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Mexico Food Sweetener Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 90 Pages
  • April 2023
  • Region: Mexico
  • Mordor Intelligence
  • ID: 5025282
The Mexican Food Sweetener Market is projected to witness a CAGR of 2.10% during the forecast period.

The increasing concern regarding the prevalence of obesity is encouraging consumers to opt for natural and zero-calorie sweeteners, such as stevia. Furthermore, the consumption of sugar substitutes, such as xylitol, erythritol, and mannitol, is rapidly increasing across Mexico. This is attributed to consumer awareness, government regulations to reduce sugar consumption, and application in many health and wellness food products in the market. The inclination toward low-calorie sweeteners and low-calorie beverages, such as diet coke and low-calorie drinks, and low-calorie foods, such as yogurt, ice cream, and grain-based desserts, has gained popularity worldwide. The physiology of sweetness receptors is also being studied in greater detail, with an endeavor to make foods and beverages sweet without using sugar.

Increased demand for natural non-caloric sweeteners and the high demand for sweeteners in various applications, such as processed foods and beverages from emerging economies, are the major factors driving the market growth. However, an increase in awareness about the negative effect of sugar on consumers' health is likely to hinder the market growth, thereby providing more opportunities for low-calorie sweeteners, especially in bakery, beverage, and dairy products.

Moreover, to control health issues such as diabetes and obesity, in January 2014, the Mexican government implemented a 10% tax on industrialized sugar-sweetened beverages to curb obesity and diabetes. Similarly, the Mexican government wanted to bring down the calorie count of most foodstuffs to a maximum of 284 calories per kilogram. Therefore, it established a sugar tax of one peso per liter for every product that surpassed this limit. Many drinks and food manufacturers incorporated stevia to comply with this law and avoid the tax. Thus, it increased the demand for sugar alternatives in the country.

Mexico Food Sweetener Market Trends

Rising Trend of Clean Label and Plant-based Ingredients

The low-sugar, 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 demand for clean-label or natural food products is rising in Mexico, owing to the growing consumer awareness about the negative health effects of artificial ingredients. According to the International Diabetes Federation, 16.9% of the population in Mexico suffered from diabetes as of 2022.

Consumers demand clean labels on products to gain knowledge about the product that they are about to consume. The inclination toward identifying the ingredients present in food and beverage has fueled the growth of the clean-label ingredients market. Consumers are ready to pay a premium price for naturally sourced ingredients. Growing health consciousness among consumers has led them to grow cautious over the high consumption of sugar. As per Gabinete de Comunicación Estratégica, last year, 40% of Mexicans preferred eating healthy/healthy diet, and 1.7% of the people avoided drinking soft drinks. Sugar can be replaced or is claimed to be replaced by healthier clean-sounding alternatives, such as stevia, to cater to the demand of consumers seeking clean-label/plant-based sweeteners.

Major Application of Sweeteners in Beverages

There is a high demand for sweeteners from the beverage industry, and aspartame and sucralose are some of the popular sweeteners that are used as sugar substitutes in soft drinks, especially in carbonated beverages. According to INEGI (The National Institute of Statistics and Geography), the sales value of soft drinks and other non-alcoholic beverages in Mexico in July 2022 was MXN 24,752 million.

Furthermore, diet cokes are getting popular among youth and the working population across Mexico, where diet cokes are made with sugar substitutes, such as sugar alcohols and high-intensity sweeteners, which in turn, is propelling the market’s growth gradually. Moreover, the amount of sugar can also be reduced without changing the taste and appearance, thereby encouraging beverage manufacturers to substitute sugar with low-calorie sweeteners. The reduced cost of production and better economy of scale are also fueling the growth of sweeteners. New product innovations, such as beverages with the incorporation of stevia, are also attracting the attention of consumers who are seeking natural ingredients in their products.

Mexico Food Sweetener Industry Overview

The Mexican food sweetener market is highly competitive and fragmented, with the presence of several players. The key players are adopting strategies, such as partnerships, expansion, mergers and acquisitions, and new product launches to strengthen their position in the market. The players dominating the market are Cargill Incorporated, Tate & Lyle PLC, Ingredion Incorporated, International Flavors & Fragrances, and Archer Daniels Midland Company. Additionally, companies are focusing on expanding their network of innovation centers, enabling them to collaborate with customers for new product development and reformulations and make investments accordingly.​ Companies operating in the food sweetener manufacturing segment are aligning their manufacturing with consumer preferences. Over the past few years, a shift in consumer preferences has led manufacturers to focus on producing clean-label and non-GMO products, which is expected to continue in the coming years.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Product Type
5.1.1 Bulk Sweeteners Sucrose Fructose High-fructose Corn Syrup Glucose Other Bulk Sweeteners
5.1.2 Sugar Substitutes Sucralose Xylitol Stevia Aspartame Saccharin Thaumatin Other Sugar Substitutes
5.2 Application
5.2.1 Bakery
5.2.2 Confectionery
5.2.3 Dairy and Frozen Products
5.2.4 Beverages
5.2.5 Sauces, Soups and Dressings
5.2.6 Other Applications
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Cargill Incorporated
6.3.2 Ingredion Incorporated
6.3.3 International Flavors & Fragrances
6.3.4 Tate & Lyle PLC
6.3.5 GLG Life Tech Corporation
6.3.6 Archer Daniels Midland Company
6.3.7 Ajinomoto Co., Inc.
6.3.8 AGRANA Beteiligungs AG
6.3.9 Kerry Group plc
6.3.10 Koninklijke DSM N.V.
6.3.11 Sweegen Inc.
6.3.12 Barentz International B.V.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Cargill Incorporated
  • Ingredion Incorporated
  • International Flavors & Fragrances
  • Tate & Lyle PLC
  • GLG Life Tech Corporation
  • Archer Daniels Midland Company
  • Ajinomoto Co., Inc.
  • AGRANA Beteiligungs AG
  • Kerry Group plc
  • Koninklijke DSM N.V.
  • Sweegen Inc.
  • Barentz International B.V.