Sugar Substitutes Market Size, Share & Trends Analysis Report By Type (High- intensity, Low-intensity Sweeteners), By Application (Food, Health & Personal Care), By Region (EU, APAC, MEA), And Segment Forecasts, 2022 - 2030

Report Overview

The global sugar substitutes market was valued at USD 6.22 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.9% from 2022 to 2030. Key factors driving the industry growth are the changing consumer preference for healthier and low-calorie foods owing to the rising prevalence of obesity-related lifestyle diseases, such as diabetes and Cardiovascular Diseases (CVDs). The COVID-19 pandemic influenced the demand for healthy low-calorie and sugar-free products as people became more conscious about their eating habits and the importance of leading a healthy lifestyle. COVID-19 and metabolic syndrome are both characterized by chronic inflammation.

According to a paper published in the Journal of the Endocrine Society, sugar intake specifically has been found to impact COVID-19 fatalities by contributing to the chronic inflammatory state. Therefore, various food and beverage manufacturers are using low-calorie or no-calorie sweeteners to meet the changing consumer demand, which is anticipated to propel the industry growth during the forecast period. Low-Calorie Sweeteners (LCS) are sugar substitutes that have a higher sweetening effect for each gram than sugar. LCS is found in a wide range of foods and beverages, including gums, frozen desserts, gelatins, candy, baked goods, breakfast cereals, pudding, and yogurt. Sugar substitutes can be used in the food and beverage industries without compromising taste or quality.

They are becoming increasingly popular as people place a greater emphasis on their fitness, health, appearance, and body image. A rapidly increasing demand for healthier foods will support the industry's growth. Artificial sugar is almost 200 times sweeter than regular sugar. Artificial sweeteners are recommended by both the American Heart Association and American Diabetes Association as a sugar substitute to lower the risk of diabetes, obesity, heart disease, and metabolic disorders, as well as to manage calorie intake. Increasing calorie consumption, decreased physical activity, and excessive sweet food consumption all contribute to the obesity problem across the globe, which will drive product demand in the coming years.

Sugar substitutes are subjected to stringent safety and health inspections. Regulatory bodies have conducted numerous studies to measure and assess the effects of these products on humans. Products are classified based on results, and the Daily Intake Allowance (DIA) is established. Standards established by agencies for usage levels and classification differ between respective authoritative bodies, posing a serious problem for companies seeking to streamline product development. European laws regarding artificial sweeteners are strict, whereasU.S. regulations favor the advent of novel sweeteners regardless of origin. Many stringent regulations on the manufacture, usage, intake, and labeling of sugar substitutes hinder industry growth.

Type Insights

Based on type, the global industry has been further categorized into high-intensity sweeteners, low-intensity sweeteners, and high-fructose syrup. The high-intensity sweeteners segment dominated the global industry in 2021 and accounted for the maximum share of more than 68.70% of the overall revenue. High-intensity sweeteners have a much higher sweetness than table sugar (sucrose), thus, fewer quantities of these sweeteners are required to achieve the same sweetness as sugar. The growing health and wellness trend globally is predicted to drive the application of high-intensity sweetness in the coming years. The low-intensity sweeteners segment is expected to witness substantial growth over the forecast period on account of the growing demand for better oral health.

Usually, low-intensity sugar substitutes do not lead to tooth decay as they do not end up leaving a residual of enamel-degrading acid as sugar does. Several low-intensity sweeteners including xylitol, erythritol, mannitol, and sorbitol, have desirable characteristics and are used in a wide range of foods to decrease glycemic levels, which is anticipated to drive the segment growth. The high-fructose corn syrup segment is anticipated to grow at a steady CAGR from 2022 to 2030. The application of high fructose syrup in the food and beverage industry is driven by the product’s ease of handling and property of not getting crystallized in solution. Food and beverage producers use high fructose syrup to produce flavors and textures, by using less energy and resources during manufacturing than they would with alternative products, thereby saving costs.

Application Insights

Based on application, the global industry has been further categorized into food, beverages, and health & personal care. The beverage segment dominated the industry in 2021 and accounted for the maximum share of more than 44.40% of the total revenue. This is owing to the growing demand for low- and no-calorie formulations among consumers. Furthermore, the market for sugar substitutes, particularly natural sweeteners derived from monk fruit, agave, and stevia among others, is anticipated to grow as consumers are inclined towards organic, natural, convenient, and functional beverages.

In addition, the rising demand for sports and health drinks with enhanced nutritional value is expected to boost the industry's growth in the coming years. The health & personal care segment is expected to register the fastest CAGR during the forecast period. The food segment is also estimated to grow significantly from 2022 to 2030 due to changing consumer habits and increased awareness about low-calorie food products and dairy products. Sugar substitutes are widely used in canned foods, baked goods, powdered drink mixes, and soft drinks. Non-nutritive sweeteners are used to sweeten food products instead of sugars, such as sucrose, honey, agave nectar, and corn syrup. They can be used in smaller amounts to flavor meals as these ingredients are sweeter than sugar.

Regional Insights

Based on region, the global industry has been further categorized into North America, Asia Pacific, Europe, Middle East & Africa, and Central & South America. North America dominated the global industry and accounted for the largest share of more than 34.00% of the overall revenue in 2021 owing to the high per capita incomes of the countries along with the increased awareness about the adverse effects of sugar and the advantages of its substitutes. In addition, the region has grown as a result of supportive government initiatives. For instance, the FDA has allowed the use of high-intensity sweeteners like aspartame, saccharin, Acesulfame Potassium (Ace-K), advantame, and neotame among others, which has increased the demand for sugar substitutes.

Moreover, American consumers are increasingly looking for calorie-free sweeteners derived from plants to lead healthier lifestyles. Asia Pacific is expected to grow significantly during the forecast period. The region is expected to expand rapidly due to a rise in diabetic patients in countries like India and China. According to the World Health Organization, nearly 110 million people in China, or 10% of the population, have diabetes. As a result, the consumption of artificial sweeteners and sugar substitutes for sucrose is becoming increasingly common in China.

Key Companies & Market Share Insights

The global industry has many major companies operating on regional and global levels. Leading players are focusing on new product development through significant R&D expenditures and utilizing innovative technologies to manufacture products of the finest quality at the most affordable prices. Key companies are forming joint ventures, alliances, mergers, and acquisitions to broaden their geographic reach and strengthen their position in the marketplace. For instance, in March 2022, Cargill introduced its stevia products with EverSweet + ClearFlo technology along with a more refined flavor.

This cutting-edge sweetener system combines stevia sweetener with a distinct flavor and offers several advantages, including flavor modification, improved dispersion, and increased solubility and stability in compositions. In April 2022, Tate & Lyle expanded allulose production to fulfill an elevated sharp rise in crystalline allulose demand, which gained prominence after the FDA settled for excluding it from the added and total sugar declarations on the panel of Nutrition Facts. As per Tate & Lyle, allulose has been utilized in a variety of products, with bars as the most popular. Some of the key companies operating in the global sugar substitutes market are as follows:

• Tate & Lyle

• Cargill, Inc.

• Archer Daniels Midland Company (ADM)

• Ingredion Inc.

• Roquette Freres

• Ajinomoto Co.

• JK Sucralose, Inc.

• The NutraSweet Company

• PureCircle

• E. I. DuPont De Nemours

Sugar Substitutes Market Report Scope

Global Sugar Substitutes Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global sugar substitutes market report based on type, application, and region:

• Type Outlook (Volume, Thousand Tons; Revenue, USD Million, 2017 - 2030)

  • High-intensity Sweeteners

    • Natural

      • Stevia Extracts

      • Licorice Root Extracts

      • Monk Fruit Extracts

    • Artificial

      • Aspartame

      • Cyclamate

      • Saccharin

      • Sucralose

      • Others

  • Low-intensity Sweeteners

    • Xylitol

    • Sorbitol

    • Maltitol

    • Mannitol

    • Trehalose

    • Isomaltulose

    • Others

  • High Fructose Syrup

• Application Outlook (Volume, Thousand Tons; Revenue, USD Million, 2017 - 2030)

  • Food

    • Bakery

    • Confectionery

    • Dairy

    • Others

  • Beverages

    • Juices

    • Functional Drinks

    • Carbonated Drinks

    • Non-Dairy

    • Milk and Dairy

    • Others

  • Health & Personal Care

• Regional Outlook (Volume, Thousand Tons; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Mexico

    • RONA

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Turkey

    • South Africa