The global sweeteners market is projected to reach USD 125.1 billion by 2028 from USD 107.2 billion in 2023 at a CAGR of 3.1% during the forecast period, 2023-2028, in terms of value. The sweeteners market is experiencing growth, extending its influence beyond the food and beverage sector into the personal care and pharmaceutical industries. In personal care, sweeteners serve as ingredients in oral care products, chewing gums, and cosmetics, providing a sweet taste without the detrimental effects of sugar. For instance, xylitol, a sugar alcohol sweetener, is widely used in oral care products due to its ability to inhibit bacterial growth and promote dental health.
In the pharmaceutical industry, sweeteners are utilized to enhance the palatability of medications, especially those in liquid or chewable forms. Paediatric medications often incorporate sweeteners to improve taste and increase patient compliance. Sucralose, aspartame, and saccharin are some of the examples of sweeteners employed in pharmaceutical formulations. The growing recognition of the role sweeteners play in enhancing consumer experience and compliance in personal care and pharmaceutical products is a key driver in the expanding sweeteners market.
Market Dynamics
Drivers:Rise in consumer inclination toward natural products
With the growing awareness of wellness, consumers are increasingly demanding greater transparency in the products they purchase. As a result, they want to know where their products come from and what ingredients are used. These lifestyle changes are having a major impact on the food and beverage industry as well as the personal care industry. Consumers are demanding non-GMO, organic, natural, and additive-free products. Furthermore, many are willing to pay a premium for natural products that are associated with health and nutrition. This growing trend of consumers being willing to pay higher prices for natural products is driving the demand for natural sweeteners.
Restraints: Health issues linked to excessive consumption of high-fructose corn syrup
High-fructose corn syrup (HFCS) has indeed encountered significant negative public perception, primarily due to its alleged association with health issues such as obesity and diabetes. HFCS introduces an unnatural and excessive amount of fructose to the diet, contributing to various health issues as the body metabolizes fructose differently than glucose. The high fructose content in HFCS has been linked to increased liver fat, potentially leading to fatty liver disease and type 2 diabetes. Long-term studies indicate a strong association between HFCS, obesity, and weight gain, with fructose promoting the accumulation of visceral fat, the most harmful type of body fat linked to diabetes and heart disease.
Opportunities: Research and development for diabetic-friendly sweeteners
The escalating global burden of diabetes, according to the International Diabetic Federation Atlas (2021), reporting 10.5% of adults (20–79 years) living with the condition and projecting a 46% increase to 783 million individuals by 2045, underscores a significant opportunity for the sweeteners market. Over 90% of those affected have type 2 diabetes, driven by urbanization, an aging population, declining physical activity, and rising overweight and obesity rates.
The prevalence of diabetes has increased substantially, leading to a growing demand for sweeteners that are safe for people with diabetes. Consumers are now more aware of the health impact of their diet, leading to research and development initiatives focused on creating sweeteners that have better taste profiles and minimal impact on blood sugar levels. The potential for these sweeteners is further amplified by regulatory support and the increasing consumer preference for healthier options. Companies that invest in and market diabetic-friendly sweeteners not only cater to a specific demographic but also contribute to product diversification, global market expansion, and potential collaborations within the food and beverage industry. In essence, the rise of diabetes presents a strategic opportunity for the sweeteners market to become a key driver of growth and differentiation.
Challenges: Product labeling and claims issues
International regulatory bodies are introducing more stringent regulations for food safety and quality. In addition to food testing and certification, these bodies are enforcing food labeling rules and regulations for manufacturers. Many governments worldwide are taking initiatives to implement food labeling laws within their respective countries.
North America Is Projected To Be The Fastest-Growing Region In The Sweeteners Market.
North America is growing at a significant rate in the sweeteners market size due to a confluence of factors driving demand and consumption patterns. The region’s high prevalence of health-conscious consumers and their increasing awareness of the adverse effects of traditional sugars on health contribute significantly to the demand for sweeteners. With a robust food and beverage industry, North America is quick to adopt innovations in low-calorie and sugar-free alternatives, propelling the growth of the sweeteners market.
Moreover, stringent regulatory measures promoting healthier dietary choices and clearer labeling practices align with consumer preferences, further supporting the growth of the sweeteners market in North America. Canada, as part of North America, has implemented a thorough safety assessment process before approving new food additives, including sugar substitutes. This meticulous approach guarantees that only proven and safe sweeteners, such as acesulfame-potassium, polydextrose, sucralose, thaumatin, and various sugar alcohols, are permitted for use.
The diversity of approved sugar substitutes reflects North America’s commitment to offering consumers a broad spectrum of sweetening options. Additionally, the prevalence of health-conscious consumers seeking alternatives to traditional sugars, driven by concerns about obesity and related health issues, further propels the demand for approved and safe sugar substitutes in the North American sweeteners market. This combination of regulatory rigor, consumer awareness, and a diverse range of approved sweeteners solidifies North America’s growth in the global sweeteners industry.
Key Market Players
The sweeteners companies include Cargill, Incorporated (US), ADM (US), International Flavors & Fragrances Inc. (US), Ingredion Incorporated (US), Tate & Lyle (UK), Associated British Foods (UK), Südzucker AG (Germany), and Ajinomoto Co., Inc. (Japan).
