Sugar Substitutes Industry Overview

The global sugar substitutes market size was estimated at USD 7.01 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2030. Key factors driving market growth include the changing consumer preferences for healthier and low-calorie foods. This can be considered as a response to rising prevalence of as well as awareness about obesity-related issues derived mainly from diabetes, cardiovascular diseases, and high cholesterol levels. Moreover, the fear of an increasing number of animal-borne diseases has raised health concerns among populations worldwide, resulting in reduced intake of animal products.

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The awareness regarding plant-based sugar substitutes is growing due to their acknowledged health advantages, which include the potential prevention of non-communicable diseases, digestive problems, and obesity. Low-calorie sweeteners (LCSs) are sugar substitutes that have a higher sweetening effect for each gram than sugar compared to sweeteners with higher calorie counts. LCSs are found in various foods and beverages, including gums, frozen desserts, gelatins, candy, baked goods, breakfast cereals, pudding, and yogurt. Sugar substitutes can be used in the food and beverage industries without compromising taste or quality. They are becoming increasingly popular as people are now more aware of fitness, health, appearance, and body image than earlier.

This rapidly increasing demand for healthier food products and substitutes for sugar has led to awareness about maintaining a low-calorie, healthy diet. Artificial sugar is almost 200 times sweeter than regular sugar. Artificial sweeteners are recommended by both the American Heart Association and American Diabetes Association as a sugar substitute to lower the risk of diabetes, obesity, heart disease, and metabolic disorders, as well as to manage calorie intake. Increasing calorie consumption, decreased physical activity, and excessive sweet food consumption all contribute to the issues related to obesity, which will drive product demand. Sugar substitutes are subjected to stringent safety and health inspections.

Regulatory bodies have conducted numerous studies to measure and assess the effects of these products on humans. Products are classified based on results, and the daily intake allowance (DIA) is established. Standards established by agencies for usage levels and classification often differ with respective authoritative bodies. This poses a serious problem for companies seeking streamlined product development. European laws regarding artificial sweeteners are strict, whereas U.S. regulations favor the advent of novel sweeteners regardless of origin. Stringent regulatory rules on the manufacture, usage, intake, and labeling of sugar substitutes hinder market growth.

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Sugar Substitutes Market Segmentation

Grand View Research has segmented the global sugar substitutes market based on type, application, and region:

Sugar Substitute Type Outlook (Volume, Thousand Tons; Revenue, USD Million, 2018 - 2030)

• High-intensity Sweeteners
  • Natural
    • Stevia Extracts
    • Licorice Root Extracts
    • Monk Fruit Extracts
  • Artificial
    • Aspartame
    • Cyclamate
    • Saccharin
    • Sucralose
    • Others
  • Low-intensity Sweeteners
    • Xylitol
    • Sorbitol
    • Maltitol
    • Mannitol
    • Trehalose
    • Isomaltulose
    • Others
  • High-fructose Syrup

Sugar Substitute Application Outlook (Volume, Thousand Tons; Revenue, USD Million, 2018 - 2030)

• Food
  • Bakery
  • Confectionery
  • Dairy
  • Others
• Beverages
  • Juices
  • Functional Drinks
  • Carbonated Drinks
  • Non-Dairy
  • Milk and Dairy
  • Others
• Health Personal Care

Sugar Substitute Regional Outlook (Volume, Thousand Tons; Revenue, USD Million, 2018 - 2030)

• North America
  • US
  • Mexico
  • RONA
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • Indonesia
  • Australia
• Central South America
  • Brazil
  • Argentina
• Middle East Africa
  • Turkey
  • South Africa

Key Companies profiled:

• Tate Lyle
• Cargill, Incorporated
• Archer Daniels Midland Company (ADM)
• Ingredion Incorporated
• Roquette Freres
• Ajinomoto Co., Inc.
• JK Sucralose Inc.
• The NutraSweet Company
• PureCircle
• I. DuPont De Nemou

Key Sugar Substitutes Company Insights

The global sugar substitutes market comprises many major companies operating on regional and global levels. Leading market players are focusing on new product development through significant RD expenditures, utilizing innovative technologies to manufacture products of the finest quality at the most affordable prices. Some of the initiatives taken are:

• In March 2022, Cargill introduced its stevia products with EverSweet + ClearFlo technology along with a more refined flavor. This innovative sweetener system combines stevia sweetener with a distinct flavor and offers a number of advantages, including flavor modification, improved dispersion, increased solubility and stability in compositions
• In April 2022, Tate Lyle expanded allulose production to fulfill an elevated sharp rise in crystalline allulose demand, that gained prominence after the FDA settled for excluding it from the added and total sugar declarations on the panel of Nutrition Facts. As per Tate Lyle, allulose has been utilized in a variety of products, with bars as the most popular

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