Allulose: Sweet Profits in a Health-Conscious World

If you've been browsing Amazon lately, you might have noticed several listings for allulose with tens of thousands of repeat sales and thousands more each month, according to estimates from Jungle Scout. Clearly, consumers are embracing this rare sugar like it's the next big diet craze—which, spoiler alert, it just might be. 

_{Disclaimer: I discovered this trend using Exploding topics (I am an associate and a long-time fan of this tool), which has become my go-to resource for uncovering under-the-radar opportunities. While the tool doesn’t provide the research that comes with my newsletter If you're into finding even more trends in all the fields this tool is definitely worth a look.} 

Table of Contents

• Current state and financial opportunity 

• Key players in the allulose market

  • It's Just! / 138 Foods

  • Micro Ingredients

  • Anthony's Goods

  • Wholesome Sweeteners

• Allulose: benefits and drawbacks

• How to navigate this trend and why should you care …

Current state and financial opportunity 

The surge in searches for “allulose” is pretty mind blowing. 

But let’s start with basics and touch on what exactly is allulose. Discovered over 20 years ago by Ken Izumori, D-allulose (also known as D-psicose) is a monosaccharide low-energy sweetener that is supposedly 70% as sweet as sucrose but only has 0.3% of its calories.  

Recognizing its potential, the U.S. Food and Drug Administration (FDA) listed D-allulose as "Generally Recognized as Safe" (GRAS), approving its use in candy, fruit juices, nutritional supplements, and other dietary products, which, in turn, laid the foundation for potential future use and popularity of this ingredient in the food, pharmaceutical, and healthcare industries.

According to Grand View Research, the global allulose market size was estimated at $283.4 million in 2023 and is expected to grow at a CAGR of 8.6% from 2024 to 2030. Another report from Global Market Insights projects the market to expand at a 14.6% CAGR during 2024 to 2032, driven by increasing demand for low-calorie and low-sugar alternatives.

The reasons for rapid growth are pretty obvious: consumers are becoming more health-conscious and are recognizing the negative effects of high sugar consumption from obesity to diabetes. While allulose with its ability to satisfy the sweet tooth without spiking blood glucose levels comes at the right place at the right time. 

Key players in the allulose market

The allulose market is booming, but it's also wrapped in a cloak of invisibility, or, should I say, opacity. So with little transparency and lack of research it’s hard to correctly pinpoint the major players on this market, so for the sake of simplicity (and accuracy of the data on the chosen segment) let’s focus on the brands with the most sales of allulose on Amazon. And there are quite a few that make thousands of sales every month. 

It's Just! / 138 Foods

It's Just!, a brand under 138 Foods, according to its website description, prides itself on being a small family-owned business dedicated to providing premium ingredients for everyday life. Their mission? Keep it simple by selecting only the finest ingredients without flashy packaging or gimmicks. And their allulose is being sold on Amazon at about 10,000 or so per month. 

But here's where things get... interesting. The company doesn’t show who those family-oriented business people are, it has virtually no presence on Trustpilot or LinkedIn, with only one member associated with the company. They offer a huge selection of products—from egg white protein to monk fruit extract—but there's a noticeable absence of research, testing results, or transparency about sourcing. Who's accountable here? It's as if the company believes simplicity should extend to skipping quality assurance altogether.

Micro Ingredients

Another best-selling allulose is by Micro Ingredients, the company that claims to be a premier raw and pure nutrition ingredients supplier based on the West Coast. They boast over 200 raw ingredients, free from fillers, additives, or artificial flavors. Sounds great, right?

But I dug a bit deeper and I was blown away with what I found. Despite saying they're from California, most of the team appears to be from China, according to their LinkedIn profiles. Their Senior Director, George Pu, also serves as Vice President and CMO of Bayland Health, a supplement conglomerate that predominantly employs staff from China while marketing itself as an American company. Other brands under Bayland Health umbrella include NatureBell, Deal Supplement (both selling hundreds thousands of bottles of supplements on Amazon per month) and also TwinBest, another supplement brand that was completely wiped off Amazon, even though you still can find their listings through cached google search results, but TwinBest storefront not redirects to NatureBell. Suspicious. Not to mention that none of the staff seem to have a valuable expertise in sourcing, testing and handling supplements or food. (Although what they are good at is launching Amazon brands - at least that’s what some of the company's management members  seem to boast about in their LinkedIn profiles).

Online discussions and Trustpilot reviews question the legitimacy of their organic certifications and the authenticity of their products. One user even reported that their magnesium glycinate capsules didn't contain the advertised amount of elemental magnesium. Trust, it seems, comes in short supply when we are talking about Micro Ingredients. 

Anthony's Goods

Anthony's Goods was once my personal favorite, and I used to buy their pea protein and almond flour. And why not? Such a sustainable eco-looking packaging, all the buzz words “organic,” “natural,” and the list of ingredients always seemed to be so short: the pack would contain one thing. Oh boy I was in for a ride with this article.  I just jumped into the rabbit hole of looking at the same data points for all the brands on top of the allulose best sellers list.  Here’s what I found: the company's whole purpose appears to have been launched to create a strong, sellable brand rather than a commitment to quality products. None of the company's employees have a particular passion or experience with food. The team includes Miranda Eprem, a finance professional; Sunde Thomas, a packaging designer; and Aleen Bedrosian, a communication specialist.

It's a mystery how a company with only three employees, according to LinkedIn data, can handle proper testing, sourcing, and customer support for a product line that includes 181 different items to ensure all of those are gluten-free, vegan, kosher,  organic, non-GMO and whatever else was claimed. That's a big task even for a company ten times their size.

Customer reviews add to my suspicions. Trustpilot ratings highlight poor customer support and questionable product quality. Some users reported that their product (cinnamon) tested positive for lead and cadmium, and the company refused to issue refunds. Others questioned the accuracy of their product labeling, noting discrepancies in nutritional information. It seems that "Anthony" remains as elusive as the company's commitment to quality.

Wholesome Sweeteners

In an Amazon allulose best sellers market cluttered with questionable practices, Wholesome Sweeteners stands out as a bit of an improvement. Based in Sugar Land, Texas, the company has about 40 employees according to LinkedIn. General Manager Mike Skibinski describes himself as a "mission-driven leader" and has some relevant food industry experience (although Danone and Procter & Gamble where he worked previously hardly produce any wholesome edible food). 

Wholesome Sweeteners is dedicated to Fair Trade practices, partnering with farming families globally to ensure they receive fair prices for their crops. Since 2005, they've paid over $11 million in Fair Trade premiums to farming cooperatives and partners worldwide, helping to bring clean water, electricity, schools, and healthcare to communities in need. And overall from all the brands in the least they seem to be the least likely candidate for not caring about their product quality. 1 out of 4 (I actually looked at some other brands too but didn’t want this report to get too lengthy, so this ratio is even worse). Well, this allulose market really needs a shake up. 

Allulose: benefits and drawbacks

Allulose offers promising health benefits, particularly for those looking to manage weight, control blood sugar levels, or follow a low-carb diet. Its physiological effects go beyond mere sweetness, potentially offering anti-inflammatory and antioxidant benefits.  And even improved metabolic health: A 12-week study titled "The Metabolic and Endocrine Effects of a 12-Week Allulose-Rich Diet" showed that allulose mitigated the adverse effects of high-fat, high-sugar diets. The allulose group exhibited reduced body weight gain and improved insulin resistance. They also had lower food consumption and increased levels of glucagon-like peptide-1 (GLP-1), enhancing glucose regulation and appetite control. 

However, this potentially gold mine of ingredients comes with some drawbacks:

• Lack of Research: There's a lack of long-term human research on allulose. We don't fully understand the potential long-term effects of high allulose consumption in humans. The initial studies are encouraging, but more comprehensive clinical trials are needed to establish safety and efficacy over extended periods.

• Microbiological Concerns: An in vitro study published in the British Journal of Nutrition found that certain bacteria, such as Klebsiella pneumoniae, can utilize allulose as a substrate. This is concerning because K. pneumoniae is an opportunistic human pathogen. The question arises: Could high dietary intake of allulose provide a growth advantage to potentially harmful bacteria in the gut? While there's no direct evidence of this happening in humans, it's a potential risk that warrants further investigation.

• Regulatory and Quality Control Issues: The retail market for dietary supplements and sweeteners is, unfortunately, a bit of a Wild West. Sellers are supposed to adhere to strict guidelines like Good Manufacturing Practices (GMP) and food safety standards such as Hazard Analysis Critical Control Points (HACCP). However, compliance isn't always the norm. A study published in JAMA Network Open evaluated 30 dietary supplement products sold on Amazon and found that only 13 had accurate labels based on product analysis. Some products had ingredients listed that weren't detected during analysis, effectively misbranding them. Others contained substances not claimed on the labels, which could be considered adulteration.

• Mislabeled Products and Consumer Trust: Another alarming example comes from NOW Foods, a reputable supplement manufacturer. They tested CoQ10 and SAMe supplements purchased on Amazon and found significant discrepancies. Some products contained far less of the active ingredient than advertised, and others were labeled in mathematically impossible ways. This lack of accountability not only misleads consumers but can also pose health risks.

All is it to say, for entrepreneurs and investors, allulose presents both a challenge and an opportunity. The market is ripe for brands that prioritize transparency, rigorous testing, and consumer education. By committing to high-quality standards and building trust, new players can differentiate themselves in a crowded market.

But let's not sugarcoat it—entering this market won't be a cakewalk. You'll be up against competitors with questionable ethics, crazy margins, and a willingness to cut corners. However, if you're committed to offering authentic, high-quality allulose products, you could not only tap into a lucrative market but also provide consumers with the quality they deserve.

How to navigate this trend and why should you care?

Consumers are becoming increasingly health-conscious, and not just because their smartwatches keep nagging them to stand up. There's a growing awareness of the adverse health effects of excessive sugar consumption, such as obesity, diabetes, and cardiovascular diseases. According to Grand View Research, this has led to a surge in demand for low-calorie and low-sugar alternatives like allulose. 

Another factor contributing to the growth of this trend is regulatory support and government initiatives. Governments worldwide are stepping in to reduce sugar consumption. From sugar taxes to stricter labeling regulations, these initiatives indirectly promote the use of artificial sweeteners. For example, the U.K.'s sugar tax has pushed manufacturers to reformulate products with lower sugar content.

Scientists are working on developing sweeteners with simpler, more natural-sounding ingredients to meet clean-label trends.

The appeal is clear - a sweetener that tastes like sugar, has virtually no calories, and might even have health benefits (remember that 12-week study showing improved insulin resistance?). But here's the bitter aftertaste. The market is not as transparent as we'd like. Some products labeled as allulose might be as genuine as a three-dollar bill. There are concerns about mislabeled products, questionable sourcing, and quality control. As mentioned earlier in this report, studies have found that many dietary supplements sold online don't contain the ingredients listed on their labels.

So before you clear out your pantry of all other sweeteners, let's look at how to approach this trend smartly.

Know if allulose might be right for you:

• You're trying to reduce sugar intake

• You have blood sugar management concerns

• You follow a low-carb or keto diet

• You want a natural-tasting sugar alternative

• You bake regularly and need a sugar substitute

What to look for when buying:

• Third-party testing verification

• Clear country of origin labeling

• Transparent manufacturing processes

• Proper safety certifications

• Customer service responsiveness

• Reviews mentioning successful baking results

Save money while exploring allulose:

• Start with small quantities to test tolerance

• Compare price per gram across brands

• Look for bulk options once you find a trusted brand

• Store properly in airtight containers

• Use in combination with other sweeteners to stretch supply

Smart usage tips:

• Start with small amounts to assess digestive tolerance

• Expect about 70% of sugar's sweetness

• May need slight recipe adjustments when using it:

  • Add 10% more for desired sweetness

  • Might need to adjust baking time (browns faster than sugar)

  • Works best in combination with other sweeteners

One thing's certain - while allulose shows promise as a healthier sugar alternative, it's important to choose your products carefully. Given the current state of the market, focus on finding reputable brands with proven track records. As the best sugar alternative is the one that not only tastes good but also comes from a trustworthy source.