Sugar Substitutes Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 7.87 Billion |
| Market Size (2029) | USD 11.24 Billion |
| CAGR (2024 - 2029) | 7.41 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
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*Disclaimer: Major Players sorted in no particular order |
Sugar Substitutes Market Analysis
The Sugar Substitutes Market size is estimated at USD 7.87 billion in 2024, and is expected to reach USD 11.24 billion by 2029, growing at a CAGR of 7.41% during the forecast period (2024-2029).
- The increasing health consciousness among consumers in the country, coupled with the high demand for ready-to-eat food and beverages and increased spending on food, are driving the growth of the market studied. Also, in recent years, there has been a significant rise in the demand for healthy alternatives to refined sugar.
- For instance, in 2022, according to the International Food Information Council (IFIC), 31% of Gen Z, 30% of millennials, and 23% of Gen X consumers are inclined towards no/low-calorie sweeteners. This can be attributed to increasing awareness among individuals about the negative health impact of sugar.
- Consistently consuming excess sugar can lead to tooth decay and cavities, obesity, type 2 diabetes, heart disease, high blood pressure, and many other detrimental health conditions. It can even contribute to nutrient deficiencies due to providing calories but limiting nutrients. In other words, added sugars are empty calories offering little to no nutritional benefit. Therefore, consumers are seeking healthy sugar substitutes, such as stevia, aspartame, sorbitol, maltitol, neotame, acesulfame, and D-tagatose, as they are low in calories.
- Prominent manufacturers in the market are certifying their product offerings by renowned organizations to gain consumer trust and confidence. They are also focusing on innovating and introducing high-intensity sweeteners.
- For instance, in 2022, Sweegen expanded its extensive sweetener portfolio with the zero-calorie, high-intensity sweetener Brazzein. The product was developed in collaboration with long-term innovation partner Conagen, which has scaled it to commercial production. Such innovations will likely positively influence the demand for sugar substitutes during the study period.
Sugar Substitutes Market Trends
Health Consciousness Among Individuals Drives the Market
- Excess sugar intake can lead to several health problems, including tooth decay, obesity, diabetes, heart disease, and high blood pressure. Therefore, the increasing awareness of these adverse health impacts and the rising health consciousness encourage individuals to limit their intake of added sugars. According to a survey by the International Food Information Council (IFIC), 61 percent of United States adults were reportedly trying to limit sugars in their diet in 2023.
- Another study conducted in 2022 to understand the reasons behind limiting or avoiding sugars reveals that avoiding gaining weight was the most frequently mentioned explanation amongst approximately 41 percent of respondents. About 38 percent of respondents said they limit their sugar intake to improve their diet, 36 percent to lose weight, 35 percent to prevent a future health condition, and 23 percent to manage an existing health condition.
- As diabetes and obesity become more prevalent, consumers strive to live a healthier lifestyle. They are looking for natural sweeteners with zero calories to keep their blood glucose levels in check. Therefore, it is expected that the demand for stevia will grow as it is aligned with the requirements of the consumers.
- Moreover, health-conscious consumers are avoiding highly refined foods and beverages with added sugars and sweeteners and opting for low-sugar products as they are perceived to be a healthy food option. The statistics by IFIC show that nearly 37 percent of respondents in the United States said that the term "low in sugar" best defines healthy food to them. Therefore, food and beverage manufacturers are shifting to sugar substitutes as they don't contain calories or sugar.
Asia-Pacific Holds a Major Market Share
- Asia-Pacific currently accounts for the majority of the share of the global sugar substitute market. The primary factors behind this significant growth include the expanding population, the increasing number of health-conscious individuals, and the rising prevalence of chronic medical conditions.
- The rising trend of natural and organic products has boosted the demand for natural sweeteners in the region. Furthermore, sugar substitutes, such as monk fruit sweetener, stevia, and yacon syrup, are comparatively sustainable and have gained immense popularity in the region. Moreover, increased consumer awareness about the adverse health impact of white sugar, along with changing dietary patterns, is driving the market. Also, major players are indulging in partnerships and acquisitions to launch innovative and sustainable products.
- For instance, in January 2021, Tate & Lyle and Codexis expanded their collaboration to improve the production of two of its newest sweeteners, Dolcia Prima Allulose and Tasteva M Stevia Sweetener. Besides this, regulatory bodies in several countries authorized the use of sugar substitutes in consumer products. This, in turn, drives the demand for alternative sweeteners among food and beverage companies to introduce low-caloric products to capitalize on customers' needs and drive their overall sales.
Sugar Substitutes Industry Overview
The global market for sugar substitutes is highly competitive, with the presence of prominent regional and domestic players in different countries. Emphasis is given to mergers, expansions, acquisitions, and partnerships as key strategies for building a solid consumer base. Along with this, the leading companies are also focusing on product developments to boost their brand presence among consumers.
Some major players in the market include Cargill Incorporated, Tate & Lyle PLC, Ajinomoto Co., Inc., Ingredion Incorporated, and ADM. The prime factors determining the market players' position in the concerned market are the continuous launch of new products with advanced technology and high quality. Thus, brands differentiate their products in sweetness, quality, and innovation to gain a competitive advantage.
Sugar Substitutes Market Leaders
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Cargill Incorporated
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Tate & Lyle PLC
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Ajinomoto Co., Inc
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Ingredion Incorporated
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ADM
*Disclaimer: Major Players sorted in no particular order
Sugar Substitutes Market News
- July 2023: Tate & Lyle unveiled an exciting addition to its sweetener lineup, known as TASTEVA SOL Stevia Sweetener. This groundbreaking innovation, protected by international patents, significantly enhances the company's capacity to assist customers in addressing solubility challenges associated with stevia in the realm of food and beverages. Moreover, it contributes to meeting the growing consumer demand for healthier, more delectable, and lower-calorie sugar-reduced products.
- April 2022: Tate & Lyle responded to the soaring demand for allulose. This rare sugar has gained widespread popularity since the Food and Drug Administration's (FDA) decision to exclude it from the total and added sugars declarations on nutrition facts labels. In a bid to meet this increased demand, the company expanded its allulose production capabilities.
- March 2022: Cargill introduced its innovative line of stevia products, harnessing the power of EverSweet + ClearFlo technology. This cutting-edge sweetener system seamlessly integrates Cargill's stevia sweetener with natural flavors, offering an array of advantages, including the ability to modify flavor profiles, accelerate dispersion, and enhance solubility and stability within various formulations.
Sugar Substitutes Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Consumer Inclination Toward Clean-label Sugar Substitute
- 4.1.2 Demand For Sugar Substitutes From Diabetic and Obese Population
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4.2 Market Restraints
- 4.2.1 Availability of Low-cost Sweeteners
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Acesulfame Potassium
- 5.1.2 Advantame
- 5.1.3 Aspartame
- 5.1.4 Neotame
- 5.1.5 Saccharin
- 5.1.6 Sucralose
- 5.1.7 Stevia
- 5.1.8 Other Types
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5.2 Application
- 5.2.1 Food
- 5.2.1.1 Baked Foods and Cereals
- 5.2.1.2 Confectionery
- 5.2.1.3 Dairy and Dairy Alternatives
- 5.2.1.4 Sauces, Condiments, and Dressings
- 5.2.1.5 Othe r Food Applications
- 5.2.2 Beverage
- 5.2.3 Pharmaceuticals
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Spain
- 5.3.2.2 United Kingdom
- 5.3.2.3 Germany
- 5.3.2.4 France
- 5.3.2.5 Italy
- 5.3.2.6 Russia
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 South Africa
- 5.3.5.2 United Arab Emirates
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Active Companies
- 6.2 Most Adopted Strategies
- 6.3 Market Share Analysis
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6.4 Company Profiles
- 6.4.1 Tate & Lyle PLC
- 6.4.2 Ingredion Inc.
- 6.4.3 Ajinomoto Co., Inc
- 6.4.4 Cargill Inc
- 6.4.5 Morita Kagaku Kogyo Co. Ltd
- 6.4.6 JK Sucralose Inc.
- 6.4.7 Manus Bio Inc.
- 6.4.8 Archer Daniels Midland Company
- 6.4.9 Xianghua GL Stevia Co
- 6.4.10 GLG Life Tech Corp.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySugar Substitutes Industry Segmentation
Sugar substitutes are chemical or plant-based substances used to sweeten or enhance the flavor of food products and beverages.
The sugar substitute market is segmented by type, application, and geography. By type, the market is segmented into acesulfame potassium, advantame, aspartame, neotame, saccharin, sucralose, stevia, and others. By application, the market is segmented into food, beverage, and pharmaceuticals. The food segment is further segmented into baked foods and cereals, confectionery, dairy and dairy alternatives, sauces, condiments, and dressings, and other food applications. The report further analyses the market's global scenario, including a detailed analysis of North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Type | Acesulfame Potassium | |
| Advantame | ||
| Aspartame | ||
| Neotame | ||
| Saccharin | ||
| Sucralose | ||
| Stevia | ||
| Other Types | ||
| Application | Food | Baked Foods and Cereals |
| Confectionery | ||
| Dairy and Dairy Alternatives | ||
| Sauces, Condiments, and Dressings | ||
| Othe r Food Applications | ||
| Application | Beverage | |
| Pharmaceuticals | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Spain |
| United Kingdom | ||
| Germany | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | South Africa |
| United Arab Emirates | ||
| Rest of Middle-East and Africa |
Sugar Substitutes Market Research FAQs
How big is the Sugar Substitutes Market?
The Sugar Substitutes Market size is expected to reach USD 7.87 billion in 2024 and grow at a CAGR of 7.41% to reach USD 11.24 billion by 2029.
What is the current Sugar Substitutes Market size?
In 2024, the Sugar Substitutes Market size is expected to reach USD 7.87 billion.
Who are the key players in Sugar Substitutes Market?
Cargill Incorporated, Tate & Lyle PLC, Ajinomoto Co., Inc, Ingredion Incorporated and ADM are the major companies operating in the Sugar Substitutes Market.
Which is the fastest growing region in Sugar Substitutes Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Sugar Substitutes Market?
In 2024, the Asia Pacific accounts for the largest market share in Sugar Substitutes Market.
What years does this Sugar Substitutes Market cover, and what was the market size in 2023?
In 2023, the Sugar Substitutes Market size was estimated at USD 7.33 billion. The report covers the Sugar Substitutes Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sugar Substitutes Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sugar Substitutes Industry Report
The global market for sugar alternatives is experiencing significant growth, driven by increasing demand across various applications such as food, beverages, and pharmaceuticals. The market analysis indicates a strong market growth, with a comprehensive market report providing insights into market share, market size, and market research.
Industry reports highlight the industry's outlook, with a detailed industry analysis and industry overview. The market forecast suggests positive market trends, supported by industry statistics and industry information. Market segmentation reveals the diverse applications of sugar substitutes, ranging from baked foods and cereals to dairy alternatives and condiments.
Market leaders are playing a crucial role in shaping the market value and market predictions. The report example and report pdf offer an in-depth market review, showcasing the industry's growth rate and market data. Research companies have contributed to a robust industry research, emphasizing the importance of market segmentation and market forecast in understanding the market outlook.
The industry sales and industry size are expected to rise, reflecting the market's potential. The industry trends and market predictions provide valuable insights into future market developments, ensuring a comprehensive market overview. The market value and market forecast are essential for stakeholders to make informed decisions, supported by detailed industry statistics and market data.
