The sugar substitutes market is predicted to reach USD 24.3 billion by 2028, with a Compound Annual Growth Rate (CAGR) of 5.2% during the forecast period. By 2023, the market is expected to be worth USD 18.8 billion.
By 2023, the artificial sweetener segment is expected to have the largest share among high-intensity sweeteners.
The growing prevalence of obesity, diabetes, and metabolic syndrome, as well as increasing consumer awareness, has led to a shift towards the use of low-calorie artificial sweeteners. These sweeteners, also known as nonnutritive sweeteners (NNS)/low-calorie sweeteners/intense sweeteners, offer more intense sweetness with little or no calories per gram and are used in beverages, dietary products, medications, and even mouthwashes. The US Food and Drug Administration has designated six such additives, including aspartame, saccharine, sucralose, neotame, acesulfame-K, and stevia, as “generally recognized as safe.”
In 2023, the beverage segment is expected to experience the highest growth rate among all applications in the sugar substitutes market.
As a result of increased awareness, research, legislation, and popular diets, the beverage industry is under pressure to produce products with less sugar or sugar from healthier sources. Brands are responding to the demand for beverages with less sugar by using creativity and a wider range of sweetener alternatives. Coca-Cola’s Diet Coke, for example, is sweetened with aspartame, while its Trop50 beverage is naturally sweetened with Reb A stevia extract.
The North American region is experiencing the highest growth rate in the sugar substitutes market.
In the US, diet-related disorders are among the leading causes of death. Added sugars are a significant part of the standard American diet and can have negative health effects. NCDs account for 80.7% of all fatalities in the Americas, according to a scientific study published in 2022 titled ‘Prioritizing noncommunicable diseases in the Americas region in the era of COVID-19′. In 2009, the NYC Health Department established the National Salt and Sugar Reduction Initiative (NSSRI), which released its goals for reducing sugar across 15 categories of foods and beverages in February 2021. The program encourages food and beverage companies to commit to meeting voluntary reduction targets for salt and sugar. Furthermore, research conducted by Nutrisystem and OnePoll in 2022 indicates that more than 70% of Americans are now more concerned about their physical health post-COVID-19. This growing demand for food products with health or environmental benefits to combat metabolic diseases is driving the expansion of the sugar alternatives market.
Europe’s sugar substitutes market size was USD 3.3 billion, and it is projected to grow with a CAGR of 4.7% between 2023 and 2028. Key players in the market include International Flavors & Fragrances Inc. (US), ADM (US), Tate & Lyle (UK), Ingredion (US), and Cargill, Incorporated (US).
