- Increasing preference among consumers towards low-calorie beverage and food products and the rising demand for sugar substitute products from the beverage and food industry are driving the demand for the market
- Market Size – USD 15.80 billion in 2019, Market Growth - CAGR of 4.8%, Market Trends –Growing number of diabetic and obese population
VANCOUVER, BC, Oct. 14, 2020 /PRNewswire/ -- The Global Sugar Substitutes Market is forecast to be worth USD 22.53 Billion in 2027, according to a new report by Emergen Research. The growth of this market can be attributed to the growing awareness among consumers regarding the adverse effects of sugar on health that increase the incidences of diabetes and obesity.
The rapid urbanization, coupled with the increasing spending power of consumers on processed food and beverages in the developing economies, is most likely to propel the industry's growth of the region. Besides, the presence of a large number of key manufacturers in the Asia Pacific region is also expected to drive the demand of the industry. The increasing investments in R&D to introduce novel products containing blends of sugar substitutes and prebiotics or probiotics are projected to present lucrative opportunities for the emerging players in the industry.
The international stringent quality standards set for sugar substitutes and uncertainty regarding sugar substitutes' adverse effects might hamper the industry's growth. Additionally, the product claim issue might act as a restraint to the growing sales of the product in the global sugar substitute industry over the forecast period.
In October 2019, ClearFlo, a stevia flavor enhancer, was launched by Cargill. ClearFlo was made in order to meet the requirements of high-intensity sweeteners in the industry.
The natural segment held the largest market share of 56.4% in the year 2019. The shift in consumer preferences from synthetic or artificial sugar substitutes towards natural and organic products is expected to drive the growth of the industry. As per the American Sugar Alliance Organization, almost 20% of the U.S. citizens agreed that they prefer natural sugar substitute-based food or drink products.
The Low-intensity sweeteners segment is forecast to grow with the fastest CAGR of 5.0% over the forecast period as they are used extensively in the food & beverage industry.
The Stevia segment dominated the market for sugar substitutes in 2019 due to its zero calories and zero glycemic index characteristics. For example, over the past five years, approximately 10,000 stevia-based beverages and food products have been introduced, out of which most of the launces included soft drink production.
The beverage segment accounted for the largest market share in 2019 due to the increasing demand for natural and sports drinks with nutritional enrichment and low-calorie content.
The Asia Pacific region is anticipated to be the fastest-growing region over the forecast period due to the growing disposable income and increasing health-conscious population.
Key participants include Cargill, Incorporated, Tate & Lyle PLC, Archer Daniels Midland Company, PureCircle Limited, Ingredion Incorporated, Ajinomoto Co., Inc., E.I. Dupont De Nemours and Company, Roquette, JK Sucralose Inc., and The Nutra Sweet Company, among others.
Regional Outlook (Revenue, USD Billion; 2017-2027)
Rest of Europe
Rest of APAC
Rest of LATAM
Middle East & Africa
Rest of MEA
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