South America Non-sugar Sweeteners Market Outlook, 2028

South America has a rich culinary heritage, and traditional sweeteners have played a significant role in the region's cuisine. Natural sweeteners like honey, panela (unrefined cane sugar), and agave syrup have long been used in local dishes and beverages. The cultural attachment to these traditional sweeteners can sometimes hinder the widespread adoption of non-sugar sweeteners. South America is home to several indigenous sweeteners that have been used by native communities for centuries. For example, in Peru, yacon syrup derived from the yacon root has a natural sweetness and is considered a traditional sweetener with potential health benefits. Stevia, one of the most popular natural non-sugar sweeteners globally, has its origins in South America. The stevia plant (Stevia rebaudiana) is native to Paraguay and other regions in South America, where it has been used by indigenous populations for sweetening herbal teas and medicines. Non-sugar sweeteners are being integrated into traditional South American desserts and sweets to reduce sugar content without compromising on taste. For example, sugar-free versions of brigadeiro in Brazil or alfajores in Argentina are becoming more common. Street food vendors in South America are incorporating non-sugar sweeteners into their offerings, providing consumers with healthier snacking options on the go. In some South American cultures, the act of sweetening food and beverages carries symbolic meaning. Non-sugar sweeteners are integrated into cultural rituals and ceremonies, signifying hospitality, celebration, and good fortune. During cultural festivals and holidays, special sweets and confections made with non-sugar sweeteners are prepared as part of the festivities. These treats often have historical and cultural significance.

According to the research report, South America Non-Sugar Sweetener Market Outlook, 2028 the market is anticipated to add more than USD 470 Million market size from 2023 to 2028. Urbanization in South America has led to busier lifestyles, resulting in a demand for convenient and on-the-go food and beverage options. Non-sugar sweeteners are increasingly used in products catering to these busy consumers seeking healthier alternatives. Younger generations in South America are more health-conscious and seek products aligned with their dietary preferences. Non-sugar sweeteners offer a way for these consumers to enjoy sweet flavors without the negative health impacts of added sugars. The rise in childhood obesity rates in South America has led to a greater emphasis on reducing sugar intake among parents and caregivers. Non-sugar sweeteners are being adopted as a healthier option for children's food and beverages. Dental health concerns, such as tooth decay and cavities caused by excessive sugar consumption, have prompted consumers to seek alternatives to traditional sugars. Non-sugar sweeteners offer a tooth-friendly solution. The demand for sugar-free and reduced-sugar snacks and desserts, such as candies, chocolates, and baked goods, has fueled the use of non-sugar sweeteners in these products. The sports nutrition industry in South America is witnessing robust growth, and non-sugar sweeteners are being incorporated into protein powders, sports drinks, and other fitness-related products to cater to health-conscious athletes and fitness enthusiasts. Consumers in South America are increasingly seeking non-GMO and organic products, leading to the demand for non-sugar sweeteners sourced from natural and organic origins.

Based on the countries, Brazil is dominating the market with more than USD 530 Million in 2022 in South America Non-Sugar Sweetener Market.

Brazil has the largest population in South America, providing a significant consumer base for various products, including non-sugar sweeteners. The country's large market size offers ample opportunities for manufacturers to introduce and promote their products. Brazil has a high prevalence of diabetes, and this health concern has driven demand for sugar-free and low-calorie products. Non-sugar sweeteners are particularly relevant for diabetic individuals who need to manage their blood sugar levels. Brazil is known for its agricultural prowess, and this includes the cultivation of crops like stevia, a natural sweetener extracted from the Stevia rebaudiana plant. The country's ability to produce such raw materials locally can contribute to a competitive advantage in the non-sugar sweetener market. Health apps and tracking tools can analyze the nutritional content of various food and beverage items, including their sugar content. Users can scan barcodes or manually input food items into the app, and it will provide detailed information about the sugar content, among other nutrients. By seeing the amount of sugar in their favorite products, users become more conscious of their sugar intake and may seek alternatives like non-sugar sweeteners.

The Natural segment's expected highest CAGR is more than 5% in the South America non-sugar sweetener market based on Source.

Increasing awareness of the adverse health effects of excessive sugar consumption has prompted consumers in South America to seek healthier alternatives. Natural sweeteners, such as stevia, monk fruit extract, and erythritol, are perceived as better options due to their lower calorie content and reduced impact on blood sugar levels. Natural sweeteners like stevia have a negligible effect on blood sugar levels, making them suitable for individuals with diabetes or those looking to manage their blood sugar levels. This diabetic-friendly aspect further drives their adoption in the region. Some natural sweetener manufacturers emphasize sustainable sourcing practices, promoting eco-friendly cultivation and processing methods. This resonates with environmentally conscious consumers in South America. The growing popularity of plant-based diets in South America has further boosted the demand for natural sweeteners derived from plant sources, aligning with the overall preference for plant-based ingredients. In South America, there is a long-standing tradition of using herbal remedies for various health benefits. Natural sweeteners derived from plants like stevia and monk fruit align with this cultural acceptance of herbal-based solutions. Natural sweeteners are often perceived as cleaner ingredients compared to artificial sweeteners, which may contain synthetic additives or processing chemicals.

According to the type, high fructose syrup is estimated to have a market share of more than 25% in the South American non-sugar sweetener market by 2028.

High Fructose Syrup's is employed in the production of dairy products such as yogurt, ice cream, and flavored milk to enhance sweetness and texture. As the urbanization and busy lifestyles of consumers in South Africa increase, there is a growing demand for processed and convenience foods. HFS serves as a convenient sweetening option for a wide range of processed foods, including snacks, ready-to-eat meals, and packaged beverages. The food service sector, including restaurants, cafes, and fast-food chains, relies on HFS as a cost-effective sweetening agent in their menu offerings, thereby driving its consumption. High Fructose Syrup is utilized in breakfast cereals and cereal bars to add sweetness and enhance the overall taste. HFS is compatible with food coloring and flavoring agents, making it an ideal sweetener for products that require diverse sensory attributes. Ongoing research and development activities in the sweeteners industry are leading to improvements in the production process, taste enhancement, and application versatility of HFS, further driving its market penetration. HFS is commonly used in the production of frozen desserts like ice cream and frozen yogurt to enhance sweetness, improve texture, and reduce the formation of ice crystals. HFS plays a functional role in fruit-based snacks like fruit leathers and fruit chews, providing sweetness and aiding in the preservation of the products.

Based on the Product Type, Nutritive is expected to attain a market share of more than USD 45% by 2028 in the South America Non-Sugar Sweetener Market.

The growing trend of natural and healthier food options has given rise to numerous startups in the food and beverage industry. Many of these startups are incorporating nutritive sweeteners in their product formulations, contributing to market growth. With the COVID-19 pandemic driving more people to cook and bake at home, the demand for nutritive sweeteners suitable for home use has increased. Home bakers and cooks are opting for natural sweeteners in their recipes. Nutritive sweeteners sourced from non-GMO plants are preferred by consumers who seek transparency and sustainable practices in the food industry. Clean label products, which feature simple and recognizable ingredients, are gaining popularity in South America. Nutritive sweeteners, especially those with minimal processing and no artificial additives, fit the clean label criteria. Nutritive sweetener manufacturers are diversifying their product portfolios, offering a broader range of sweeteners to cater to specific applications and customer needs. Nutritive sweeteners have a long history of use in traditional South American cuisine, and they continue to be integral to many indigenous recipes and cultural dishes. This cultural connection drives their acceptance and demand among local consumers. Nutritive sweeteners are used in sugar-free baked goods, such as cookies, cakes, and muffins, to provide a healthier alternative for consumers with dietary restrictions.

Based on application, Food & Beverages segment is leading with around 55% revenue share in 2022 in South America Non-Sugar Sweetener market.

Functional beverages, such as energy drinks, sports drinks, vitamin-enhanced waters, and enhanced fruit juices, are gaining popularity among consumers in South America. These beverages are often marketed as promoting specific health benefits, and using non-sugar sweeteners allows manufacturers to provide sweetness without adding excessive calories from sugars. Non-sugar sweeteners are key ingredients in these functional beverages, contributing to the growth of the Food & Beverages segment. The rising popularity of vegan and plant-based diets is a significant trend in South America. Consumers are increasingly seeking plant-based alternatives to traditional animal-derived products. Non-sugar sweeteners are widely used in vegan and plant-based food and beverage alternatives, such as vegan desserts, plant-based milks, and dairy-free yogurts, making them a crucial part of the Food & Beverages segment. Ready-to-eat meals, including packaged salads, sandwiches, and prepared entrees, have gained popularity due to their convenience. Non-sugar sweeteners are used in these products to enhance flavor while reducing the overall sugar content. As consumers seek healthier options even in ready-to-eat meals, the demand for non-sugar sweeteners in this segment has increased. Non-sugar sweeteners complement the natural sweetness of fruits in various food and beverage products, including fruit juices, fruit-flavored beverages, and fruit-based snacks. This application helps in maintaining the desired sweetness level while reducing the reliance on added sugars.

Market Players Insights

The market is highly fragmented with large number of key players present across the North America value chain. Key industry participants include Cargill, Incorporated, The Archer-Daniels-Midland Company, Tate & Lyle PLC, Ingredion Incorporated, Ajinomoto Co., Inc, Celanese Corporation, DuPont de Nemours, Inc., International Flavors & Fragrances (IFF), Roquette, Royal DSM N.V., Dohler Group SE.

Considered in this report

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• South America Non-Sugar Sweeteners with its value and forecast along with its segments
• Country-wise Non-Sugar Sweeteners market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• Brazil
• Argentina
• Colombia

By Source

• Artificial
• Sugar Alcohol
• Natural

By Type

• High-Intensity Sweeteners
• High Fructose Syrup
• Low-Intensity Sweeteners

By product Type

• Non- Nutritive
• Nutritive

By Application

• Food & Beverages (Bakery, Confectionery, Dairy, Juices, Functional Drinks, Carbonated Drinks)
• Nutrition and Health Supplements
• Pharmaceuticals
• Cosmetics and Personal Care

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations and organisations related to the Non-Sugar Sweeteners industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.