Sugar-Free Food and Beverage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Sugar-Free Food and Beverage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global sugar-free food and beverage market is projected to witness a CAGR of 9.53% during the forecast period(2022-2027).

COVID-19 has had a slightly negative impact on the Sugar-Free Food and Beverage Market. Due to strict impositions of lockdowns all over the world, there is a disruption in the supply chain in the food & beverage industry. For instance, Coca-Cola Co. experienced delays in the supply of raw materials from China as a result of industrial stalls related to the spread of COVID-19. However, the emergence of E-commerce online channels during the pandemic has surged the growth of the market.

Mounting incidences of diabetes and overweight/obesity are pushing consumers from sugar and toward sugar-free alternatives. Both conditions are prevalent. The American Heart Association recommends no more than six teaspoons of added sugar a day for women to be safe from diabetes and obesity. Moreover, less sugar prevents glycation.

The increasing demand for low-calorie beverages and the associated cost-cutting advantage of using sugar substitutes is perhaps considered to be the foremost reason for the growth of the sugar-free foods and beverages market.

Obesity is one of the most serious global public health challenges of the 21st century, which is affecting every country in the world. Obesity in adulthood is a major risk factor that causes poor health and early death, including various cardiovascular diseases, several common cancers, diabetes, and osteoarthritis. Rates of obesity and overweight continue to grow in children and adults. For instance, according to a survey conducted by Ispos in 2020, 19% of adults all over the world stated it as their biggest problem. As a result, people's preferences are gradually changing toward healthy low-carb, sugar-free diets such as high-quality protein powders like bone broth, collagen, whey protein, lentils, beans, and other legumes. Some of the benefits of reducing sugar intake include it helps in losing weight and preventing obesity, lowers the risk for type 2 diabetes or pre-diabetes, and reduces the risk for inflammatory digestive conditions such as irritable bowel disease and Crohn's disease. The low-carb beverages are designed to provide sustained energy and help accelerate the metabolic state. Therefore this factor is driving the growth of the market. According to International Diabetes Federation, China was the leading country in the diabetic population in 2021, with 140.9 million people suffering from it.

The World Health Organization found that a rise in fast food sales is correlated to a rise in body mass index, and Americans are very much fond of fast foods. Rising concerns regarding obesity and diabetes through extensive awareness means consecutively generating the demand for healthier food and beverage products in the market. The American consumers, therefore, accepted the Sugar-free concept offerings very well and so the manufacturers commenced repositioning and validating the recipe of the products as the primary strategy to serve the diverse demands and strengthen the consumer base. For instance, Heinz has introduced sugar-free ketchup, which can be a part of fast foods to render deliciousness, but with lesser calorie addition.

The Global Sugar-Free Food and Beverages Market is highly competitive with the presence of many players across the world. High investments in R&D activities and product innovation have led them to gain major market share in the global market. Some of the key players in the market include The Hershey Company, Nestle S.A, PepsiCo, Mars Incorporated, and The Kellogg Company. The key players are embarking on mergers and acquisitions in the market to expand their portfolio and cater to the interests of local consumers, and concentrate on acquiring new leading brands. Some of the players are also using social media platforms and campaigns for marketing and promoting their products. For Instance, in March 2022. Coca-Cola India launched a new campaign for its new brand Coca-Cola Zero Sugar.

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