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Tagatose Market Segmented By D-Tagatose in Liquid and Powder Form in Food and Beverages, Pharmaceuticals, Personal Care, Retail
The market for tagatose can be expected to expand at a value based CAGR of 5.2% and show an increase in revenue from US$ 162.6 Mn to around US$ 250.4 Mn by 2033.
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Tagatose Market Size (2023E) |
US$ 162.6 Mn |
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Projected Sales of Tagatose (2033F) |
US$ 250.4 Mn |
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Value CAGR (2023-2033) |
5.2% |
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Value Share of Top 4 Countries (2022E) |
35% |
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The global tagatose market has witnessed significant growth in the historical period registering a CAGR of 2.9% in the historical period and was valued at US$ 162.6 Mn in 2023. The market is expected to grow steadily with increasing awareness about applications of tagatose.
According to World Health Organization (WHO), the number of obesity cases has tripled since 1975, and continues to increase at a higher rate. High sugar consumption is among the main factors contributing to obesity. Rising awareness about the adverse impact of the consumption of high calorie food, including severe diseases such as obesity and heart diseases, has led to the adoption of low carb and low calorie food diets.
Food manufacturers are using low-calorie fortified sugar alternatives such as tagatose to offer products that fit within the requirements of these healthy diets. Furthermore, tagatose has a low glycaemic index, which makes it suitable for use in dietetic foods. These factors are projected to drive the global tagatose market over the forecast period.
As the health and nutrition factor would continue to dominate consumer food preferences, rising tagatose consumption is expected to drive the market over the coming years. The global market for tagatose is estimated to reach an approximate valuation of US$ 250.4 Mn in the forecast period.
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According to the WHO, diabetes is one of the most common causes of death. Antidiabetic food products are rapidly gaining traction on a global scale, attributable to the rising cases of diabetes. This has led to a marked increase in the introduction of food products with an antidiabetic claim. Growing concerns regarding diabetes are influencing consumers to gradually move toward the consumption of antidiabetic food products. Between 2014 to 2018, global antidiabetic product launches registered an average annual growth of 39%.
Food manufacturers are shifting from the use of sugar to the use of low-calorie sugar substitutes such as tagatose, which may lower the consumer’s blood sugar and insulin response. This antidiabetic property of tagatose also increases its use in the pharmaceuticals industry, thereby catalysing the growth of the global tagatose market.
“‘Healthy Snacking’ Augmenting Demand for Tagatose”
Consumers who are concerned about their health are looking for easy ways to get the nourishment they need while also incorporating it into their busy schedules. Demand for healthier snacks is expected to increase as a result of the continuous snackification trend and consumer preference for healthy foods. Due to its low calorie content and prebiotic effects, tagatose is one of the main components used to manufacture a wide variety of nutritious snacks. Tagatose is generally utilised in baked goods and dairy foods such Greek yoghurt, cookies, truffles, and chocolate.
Tagatose is a useful element in many of the healthful sweet treats that Damhert Nutrition sells. These goods include Damhert Tagatesse Centwafers Cacao, Damhert Tagatesse Carre Apricot, Damhert Tagatesse Aapricot Jam Portionpack, and Bran Cookies.
“Tagatose is a Beneficial Ingredient for ‘Functional Beverages’”
Due to their improved taste, flavor, and nutritional qualities, functional beverages are quickly becoming more and more popular with customers. The major ingredient in these drinks is emerging as tagatose, which has a low glycaemic index (the relative ranking of carbohydrates in foods according to their effect). By having prebiotic benefits, tagatose enhances the quality of functional beverages as well. Additionally, it can be used to improve the flavor of functional drinks such soy beverages, Ready-to-Drink (RTD) teas, enhanced fruit drinks, and high fiber drinks.
“Growing Adoption of ‘Health Consciousness’”
Health consciousness among consumers is increasing, which impacts their food consumption patterns. The ongoing trend of healthy eating habits influences consumers to opt for products that offer added health and nutrition. Tagatose is a GRAS (Generally Recognize as Safe) sweetener according to the U.S. Food and Drug Administration (FDA) regulation.
On back of these factors, tagatose is one of the prominent health beneficial sweeteners used in bakery, confectionery, dairy, beverages, and other products. Sales of tagatose are expected to witness a substantial increase due to the changing consumption patterns and shift towards sugar alternatives.
“Increasing Popularity of ‘Keto Diet’ to Promote Use of Tagatoses”
The consumption of low carbohydrate, moderate protein, and high fat diets is becoming widely popular. Keto diet is popular among millennials and the working population, which is opening new avenues for manufacturers of tagatose. The prime focus of a keto diet is lowering carbohydrate intake and increasing consumption of protein and fats. A low carb sweetener, such as tagatose, is a suitable for consumers following the keto diet. On back of these factors, the use of tagatose is increasing in the food processing industry, which is expected to boost growth of the tagatose market.
“High Price of Tagatose as Compared to Sugar”
The manufacturing process of tagatose is associated with greater cost as compared to sugar. Moreover, the less production outcome with limited supply are also considerable factors that lead to high pricing of tagatose. A few years ago, price of tagatose reached two and a half times that of sugar. This can affect tagatose sales in developing regions, where pricing is a major factor that determines purchase of food products and food ingredients.
What is the Regional Market for Tagatose Expected to Look Like?
East and South Asia are projected to witness high growth rates in the global tagatose market during the forecast period of 2019-2029, attributable to increasing per-capita food expenditure coupled with rapid urbanization in these two regions. Increasing cases of diabetes and several heart diseases as a result of excess consumption of sugar have led to the adoption of tagatose in South Asia. East Asia is also expected to register higher consumption of sugar substitutes, including tagatose.
Europe and North America account for a significant market value share in the tagatose market, owing to the higher production outlook of tagatose in these regions. Europe has a large number of tagatose manufacturers as well as a stronger consumer base as compared to other region. Several companies in Europe also offers tagatose-based snacks and meals, which has increased tagatose consumption in this region. North America is also expected to hold noteworthy share in the global tagatose market, attributable to the positive consumer perception toward low-calorie sugar substitutes.
What is the Outlook for East Asian Tagatose market?
The East Asian market currently holds a valuation of US$ 24.2 Mn and is expected to show the maximum growth based on its forecast value CAGR of 7.6% which is highest among all the regions. This is likely due to the rapid urbanisation in the region which has subsequently pushed focus toward improvement of diet and culinary habits. With increasing access to information and studies, the side effects of in the long run deter individuals from consumption of sugars and steer them towards suitable alternatives.
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Which Form of Tagatose Accounts for High Revenue Generation?
The largest share is contributed by the powdered form of tagatose which is around US$ 118.1 Mn in 2023 with a forecast value based CAGR of 4.9%. The powdered form is expected to hold the major market share in the upcoming years as well which is likely due to the ease of transportation and storage of powered form as compared to the liquid. Application of powdered form is simpler and more versatile as well when compared to the liquid.
Which End Use Accounts for Greater Footprint in the Tagatose Market?
The food and beverage segment accounts for a total valuation of US$ 94.4 Mn in 2023 and is expected to show the fasted growth in its segment based on its forecast value CAGR of 5.1%. The increasing usage by manufacturers of artificial sweeteners in the food and beverage sector has resulted for the higher value share.
The prebiotic effects of eating tagatose result in an increase in the number of good bacteria in the colon and large intestine. It encourages the lactic acid and butyrate bacteria production, both of which are necessary for a healthy digestive system. In addition, tagatose functions as a dietary fibre and is converted by gut bacteria into short-chain fatty acids, which aids in reducing the acidity in the large intestine. Tagatose is a perfect ingredient for goods that promote good digestion because of its combination of sweetness and prebiotic properties.
Regional and local companies predominate the worldwide tagatose market. Manufacturers of tagatose specifically market their products to consumers who prefer the low-calorie, healthier sugar alternatives. In order to provide consumers with even more nutritious food options, food producers are also using natural sweeteners in their products. One of the key participants in the worldwide tagatose market is Bonumose LLC, followed by Damhert Nutrition NV and CJ Cheiljedang Corporation. Local firms have a market share of 20–30%, whereas regional players hold 70–80% of the market. These businesses specialize in tagatose, run on a small scale, and are more focused on exports.
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Details |
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Forecast period |
2023-2033 |
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Historical data available for |
2018-2022 |
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Market analysis |
USD million for value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
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The global market for tagatose has a value of US$ 162.6 Mn in 2023.
The global market for tagatose has a value CAGR of 2.9% from 2018-2022.
The global market for tagatose has a value of US$ 250.4 Mn in 2033.
The global market for tagatose has a value CAGR of 5.2% from 2023-2033.
The ongoing trend implies increasing awareness regarding consumption of high-calorie food, which could cause heart diseases and obesity. As tagatose is known to have lower glycaemic index, it is in great demand with more number of people turning out to be diet-conscious.
The fact that tagatose is being excessively used in the form of humectant, texturizer, sweetener, and formulation acid is driving its demand.
The top 5 players, namely CJ Cheiledang Corporation, Damhert Nutrition NV, Bonumose LLC, Damhert Nutrition NV, and Santa Cruz Biotechnology, Inc. hold more than 70% of the overall market share.
