The global sugar substitutes market size was valued at USD 13.70 billion in 2016. It is expected to witness a CAGR of 4.2% from 2016 to 2024. Soaring demand for sugar substitute products from the food and beverage industry is anticipated to help the market gain tremendous traction over the coming years.
Asia Pacific is estimated to be a highly promising destination for sugar substitute manufacturers due to improving living standards of middle-class population coupled with rising spending power of consumers. Besides this, growing concerns among health conscious population are projected to be one of the key factors stimulating market growth.
China is one of the major markets for sugar substitutes in APAC. Presence of a large number of manufacturers and aging population in the country are propelling the demand for sugar substitutes in the country.
North America is among the highest consumers of sugar substitutes. Growing awareness about low calorie foods and benefits of including sugar substitutes in the daily diets is likely to boost the demand for these products. The major reason behind moderate growth in the region is soaring pressure by regulatory bodies on sugar substitute manufacturers.
Increasing awareness regarding repercussions of high sugar consumption and rising prevalence of diabetes across the globe are poised to support the growth of the market. Fluctuating prices of sugar are expected to create opportunities for sugar substitute manufacturers worldwide over the forecast period.
High intensity sweeteners dominated the market, accounting for 44.1% of the global market revenue in 2015. Changing health and wellness trends across the globe is anticipated to boost the application of high intensity sweeteners over the forecast period.
Low intensity sweeteners represented 20.5% of global demand in 2015 and is estimated to exhibit the highest CAGR during the forecast period. Burgeoning consumption of low calorie food is supplementing the growth of the segment.
Ease of handling offered by high fructose syrup is triggering the application of this product in the food & beverage industry. High fructose syrup is used by food and beverage manufacturers to create textures, flavors, and freshness that cater to the needs of consumers while saving huge amount of manufacturing costs.
Increasing emphasis on reduction of overall sugar consumption coupled with widening base of health conscious people is prompting the food & beverage industry to respond to surging consumer demand for healthy food. Companies operating in the industry are focusing on developing foods and beverages that help meet customers’ weight loss and dietary goals. This means manufacturing companies need to develop products that have low calorific value, free from sugar, and low in glycemic carbohydrates while achieving the desired flavor, stability, and texture of traditional products without raising the insulin or blood glucose levels.
Beverage application dominated the global sugar substitute market, accounting for 43.5% of the global market value in 2015. The segment is projected to dominate the market over the forecast period due to spiraling demand for natural health drinks and sports drinks with enhanced nutritional value.
Food application was estimated at USD 4,771.9 million in 2015 and is likely to rise at a CAGR of 4.8% from 2016 to 2024. Rising awareness about proper food consumption among the obese and diabetic population is poised to boost the uptake of sugar substitutes in food products.
The food segment is expected to register the highest CAGR over the forecast period owing to changing consumer patterns and increasing awareness regarding low-calorie food products. Sugar substitutes are extensively used in products such as baked goods, canned foods, powdered drink mixes, dairy products, and soft drinks.
Rising awareness of health benefits related to sugar substitutes in beverages and their ingredients are helping to drive consumer interest in health and wellness products. Increasing use of sweeteners in the manufacturing of beverages is likely to benefit the overall market.
In terms of revenue, North America was the leading regional market and it commanded 46.3% of the global demand in 2015. It is anticipated to dominate the market over the forecast period due to flourishing food processing industry, rising prevalence of diabetes, and increasing obesity among the population.
Europe is projected to witness a CAGR of 3.2% from 2016 to 2024. Rising demand for black sugar substitutes in electronics application, due to its economic pricing as compared to green sugar substitutes, is contributing to the growth of the regional market.
Asia Pacific is estimated to post a CAGR of 7.0% during the forecast period. Rising health issues related to sugar consumption, the presence of emerging economies providing profit margins to key market participants, and rising disposable income are driving the regional market.
Latin America market is projected to reach USD 1.71 billion by 2024, exhibiting a CAGR of 5.1% during the forecast period. The growth of the region can be attributed to presence of abundant natural resources and sorbitol manufacturers.
Globally, the market players are entering into partnerships, agreements, joint ventures, mergers, and acquisitions to strengthen their market share and increase geographical reach. Some of the key manufacturers are Tate & Lyle.; Cargill; Incorporated; Archer Daniels Midland Company; Ingredion Incorporated; Roquette; Ajinomoto Co., Inc.; JK Sucralose Inc.; PureCircle; The NutraSweet Company; and E. I. DuPont De Nemours. Global players such as Ingredion Incorporated, and Kerry Group, Company are putting significant R&D efforts; however, these big multinational companies are also entering into collaboration with small companies who have stronghold in the domestic market.
Leading market players are channelizing their efforts into development of new products through significant R&D investments, utilizing advanced technologies to manufacture superior quality and cost-effective products. The companies are also striving to raise awareness among consumers regarding potential hazard of unregulated consumption of sugar substitute, while strictly adhering to international quality standards.
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global sugar substitutes market report based on product, application, and region:
Product Outlook (Volume, Thousand Tons; Revenue, USD Million, 2013 - 2024)
High intensity sweeteners
Low intensity sweeteners
High fructose syrup
Application Outlook (Volume, Thousand Tons; Revenue, USD Million, 2013 - 2024)
Food
Beverages
Others
Regional Outlook (Volume, Thousand Tons; Revenue, USD Million, 2013 - 2024)
North America
The U.S.
Europe
Germany
Asia Pacific
China
Japan
Latin America
Brazil
MEA
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