The Alternative Sweetener Market Size is estimated to reach $7.5 billion by 2027 and it is poised to grow at a CAGR of 4.4% over the forecast period of 2022-2027. Alternative sweetener is a sugar substitute that can be used as food additives to enhance and sweeten various foods and beverages.
The Alternative Sweetener Market Size is estimated to reach $7.5 billion by 2027 and it is poised to grow at a CAGR of 4.4% over the forecast period of 2022-2027. Alternative sweetener is a sugar substitute that can be used as food additives to enhance and sweeten various foods and beverages. Furthermore, alternative sweeteners have a higher sweetness level than normal sugar, they are utilized at lower concentrations. Owing to their overall taste and low-calorie content, these sweeteners such as high fructose syrup, High-intensity sweeteners and low-intensity sweeteners are used to substitute sucrose (sugar). Alternative sweeteners are commonly used in food and beverage goods, bakeries and confectionery and can also be used to substitute sugar in nutritional supplements to reduce calories and carbohydrates. Soft drinks, powdered drink mixes, baked goods, sweets, puddings, tinned foods, jams and jellies and dairy products are all examples of processed foods that contain alternative sweeteners. In the home, alternative sweeteners are used to improve the appearance, color, flavor and texture of food. Alternative sweeteners have a reduced glycemic index, meaning they have no effect on insulin levels after consumption and are thus used as a low-calorie food ingredient. Alternative sweeteners are made from a variety of natural and non-natural sources such as sucralose, aspartame and saccharin and are widely employed in a variety of applications, including dairy products, bakery items and medications. Low-calorie sweeteners are preferred by diabetics and obese people as they have a lower sweetness quotient than sugar. Increased use of alternative sweeteners in the food processing industry is propelling the growth of the Alternative Sweetener industry, as well as brand awareness advertising by manufacturers, are the fundamental reasons for enhancing the Alternative Sweetener Market size during the forecast period 2022-2027.
Alternative Sweetener Market Report Coverage
The “Alternative Sweetener Market Forecast (2022-2027)" by Industry ARC, covers an in-depth analysis of the following segments in the Alternative Sweetener Market.
By Product Type: High Fructose Syrup, High-Intensity Sweeteners, Low-intensity Sweeteners and Others.
By Application: Food & Beverages (Bakery, Confectionery, Beverages, Dairy), Pharmaceuticals and Others.
By Source: Natural, Synthetic and Others.
By Distribution Channel: Supermarkets, Hypermarkets, E-commerce websites and Others.
By Geography: North America (the U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia and the Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia and New Zealand and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Columbia and Rest of South America) and Rest of the World (the Middle East and Africa).
Key Takeaways
- Geographically, North America held a dominant market share in the year 2021 due to the trend of healthy food.
- Higher consumption of beverages, bakery and confectionery products owing to a busy lifestyle, changing dietary habits and the increasing demand for low-calorie food without foregoing the sweetness in their food along with changing preferences of consumers will help the market's growth during the forecast period of 2022-2027. However, Increased awareness of the consequences of excessive sugar consumption and the rising prevalence of diabetes around the world may stymie the market. Also, strict government regulations related to sweeteners and the fact that the over-consumption of alternative sweeteners is harmful to the body may hamper the industry's demand.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Alternative Sweetener Market Report.
Alternative Sweetener Market Segmentation Analysis - by Type
Alternative Sweetener Market based on types can be further segmented into High Fructose Syrup, High-Intensity Sweeteners, Low-intensity Sweeteners and Others. The High-Intensity Sweeteners segment held a dominant Alternative Sweetener Market share in the year 2021. Food additives known as high-intensity sweeteners (HIS) are sugar substitutes that resemble the taste of sugar. These sweeteners have a calorie value ranging from 0 to 4 Kcal/gm and are used as flavor enhancers in food and beverage products. To address the need of health-conscious consumers, HIS is utilized as a diet sugar. Furthermore, after it is regulated by the Food and Drug Administration, it can be utilized as a food additive (FDA). It can also be used commercially after receiving approval from the Generally Recognized as Safe (GRAS) organization, which is particularly important in North America and Europe. For instance, Sweden would launch its new natural sweetener in October 2021, as part of its "high-intensity sweeteners" product portfolio. Small amounts of ultra-sweet taste protein were discovered in West African plants known as Oubli. Also, awareness & brand promotion by key manufacturers increase the Alternative Sweetener industry's strength in the forecast period.
However, the High Fructose Syrup segment is expected to grow at the quickest rate between 2022 and 2027, with a CAGR of 5.9%, owing to its distinct taste. High fructose corn syrup (HFCS) is a liquid sweetener made from a modified type of corn syrup that is utilized in the food and beverage industry as an alternative to sucrose. Wet milling is a method of producing high fructose corn syrup from corn. HFCS is more stable than granulated sucrose and works well in acidic beverages. It is also easier to carry, handle and mix attributed to its liquid property. The US Food and Drug Administration, on the other hand, has designated high fructose corn syrup as "Generally Recognized as Safe" (GRAS) (U.S. FDA). HFCS has been widely adopted by U.S. food manufacturers owing to its advantages over granulated sucralose. For instance, it is easy to supply and handle and has good stability. Such use of High Fructose Corn Syrup helps to boost the market of the Alternative Sweetener industry over the forecast period.
Alternative Sweetener Market Segmentation Analysis - by Application
The alternative Sweetener Market based on the application can be further segmented into Food & Beverages, Pharmaceuticals and Others. The Food & Beverages segment held a dominant Alternative Sweetener Market share in the year 2021. Alternative sweeteners are commonly used in food and beverage goods, bakeries and confectionery and can also be used to substitute sugar in nutritional supplements to reduce calories and carbohydrates. During the forecast period, an increase in demand for low-calorie sucralose sweeteners in the food and beverage industry is likely to drive market expansion globally.
However, pharmaceutical use of alternative sweeteners is expected to grow at the quickest rate between 2022 and 2027, with a CAGR of 6.1% owing to its use in capsules & tablets to assist appearance and ease of transport & storage. The sugar-coated tablet is protected from the damaging effect of air & moisture & it is easier to swallow owing to its improved flavor. In syrup, alternative sweeteners are used to mask the unpleasant taste of active ingredients & to maintain viscosity. Alternative sweeteners are also used in syrup to boost instant energy in cold & flu & also sugar extends the shelf life of the product. Such factors boost the pharmaceutical segment in the forecast period.
Alternative Sweetener Market Segmentation Analysis - by Geography
The Alternative Sweetener Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America and the Rest of the World. North America held a dominant Alternative Sweetener Market share of 36% in the year 2021. This is attributed to reasons like the presence of key market players and their product developments. Key manufacturers are promoting their products in innovative ways. Manus Bio, for example, launched the next generation "Natural Zero-Calorie Sweetener" in April 2021 in the United States under its iconic brand NutraSweet Naturals. To enjoy in everyday life, a plant-based sweetener with zero calories and 100% pure-tasting sweetness. The product has no aftertaste and can aid people who are trying to reduce weight quickly. The increased knowledge of the negative consequences of excessive sugar consumption is the primary driver of market expansion. As a result, there is greater potential for low-calorie sweeteners, particularly in bakery, beverage and dairy applications. Beverages are the most popular, followed by bakery, confectionery and dairy products. Splenda, Sweet'N Low, Stevia in the Raw and Equal are the favored brands of alternative sweeteners, according to the US Census Bureau.
Furthermore, the Asia-Pacific is estimated to grow with the fastest CAGR over the forecast period 2022-2027. Attributed to the prevalence of a diverse range of suppliers and manufacturers, this region presents the profitable potential for important manufacturers. Furthermore, a high rate of economic growth, a rise in spending power and the creation of new dietary habits, such as the use of low-calorie diet beverages and sodas, are all contributing to market expansion.
Alternative Sweetener Market Drivers
The Rise in Health-Conscious Consumer is a Key Factor Driving the Market Growth.
The market for alternative sweeteners is expanding owing to an increase in health concerns, as well as an increase in the incidence of diabetes and obesity. Increased demand for low-calorie sweeteners and an increase in the obese population, particularly in emerging countries, are driving market expansion. In addition to monk fruit extract, users use stevia extract, a sweetener obtained from the leaves of the stevia bush. According to WHO 2020, there are 422 million people suffering from diabetics 2020 and 1.5 million deaths are attributed owing to diabetics. With such increasing diabetes prevalence, people prefer alternative sources of sweeteners to avoid health risks. Low-calorie sweeteners are preferred by diabetics and obese people owing to their having a lower sweetness quotient than sugar. During the projected period, the global alternative sweeteners market is expected to develop owing to an increase in demand for healthy and low-calorie foods and beverages.
Application of Alternative Sweeteners in Various Industries is Propelling the Market Growth.
Alternative Sweeteners are used in various industries like the food & beverage industry in various beverages, juice, jam, jelly, cream, bakery-confectionery, diary, frozen dessert & others; in pharmaceutical & nutraceuticals in for preparation of anti-biotic & cough syrup to hide odor and taste of active ingredients and other compounds in formulations; in animal feed to enhance taste and mask unwanted odor in pet food and others. In 2020, the United States consumed 14.7 million metric tonnes of sweetener ingredients. Such an increase in consumption propelled the Alternative Sweetener Market size growth in the forecast period.
Alternative Sweetener Market Challenges
The Overall Market Growth Has Been Hampered by Product Combinations that Equivocally Place Alternative Sweeteners Against Natural Sugars.
To combat sugar compositions, multiple components are required. As a result, holistic techniques to reduce sugar content while still harmonizing taste must be pursued. Formulators, for example, must combine stevia leaf extracts with erythritol to create sugar-free goods that fulfill consumer expectations. Sugar and artificial sweetener prices are 269.04 % more in 2022 than they were in 1977, according to the US Bureau of Labour Statistics (a $1.83 difference in value). Tate & Lyle will unveil new SWEETENER VANTAGE sweetener solutions design tools in July 2020 to assist formulators in creating sugar-free food and beverages using low-calorie sweeteners. Furthermore, a study has yielded a number of results that are further inhibiting market expansion. When taste receptors are exposed to other sweeteners or natural sugars, they react in the same way and the need can sometimes outweigh the health benefits. When we eat high-sugar foods, the brain sends out signals; however, there is no actual sugar in alternative sweeteners and the body creates insulin to offset the lack of a potential glucose molecule. As a result, the body begins to build insulin resistance over time. Finally, alternative sweeteners have been heavily processed with substances that can have negative health consequences. For example, intestinal health can deteriorate, resulting in obesity. Alternative sugar's negative health effects may stifle Alternative Sweetener Market size expansion over the projection period.
Alternative Sweetener Industry Outlook
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Alternative Sweetener Market. The top 10 Alternative Sweetener Market companies are:
- Archer Daniels Midland Company
- American Sugar Refining Inc.
- Cargill, Incorporated
- E. I. du Pont de Nemours and Company
- GLG LIFE TECH CORP
- Heartland Food Products Group
- Ingredion Incorporated
- PureCircle
- Tate & Lyle PLC
- Zydus Wellness Ltd.
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