Sugar Substitute Market: Current Analysis and Forecast (2021-2027)
Added sugar is one of the most controversial ingredients in the modern diet. It has been associated with many serious diseases, including obesity, heart disease, diabetes, and cancer. Part of the problem is that most people consume way too much sugar without knowing it. Fortunately, there are many ways to sweeten foods without adding sugar. Sugar substitutes are chemical or plant-based substances used to sweeten or enhance the flavor of foods and drinks. You may have heard them called "artificial sweeteners" or "non-caloric sweeteners."
Also, As per FAO, real sugar prices are expected to remain at the levels of 2019 (Figure 5.2), i.e., lower than the average of the last 20 years, where prices experienced upward pressure through the competition from biofuels (ethanol). By 2029, the nominal world price is projected to be USD 386/t (USD 17.5cts/lb) for raw sugar and USD 469/t (USD 21.3cts/lb) for white sugar. The white sugar premium is projected to grow slightly to USD 83/t by the end of the outlook period, as a result of a slightly increasing demand.
Global production is forecast up 6 million tons to 186 million as higher production in the EU, India, and Thailand will more than offset the decline in Brazil. Consumption is forecast to rise to a new record due to growth in markets such as China and India. Exports are forecast up as the increase from Thailand along with strong exports from India will more than offset lower exports from Brazil.
The World Health Organization's (WHO) sugar guideline, issued in March 2015, recommends that adults and children restrict their sugar intake to less than 10% of total energy intake per day, which is the equivalent of around 12.5 teaspoons of sugar for adults, and suggests a further reduction to below 5% of total energy intake per day.
Based on the Type, the market is fragmented into High Fructose Syrup, High-Intensity Sweetener and Low-Intensity Sweetener. The High Fructose Syrup segment of the Global Sugar Substitutes market grabbed the major market share and dominated the market. The segment captured around XX% market share and generated USD XX Mn in 2020 and is expected to grow at a CAGR of XX% during the forthcoming years. However, the High-intensity sweetener segment would grow remarkably in the forecast period.
Based on the Origin, the market is fragmented in to Natural and Artificial/ Synthetic. The Artificial/ Synthetic segment grabbed major market share and captured XX% market revenue in 2020. However, the Natural segment would emerge in the forecast period and would witness the highest CAGR during the forthcoming period owing to the surge in awareness about the disadvantage of artificial sweetener.
Sugar Substitutes are being sold in different forms such as Crystalized, Liquid and Powder. The Crystalized segment generated revenue worth USD XX million in 2020 and is expected to reach USD XX million by 2027. However, the liquid segment is expected to witness an exhibit growth during the forecast period
For a better understanding of the market adoption of the Sugar Substitutes market, the market is analyzed based on its worldwide presence in the countries such as North America (the United States and Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea and Rest of APAC), and Rest of World. Asia-Pacific constitutes a major market for the Sugar Substitutes industry and generated revenue of USD XX Million in 2020 owing to the rising demand for replacing sugar with healthy options. Also, a rise in disposable income and changed lifestyle is contributing to the growing demand of Sugar Substitutes.
Some of the major players operating in the market are: DuPont, ADM, Tate & Lyle, Ingredion Incorporated, Cargill Incorporated, Roquette Freres, Purecircle Ltd, Macandrews & Forbes Holdings Inc, K Sucralose Inc. and Ajinomoto Co. Inc. Several M&As along with partnerships have been undertaken by these players to develop Sugar Substitutes solutions.