Caitong: Healthy sugar substitutes are growing rapidly, giving the prospects for allulose a wide future.

Caitong released a research report stating that the current global increase in obesity and diabetes rates caused by excessive sugar intake has led to various countries implementing policies to intervene and guide towards more natural sugar substitutes. The new type of sugar substitute, allulose, has outstanding benefits, with its current application mainly focused in the beverage sector. Its penetration rate is much lower in China compared to developed countries overseas, providing a significant growth potential. Industry leaders are expected to benefit first from the promotion of allulose in domestic applications. Caitong's main points are as follows: Why has the trend of sugar substitutes emerged in recent years? The trend of reducing sugar intake and controlling sugar is becoming popular. Excessive sugar intake can have an impact on blood sugar and blood lipids, leading some countries to impose sugar taxes, creating a demand for healthier sugar substitutes. Currently, the global increase in obesity and diabetes rates caused by excessive sugar intake has prompted various countries to implement policies to guide more manufacturers and downstream consumers towards healthier natural sugar substitutes. Which sugar substitutes have growth opportunities? Outstanding attributes of natural new sugar substitutes. The global market for sugar substitutes has vast potential, with natural sugar substitutes like allulose standing out for their health attributes. By 2024, the global/Chinese market size for sugar substitute products is expected to reach $22.1 billion/$10.1 billion (year-on-year +8.1%/+20.9%). As of 2019, the global penetration rate of sugar substitutes is only around 10%, with the size ratio of natural sugar substitutes to artificial sugar substitutes being around 4:6. In terms of sweetness and taste, different sugar substitutes have varying sweetness curves, with many adopting a combination of high and low sweetness levels, providing ample room for the increase of low-level natural sugar substitutes. In terms of safety, consumer demand for health and safety is driving the rapid iteration of natural sugar substitutes, with the new type of sugar substitute, allulose, having outstanding benefits. What are the future prospects for natural sugar substitutes? Diverse downstream applications, focusing on the beverage and baking markets. Currently, the application of sugar substitutes in food and beverages is mainly focused in the beverage sector, especially in beverages related to sports, weight loss, and nutritional health. By 2024, the market size of sugar-free beverages in China is projected to be 57.05 billion yuan, with a CAGR of 42% from 2019 to 2024. However, compared to developed countries overseas, data from Huajing Industry Research Institute shows that by 2023-2024, the penetration rate of sugar-free beverages in China is expected to reach 10%, much lower than developed countries overseas, providing significant growth potential. Allulose: an emerging sugar substitute that closely resembles sucrose, approved for use in China in July 2025. Allulose is an ideal new type of sugar substitute with high barriers to crystallization processing, making it suitable for sugar-free beverages and widely applicable in baking products through the Maillard reaction. The industry expects that the future applications of allulose will diversify (beverages, baking, seasonings, functional foods, etc.), gradually showing high growth potential. Only a few companies worldwide can produce allulose, with the global market size expected to reach approximately $200 million by 2024, and Global Info Research predicts it to reach $500 million by 2030. On July 2, 2025, the National Health Commission and the State Administration for Market Regulation officially approved allulose as a new food ingredient. The industry expects that industry leaders such as Shandong Bailong Chuangyuan Bio-Tech and Baolingbao Biology, with production capacity and technological advantages, will be the first to benefit from the promotion of allulose in domestic applications, bringing incremental dividends. Risk warning: Intensified market competition; fluctuations in upstream costs; food safety risks.