stimulate its demand. As a diabetic-friendly sweetener, tagatose is becoming popular among the respective consumer base. Adoption of tagatose by food & beverage companies helps in the development of suitable formulations for consumers with specific health conditions or dietary requirements.

Competitive Landscape

Prominent suppliers of tagatose are incorporating several strategies to achieve their goals, including new developments, ensuring product quality control, partnerships, effective supply chain management systems, and innovations.

For instance:

• ERS Genomics Limited and Santa Cruz Biotechnology entered into a licensed agreement in August 2023. According to this agreement, Santa Cruz Biotechnology is predicted to access a patent portfolio of ERS Genomics.
• Arla Foods Ingredients established a partnership with Novozymes in August 2023 to create improved protein ingredients through precision fermentation.

Damhert Nutrition NV, Bonumose LLC, CJ Cheijedang Corporation, Silver Fern, Living Fuel, Inc., Richest Group, Sukrin, Santa Cruz Biotechnology, Inc., Tokyo Chemical Industry Co., Ltd., Zhejiang Cruz Biotechnology, Inc., and Arla Foods are key players in the tagatose market.

Segmentation of Tagatose Market Research

• By Form :

  • Liquid
  • Powder

• By Application :

  • Food & Beverages
    • Confectionery
    • Dairy & Desserts
    • Snacks
    • Beverages
  • Pharmaceuticals
  • Personal Care
  • Retail

• By Distribution Channel :

  • Business to Business
  • Business to Consumer
    • Hypermarkets/Supermarkets
    • Specialty Retail
    • Online Retail

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania