Sugar Substitutes

According to Stratistics MRC, the Global Sugar Substitutes Market is accounted for $9.19 billion in 2024 and is expected to reach $16.17 billion by 2030 growing at a CAGR of 9.88% during the forecast period. Sugar replacements are substitutes for regular sugar that are frequently used to control blood sugar levels and cut calories. These alternatives come in the form of artificial sweeteners like aspartame, sucralose, and saccharin, as well as natural options like stevia and monk fruit. Moreover, every kind of replacement has unique advantages and possible disadvantages. As an illustration, stevia, which is made from the leaves of the Stevia rebaudiana plant, is well-liked for its naturalness and lack of calories.

According to the American Heart Association, non-nutritive sweeteners, when used judiciously, can help reduce added sugar intake and promote weight management or weight loss, provided they are part of a well-balanced diet that is nutritionally adequate.

Market Dynamics: 

Driver: 

Negative impacts on health from excessive sugar intake

The world's rapid industrialization has recently resulted in a rise in urbanization. Individuals are living increasingly sedentary lives, spending more time in offices, and getting little exercise. As a result, their bodies' imbalance in energy is being caused by an imbalance in food intake. Additionally, the amount of calories consumed exceeds the amount of calories expended by the body. Eating foods high in calories has caused the body to become obese, which has serious health consequences. Consequently, the market is growing as a result of consumers' growing demand for low-calorie sweeteners for food and beverages.

Restraint:

Adverse effect on consumer confidence as a result of inconsistent clinical trial results

Numerous controversies have been linked to sugar substitutes; these controversies, which center on the products' detrimental effects on health, influence how the general public views sugar substitutes, which in turn influences the market's expansion. Furthermore, the market expansion is being impeded by stringent government regulations regarding the safety of sugar substitute products and their use in a variety of products, including food and beverage items.

Opportunity:

Rising prevalence of lifestyle diseases associated with obesity

Consumer preference for functional nutrition and food additives, like sugar substitutes, has grown as a result of improvements in living standards and economic development. Sugar replacements add flavor and sweetness to food without increasing calorie content. In order to control calorie intake and lower the risk of obesity, metabolic diseases, diabetes, and heart disease, artificial sweeteners are used in place of sugar. Moreover, the global obesity epidemic is largely caused by rising fat intake, decreased physical activity, and overindulgence in sugary foods. These factors also present enormous growth opportunities for the industry.

Threat:

Adverse health effects from using sugar substitutes excessively

Consuming foods high in calories causes the body to accumulate fat and become obese. On the other hand, obesity is linked to a number of health issues, including high blood pressure, cancer, type-2 diabetes, and cardiovascular disease. As a result, consumers are obliquely requesting low-calorie sweeteners for meals and drinks. In addition to making people heavier, artificial sweeteners can cause bladder cancer, brain abnormalities, and a host of other health issues. Additionally, numerous reports of adverse health effects, including carcinogenicity, have also been made. Growth in market revenue is anticipated to be hampered by these factors.

Covid-19 Impact: 

Global markets were severely affected by the COVID-19 pandemic, which led to severe economic disruption. Extreme volatility was witnessed in the stock market, with major indices falling and then rising in response to stimulus measures taken by central banks and governments. Travel, hospitality, and retail saw declines due to supply chain disruptions, changes in consumer behavior, and lockdowns; on the other hand, the technology, e-commerce, and healthcare sectors saw growth as a result of growing reliance on digital solutions and the need for medical care. Furthermore, the pandemic sped up developments like online shopping and remote work, changing market dynamics and forcing businesses to quickly adjust to the changing business environment.

The Artificial segment is expected to be the largest during the forecast period

In the market for sugar substitutes, the artificial segment has the largest share. Because artificial sweeteners are used in so many different food and beverage products, aspartame, saccharin, and sucralose are the most common types. Because of these sweeteners' affordability, stability, and high sweetness intensity—which only requires small amounts to achieve the desired taste—manufacturers greatly favor them. Moreover, to meet the growing demand from consumers for lower-sugar and lower-calorie options, they are widely used in diet sodas, sugar-free candies, and low-calorie desserts. 

The Liquid segment is expected to have the highest CAGR during the forecast period

In the market for sugar substitutes, the liquid segment is anticipated to grow at the highest CAGR. The growing popularity of liquid sugar substitutes can be attributed to their ease of use and versatility in cooking recipes, beverages, and processed foods. Their preference lies in applications such as flavored waters, soft drinks, and syrups, as they dissolve smoothly and offer consistent sweetness. Furthermore, the growing use of liquid substitutes in the food and beverage industry, along with consumer preference for convenient, low-calorie sweetening options, is driving demand.

Region with largest share:

Due to rising industrialization and rising middle-class disposable income, Asia Pacific is anticipated to hold the largest market share over the forecast period. As a result, there is now a greater demand for goods that improve health, such as wholesome food items. Asia-Pacific is seeing a rise in demand for low-calorie foods and drinks. This rise is a result of consumers becoming more health-conscious, which is fuelling the market's expansion. Additionally, drinks, ice creams, sauces, jellies, puddings, candies, dairy products, powdered drink mixes, and other refined foods are frequently made with sugar substitutes.

Region with highest CAGR:

Due to consumer preference for various sugar substitutes like stevia, sugar alcohols, sucralose, and related products, Europe is expected to have the highest CAGR during the forecast period. As a result, manufacturers of sugar alternatives are now thinking about creating brand-new, excellent, and delicious products for the market. European food and beverage companies are searching for sustainable and healthful sweeteners. European consumers are becoming more aware of stevia, and its uses in food and drink products are growing. There is a growing trend among European consumers to seek out natural and healthier products. 

Key players in the market

Some of the key players in Sugar Substitutes market include ADM, International Flavors and Fragrances Inc., Tate & Lyle, Ingredion Incorporated, Cargill Incorporated , Roquette Frères, PureCircle , MacAndrews & Forbes Holdings Inc., JK Sucralose Inc. and Ajinomoto Co. Inc.

Key Developments:

In April 2024, Archer Daniels Midland and Vikram Luthar entered into a Transition Agreement under which Mr. Luthar will resign effective September 30, 2024 (unless an earlier date is mutually agreed between Mr. Luthar and the Company). Until such resignation date, Mr. Luthar will be available to assist the Company and provide transitional support as needed, as a non-executive employee.

In November 2023, Ingredion Incorporated, a leading global provider of ingredient solutions to the food and beverage industry, today announced that it has signed a definitive agreement to divest its business in South Korea to an affiliate of the Sajo Group, a leading food company headquartered in Seoul, South Korea. The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals and satisfaction of other customary closing conditions.
 
In June 2023, Singapore-based Cargill Metals has entered into a multiyear agreement with Sweden-based industrial startup H2 Green Steel for the supply of green steel. The companies say the agreement aims to accelerate global ferrous supply chain decarbonization. According to Cargill, the agreement marks another major step for the company toward its vision to shape a responsible and sustainable ferrous supply chain that helps the world thrive.

Sources Covered:
• Natural
• Artificial
• Other Sources 
 
Products Covered:
• High-intensity Sweeteners
• Low-intensity Sweeteners
• Other Products 

Forms Covered:
• Liquid
• Solid
• Other Forms 

Applications Covered:
• Food Products
• Beverages
• Health and Personal Care
• Pharmaceuticals
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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