Sugar Substitutes Market Will Hit Big Revenues In Near Future

The Sugar Substitutes Market size is estimated to be valued at USD 16.5 billion in 2020 and projected to reach USD 20.6 billion by 2025, recording a CAGR of 4.5% during the forecast period. The global sugar substitute industry has witnessed growing trends in the past years. The growth of this industry is majorly driven by an increase in health consciousness among consumers to encourage the demand for healthier food choices, an increase in demand for natural sweeteners due to the rise in consumer inclination toward natural products, and growing demand for sugar substitutes in various applications in the food & beverage industry.

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Based on type, the sugar substitutes market is dominated by the high-intensity sweeteners segment. High-intensity sweeteners are the ingredients used for enhancing the sweetness and flavor of food products. They are sweeter than table sugar or sucrose. Due to this, smaller amounts of high-intensity sweeteners are enough for achieving the same level of sweetness as sugar in food products. High-intensity sweeteners do not contribute calories or only contribute a few calories to the diet. 

By composition, the stevia segment is projected to witness the fastest growth in the sugar substitutes market in high-intensity sweeteners for the period forecasted. Stevia is a plant that is cultivated in South American countries, including Paraguay and Brazil. It is used as a sweetener for many years. Stevia is a zero-calorie sweetener and is used globally for reducing energy and adding sugar content in food and beverage products. Stevia is sourced naturally and has been used as a natural sugar substitute and flavoring ingredient in food and beverage applications.

By composition, the D-tagtose segment is projected to witness the fastest growth in the sugar substitiutes market in low-intensity sweeteners for the period forecasted. D-Tagatose is a functional sweetener and is generally used in dairy products. It is similar in texture to table sugar and is 92% as sweet as sugar but has nearly 38% of calories. However, along with containing a low amount of calories and net carbs than sugar, D-tagatose is also a low glycemic index food product.  

Based on application, the sugar substitutes market is dominated by the beverage segment. Majority of the beverage products contain sugar or are sugar-based. In addition, beverages are the most commonly consumed products across the globe. Beverages, such as juices, canned drinks, coffee, aerated drinks, and others, are majorly produced using added sugars for offering an improved taste and mouthfeel. However, this is a major factor that has led to a high-calorie intake among individuals, which has further led to a rise in obesity and other related diseases.  

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Key Market Players:

DuPont (US), ADM (US), Tate & Lyle (UK), Ingredion Incorporated (US), Cargill Incorporated (US), Roquette Frères (France), PureCircle Ltd (US), MacAndrews & Forbes Holdings Inc. (US), JK Sucralose Inc. (China), and Ajinomoto Co. Inc. (Japan).

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