Food Sweetener Market Assessment, By Product Type [Natural Sweeteners, Artificial Sweeteners], By Distribution Channel [Offline, Online], By Region, Opportunities and Forecast, 2017-2031F

Food Sweetener Market Assessment, By Product Type [Natural Sweeteners, Artificial Sweeteners], By Distribution Channel [Offline, Online], By Region, Opportunities and Forecast, 2017-2031F

Global food sweetener market is projected to witness a CAGR of 2.51% during the forecast period 2024-2031, growing from USD 100.45 billion in 2023 to USD 122.48 billion in 2031. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.

Food sweetener, also known as sugar substitute, is a substance or additive which is added to food or beverages to add flavors of sweetness to enhance the taste of the product. They are majorly bifurcated into two categories that are artificial sweeteners, and natural sweeteners. The popularity of natural sweeteners such as stevia and monk fruit are on rise, as dietary preferences shift towards organic products. Innovative advancements in food processing and formulation of ingredients also fuel the market growth, enabling manufactures to develop different varieties of sweetening solutions. Versatility of these sweeteners is used across a wide range of products including dairy and bakery items, confectionery, and beverages, broadening their market reach. Also, the increased awareness about the benefits of alternative sweeteners and expanding e-commerce platform enhancing the accessibility and availability of various sweeteners. In addition, the increasing demand for natural sweeteners arises from a growing consciousness on health issues among the diabetic and obese populations and rising disposable income and innovation in food and beverages industry drives the demand for sweeteners, boosting the market growth.

According to the Indian Council of Medical Research Study on India Diabetes (ICMR INDIAB) published in 2023, the prevalence of diabetes is rising up to 101 million in the country.

Natural Sweeteners to Gain Global Food Sweetener Market Share

The increasing demand for natural sweeteners arises from a growing awareness of health issues among the diabetic and obese populations. People prefer natural sweeteners over the artificial ones, such as stevia, honey, and monk fruit extract, due their lower impact on blood sugar level and numerous health benefits. Consumer seeks a healthy alternative to sugar which provides sweetness without any negative effects on health associated with refined sugar, as they become more health centered.

In addition, natural sweeteners offer wholesome and authentic flavors as compared to the artificial ones. Food and beverage manufacturers are reacting to this demand by adding natural sweeteners to collection of food and beverages, sweets, and baked goods, and progressively focusing on nutrition and wellness. The strategic shift reveals a broader trend towards cleaner and more transparent ingredient lists, supported by consumer inclinations for natural and minimally processed products.

For instance, in 2023, Cargil was recognized with a Bronze Edison award for its innovation in food and agricultural advancements by launching an EverSweet + ClearFlo Stevia Platform, which combined the stevia sweetener with other natural flavors in a single ingredient. The combination can offer flavor modification, improved solubility in formulations, and faster dissolution.

Rising Disposable Income and Innovation in Food and Beverage Industry Drives Market Demand

People are more likely willing to invest in products that provide health benefits, taste, and health benefits, as their disposable incomes have increased over the past years. It includes an inclination for food and beverages that are sweetened to their fondness. Furthermore, improvements in the industry have directed to the development of new sweeteners that tailor to various dietary needs and choices such as zero-calorie, natural, and low-calorie options. These innovative sweeteners tackle concerns about health and well-being as well as provide more options for the consumers. In addition, innovation in food science and technology have enabled manufacturers to create sweeteners that mimic the texture and taste of sugar almost at the same levels. Therefore, rising disposable income combined with current advancements further drives the rising consumer demand and market growth.

For instance, in November 2022, Tate & Lyle launched the ERYTESSE Erythritol, a new addition to their sweetener portfolio. It consists of 70% of the sweetness of sucrose with zero calories and can be used in several categories such as beverages, dairy, bakery, and confectionery. The addition aims to expand their capability to help consumers deliver on customer demand for healthier sugar and calorie reduced product.

Changing Consumer Lifestyles Shifting Market Trends for Food Sweeteners

There is a noted shift seen in the use of traditional sugar-added products towards healthier alternatives and dieting priorities, as individuals increasingly prioritize health and wellness. Consumers who previously focused on fat content are now looking to sugar reduction and changing lifestyles of consumers impacting sweetener choices in the food industry. The shift is driven by several factors, including concerns regarding fitness and other health conditions connected to excessive sugar consumption.

Furthermore, the busy fast-paced lifestyle of consumers raised the awareness of nutritional content and has led them to seek convenient options without compromising on taste. For achieving these changing choices, the food and sweetener industry has observed a surge in demand for low-calorie, natural, and alternative sweeteners. Also, there is a growing demand for clean label products, encouraging manufacturers to reformulate their offerings with healthier sweetening agents. Eventually changing consumer lifestyles drive the food sweetener market towards innovation and diversification, as companies strive to meet the evolving demands for healthier and more sustainable sweetening solutions.

According to an article published by Kerry Health and Nutrition Institute in February 2024, the need for sugar reduction has continued to grow. 79% of global consumers believe that food that contains less sugar is healthier than full sugar versions.

Asia-Pacific Dominates Global Food Sweetener Market

Asia-Pacific dominates the global food sweetener market share due to the growing consumption of natural sweeteners among the masses to cure the existence of diabetes and obesity. There is an increasing trend towards healthier eating habits and wellness, reassuring people to look for products that are perceived as healthier alternatives. Also, the region’s vast population drives high demand for sweeteners in several food and beverage products, fostering market growth. Asia-Pacific countries, especially China and India, are the major producers of sweetening agents such as stevia and monk fruit, which also contributes to the region's dominance.

For instance, in September 2022, Cargil started its corn wet mill in Pandaan, Pasuruan, and Surbaya in Indonesia. The company claims that it benefits the local economy by generating employment and helps in the region’s development. Also, the inauguration aims to meet the growing demand in starches, sweeteners, and feeds markets in Asia and Indonesia.

Future Market Scenario (2024 – 2031F)

Overcoming economic factors and environmental concerns related to sweeter production and waste management will help strengthen market growth.

Innovative application in nanotechnology for improved sweetener delivery systems drives the demand for food sweeteners in the market, ultimately driving the market growth.

Providing personalized sweetener solutions based on individuals' needs and choices and their health concerns will help drive market growth in upcoming years.

Key Players Landscape and Outlook

Continuous innovation characterizes the landscape of global food sweetener market, as these companies compete to outperform one another in terms taste and type. The market prognosis remains positive with the rising adoption of strategies by key players and is expected to rise over the projected horizon. Food Sweetener manufacturers are concerned with supply chain resilience and industry giants dominate with their extensive product portfolios, innovation, and strong distribution networks with rising health consciousness, demand for natural sweeteners such as stevia t is increasing. The food sweetener market is driven by consumer preference for healthier alternatives and the food industry's focus on product reformulation to meet evolving dietary trends.

For instance, in April 2024, according to an article published by synbiobeta, Sweegen and Conagen partnered to launch a sweetener brazzein. This partnership aims to make progress in sweet proteins, shaping a new era in health-conscious sweetening solutions. Sweegen’s acknowledged as safe (GRAS) status from the Flavor and Extract Manufacturers Association (FEMA) which marks a significant milestone.

For instance, in April 2023, Sweegen launched the sweetnesify flavor in sweetening agent collection. This launch aims to cater to the boundaries in creating better-for-you product improvement with registered new-to-the-world taste modulation flavors in its sweetensify collection.