Natural alternative sweeteners, also known as sugar substitutes are chemicals which are added to some food products to make them taste sweet with presence of little or no calories. The over consumption of sugary foods leads to weight gain, resistance to insulin, type 2 diabetes and fatty liver. Therefore, in a bid to satisfy consumer’s sweet tooth without compromising with the health has led scientists and nutrition professionals to develop healthier natural alternatives to sugar. This has further led to the development of alternative sweeteners. Now-a days these sweeteners are gaining wider demand owing to their nutrient content and positive health effects.
The demand for alternative sweeteners is gaining traction owing to rise in health concerns due to over consumption of sugar in regular diet patterns. Growing instances of diabetes and obesity is further motivating people to switch to low or zero calories substitutes. This acts as a key factor in the development of non- nutritive sweeteners such as stevia, monk fruit, agave nectar and coconut sugar. In addition to it, growing inclination of consumers towards “all natural” and “clean label” food and beverage products also contributes to the market growth. Increase in adoption of alternative sweeteners in multiple applications such as dairy, confectionery and breakfast cereals is also stimulating the market growth. Rise in consumer spending ability for purchase of convenience foods, ready to drink beverages has further raised the production of low calorie based products by end-use industries. However, high costs associated with the manufacturing of these sweeteners is poised to deter the market demand. Additionally, disliking of licorice taste of certain sweeteners such as Stevia is expected to impact the market negatively.
On the basis of type, the global natural alternative sweeteners market is categorized into stevia, coconut sugar, raw honey, blackstrap molasses, monk fruit, maple syrup, date sugar, xylitol and others. Others include balsamic glaze, banana puree, lo han, real fruit jam and brown rice syrup. On the basis of end-use industry the market is categorized into food and beverage, pharmaceuticals, personal care and others. Stevia has captured major market due to its growing consumption as a dietary supplement. The low calories and zero glycemic impact has further made stevia favorable among diabetic patients which is one of the key reasons for spurt in market growth. On the other hand, the remedial advantages of honey has proved it benefits for flavor enhancements and other food products such as cookies or biscuits.
The global natural alternative sweeteners market is segmented on the basis of geography into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. In 2016, North America, dominated the market growth due to massive production and consumption of diet carbonated soft drinks. Moreover, stringent taxation and regulations pertaining to consumption of high calorie foods in Europe and North America is further driving the adoption of sweeteners in these regions.
Some of the key players operating in the market include Cargill Incorporated, GLG Life Tech Corp, Zydus Wellness, Archer Daniels Midland Company, Merisant Worldwide, Hermes Sweeteners, Imperial Sugar Company, Herbevodia and Stevia Corporation, Naturex and Pure Circle.
Stevia also known as sweet leaf/ honey leaf is a famous zero calorie sweetener which is extracted from stevia rebaudiana plant which is native to South American region. Stevia is 200 times sweet than sugar. In 2016, this segment accounted for maximum share of the market and is expected to gain prominence in the forecast years due to the presence of glycosides which are not easily metabolized in human body. Therefore, stevia does not release calories into human metabolism and this is projected to be the major factor for market demand. Industry players have heavily relied on stevia for meeting the public demand for low-calorie foods. As per WHO, number of obese people across the world has reached approximately 600 million. This has alarmed consumers to redefine their lifestyle and dietary patterns which has further led to market expansion. Moreover, industry players have incorporated consumer-centric strategy of introducing variety of beverages containing zero or no calorie. For instance, Coco-Cola have launched “Taste the Feeling” campaign which included beverages for different occasions containing stevia as a sweetener as it has a property of reducing sweetness content by 37%. Coconut sugar segment is projected to witness significant growth over the forecast period owing to its increasing utilization as a substitute for brown sugar in food products. Moreover, its lower glycemic content offer multitude of opportunities for key stakeholders in the near future.
In 2016, food and beverage segment dominated the market and is expected to maintain its dominance during the forecast period. World Health Organization (WHO) also recommends cutting sugar intake to less than 10% of calories. This regulation was formulated so as to promote consumers towards healthy alternatives to sugar. Now-a-days sweeteners are playing a pivotal role in the food and beverage industry owing to its quality and consistency. Natural sweeteners have found increased demand in beverage concentrates and mixes, topping mixes, filling mixes, breakfast cereals and bakery products. Natural sweeteners are also gaining traction as consumer friendly products with potential of replacing 20-30% of sugars without compromising with taste of food. Regulatory agencies such as European Commission, Food and Drug Administration (FDA) and Food Safety and Standards Authority of India (FSSAI) have approved the use of Stevia Glycosides in food products. Moreover, FSSAI has further approved the incorporation of Stevia in soft drink concentrates, carbonated water and chewing gums. Apart from this, natural sweeteners such as honey and agave are also being adopted owing to growing focus for clean label food products. These are often used in combination with sugar, stevia and/or other sweeteners such as erythritol. This acts as a prime factor fueling the market growth.
Pharmaceutical application is poised to be the fastest growing segment due to added advantages of sugar substitutes in dental care and assistance in weight loss end-use industry. Alternative sweeteners being tooth friendly are unaffected from the fermentation of dental plaque. For instance, Xylitol prevents bacteria adhesion to the surface of tooth, thus, preventing tooth decay. Furthermore, sugar alternatives also help to control blood sugar level in diabetic patients. Collectively, the aforementioned factors are driving the market growth in the years to come.
In 2016, North America was the largest market as U.S. is the largest consumer and producer of natural alternative sweeteners owing to higher diet conscious people. Rapidly changing life style, consciousness over increase in calories and growing instances of diabetes has alarmed consumers globally to reduce their sugar intake or focus towards zero or less calories sweeteners. The market is witnessing average growth in Middle East & African nations. However, Latin American region is expected to grow in near future owing to stringent taxation policies in certain countries. For instance, the governments of Mexico have started to impose taxes on sugary drinks as a strategy to lower the consumption of sugar and prevent chronic health diseases. Food and beverages manufacturing companies are striving hard to develop and commercialize low calorie and sugar free products to cater to consumers demand in developed nations. Asia-Pacific region is growing at a rapid pace owing to increasing awareness regarding the health benefits associated with natural alternative sweeteners, change in diet patterns along with rise in disposable income. Furthermore increasing application scope of natural alternative sweeteners in products such as flavored sauces, pastes, breakfast cereals and chocolates is another factor driving the market growth. Growing count of obese patients in this region has therefore, led to decline of soft drinks consumption which is in turn driven the demand for diet drinks consisting of natural sweeteners.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Natural Alternative Sweeteners market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
