Sugar Substitutes Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global sugar substitutes market is growing at a CAGR of 5.6% during the forecast period (2022-2027).

The demand for healthy sugar-free or low-calorie products surged due to COVID-19. The pandemic declined sugar consumption by 2.5 million metric ton compared to the pre-COVID, whereas the rate is 5 million tons in Europe. Thus, food and beverage players have been launching products with global low-calorie sweeteners to cater to the demand.

Excessive sugar intake is one of the main reasons for rising obesity and diabetes. However, the intake of the sugar substitutes such as stevia, aspartame, sorbitol, maltitol, neotame, acesulfame, and D-tagatose does not immediately increase blood sugar and also contains low or no calories and does not cause tooth decay or cavities, driving the sales.

The sugar reduction surge across the food industries has been the major factor driving the market studied. Especially the developed markets are witnessing huge demand for low-calorie and low-carb food products, translating into the rise of alternative sweeteners.

Key Market Trends

Escalating Demand On Plant-based, Clean Label Sweetener

The low-calorie, naturally sweet, plant-based ingredients witnessed a growing demand in the market, with monk fruit and stevia being two high-intensity plant-based sweeteners approved by FDA GRAS. Also, the global demand for a clean label or natural food products is rising, owing to the growing consumer awareness about the negative health effects of artificial ingredients. According to the Food & Health Survey, about 74% of consumers in the United States will avoid sugar in their diets in 2020. Additionally, there is a significant growth in the number of new product launches, focusing on plant-based products to address the growing obesity. Various health organizations, such as the WHO and governments worldwide, have continuously pushed for sugar reduction in food products, especially for children.

Further, the clean label has triggered the demand for natural sweeteners among food and beverage producers. About 63% of the launch of new products focused on the clean label claim. Thus players in the market are investing in R&D to develop an efficient supply chain from farm to the final product.

North America Holds a Major Market Share

North America leads the market owing to its increasing awareness of the harmful effects of sugar and benefits of its substitutes and the high expendable incomes of the countries. Also, favorable government initiatives have boosted the region's market. For instance, the FDA has permitted using high-intensity sweeteners such as saccharin, aspartame, acesulfame potassium (Ace-K), neotame, advantame, steviol glycosides, and a few more which has led to an upsurge in demand for the sugar substitutes. Further, consumers in the United States are increasingly seeking plant-based zero-calorie sweeteners to live a healthier lifestyle. Hence, a growing number of food and beverage manufacturers are introducing zero-calorie sweeteners to help these consumers achieve their goals. Thus, in November 2019, a joint venture called Avansya was established between Cargill and Royal DSM, which initiated the production of stevia sweetener at the first commercial-scale fermentation facility in the United States. The facility specializes in producing EverSweet, a non-artificial, zero-calorie stevia sweetener.

Competitive Landscape

The global market for sugar substitutes is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies, along with new product development are the strategic approaches adopted by the leading companies to boost their brand presence among consumers. Companies are focusing on natural sweeteners that don't have any side effects on consumer health.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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