"Zero Sugar" Start - Ups that have led the market are facing raw material regulations. That is because the Ministry of Food and Drug Safety changed the standards for using allulose as a raw material.
Allulose is an alternative sugar with more than 90% fewer calories than sugar and does not raise blood sugar. The industry fears the market will take a hit, while the ministry says system improvements are needed to strengthen safety management.
According to reporting compiled by ChosunBiz on the 19th, the ministry will implement a revised rule in Oct. next year that limits the enzymes that can be used in the manufacturing process of allulose.
Enzymes are used in the allulose manufacturing process. Until now, there were no particular limits on enzyme use, so Start - Ups imported allulose made overseas and manufactured and sold products. Going forward, only allulose made with enzymes recognized by the ministry can be used, creating difficulties in procurement through existing import sources.
Start - Ups have grown the market over the past 10 years by importing overseas allulose that the U.S. Food and Drug Administration (FDA) recognized as "generally safe." Domestically produced allulose is expensive, so Start - Ups with limited funds chose relatively cheaper imports. No safety issues have been reported to date.
If the rules change, a Start - Up will have to spend considerable time and expense to redesign production processes to meet the new standards. The 600 billion won zero soda market as well as the roughly 1 trillion won low-sugar food market, including snacks and ice cream, will be affected.
An official at a low-sugar food manufacturer said, "Given our staffing and funding, it will be difficult to meet the new standards starting in Oct. next year." The official added, "Until the administrative notice was reconsidered in Sep. this year, Start - Ups were excluded from the discussions," and explained, "We gathered opinions to the effect that at least a two-year grace period is needed and conveyed them, but they were not reflected."
Large corporations with production infrastructure are relatively free from the impact of the revision. Under the ministry's standards, it is easy for them to change manufacturing processes. If imports of overseas allulose are restricted, large domestic manufacturers could gain windfall profits. Because the unit cost of allulose produced by large corporations is higher, if overseas imports become difficult, the likelihood of price increases for low-sugar products also rises.
Some also say the revision clashes with the government's core national policy of supporting "K-food." The government has set a goal of $15 billion in K-food exports by 2030. Many Start - Ups have pioneered overseas markets with low-sugar foods, but they worry that if production is dampened by raw material regulations, not only export volumes but also competitiveness in the domestic market could decline.
A Start - Up official noted that "a rigid revision based on a 'positive list' makes innovation difficult." The official added, "Companies that have developed diverse alternative sweetener products will inevitably be tied up," and explained, "If Start - Ups are trapped on a list of regulations due to out-of-sync ministries, the market will shrink and employment will also be affected."
The ministry says indiscriminate imports are undesirable and that the management system must be strengthened for safety. It countered that export-destined products are classified as "for foreign currency acquisition," allowing various raw materials to be imported, manufactured domestically, and then exported.
A ministry official said, "For new sweeteners like allulose, new enzymes keep being developed," and added, "It is the ministry's responsibility to manage them safely."
The official added, "We first issued an administrative notice in Dec. 2024, and if we implement the revision in Oct. next year, that effectively gives about two years," and explained, "There are places that met the relevant standards and were certified in just nine months after the notice, so if you prepare well, there is no problem."
The official continued, "There are individual differences for each Start - Up in the certification process," and said, "We plan to compile and announce the issues raised by companies, and if there are difficult parts in the preparation process, we will provide support through consultations at any time."