Argentina Food Sweetener Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Argentina Food Sweetener Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Argentina's Food Sweetener is witnessing a CAGR of 6.11% during the forecast period.

Argentina's food sweetener market is driven by increasing investments in the F&B industry since these products use a high amount of sweeteners, natural or artificial sweeteners. The F&B industry accounts for over 70% of the local sugar demand. The steadily increasing economic growth and the rise of the middle-class population and income have pushed the region into economic success, which in turn, has led to a rise in the amount of both high-end and traditional foods consumed. That said, consumers have shifted their interest toward health and wellness packaged foods, which have recorded stronger retail volume sales growth for those covering natural sweeteners as an additive.

Argentina's bakery market is growing at a significant pace as customers are seeking products with higher quality, healthy products that are good in value, and the increasing demand for premium products. The steadily increasing economic growth and growing middle-class population and their income have pushed the region into economic success, which in turn, has led to a rise in the amount of both high-end and traditional foods consumed, which might shape the market growth in the country.

Sugar is one of the essential ingredients in baked goods that assist in the Maillard reaction, thus giving the desirable golden brown appearance. Moreover, it also acts as hygroscopic, as it attracts and holds water molecules agent, thus providing desirable texture as well as mouthfeel. Cakes and biscuits for low energy supply, also aimed at diabetic subjects, can be sweetened with low levels of aspartame in combination with fructose, sorbitol, and xylitol.

Glucose, also called dextrose is a simple sugar found naturally in foods such as fruits and honey. It is also derived from plants, like corn, for use as a sweetener in foods. According to the Sugar Association, dextrose is crystalline glucose, and most dextrose used in food is derived from cornstarch.

The growing applications of glucose or dextrose in the end-use market are the primary drivers of its demand. The most common application of glucose is bakery & confectionery, chocolate, beverages, and various others. Its growth and usage across the food and beverage industry are promoted by associated desirable properties in applications like moisture retention, bulking, taste enhancement, and others. According to the FAOSTAT, in 2020, Argentina had a 39.2 kg per capita sugar intake. This represents an increase of 2.92% from the previous year. Regarding the interest rate on sugar consumption per capita, Argentina is rated 20th among 161 countries.

Consumers' desire for healthier snacking, as well as taste and sensory benefits, is growing, which has led to the popularity of organic snacks and sugar chocolate products. Chocolate Applications is ideal for polyol sweetener which allows up to a 30% calorie reduction in chocolate. It has a high gloss, excellent spring and melt properties, and a pleasant cooling effect. Chocolate has the highest per capita consumption of any confectionery product across the world.

Organic products are becoming increasingly popular among consumers, creating numerous opportunities in the industry. In the country, the organic chocolate segment is expanding and gaining popularity among consumers. According to Organización Internacional Agropecuaria S.A. (OIA), 76% of Argentina's population consider organic food better for the environment. Moreover, Argentines are interested in the fact that pastry, bakery, and chocolate products are becoming more associated with "plant-based" diets and are produced in accordance with sustainability standards. As a result, consumer inclination toward organic product consumption like chocolate and candies can drive the market for food sweeteners in the country.

The Argentinian food sweetener market is a fragmented market with the presence of various players. Major players are bringing innovations to their products and are expanding their product portfolio to maintain their position in the market. Players also focus on natural and clean-label products since consumers are becoming more health-conscious. Key players in the food sweeteners market include Cargill, Tate & Lyle, Ingredion, International Flavors & Fragrances Inc., and Archers Daniels Midland Company, which are operating with a significant market share in the country. The market is slowly moving toward natural sweeteners due to the increasing adoption in emerging economies. This is expected to boost the market over the forecast period. The major players are tying up with local leaders to gain a competitive advantage over peers.

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