Industries / Food & Beverages / Sugar Substitutes Market

Sugar Substitutes Market REPORT OVERVIEW

The Global Sugar Substitutes Market, which was valued at US$ 6.35 Bn in 2018, is projected to reach US$ 10.27 Bn by the end of 2026, exhibiting a CAGR of 6.3%. Sugar substitutes are basically the food additives that can replicate the effect of sugar in taste but usually have less food energy/calories. The popularity of Sugar Substitutes has surged owing to the consumer’s perception and realization of energy imbalance between calories consumed and calories expended – this imbalance in food calories is due to factors such as growing urbanization, enhancement in the discretionary spending on the processed foods and beverages, sedentary lifestyles which have collectively led to increased incidences of lifestyle disorders. This trend has prompted consumers to opt for suitable sugar substitutes that do not contribute to overall calories consumed.

The World Health Organization (WHO) has reported that excessive sugar consumption is a risk factor for obesity, diabetes, and cardiovascular diseases (CVDs). The WHO has also decreased its recommendation for the consumption of added sugars from 10 to 5 percent of the energy component in the daily diet. Many scientific and clinical studies have linked excessive sugar consumption to the increased risks for certain degenerative diseases such as obesity, diabetes, and heart disease – thus the robust consumer’s inclination of towards reduced-sugar in their diet has been a major growth propeller for the sugar substitutes market.

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Natural Offerings among Sugar Substitutes that Enhances Sweet Perceptions Are Projected to Grow at a faster rate as compared to Synthetic Intense Sweeteners

The sugar substitutes have initially thrived on synthetic alternatives for sucrose such as Saccharine, Aspartame, and Acesulfame potassium to name but a few – these sugar alternatives have enjoyed market dominance due to robust consumption patterns and strong demands from developed markets. Amidst clean-labeling popularity, natural sweeteners such as stevia and monk fruit are set to gain greater popularity. Apart from taste concerns, the other functionality of sucrose is being achieved by the addition of soluble fibers which act as a bulking agent with a neutral taste. Companies like Roquette have already started working in this direction. The company has developed a range of Nutriose soluble fibers which contains half as many calories (2kcal/g) as sugar and offers a reliable and clean-label solution for sugar reduction projects. Cargill has also expanded its sugar-reduction strategy from beverages to bakery, convenience, snacks, sports nutrition, and confectionery. 

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Asia Pacific Region remains the Fastest Growth Market for Sugar Substitutes during 2019-2026

The developed markets of North America and Western Europe continue to dominate the global sugar substitutes market. One important regulatory and the policy-level initiative has been sugar taxes, which came into force in several markets in 2018, this has prompted reformulation across many processed food segments. The sugar-reduction and consequently the reformulation has taken the center-stage with a rapid rise in the number of companies offering less sugar while retaining a similar taste and texture.

The developing markets of the Asia Pacific and the Middle East and Africa are expected to witness sugar substitute sales growth well above the global average. Sugar-reduction is no longer a trend but a norm in the global food & beverage industry as this is known to align positively with consumer's purchasing patterns. Manufacturers are prompted to significantly reduce sugar in bakery, beverages, breakfast cereals, and even infant nutrition. Beverages are one of the largest segments where sugar reduction is intensively taken-up. Apart from consumer demand for reduced-sugar products, there has also been an increasing call for governments and regulatory bodies for keeping the sugar consumption in check.

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Beverages and Table-top among the Leading Application Sectors for Sugar Substitutes – Improvisation in Sensory Aspects remains a key for the future growth

Consumers nowadays are seeking ways to maintain a healthy lifestyle, and sugar remains top-of-mind in terms of health and wellness needs. Evolving consumer's opinion towards table sugar has resulted in many multinationals expanding their portfolio of sugar-reduced or sugar-free options.  The sugar-reduction concept has effectively taken a stronghold in the product categories with higher sugar content levels, viz. beverages, bakery, and confectionery.

Beverages continue to hold dominance among the application areas of sugar substitutes owing to the consumer's demand for low-calories formulations. Moreover, the shift towards natural positioning, organic, functional, and highly convenient beverages is expected to strengthen the market sentiments for the alternative sweeteners, especially for the natural ones derived from stevia, monk fruit, agave, etc. The future growth opportunities in the market lie in innovative ingredients that offer taste along with the health benefits.

REPORT OVERVIEW

The global market for sugar substitutes is primarily driven by expanding application spectrum - from being limited to tabletop packets and diet soft drinks, these sugar substitutes are increasingly incorporated in the products such as baked commodities, ketchup, jams, cereals, snack bars, flavored waters, and dairy products including sugar-free yogurts, no-sugar-added ice cream, and flavored milk. They also find application in dietary supplements, medications, and hygiene homecare products such as toothpaste and mouthwash.

The report provides qualitative and quantitative insights on the sugar substitutes market and detailed analysis of market size & growth rate for all possible segments in the market. The market is segmented by type, application, and geography. On the basis of type, the global sugar substitutes market is categorized into aspartame, acesulfame potassium, saccharine, sucralose, stevia, sugar alcohols, and others. Based on the application, the market is segmented into food and beverage applications (includes table-top, beverages, bakery & confectionery, and other processed foods), pharmaceuticals, and personal care and cosmetics. Geographically, the market is segmented into four major regions, which are North America, Europe, Asia Pacific, South America, and the Middle East and Africa. The regions are further categorized into countries.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.

Key segments within the market

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SEGMENTATION

Key companies covered in the report

• Tate & Lyle
• Cargill, Incorporated
• Archer Daniels Midland Company
• Ingredion Incorporated
• Roquette Frères
• The Nutra Sweet Company
• Ajinomoto Co., Inc.
• JK Sucralose Inc.
• DowDuPont
• Pure Circle Limited
• Other Key Market Players