Market Trends of India Food Sweetener Industry
Rising Diabetic and Obese Populations Fuel Demand for Natural, Zero-calorie Sweeteners like Stevia
The rising tide of obesity and diabetes, coupled with a global shift toward low-sugar and no-calorie diets, is propelling the demand for natural sweeteners worldwide. A study in Lancet, a prominent medical journal, highlighted that by 2022, 70% of India's urban population was either overweight or obese. Furthermore, the study underscored that 30 million Indian adults grapple with excess weight, while an additional 62 million diabetics exhibit obesity-linked traits like heightened body fat and abdominal adiposity.
These alarming diabetes and obesity figures are set to buoy India's food sweetener market in the coming years. With diabetes and obesity on the rise, consumers are increasingly turning to zero-calorie natural sweeteners to manage their blood sugar levels and lead healthier lives. Consequently, the demand for stevia, aligning well with these health-conscious preferences, is on a notable upswing, leading to a surge in the consumption of low-calorie sweeteners in the food and beverage industry.
Notably, organic stevia extracts, being plant-based and boasting zero sugar, carbs, and calories, are witnessing a significant uptick in demand. For instance, Arboreal Stevia, operating under the brand ArboPURE, offers a diverse range of natural stevia extracts directly sourced from the stevia leaf through an organic extraction process. These extracts, available in various grades like Reb A and Reb M, find applications as both sweeteners and flavors, catering to a broad spectrum of consumer needs. With a growing appetite for clean-label ingredients and low-calorie sweeteners, India's market is witnessing a pronounced shift toward natural and zero-calorie sweeteners, driven by an escalating health consciousness.
Rising Prevalence of the Confectionery & Bakery Segments Propelling the Demand for Food Sweeteners
India has a rich and diverse culinary tradition, which includes a deep appreciation for sweets and desserts. Sweets are an integral part of Indian culture, often used to celebrate special occasions, religious festivals, and social gatherings. Despite the growing awareness of health issues related to excess sugar consumption, the admiration for sweets remains strong in India. As per LocalCircle, in November 2023, a survey in India revealed that the majority of people enjoyed consuming traditional Indian sweets once or twice a month. However, a small percentage of participants, around 8%, reported consuming these sweets daily. There is a growing emphasis on healthier alternatives and sugar-free choices, including sweets made with artificial sweeteners or natural sweeteners. The Indian market has also observed an increase in the availability of sugar-free and low-sugar varieties of traditional sweets to appeal to health-conscious consumers. The integration of sugar substitutes in baked goods and sweets with functional and nutraceutical properties is a growing trend, focusing on improving specific health outcomes. For instance, prebiotic sweeteners are being used to sweeten probiotic-rich products.
Consumer preferences are evolving, and consumers are increasingly leaning toward tastes, exotic flavors, and textures. Post-pandemic, there has been a notable pivot toward mindful indulgences, portion control, and nutritionally fortified snacks. This shift is evident in the rising popularity of high-fiber, high-protein baked goods like dry fruit cakes and nutty cookies. Additionally, there is a marked preference for natural, plant-based ingredients in baking, especially natural sweeteners and trans-fat-free options, which are outpacing traditional ingredients. Today's bakeries are not just sweetening their creations but also leveraging sweeteners for functional benefits, like extending shelf life and enhancing textures. For instance, gluten-free cookies and cakes often feature sweeteners such as maltitol and sorbitol, not just for sweetness but also to mimic traditional textures.
Moreover, changing lifestyles, particularly in urban centers, are fueling demand for convenient food options, especially confectioneries. The need for on-the-go, ready-to-eat sweet treats is surging, particularly among busy professionals and millennials who seek indulgence without compromising on convenience. Consequently, companies are ramping up investments in food sweeteners, expanding their offerings to meet this burgeoning market demand.
