The sugar substitutes market is poised for substantial growth, with an anticipated Compound Annual Growth Rate (CAGR) of 5.2% during the forecast period. It is projected to reach USD 24.3 billion by 2028, compared to its estimated worth of USD 18.8 billion by 2023.
Addressing Escalating Lifestyle Diseases
Lifestyle diseases such as cancer, diabetes, chronic obstructive pulmonary disease, and heart disease are on the rise worldwide, posing a significant public health challenge. These metabolic diseases are primarily attributed to unhealthy and imbalanced diets, with modern eating habits characterized by excessive consumption of free sugars found in sugar-sweetened beverages. This alarming trend contributes to unhealthy weight gain, oral health issues, obesity, and non-communicable diseases.
Dominance of High-Intensity Sweeteners
Within the sugar substitutes market, the high-intensity sweeteners segment takes the lead, projected to achieve a CAGR of 6.2% between 2023 and 2028. The growth in this market segment is driven by the increasing demand for low-calorie sweeteners, recognition of the health benefits associated with sugar substitutes, and the quest for natural and environmentally friendly alternatives to conventional sugar.
Beverage Segment’s Ascending Trajectory
The beverage segment is expected to exhibit the highest growth rate during the forecast period, with a CAGR of 5.4% in the sugar substitutes market. Per capita consumption of non-nutritive sweeteners in beverages has witnessed a 36% global increase between 2007 and 2019, encompassing both synthetic and natural alternatives.
Rapidly Expanding Liquid Sugar Substitutes
The liquid sugar substitutes segment is poised for rapid expansion, with a forecasted CAGR of 5.5% during the forecast period. This growth is propelled by the surging demand for health-conscious yet flavorful beverages and food products. Liquid sugar substitutes boast high solubility and sweetness levels surpassing sucrose, rendering them ideal for integration into food and beverage manufacturing.
European Market Dynamics
The sugar substitutes market in Europe recorded a size of USD 3.3 billion, with a projected CAGR of 4.7% expected between 2023 and 2028. Key players in this market landscape include International Flavors & Fragrances Inc. (US), ADM (US), Tate & Lyle (UK), Ingredion (US), and Cargill, Incorporated (US). These industry leaders are pivotal in driving the market’s growth and innovation.