Natural Sweeteners Market - Growth, Trends, and Forecasts (2023 - 2028)

Natural Sweeteners Market - Growth, Trends, and Forecasts (2023 - 2028)

The natural sweeteners market is expected to register a CAGR of 7.2% over the next five years.

• Natural Sweeteners are derived from natural ingredients and sources. They are healthier than regular sugar or artificial sweeteners as they are derived from plant-based sources and have low calories. Natural sweeteners do not have any carbohydrates and do not raise blood sugar levels in the body. The demand for no or low-calorie products is increasing as consumers become more aware of their health and food.
• One of the natural sweeteners, stevia, is used in medicinal and food products. Stevia is used for different medicinal uses. It helps with proper gastrointestinal function, kidney function, and many more. In November 2022, PureCircle, an Ingredion Incorporated brand, offered three stevia glycosides from bioconversion ingredients. The ingredients include Reb D, Reb M, and Reb AM. These ingredients can be used in food and beverages.
• Due to the increase in the prevalence of diabetes, obesity, blood pressure, and other chronic diseases, demand for naturally derived ingredients in the products is increasing. According to the Global Health Monitor survey of 2021, Mexico has 52% of Obese people, while 13% of the population in the world is diabetic.
• Additionally, the market for natural sweeteners is growing due to stringent government rules regarding using artificial ingredients in products. The market players are producing different sweeteners according to industrial demand. For instance, Oy Karl Fazer Ab made xylitol from oat nulls in May 2022. Compared to regular sugar, produced xylitol had 40% fewer calories.

• Consumers these days have become very conscious about their food and eating habits. Their preference for organic and natural products is increasing owing to their health benefits. Also, the overconsumption of confectionary and other sweet products is causing several diseases like diabetes, obesity, blood pressure, and many more.
• According to the Health Survey for England report of 2021, 25% of men and 26% of women are obese in England. Because of awareness among consumers, the demand for plant-based ingredients is increased. Natural sweeteners contain low or zero-calorie ingredients that give a sweet taste without adding chemical ingredients. As consumers have become more conscious of their health and fitness, low-calorie food with the same taste is in demand among them.
• Due to consumer demand, the bakery and confectionary industries are demanding all-natural ingredients. The institutes and research laboratories are inventing new ways to extract natural sweeteners to reduce environmental impact.
• For instance, in August 2022, Researchers at the Indian Institute of Technology (IIT), Guwahati, produced xylitol, a natural sweetener from the residue left after crushing sugarcane. The xylitol was produced by ultra-sound assisted fermentation.

• Due to the use of natural sweeteners in different Asian food products like sauces, soups, pastes, and pickles, the demand for natural sweeteners is more in the region. Due to more no. of aging and diabetic population in some countries of the region, demand for low or no-calorie food is increasing. Hence, the demand for natural sweeteners is rising.
• Additionally, the millennials in the region are becoming more health-conscious and prefer clean-label natural ingredients in their food products. Natural sweeteners can be used in drinks like sports and energy drinks. Fitness and sports enthusiasts prefer these energy drinks over high-calorie products. One of the natural sweeteners, i.e., monk fruit, is most preferred among food industries due to its no-aftertaste characteristic and medicinal benefits.
• In November 2022, Japanese brand Lakanto, a Saraya Co. Ltd. brand, launched a Monkfruit-based sweetener in India. Over the medium term, the market is expected to grow in the region owing to industrial demand for plant-based ingredients in the region.

The global natural sweeteners market is fragmented, with regional and global market players dominating the market. Major players in the market are Tate & Lyle Plc, Archer Danials Midland Company, Cargill Incorporated, Sunwin Stevia International, and Ingredion Incorporated, among others. The increasing demand for natural ingredients in different products drives market growth. Furthermore, mergers and acquisitions among market players are also driving the market growth. Government regulations and approvals are leading the market players to expand their business in different regions. For instance, in July 2021, European Commission approved Sweegen Inc's non-GMO Signature Bestevia Rebaudioside M (Reb M) for use in food and beverages.

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