Increasing health problems due to sugar consumption and a surge in consumer preference for healthier and low-calorie sugar alternatives are stimulating market growth.
Market Size - USD 14.9 Billion in 2019, Market Growth - CAGR of 4.6%, Market Trends- Rise in low-calorie intake trend.
The Global Sugar Substitutes Market size is forecast to reach USD 18.8 Billion from USD 14.9 Billion in 2019, exhibiting a CAGR of 4.6% through 2027. Market growth is driven by a plethora of factors, including a rise in disposable incomes, the growth of developing economies, hectic lifestyles, growing awareness regarding health & nutrition, expansion of the geriatric population base, and the growing prevalence of diabetes and obesity.
Sugar substitutes are gaining massive popularity as they contain significantly lighter food energy than sugar-based sweeteners. These low-calorie or zero-calorie sweeteners can be enjoyed guilt-free by weight-conscious and diabetic people. In 2018, the global count of diabetes was 424.9 million people. The IDF (International Diabetes Federation) estimates that the prevalence of diabetes is likely to increase by 9.9% by 2045.
The manifestation of diabetes can be prevented by appropriate measures like lifestyle changes and diet control. The growing health awareness among the masses is leading to skyrocketing demand for sugar substitutes. Moreover, the growing demand for naturally sourced sweeteners will bolster the sugar substitutes market growth over the forecast period.
Further key findings from the report suggest
Reduced sugar consumption and low-calorie intake have been major trends in the past few years. From aspartame to stevia, consumers are looking for ways to alleviate obesity and diabetes. In 2019, approximately 7 million people were using stevia, making it the most commonly used sugar substitutes available in the market.
Based on origin type, the natural sugar substitutes segment will contribute significantly to the global sugar substitute market revenue share, exhibiting a growth rate of 4.7% through 2027. The robust growth can be attributed to snowballing health awareness among consumers and growing demand for non-GMO and vegan-based food products. The rapid proliferation of clean labels such as 'preservative-free,' 'natural,' 'non-GMO,' and 'organic' ingredients will boost segmental growth.
On the basis of product type, the stevia segment is forecast to witness the highest growth at 7.3% over the analysis period. A report suggests that almost 10,000 new stevia-based food & beverage products have been launched in the past few years, with more than 26% of the launches concentrated on soft drink production.
Based on application, the food segment accounted for a major chunk of the sugar substitutes market share in 2019 and is forecast to register a CAGR of 4.9% through 2027. The rapid growth is driven by the replacement of sucrose with low-calorie alternatives in food products.
In the regional landscape, the Asia Pacific region is forecast to witness the highest growth of 5.2% through 2027 on account of growing disposable incomes in emerging economies, including India and China, and surging demand for sugar substitutes with a rise in health awareness.
Key players operating in the global sugar substitutes market are Cargill, Inc. (U.S.), Tate & Lyle (U.K.), Archer Daniels Midland Company (U.S.), Roquette Freres (France), Ingredion Inc. (U.S.), Ajinomoto Co. Inc. (Japan), PureCircle (Malaysia), JK Sucralose Inc. (China), E. I. DuPont De Nemours (U.S.), and The NutraSweet Company (U.S.), among others.
Industry players have undertaken several strategies to enhance their market presence. For instance, in May 2020, Ingredion Incorporated, a leading ingredients solution company, launched a new sugar substitute, Erysta, made from fermented erythritol polyol.