Natural Sugar Substitute Market Size to Reach Revenues of USD 4.3 Billion by 2025 – Arizton

In-depth analysis and data-driven insights on the impact of COVID-19 included in this global natural sugar substitutes market report.

The global natural sugar substitutes market size is expected to grow at a CAGR of over 4% during the period 2019−2025.

Key Highlights Offered in the Report:
1. In 2019, Europe contributed around 35% of natural sugar substitute revenue in the food industry.
2. The stevia market is expected to grow at a CAGR of over 7% during the forecast period, contributing an incremental revenue of around $242 million by 2025.
3. South American and Western European countries are key markets for natural sugar substitutes made with stevia.
4. The beverage industry contributed over 43% of the global revenue for natural sugar substitutes in 2019. Carbonated drinks held around 50% of the total natural sugar substitute market in the beverage industry in 2019.
5. In North America, erythritol and stevia are witnessing rapid growth in demand and are expected to grow at a CAGR of around 4% and 6% respectively, during the forecast period.
6. Governments around the world are implementing sugar tax to control diseases such as diabetes and obesity. Such initiatives are encouraging the reformulation of food and beverage production, boosting demand for natural sugar substitutes.
7. As of 2019, 22% of American consumers are restricting their sugar intake and a staggering 52% are actively trying to avoid artificial sugar substitutes.

Key Offerings:
• Market Size & Forecast by Revenue | 2019−2025
• Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
• Market Segmentation – A detailed analysis by products, form, end-user, and geography
• Competitive Landscape – 5 key vendors and 16 other vendors

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Natural Sugar Substitute Market – Segmentation

• The increasing application of sorbitol in packaged foods and beverages to provide sweetness, texture, and moisture retention is a significant factor influencing the growth of the segment. As the consumer awareness of high sugar consumption increases, manufacturers are substituting it with substitutes such as sorbitol to lower the calorie count.
• The liquid segment accounted for the largest share of the market, contributing approximately 47% in 2019. Liquid substitutes are developed from different sources, including corn, honey, and others. They are the perfect alternatives to dry sugar in beverages and hot drinks. Powdered substitutes are multi-purpose products that can be used both as sweetening agents in food products and also as tabletop substitutes.
• The beverage industry dominated the global natural sugar substitutes market in 2019, constituting a market share of about 43%. The implementation of sugar taxes on sugar-sweetened beverages by several governmental bodies and the increasing consumer awareness of the impact of high added sugar beverages are driving the demand for no or low-calorie beverages containing natural ingredients such as natural sweetening agents including stevia-sweetened drinks.

Natural Sugar Substitute Market by Product Type
• Sorbitol
• Xylitol
• Maltitol
• Erythritol
• Isomalt
• Stevia
• Others
Natural Sugar Substitute Market by Form
• Liquid
• Powder
• Solid/Crystal
Natural Sugar Substitute Market by End-user
• Food
o Bakery
o Confectionary & Diary
o Others
• Beverages
o Carbonated Drinks
o Fruits Juices & Drinks
o Powdered Drinks & Mixes
o Others
• Pharmaceutical
• Personal Care
• Others

Natural Sugar Substitute Market – Dynamics

As both sugar and artificial sugar substitutes suffer from poor perceptions, it is leaving manufacturers limited choices, where natural sugar alternatives are being considered as a viable option. Consumers are also becoming increasingly interested in low-calorie sugar and are selecting products with those ingredients to help manage diabetes, consume fewer calories, and lose weight. The use of low-calorie sugar substitutes has increased by 4% in the last year, with 33% of the respondents using low or no-calorie sugar. Changing consumer trends has resulted in a growing interest in stevia-based sugar substitute. Stevia is extracted from the stevia plant and is label-friendly and provides a sweet taste without sugar or calories. Stevia has become a versatile ingredient that can address both the technical issues of formulating without sugar while maintaining label friendliness in a variety of food and beverage.

Key Drivers and Trends fueling Market Growth:
• Government Intervention
• Growing Demand for Low-Calorie Sweeteners
• Consumption of Sugar & Associated Risk of Diabetes
• Demand for Natural & Healthy Alternatives

Natural Sugar Substitute Market – Geography

In 2019, the highest demand for natural sugar substitutes came from developed regions, such as North America and Europe. Changing consumption patterns, demand for natural and healthy food and beverages, and demand for better-for-you products in North America are driving the market for natural sugar substitutes in the region. The US is the largest market for natural sugar substitutes. The awareness of the health impacts of consumption of added sugars and governmental initiatives, such as sugar tax, boost the demand for natural sugar substitutes.

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Natural Sugar Substitute Market by Geography
• North America
o US
o Canada
• Europe
o UK
o Germany
o France
• APAC
o China
o Japan
o South Korea
• Latin America
o Brazil
o Mexico
• Middle East & Africa
o South Africa
o UAE

Major Vendors
• Cargill
• ADM
• PureCircle
• Tate & Lyle
• Whole Earth Sweetener

Other Prominent Vendors
• A & Z Food Additives
• Beckmann-Kenko
• BioVittoria
• Celanese
• DuPont
• Fraken Biochem
• Heartland Food Products Group
• Hermes Sweeteners
• Imperial Sugar
• Ingredion
• Mitsui Sugar
• Naturex
• Roquette
• Sanxinyuan Food Industry
• The NutraSweet Company
• Zydus Wellness

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