Sugar Substitute Market by Types (Low-intensity, High-intensity, and High Fructose Syrup), Applications (Beverages, Food, and Pharmaceuticals), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global sugar substitute market size was valued at USD 16.5 billion in 2020 and is anticipated to reach USD 23.1 billion by 2028, expanding at a CAGR of 6.3% during the forecast period, 2021–2028. Growth of the market is attributed to rising health consciousness among consumers, increase in demand for natural sweeteners and sugar substitutes.
 

Sugar substitute is a food additive which provides sweet taste similar to sugar which contains reduced food energy than sugar-based sweeteners, making it low calorie sweetener. Metabolic syndrome, diabetes, and obesity are main health problems owing to connected with imbalanced calorie intake. Sugar substitutes plays important role in decreasing calories as part of an overall physical activity and healthy diet.

Covid-19 impacted the global sugar substitute market worldwide. It affected the supply chain of final products and raw material ingredients. It also reduced the manufacturing and distribution of the products due to lockdown imposed by the government across the globe. Imports and exports in various countries have been either delayed or restricted and creating hurdles for sugar substitute suppliers.

Market Trends, Drivers, Restraints, and Opportunities

• Increase in health consciousness among customers is expected to boost the market in the coming years.
• Rapid growth of food and beverages industry is major factor spurring the market during the forecast period.
• Rising demand for healthier food choices by consumers is anticipated to fuel the market in the coming years.
• Adherence to international regulations and quality standards for sugar substitute products is estimated to hinder the market expansion.
• Product labeling rules and regulations by government act as a major challenge that can hamper the market during the forecast period.
• R&D investment and technological advancement for developing enhanced and new products is projected to create immense opportunities for the market players.

Scope of the Report

The report on the global sugar substitute market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights:

The high-intensity segment is projected to hold a large market share
Based on types, the global sugar substitute market is fragmented into low-intensity, high-intensity, and high fructose syrup. The high-intensity segment is expected to constitute a key share of the market in the coming years due to lower cost in comparison with other sugar substitutes, low production cost, variety of production, ease of use, and lower side effects. It is highly used less calorie artificial sweeteners. The high-intensity sweetener is approved by US Food and Drug Administration is safe for general population under certain conditions of use.

The beverage segment is projected to account for a major market share
On the basis of applications, the global sugar substitute market is segregated into beverages, food, and pharmaceuticals. The beverage segment is expected to represent a key share of the market during the forecast period owing to rising awareness for health benefits which are related to sugar substitutes in beverages, introducing sugar substitute based beverages, and growing demand for natural health and sports drinks with increased nutrition value. Sugar substitute with reduced-calorie and zero glycemic indexes is used to produce various versions of flavored water, soft drinks, fruit juices, energy drinks, and ready to drinks teas.
 

The North America is expected to dominate the market
On the basis of regions, the global sugar substitute market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to expand at a high CAGR during the forecast period. The regional market growth can be attributed to rising number of diabetic population, highly established food and beverages, rising health and wellness concern, and growing demand for sugar free products. However, the market of Asia Pacific is expected to exhibit a rapid growth rate in the coming years due to increase in health consciousness and change in lifestyle of the consumer.
 

Segments

Segments Covered in the Report
The global sugar substitute market has been segmented on the basis of

Types

• Low-intensity
• High-intensity
• High Fructose Syrup

Applications

• Beverages
• Food
• Pharmaceuticals

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Cargill Incorporated
• Tate & Lyle
• JK Sucralose Inc.
• DuPont
• MacAndrews & Forbes Holdings Inc.
• Ajinomoto Co. Inc.
• PureCirle Ltd.
• ADM
• Archer Daniels Midland Company

Competitive Landscape

Key players competing in the global sugar substitute market include Cargill Incorporated, Tate & Lyle, JK Sucralose Inc., DuPont, MacAndrews & Forbes Holdings Inc., Ajinomoto Co. Inc., PureCirle Ltd., ADM, and Archer Daniels Midland Company. Some of these players are engaged in several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares.

For instance, In 2018, GLG Life Tech Corp. launched its Reb M sweetener product line, which has high quantities of Reb M steviol glycosides which taste like sugar in collaboration with Archer Daniels Midland Company.