Alternative Sweetener Market Size, Share, Growth Report 2032

Industry Prospective:

The global Alternative Sweetener market was worth around USD 4219.50 million in 2021 and is estimated to grow to about USD 5463.41 million by 2028, with a compound annual growth rate (CAGR) of approximately 4.40% over the forecast period. The report analyzes the Alternative Sweetener market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Alternative Sweetener market.

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Global Alternative Sweetener Market: Overview

In Global Alternative sweetener Market Report, Alternative sweetener is a sugar substitute used to enhance and sweeten a variety of foods and beverages. Alternative sweeteners have a lower glycaemic index, which keeps insulin levels stable after consumption, and are thus used as a low-calorie food additive. Alternative sweeteners are produced from both natural and artificial sources, and they are widely used in a variety of applications such as dairy products, bakery foods, and pharmaceuticals. Individuals with diabetes and obesity prefer low-calorie sweeteners because they have a lower sweetness quotient than sugar. During the forecast period, the global alternative sweeteners market is expected to grow due to an increase in demand for healthy and low-calorie food and beverages.

As a result of ongoing advances and new uses in the food sector, such as developments in dairy products and baked goods, the worldwide alternative sweeteners market has developed considerably. Alternative sweeteners provide benefits such as sweetness, low cost, taste, nutrition, bulkiness, preservation qualities, heat resistance, and blending capabilities. Furthermore, rising health concerns, as well as an increase in the prevalence of diabetes and obesity, are driving the growth of the alternative sweeteners market. Furthermore, market growth is being driven by an increase in demand for low-calorie sweeteners and an increase in the obese population, particularly in developing countries. Consumers, for example, use stevia extract, a sweetener derived from the leaves of the stevia bush, as well as monk fruit extract. Sugar has been replaced as a food additive by alternative sweeteners in order to avoid health problems.

COVID-19 Impact:

Because of the worldwide pandemic, the global sugar substitute market has been severely impacted. COVID-19 has an impact on both the final product supply chain and the raw material ingredients. Because of the concentration of several key players operating from these regions, the North American region, followed by Europe and the Asia Pacific, plays a vital role in the market. As a result, the supply side of the market is expected to be constrained, as sugar substitutes produced by many key players in these regions serve end-users worldwide. Regional consumption, on the other hand, is expected to rise in the respective market, as consumers focus more on maintaining weight and adhering to various diets in order to maintain good health. Overall, this is expected to drive demand for sugar substitutes.

Report Scope:

Alternative Sweetener Market: Growth Drivers

Driver: Increased consumer health consciousness to stimulate demand for healthier food options

Consumers are becoming more aware of their nutritional needs as they have easy access to near-infinite information. As a result, consumers have become more conscious of making healthier food and beverage choices. Because of rising health concerns, they are increasingly demanding healthier, lower-calorie foods and beverages. As people's health conditions worsen, there is a greater demand for low-calorie food and beverage products to help them maintain a healthy diet. Most health-conscious consumers prefer sugar alternatives because they have less calories than real sugar. Sugar substitute consumption contributes to the health advantages received by health-conscious customers.

Restraint: Compliance with international quality standards and regulations for sugar substitutes

Food safety regulations are overseen by international organizations like the National Food Safety and Quality Service (SENASA), the Canadian Food Inspection Agency (CFIA), the United States Food and Drug Administration (FDA), the World Health Organization (WHO), and the Committee on the Environment, Public Health, and Food Safety (CEPHFS) (EU). These organizations have direct or indirect control over the food processing industry's use of a variety of chemicals and materials. Health and safety inspections are performed on sugar alternatives. Regulations governing the use of sweeteners as a food ingredient stifle global growth in the sweeteners industry.

Opportunity: Increased investment in R&D activities by manufacturers in order to develop newer and better products.

To achieve a greater market, share than their competitors, manufacturers are progressively spending on the research and development of innovative sugar replacements. To minimize the calorie content of their final goods, several food and beverage firms are replacing sugar alternatives with normal sugars. In developed economies, sugar alternatives are in high demand. The fundamental cause for the enormous expansion of the sugar replacement market is a shift in consumer attitudes toward the use of sugar alternatives.

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Challenge: Product labeling and commercial concerns

International food safety and quality regulatory bodies are tightening food safety regulations. Apart from food testing and certification, these international regulatory bodies compel manufacturers to follow food labeling rules and regulations. Most governments are taking steps to implement the food labeling law in their respective countries. The stringent regulations imposed by regulatory bodies regarding testing, certification, usage, production, and labeling pose a challenge for manufacturers.

Global Alternative Sweetener Market: Segmentation

The global Alternative Sweetener market is segregated based on Type, Application and End-use sector.

By type, the market is classified into Stevia, Sorbitol, Xylitol, Mannitol, Erythritol, Sweet proteins and Other types. This category had a significant share in 2021 and is expected to maintain its dominance throughout the forecast period. The stevia segment is expected to grow the fastest in the global market in 2021. Steviol glycosides, which are naturally present in the stevia leaf, are the sweet-tasting components of stevia. Stevia sweeteners do not add carbohydrates or calories to the food or beverage to which they are added. It also has no effect on blood glucose levels or insulin response. As a result of substituting stevia for sugar, people with diabetes can eat a wider variety of foods and stick to a healthy meal plan. Stevia also contains a variety of sterols and antioxidant compounds.

By application, the market is divided into Bakery products, Confectioneries & gums, Spreads, Beverages, Dairy products, Frozen desserts, Tabletop sweeteners, Pharmaceutical products, and Other Applications. In terms of value, the beverage segment accounted for a significant share of the global market in 2021. Sugar substitutes are now preferred in beverages such as diet carbonated drinks, flavored water, and others. The growing consumer base for beverage products provides an impetus for the development of new sugar substitutes and products, driving the market growth during the forecast period.

Recent Developments

• In July 2020, Tate & Lyle introduced VANTAGE sweetener solution design tools. It is a collection of new and innovative sweetener solution design tools, as well as an education program, for creating sugar-reduced food and drinks with low-calorie sweeteners.

Regional Landscape

Natural sweeteners are in high demand in North America, owing primarily to the healthy food trend. The growing awareness of the negative effects of excessive sugar consumption is the primary driver of market growth. As a result, more opportunities for low-calorie sweeteners emerge, particularly in bakery, beverage, and dairy applications. The beverage industry is the most important, followed by the bakery, confectionery, and dairy industries.

During the forecast period, the Asia Pacific market is expected to grow at the fastest rate in the global market. The Asia Pacific sugar substitutes market is expanding due to changes in customer lifestyles and an increase in health consciousness among them. This region's market is undergoing a dramatic transformation as a result of diet diversification, rapid urbanization, and liberal trade policies in the food sector.

Competitive Landscape

Some of the main competitors dominating the global alternative sweetener market include – DuPont (US), ADM (US), Tate & Lyle PLC (UK), Cargill (US), Ingredion Incorporated (US), Roquette Frères (France), FoodChem International Corporation (China), PureCircle Ltd (US), MacAndrews & Forbes Holdings Inc (Merisant) (US), Ecogreen Oleochemicals Pvt Ltd (Indonesia), Pyure Brands LLC (US), Stevia Hub India (India), Suminter India Organics (India), Stevia Biotech Pvt Ltd (India), The Real Stevia Company (Sweden), Sweetly Stevia USA (UK), XiliNat (Mexico), Fooditive B.V. (Netherlands), Saganà Association (Switzerland), and Hearthside Food Solutions LLC (US).

Alternative sweetener Market is segmented as follows:

Alternative sweetener Market, By Type

• Stevia
• Sorbitol
• Xylitol
• Mannitol
• Erythritol
• Sweet proteins
• Other types

By Application

• Bakery products
• Confectioneries & gums
• Spreads
• Beverages
• Dairy products
• Frozen desserts
• Tabletop sweeteners
• Pharmaceutical products
• Other applications

By End-use sector

• Food & beverages
• Pharmaceutical
• Direct sales
• Other end-use sectors

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa