Sugar Substitutes Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Sugar Substitutes Market is segmented By Type (High Fructose Syrup, High-Intensity Sweetener, Low-Intensity Sweetener), By Application (Food Products, Health & Personal Care Products, Beverages), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Sugar Substitutes Market Size

Global Sugar Substitutes Market reached USD 7.3 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 12.3 billion by 2030 and is expected to exhibit a CAGR of 6.8% during the forecast period 2024-2031. The primary driver for the sugar substitute market's expansion is the increasing demand for artificial sweeteners, high-intensity, low-calorie sweeteners, and others.

Consumers are attracted to sugar substitutes as they enhance the flavor of foods, provide less calorie intake, and are widely used in processed foods and beverages. It is considered safe for diabetic people. Some of the most widely used sugar substitutes include stevia, sucralose, and others. They are considered healthier alternatives to conventional sugar.

The growing popularity of nutritious foods among consumers is making manufacturers produce innovative products which is fueling the global sugar substitutes market growth. For instance, In March 2022, Cargill, a U.S based company launched its stevia products with EverSweet + ClearFlo technology. This new sweetener system combines Cargill's stevia sweetener with a natural flavor and offers several advantages, including flavor modification, faster dispersion, and increased solubility and stability in formulations.

Sugar Substitutes Market Summary

For More Insights Download Sample

Sugar Substitutes Market Trends

Increasing Heath Consciousness among Consumers is Estimated to Drive the Sugar Substitutes Market Growth.

According to the National Institutes of Health Diabetics report of 2022, 28.7 million people of all ages had been diagnosed with diabetes 8.7% of the population globally in that 28.5 million were adults ages 18 years or older, 283,000 were children and adolescents younger than age 20, including 244,000 with type 1 diabetes. Due to this consumers are shifting towards sugar substitutes such as artificial sweeteners, aspartame, and saccharin. It provides a low-calorie intake. 

Globally, increase in health consciousness, rising obesity, and diabetic population ratio, and increasing demand for low-calorie foods and beverages are driving consumers toward sugar substitutes. Sugar substitutes such as sucralose, high-fructose syrup, stevia, and some others are increasing global sugar substitute opportunities.

Increasing Product launches of Sugar sweeteners are Driving the Sugar substitutes Market Growth.

An increase in health-conscious consumers, fortified, clean-label and plant-based sweeteners are the preferred sugar substitute products globally. The increasing popularity of alternative sweeteners, low-calorie sweeteners, and stevia as people are becoming more concerned about calorie intake. These factors help to drive the global sugar substitute market. 

Major rivals are working assiduously to meet this demand by expanding their product offerings and keeping consumers' health in mind, which is driving the sugar substitute market growth. For instance, Sweegen, a U.S based company had launched the first ever liquid stevia-based sweetener that is Bestevia LQ. These kinds of launches are believed to increase the global sugar substitute market size.

Excessive Intake of Sugar Substitutes Causes Adverse Effects on Health Impedes the Market Growth.

According to the Clinical Trails.gov, NutriNet-Santé cohort study reports 2022, adults who consumed higher amounts of aspartame were slightly more likely to develop cancer overall 1.15 times more risk, breast cancer 1.22 times more risk, and obesity-related cancers 1.15 times more risk than those who did not consume aspartame. This data shows that excessive intake of sugar substitutes shows effects on health.

Excessive intake of sugar substitutes causes adverse effects such as rising obesity and diabetes, and excess consumption of sucralose, aspartame, and saccharin can increase cholesterol levels, and high blood pressure, which can alter the normal metabolism, hormone disruption, and some others. These adverse health effects can cause declination in global sugar substitute market growth.

Sugar Substitutes Market Segment Analysis

The global sugar substitutes market is segmented based on type, composition, application, and region.

In the Global Market of Sugar Substitutes, the High-Intensity Sweeteners Segment Holds the Largest Market Share. 

The global sugar substitutes market has been segmented by type into high fructose syrup, high fructose syrup, low-intensity sweetener, and others. The high-intensity sweeteners segment held the largest sugar substitute market share of 35.8% in 2022 in the sugar substitute market analysis report. An increase in demand for low-calorie foods, and alternatives for conventional sugars are driving the market. Customers enjoy this since the freshness is maintained and the final formulas include less sugar and calorie.

Other significant factors influencing the growth of the sugar substitute segment increase due to the launch of new sugar substitutes into the market to attract customers. For instance, in November 2022, Tate & Lyle PLC (Tate & Lyle), a U.K based company is pleased to announce a new addition to its sweetener portfolio which is Erytesse Erythritol product. This launch is estimated to drive the market of global sugar substitutes.  

Source: DataM Intelligence Analysis (2023)

Global Sugar Substitutes Market Geographical Share

The North America Region Held the Largest Share in Sugar Substitutes Market.

The global sugar substitute market is segmented into five parts of the world based on geography: North America, South America, Europe, Asia-Pacific, the Middle East, and Africa. The North America sugar substitutes market held the largest market share of 42.6% in 2022 in the sugar substitutes market analysis. This growth is attributed to the change in the lifestyle of consumers and the increase in health consciousness in this region.

According to the Centers for Disease Control and Prevention report of 2022, about 37.3 million Americans are diabetics. Thus, the high percentages of diabetic patients in the U.S. increase the usage of sugar substitutes compared to traditional sugars. Also growing the obese population in the region supports the growth of sugar substitutes.

Source: DataM Intelligence Analysis (2023)

Sugar Substitutes Market Companies

The major global players in the market include Ingredion Incorporated, Cargill Incorporated, Roquette Freres, Pure Circle Ltd, MacAndrews & Forbes Holdings Inc., Ajinomoto Co. Inc., JK Sucralose Inc., Foodchem International Corporation, Beijing Stevia Co., Ltd., and Qingdao Haisan New Energy Co., Ltd.

COVID-19 Impact on Sugar Substitutes Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

Covid-19 Impact:

The unprecedented COVID-19 pandemic in 2020 had a profound effect on the sugar substitute industry. Covid-19 has had a considerable impact on the phases of the global sugar substitute chain that involve sugar substitute production, processing, distribution, and consumption as a result of lockdowns and restrictions imposed by various governments. 

Everything has changed due to the COVID-19 epidemic. It has influenced practically every industry in the world, whether positively or negatively. The COVID-19 pandemic's effects on world economic conditions have had an influence and could have an impact on interest rates, foreign exchange rates, commodities and energy prices, and the efficient operation of financial and capital markets.

The COVID-19 pandemic issue has had an impact on the sugar substitute industries as well. The COVID-19 pandemic is upending life, and the fruit processing sector is seeing an increase in trends like artificial sweeteners, high-intensity sweeteners, non-nutritive sweeteners, low-calorie sweeteners, and natural sweeteners. The sugar substitute businesses are launching innovative programs, including stevia, sucralose, aspartame, saccharin, and others. Which are readily available and simple to consume.

Key Developments

• In February 2021, International Flavors & Fragrances announced the merger with DuPont's Nutrition & Biosciences at $26.2 billion. The company will have dominant positions in taste, texture, nutrition, enzymes, cultures, soy proteins and probiotics, and leading R&D capabilities.
• In December 2020, Tate & Lyle plc announced the acquisition of Sweet Green Fields (SGF), a leading global stevia solutions business. This acquisition helped Tate & Lyle access a fully integrated stevia supply chain, including leaf varietal development, leaf sourcing, and cost-efficient manufacturing.
• In July 2020, Ingredion Inc. announced the acquisition of Pure Circle Limited, one of the prominent manufacturers and innovators of plant-based stevia sweeteners and flavors for the food and beverage industry.

Why Purchase the Report?

• To visualize the global sugar substitute market segmentation based on type, composition, application, and region and understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of sugar substitute market-level with all segments.
• The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global sugar substitutes market report would provide approximately 62 tables, 71 figures, and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies