Tagatose Market is projected to increase at a 5.61% CAGR, growing from USD 203.765 million in 2025 to USD 282.668 million in 2031.
Tagatose emerges as an appealing ingredient for inclusion in specialized foods for individuals with diabetes due to its unique characteristic of not causing an increase in glucose blood levels upon consumption. It is granted GRAS (Generally Recognized As Safe) status by the U.S. Food and Drug Administration (FDA), and tagatose is officially recognized for use as a sweetener in various food and beverage products. Beyond its utility as a sweetener, tagatose has been associated with various health benefits, including a reduced risk of tooth decay, improvements in gut health, and a decreased risk of heart disease. The tagatose market is characterized by two primary forms—powder and liquid—offering versatility to manufacturers and caterers to diverse application needs within the food and beverage industry.
Market Drivers
Rise in the number of diabetic cases.
Preliminary human studies have indicated that Tagatose exhibits a low postprandial blood glucose and insulin response. The prevalence of diabetes is a global health concern, with significant numbers reported in major nations. In 2021, approximately 29.7 million people in the United States, constituting 8.9% of the population, had been diagnosed with diabetes. According to the World Health Organization (WHO), India faces a substantial diabetes burden, with an estimated 77 million individuals above the age of 18 suffering from type 2 diabetes, and nearly 25 million categorized as prediabetics, posing a higher risk of developing diabetes. Given its potential as an alternative to traditional sugar and its demonstrated benefits in glycemic response, tagatose emerges as a noteworthy contender in the market.
Rising awareness about the health benefits of tagatose.
Consumers are becoming more conscious of the potential advantages of incorporating d-tagatose into their lifestyles, driven by concerns about the potential side effects of modern therapeutic agents. Recognizing its health-promoting properties, the U.S. Food and Drug Administration (FDA) acknowledges d-tagatose as a rare sugar that offers a spectrum of health benefits. These benefits include enhanced glycemic control, reduced risk of cardiovascular disease, lowered susceptibility to tooth decay, and improvements in gut health. Numerous human and animal studies support the safety of d-tagatose consumption, with no adverse effects reported to date. Notably, d-tagatose serves as a general-purpose sweetener in countries such as Korea, Australia, and New Zealand, contributing to its increased awareness and demand.
Market Challenges
High cost of production.
Despite its promising potential, the tagatose market encounters several challenges stemming from its limited availability and the intricate enzymatic process involved in its production. Currently, tagatose is relatively more expensive compared to other sweeteners due to the complexity of its extraction process. The specialized and multi-step procedures required to extract tagatose from lactose contribute significantly to its production cost. Moreover, the reliance on lactose as the primary raw material for tagatose production introduces vulnerability to fluctuations in dairy markets and potential disruptions in the supply chain. These factors pose a challenge to the consistent availability of tagatose for manufacturers, potentially impacting the feasibility of incorporating tagatose into various products.
The tagatose market by application is segmented into food and beverages, pharmaceuticals, and others.
By application, the Tagatose market is categorized into food and beverages, pharmaceuticals, and other sectors. Within the food and beverage domain, Tagatose has gained popularity as a sought-after alternative to sugar, finding widespread use in a variety of food and beverage products. In the pharmaceutical arena, Tagatose is undergoing exploration as a potential ingredient in diabetic medications and oral care products. This interest is fueled by its distinguished attributes, including a low glycemic index and prebiotic properties. Beyond these primary segments, Tagatose finds utility in "other" categories as well. It may be incorporated into certain cosmetic products where its humectant properties can be beneficial. Additionally, Tagatose's presence in some dietary supplements is notable, particularly in the role of a prebiotic.
North America is anticipated to hold a significant share of the tagatose market.
North America is projected to account for a notable share of the tagatose market, reflecting the region's growing consumer preference for healthy and clean-label products featuring natural ingredients. This shift in consumer behavior aligns seamlessly with the intrinsic appeal of tagatose, known for its low-calorie and low-glycemic properties. Notably, companies like Bonumose, Inc. have achieved significant regulatory and food application milestones in both the United States and Canada. As Bonumose Inc. progresses on schedule for the anticipated opening of its first commercial production facility in Spring 2022, the tagatose market is witnessing increased attention and recognition. The announcement of regulatory achievements underscores the industry's commitment to advancing the use of tagatose, a rare sugar, in various food applications.
Market Developments
January 2023- Bonumose Inc. and ASR Group announced that their new Tagtose production facility at Charlottesville, VA started the production of high-quality tagatose intended for a diverse range of food and beverage applications. Utilizing standard equipment alongside a patented enzymatic conversion process.
Company Products
Tagatose Market Segmentation
By Application
Food And Beverages
Pharmaceutical
Others
By Form
Powder
Liquid
By Distribution Channel
Online
Offline
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others