Global Alternative Sweeteners Market - 2023-2030

Global Alternative Sweeteners Market - 2023-2030

Market Overview

Alternative sweeteners are used as low-calorie food additives because they have lower glycemic indexes, which keep insulin levels unaffected after consumption. Alternative sweeteners come in many forms and are produced from various natural and artificial sources. They are frequently used in various products, including dairy goods, baked goods, and pharmaceuticals. People with diabetes and obesity prefer low-calorie sweeteners because they are much less sweet than sugar. During the forecast period, a rise in demand for low-calorie and healthy food and drink is anticipated to propel market growth for alternative sweeteners worldwide. The global market for alternative sweeteners has experienced tremendous growth due to ongoing developments and new applications in the food industry, such as developments in dairy products and baked goods. Alternative sweeteners have the following advantages: sweetness, low cost, taste, nutrition, bulkiness, preservation qualities, heat resistance, and blending capabilities. In addition, the market growth for alternative sweeteners is primarily driven by the rise in health concerns and an increase in the incidence of diabetes and obesity. Additionally, the market is growing as a result of rising obesity rates, particularly in developing countries, and rising demand for low-calorie sweeteners.

The global alternative sweeteners market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 4.5% during the forecast period (2023-2030).

Market DynamicsRising Diabetes and Obesity Incidence Among Consumers Drives the Market Expansion.

The primary drivers of the market's expansion are rising personal disposable income and rising rates of diabetes and obesity. The International Diabetes Federation estimates that 463 million people worldwide have diabetes as of 2019. By the year 2045, this figure is anticipated to reach 700 million. By 2045, the prevalence of diabetes is expected to rise to just under 10% due to an increase in the number of people with diabetes. Consumers are being encouraged to make more healthy choices by rising obesity rates, worry over the possibility of developing diabetes and cardiovascular disease, and other factors. Customers prefer low-calorie sweeteners for diabetes and obesity because they have few or no calories and help people manage their weight and blood sugar levels. High demand for diet beverages and the development of low-sugar foods for consumers who are diabetic and health-conscious are expected to drive the market expansion.

Other significant factors influencing the market growth include changing lifestyles, westernization, growing knowledge of the availability of alternative sweeteners made both naturally and artificially in developing economies, and an increase in overweight people worldwide. An increase in the value of the market will be further fueled by factors such as better distribution channels, growing health consciousness among consumers, rising popularity of wholesome and low-calorie foods, soaring alcoholic and non-alcoholic beverage consumption, particularly among young people, and shifting consumer tastes and preferences.

However, the high consumption of food products with alternative sweeteners is associated with negative health effects, which will pose a significant obstacle to the market's expansion. The market's potential for growth will be further constrained by fluctuations in raw material prices and supply chain disruptions brought on by the pandemic. Government rigid and strict regulations regarding sweeteners containing particular chemicals and ingredients will also slow the market's expansion.

Market Segmentation: The synthetic segment accounted for the highest share in global alternative sweeteners market

In 2022, the synthetic segment commanded a sizable market share. Saccharin, Aspartame, Acesulfame-K, Sucralose, Neotame, and Advantame are well-known examples of artificial sweeteners. The high sweetness levels compared to sucrose have been a major factor in the demand. For instance, compared to sucrose, saccharin is 300–400 times sweeter. Acesulfame-K is 200 times sweeter than natural sucrose in a similar way. Due to these chemical properties, food producers and processors can reduce costs exponentially while satisfying consumer demand for a low- or no-sugar diet.

On the other hand, over the forecast period of 2023–2030, the natural segment is anticipated to grow at the fastest rate, with a CAGR of XX%. This is because recent research shows negative health effects after consuming artificial sweeteners. For instance, the low-calorie sweetener stevia has been used medicinally in Southern America for centuries. Stevia can also assist in reducing the hypertension index. Almost 49% of adult Americans in the US suffer from hypertension. Such categorical advantages would cause the segment to outperform the earlier.

Geographical Penetration: Asia Pacific is the dominating region during the forecast period

Asia Pacific dominated the market with a share of over XX% in 2022. It is because different food manufacturing-related activities have been outsourced to China and India. The disease burden of diabetes and other cardiovascular conditions is also exponentially increasing in the regions, which will support the market even more. Due to the presence of some economies with the fastest growth rates, including China and India, the region has significant growth potential for the food and beverage sector. Western diets have a significant impact on the region's younger population. It is anticipated that the demand for high-end beverages and confectionery items will increase imports of these sweeteners. One of the largest producers and consumers of alternative sweeteners like sucrose are Asian economies like China and India. Over the forecast period, the segment's growth is anticipated to be aided by the high availability of the raw materials needed to produce sucrose, such as sugar cane, and supportive government initiatives to increase the production of sucrose in these nations.

On the other hand, North America is estimated to expand at a CAGR of XX% from 2023 to 2030. Due to consumers' rising health consciousness, several regional players now offer low-calorie food and beverages. North America's market is expanding due to rising awareness of sugar substitutes that have few or no calories. The demand for natural sweeteners in the region is anticipated to increase due to a shift in consumer preferences toward natural and organic products and a reduction in packaged and highly processed foods.

Competitive Landscape

Global Alternative Sweeteners Market is competitive in nature, with the leading players capturing a whopping share in revenues. Hill Pharmaceutical Co. Ltd., Archer Daniels Midland Company, DuPont Nutrition & Health, JJD Enterprise, Cargill Incorporated, Tate & Lyle Plc, Niutang Changhai Food Additives Co, Ltd., Macandrews & Forbes Incorporate, Roquette Freres S.A, and Sunwin Stevia International among others, are focused on technology advances for new launches at affordable prices. The major players are utilizing strategies including acquisitions & mergers, regional expansion, and partnerships to stand out as strong competitors in the market. Increased focus on R&D and new product launches are additional ways the key players improve their market presence. Innovation by various leading players in the market is expected to offer lucrative growth opportunities for players in the global alternative sweeteners market. For instance, in October 2021, the new natural sweetener from Sweegen was added to its line of ""high-intensity sweeteners."" The West African plant known as Oubli contains trace amounts of extremely sweet-tasting protein. The company claims that by using techniques like microbial fermentation, it is possible to produce large-scale commercial operations. Brazzein is 500 to 2,000 times sweeter than regular sugar, has no aftertaste, and has a pH level that is remarkably stable in a range of temperatures.

COVID-19 Impact: Negative impact on the global alternative sweeteners market

The global spread of the novel coronavirus is anticipated to have a detrimental effect on the growth of the alternative sweeteners market. The market for alternative sweeteners is experiencing a declining growth trend due to partial or total closure of international borders, trade restrictions, a national lockdown, and the authorization of production facilities to operate with a reduced workforce and capacity. Due to the disruption of the supply chain and value chain, there has been a growing gap between supply and demand in the market for alternative sweeteners. Over 75% of businesses experience supply chain disruption globally, according to data cited by the Institute of Supply Management (ISM). For instance, The Coca-Cola Company experienced a disruption in the supply of its non-nutritive sweeteners like sucralose due to delays in the production and supply of such ingredients by its suppliers in China. This is anticipated to affect how the company produces its diet and sugar-free beverages sold under the Coca-Cola, Fanta, Sprite, Minute Maid, and Aquarius brands. Moreover, the demand for alternative sweeteners has decreased globally due to the closure of manufacturing facilities in several countries and the operation of food and beverage processing plants at half capacity. As instructed by the Beijing government, Mondelez International, a well-known purchaser of artificial sweeteners, shut down its two factories in China in January 2020.

The global alternative sweeteners market report would provide an access to approximately 59 market data tables, 51 figures and 200 pages