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Background and core significance of the approval

In July 2025, the National Health Commission officially approved Allulosed as a new food ingredient, marking the official entry of this natural sweetener into the domestic market, which has been called “the most promising sucrose substitute”. The approval, which took five years of technical review, covers two production processes: microbial fermentation (direct fermentation of Microgen Synthesis AS10 strain) and enzyme conversion (COFCO), with Microgen Synthesis's one-step fermentation method being the first synthetic biotechnology application case in China.13 The approval not only fills the gap in domestic Alozone Sugar compliance, but also promotes the upgrading of sugar substitutes industry from chemical synthesis to natural biomanufacturing, and provides a new source of sweetener for the food and beverage, pharmaceutical, and other fields. Food and beverage, pharmaceuticals and other fields to provide low-sugar solutions.

Multiple application scenarios 

Food and beverage field: it can be used in sugar-free beverages, bakery pastries, candies, etc., solving the problem of hard texture of traditional sugar substitute.

Medicine and health field: with the physiological effects of regulating blood sugar and inhibiting fat accumulation, it is suitable for diabetic food and weight management products.

Global Market Recognition: It has been licensed by 14 countries such as the U.S., Japan, Korea, etc. The global market size will be about USD 283 million in 2023, and is expected to reach USD 509 million in 2030, with a compound annual growth rate of 8.6%.

Market Reaction and Capital Heat 

Stock Performance: The news of approval pushed the sugar substitute plate stronger, Bowling Green, Bailongchuangyuan and other companies rose, sugar substitute index rose 28.24% during the year.

Downstream demand: Yili, Coca-Cola, Yuanqi Forest and other head brands have laid out the relevant applications, the beverage industry as the largest application area (accounting for 50%) will become the key to release.

Industry Challenges and Future Trends 

Short-term Constraints 

Cost Control: Despite the lower cost of bio-fermentation method compared with the traditional process, large-scale production still needs to break through the efficiency of bacterial strains, enzyme reuse and other technical bottlenecks.

Rhythm of production capacity release: most of the expansion projects will be put into production in 2025-2027, and short-term supply is limited, which may lead to high prices.

Long-term development opportunities 

Policy dividend: domestic sugar shortage and sugar reduction policy double drive, Alozone sugar is expected to replace part of the sucrose and artificial sugar market share.

Technology Iteration: Synthetic biotechnology advancement may further reduce the production cost, and promote the extension of application scenarios to health care products, pharmaceuticals and other high-end fields.

Summarize 

The approval of Aloeverose marks the entry of the domestic sugar substitute industry into a new stage of “natural health”. In the short term, production capacity and cost optimization will become the core of competition; in the long term, its potential in functional foods and pharmaceuticals is expected to reshape the industry landscape. With the accelerated production expansion of Microgen Synthesis, Bailong Chuangyuan and other enterprises, 2025-2030 may become the commercialization of Alozone Sugar outbreak period.