Global Natural Sugar Substitute Market Size, Segments, Outlook, and Revenue Forecast 2022-2028 by Product Type, Composition Type, Form, End-User, Region

Natural sugar substitutes also called “artificial sweeteners” or “non-caloric sweeteners” are plant-based substances that are used to enhance the flavor of food or beverage products. It offers a similar flavor and texture as conventional sugar but contains fewer calories and is considered a healthier alternative to sugar. Several pre-existing natural sugar substitutes such as honey, maple syrup, and others can be added to food for sweetening the products.

According to this analysis, the Global Natural Sugar Substitute Market was valued at US$ 2 billion in 2017. It is estimated to be US$ 3 billion in 2022 and is expected to reach a market size of US$ 4 billion by 2028, owing to increasing consumer preference for low-calorie or zero-calorie food and beverage products coupled with a change in eating and drinking pattern to lead a healthy lifestyle.

Surging demand for less-calorie natural sugar substitutes to maintain calorie intake and decrease the risk of health problems related to sugar including diabetes, obesity, metabolic disorders, and others is anticipated to propel the growth of the Global Natural Sugar Substitute Market.

The increasing focus of consumers on good health and wellness and the rising adoption of healthy and natural products that offer health benefits is likely to boost the demand for natural sugar substitutes among consumers. The rising awareness regarding the negative health impact of sugar along with the increasing prevalence of diabetes, obesity, and other health problems related to calorie imbalance is expected to boost the demand for natural sugar substitutes and is anticipated to augment the growth of the Global Natural Sugar Substitute Market.

The Global Natural Sugar Substitute Market faces challenges due to the stringent regulations laid by the government on natural sugar substitute products’ quality, packaging, and others.

The difficulty in adherence to international quality standards for natural sugar substitute products along with the fluctuating prices of raw materials of sugar substitutes may hinder the growth of the market.

COVID-19 negatively impacted the Natural Sugar Substitute Market due to the movement restrictions imposed during the lockdown which has disrupted the entire supply chain. The manufacturing process, import, and export of the products or raw materials, distribution process, and others were disrupted badly. However, in the second phase, the demand for natural sugar substitutes increased due to the change in lifestyle and eating patterns and the increased focus of consumers on health and wellness along with the rising adoption of healthy or low-calorie products.

Scope of the Report

The Global Natural Sugar Substitute Market is segmented by product type, composition type, form, and end user. In addition, the report also covers market size and forecasts for the four region's Natural Sugar Substitute Market. The revenue used to size and forecast the market for each segment is US$ billion.

By Product Type

• Stevia
• Palm Sugar
• Coconut Sugar
• Honey
• Maple Syrup
• Monk Fruit Syrup
• Agave Fruit Syrup
• Lucuma Fruit Syrup
• Molasses
• Others

By Composition Type

• High-Intensity Sweeteners (HIS)
• Low- Intensity Sweeteners (LIS)
• High Fructose Syrup (HFS)

By Form

• Liquid
• Powder
• Solid/Crystal

By End-User

• Food
• Beverages
• Table-Top (Direct Consumers)
• Nutrition and Health Supplements
• Pharmaceuticals
• Others

By Geography

• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Sweden, Italy)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Australia)
• LAMEA (Latin America, Middle East, Africa)

Key Players

• Tate & Lyle
• Ingredion
• Cargill, Incorporated
• ADM
• JK Sucralose Inc
• DuPont
• Roquette
• Ajinomoto Co., Inc
• Real Stevia
• NutraSweet Natural

Key Trends by Market Segment

• By Product Type: The stevia segment held the largest share of the Global Natural Sugar Substitute Market in 2021, owing to its low-calorie, sugar-free, and zero glycemic index content
• The wide usage of stevia as a low-calorie or sugar-free substitute for conventional sugar in the beverage industry to manufacture diet coke, energy drinks, flavored drinks, fruit juices, and other beverages is likely to aid the growth of the segment in the Global Natural Sugar Substitute Market

By Composition Type: High-intensity sweetener segment held the largest share of the Global Natural Sugar Substitute Market in 2021, attributed to the increasing demand for low-calorie ingredients that are used in smaller amounts to enhance the flavor as well as to sweeten the food or beverage products.

High-intensity sweeteners are approved by FDA and are considered safe for general consumption. The rising demand for high-intensity sweeteners like saccharine, aspartame, sucralose, and others among bakery, food, beverage, and other manufacturers to produce low-calorie products with enhanced taste and by using small ingredients in small quantities is likely to boost the growth of the segment in the market.

By Form: The solid segment held the largest share of the Global Natural Sugar Substitute Market in 2021, due to its easy usage, ease of transportation, packaging, stability, longer shelf-life, and other functional benefits.

The wide application of solid-form sweeteners as a coating and bulking agent in bakery, confectionery, and other food and beverage applications is anticipated to boost the demand for the segment in the market. Moreover, solid sweeteners are easy to use owing it their physical properties which will further propel the growth of the Global Natural Sugar Substitute Market.

By End User: The beverage segment held the largest share of the Global Natural Sugar Substitute Market in 2021, owing to the increasing preference for low-calorie or zero-calorie, and reduced-sugar drinks among consumers.

The surging demand for the natural sugar substitute among beverage manufacturers to produce sugar-free or low-calorie beverage products including energy drinks, fruit juices, flavored drinks, ready-to-drink teas, diet carbonated drinks, and others to fulfill the demand for health-conscious and calorie-conscious consumers, which is expected to propel the growth of the segment in the market.

By Geography: North America region accounted for the largest share of the Global Natural Sugar Substitute Market in 2021, owing to the rising prevalence of lifestyle disorders such as diabetes, obesity, cardiovascular diseases, and others.

The rising demand for low-calorie food products among North American consumers coupled with an increased inclination towards healthy food products to lead a healthy lifestyle is likely to increase the demand for the product in the region. Moreover, rising awareness regarding the harmful health impact of overconsumption of sugar and the benefits of natural sugar substitutes among consumers has encouraged consumers to opt for natural sugar substitutes, which is expected to augment the growth of the region in the Natural Sugar Substitute Market.

Competitive Landscape

The Natural Sugar Substitute Market is highly competitive with ~300 players that include globally diversified players, regional players as well as a large number of country-niche players having their niche in Natural Sugar Substitute.

Country-niche players comprise ~65% of the total number of competitors, while the regional players comprise the second highest of the total number of competitors. Some of the major players in the market include Tate & Lyle, Ingredion, Cargill Incorporated, ADM, JK Sucralose Inc., DuPont, Roquette, Ajinomoto Co., Inc, Real Stevia, and NutraSweet Natural among others.

The leading global Natural Sugar Substitute companies such as Tate & Lyle, Ingredion, and Cargill Incorporated are highly focused on gaining investment for the research and development of new Natural Sugar Substitute products and on the production of slaughter-free meat products.

Recent Developments Related to Major Players

In April 2022, Tate & Lyle expanded their production of allulose to fulfill the surging demand for rare sugar among food and beverage manufacturers. Allulose is a tooth-friendly rare sugar that contains 0.4 calories per gram and has 70% of the sweetness of regular sugar and has a negligible effect on blood sugar and insulin. The company completed its first phase of expansion by significantly increasing its production and planned to move to the second phase which will boost the production of crystalline. This expansion helped the company in increasing its production as well as gain more revenue for the company.

In December 2021, Ingredion launched a new product named PureCircle NSF-13, an evolved flavor modifier for delivering “sweetness at scale”. The new product has wide applications in beverage, bakery, dairy, and other industries. The product is sustainably Product Typed and is cost-effective and organic. The new product launch helped the company in enhancing its product portfolio.

In July 2020, Cargill Incorporated launched a new sweetener named C TruSweet 01795, which is a 95% pure fructose syrup and is characterized by a naturally higher relative sweetness than sucrose. The new product enables 30% calorie and sugar reduction in beverages, and food products. The company aimed to enhance its product portfolio and eventually gain more revenue.

Conclusion

The Global Natural Sugar Substitute Market is forecasted to continue moderate growth, primarily driven by the surging demand for low-calorie and less-sugar products among consumers coupled with the growing inclination towards healthy food to lead a healthy lifestyle. Furthermore, an increased sedentary lifestyle along with the rising prevalence of lifestyle disorders such as diabetes, obesity, cardiovascular diseases, and others is anticipated to propel the growth of the market even in the forecasted period. Though the market is highly competitive with ~300 participants, global players control the dominant market share.

Note: This is an upcoming/planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for pre-booking clients, and the report delivered within a maximum of two working weeks.

Key Topics Covered in the Report

• Snapshot of the Global Natural Sugar Substitute Market
• Industry Value Chain and Ecosystem Analysis of the Natural Sugar Substitute Market
• Market size and Segmentation of the Global Natural Sugar Substitute Market
• Historic Growth of the Overall Global Natural Sugar Substitute Market and Segments
• Competition Scenario of the Natural Sugar Substitute Market and Key Developments of Competitors
• Porter’s 5 Forces Analysis of the Global Natural Sugar Substitute Industry
• Overview, Product Offerings, and Strategic Developments of Key Competitors
• COVID-19 Impact on the Overall Global Natural Sugar Substitute Market
• Future Market Forecast and Growth Rates of the Global Natural Sugar Substitute Market and by Segments
• Market Size of Application/End-User Segments with historical CAGR and Future Forecasts
• Analysis of the Natural Sugar Substitute Market in Major Regions
• Major Production/Consumption Hubs in the Major Regions
• Major Production/Supply and Consumption/Demand Hubs in Each Region
• Major Country-wise Historic and Future Market Growth Rates of the Total Natural Sugar Substitute Market and Segments
• Overview of Notable Emerging Competitor Companies within Each Major Region

Major Companies Mentioned in the Report

• Tate & Lyle
• Ingredion
• Cargill, Incorporated
• ADM
• JK Sucralose Inc
• DuPont
• Roquette
• Ajinomoto Co., Inc
• Real Stevia
• NutraSweet Natural
• Sugar 2.0
• Fooditive
• Heylo
• SAGANA
• Xilinat

Key Target Audience - Organizations and Entities Who Can Benefit by Subscribing This Report

• Natural Sugar Substitute Manufacturers
• Artificial Sweeteners Manufactures
• Food & Beverages Companies
• Nutritional Food Companies
• Processed Food Manufacturers
• Health Supplement Manufacturers
• Pharmaceutical Manufacturers
• Research & Consulting Firms
• Research and Development Associations
• Investment Banking & Financial Institutes
• Research & Development Institutes for Natural Sugar Substitute Sector
• Sugar Substitute Providers
• Sugar Substitute Researcher
• Natural Sugar Substitute Suppliers
• Investors in Artificial Sweeteners Start-ups
• Natural Sugar Substitute Distributors
• Functional Beverages Manufacturers
• Sugar Substitute Packaging Services
• Packaging Equipment Manufacturers
• Government & Food Safety Regulations
• Investors in Natural Sugar Substitute Companies

Time Period Captured in the Report

• Historical Period: 2017-2021
• Forecast Period: 2022E-2028F

Frequently Asked Questions

• What is the Study Period of this Market Report?

• The Global Natural Sugar Substitute Market is covered from 2017 - 2028 in this report, which includes a forecast for the period 2022-2028

What is the Future Growth Rate of the Global Natural Sugar Substitute Market?

• The Global Natural Sugar Substitute Market is expected to witness a CAGR of about ~7% for the next six years

What are the Key Factors Driving the Global Natural Sugar Substitute Market?

• The surging demand for low-calorie or zero-calorie food products among consumers to maintain their calorie intake to lead a healthy lifestyle along with increasing awareness regarding the harmful impact of the overconsumption of sugar on health is anticipated to propel the growth of the Global Natural Sugar Substitute Market

Which is the Largest Product Type Segment within the Global Natural Sugar Substitute Market?

• Stevia segment held the largest share of the Global Natural Sugar Substitute Market

Who are the Key Players in the Natural Sugar Substitute Market?

• Tate & Lyle, Ingredion, Cargill Incorporated, ADM, JK Sucralose Inc., DuPont, Roquette, Ajinomoto Co., Inc, Real Stevia, and NutraSweet Natural, among others.