Samyang Corporation has received novel food approval for alternative sweetener allulose in Australia and New Zealand, making it the “first” allulose producer globally to enter these markets. The company now has exclusive supply rights in the region and aims to capture market share through new distribution channels.

With this approval, allulose is now officially recognized as a “food ingredient” in Australia and New Zealand. Unlike high-intensity sweeteners and sugar alcohols classified as food additives, such as aspartame, sucralose and erythritol, manufacturers can now use allulose more freely to formulate sugar-reduced and sugar-free products.

The Food Standards Australia New Zealand (FSANZ) has granted the approval.

“The recent approval enables us to expand our reach to Australia and New Zealand as we continue our market expansion across North America and Japan. We will actively pursue promotions with new local clients and distributors to capture market share,” says Sang-Hoon Lee, head of foodstuff at Samyang.

“With the completion of our new specialty factory in Ulsan, which ensures a stable production capacity to meet global demand, we are further accelerating our overseas market entry.”

The South Korea-based firm completed the construction of its specialty (high-functional ingredients) plant for manufacturing allulose and prebiotics in Nam-gu, Ulsan, South Korea, in September. The plant has an annual production capacity of 13,000 metric tons and can produce both liquid and crystalline allulose suitable for export.

Tapping allulose

According to Samyang, allulose is a rare sugar with 70% of the sweetness of sucrose but nearly zero calories. It has a similar taste profile to fructose and, when heated, creates a caramelization effect, delivering a flavor profile like sucrose.

However, the sugar substitute has low consumer awareness, with only 13% of the respondents in a recent US-based survey saying they have heard of it.

Another South Korea-based company targeting allulose expansion is Daesang, which recently told Food Ingredients First that it is preparing to create a market in Southeast Asia and Europe to register its allulose ingredient as a novel food.

Targeting consumer health

Australia’s food market is growing steadily, with an annual growth rate of around 4.6% as of last year. This drives the demand for low-sugar, low-fat and organic products in the region, states Samyang.

Additionally, the high obesity rates in the country have raised the likelihood of government support for alternative sweeteners.

Meanwhile, in New Zealand, trends in wellness-related products, like organic and plant-based alternatives and free-from foods that leave out specific ingredients such as gluten, dairy and nuts, are gaining traction, suggesting a “promising outlook for the sugar-free market,” states the company.

Samyang says it began preparing for FSANZ Novel Food approval in November 2021 in anticipation of this market potential.

“As the first company to receive FSANZ approval for allulose, Samyang will be the exclusive supplier in the region for the time being.”

The company plans to prioritize cultivating local client relationships. It will supply allulose through its B2B brand, Nexweet, which it claims is a good option for use with fiber ingredients.