Sugar Substitutes Market by Type (High Fructose Syrup, High-Intensity Sweetener, Low-Intensity Sweetener), Composition, Application (Beverages, Food Products, and Health & Personal Care Products), and Region - Global Forecast to 2025

Northbrook, IL -- (SBWire) -- 04/07/2021 --The global sugar substitutes market size is estimated to be valued at USD 16.5 billion in 2020 and projected to reach USD 20.6 billion by 2025, recording a CAGR of 4.5% during the forecast period. The global sugar substitute industry has witnessed growing trends in the past years. The growth of this industry is majorly driven by an increase in health consciousness among consumers to encourage the demand for healthier food choices, an increase in demand for natural sweeteners due to the rise in consumer inclination toward natural products, and growing demand for sugar substitutes in various applications in the food & beverage industry.

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Market Dynamics:

Drivers: Increase in health consciousness among consumers to encourage the demand for healthier food choices

Easy access to near-infinite information is increasingly making consumers aware of their nutritional needs. Owing to this, consumers have become more conscious about healthier choices with respect to food & beverages. They are increasingly demanding healthier, low-calorie food & beverages owing to the growing health problems. Increasing health conditions are resulting in an increased demand for low-calorie food & beverage products for helping consumers maintain a healthy diet. Most health-conscious consumers prefer sugar substitutes because they contain fewer calories than regular sugar. The consumption of sugar substitutes helps in providing benefits for health-conscious consumers.

Additionally, stevia helps in lowering high blood pressure in people with hypertension by 6–14%. It also helps in lowering blood sugar levels in people with diabetes. Stevia also helps in improving insulin sensitivity, reducing plaque buildup in the arteries, and reducing oxidized LDL cholesterol. Erythritol does not spike insulin or blood sugar levels and has no effect on blood lipids such as cholesterol or triglycerides. The numerous health benefits provided by sugar substitutes and increasing health consciousness among consumers drive the demand for sugar substitutes during the forecast period.

Restraints: Adherence to international quality standards and regulations for sugar substitutes products

Sugar substitute products are subjected to rigorous health and safety checks. Various studies have been conducted by regulatory bodies for measuring and assessing the impact of these products on humans. Based on the results, products are classified, and the daily intake allowance (DIA) has been set. Standards set by agencies for the classification and usage levels differ with respective authoritative bodies and pose a serious problem to companies for streamlining product developments. European laws are stringent with artificial sweeteners, wherein the US regulations favor the introduction of novel sweeteners irrespective of the origin. Alitame, neotame, and stevioside are some of the sweeteners which are not currently permitted in Europe. Many stringent regulations on the processing, usage, consumption, and labeling of sugar substitutes cause difficulties for market growth. These regulations for the use of sweeteners as a food ingredient limit the growth of the sweeteners industry globally, especially in European countries.

Opportunities: Increase in investments in R&D activities by manufacturers to develope newer and enhanced products

Manufacturers are increasingly investing in the R&D of new sugar substitutes to gain a larger share than their competitors. Many food & beverage manufacturers are replacing regular sugars with sugar substitutes for lowering the calorie content of the final products. The demand for sugar substitutes from developed economies has increased. The major reason behind the substantial growth of the sugar substitutes market is the changing consumer attitude toward the consumption of sugar substitutes. The awareness about the ill-effects of high-calorie regular sugar consumption among consumers is increasing. To attract such potential consumers, sugar substitutes are made available across pharmacies, supermarkets, grocery stores, and health food shops in developed economies such as the US, Canada, and Germany.

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Challenges: Product labeling and trade issues

The international regulatory bodies for food safety and quality are making food safety regulations more stringent. Apart from food testing and certification, these international regulatory bodies are compelling manufacturers to follow food labeling rules and regulations. Governments of most nations are taking initiatives to implement the food labeling law in their country. For instance, Canada's Consumer Packaging and Labelling Act and Regulations force manufacturers to follow labeling to fulfill purposes.

Key Market Players:

DuPont (US), ADM (US), Tate & Lyle (UK), Ingredion Incorporated (US), Cargill Incorporated (US), Roquette Frères (France), PureCircle Ltd (US), MacAndrews & Forbes Holdings Inc. (US), JK Sucralose Inc. (China), and Ajinomoto Co. Inc. (Japan).