Sugar Substitute Market | Increasing Demand, Current Growth Rate, Outlook and Forecast to 2027 | Key Player – Cargill Incorporated, Tate & Lyle PLC, Archer Daniels Midland Company, JK Sucralose Inc

Sugar is the soluble carbohydrate with a sweet taste and is widely used in a variety of foods but the rise in number of diseases due to high consumption of sugar has led to the demand for alternative products. Sugar substitute also known as low-calorie sugar is the alternative used instead of actual sugar and is considered as a food additive that provides a sweet taste to the product but carries zero or low-calorie content. The sugar substitutes are generally manufactured from the plant extracts, chemical synthesis, and hydrogenation of sugars. Sugar substitutes are also referred to as artificial sweeteners and are regulated by the Food and Drug Administration. The artificial sweeteners also are known as high-intensity sweeteners such as aspartame, sucralose, neotame, acesulfame potassium, saccharine and advantame are approved to be used as a food additive by FDA and considered as generally recognized as safe (GRAS).

COVID-19 Scenario Analysis:
• The COVID-19 scenario has highly impacted the sugar substitute market as the global supply chain of government-approved sugar substitutes has been disrupted due to the export and import restrictions.
• The manufacturing and raw material procurement have been affected due to transport restrictions.
• The supply chain of the food and beverage industries such as Coca-Cola has been affected due to the shortage of supply of sugar substitutes that are used in zero-sugar drinks and diet coke.
• The effect of the lockdown scenario on the distribution channels has lowered down the sales and revenue of the sugar substitute market.

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Top Impacting Factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis
Sugar plays a significant role in fulfilling daily requirements as a food additive to impart flavor, taste, and palatability to food products and beverages, but its regular consumption and high glycemic index impacts the glycaemic response and leads to several health disorders. The increased awareness about the health disorders, health & fitness consciousness, obesity problems, increase in diabetes cases, investment in R&D, low calories in the product, high risk of developing metabolic diseases, heart diseases and hypertension, use of artificial sweeteners in bakery products & beverages, the surge in the commercial use of products, increase in disposable income, increasing dental problems, plant-based substitutes, and government initiatives drive the growth of the sugar substitute market. However, the availability of substitute sugar, high price of the products as compared to the natural sugar, after taste of the artificial sweeteners, non-approval and ban on the products by FDA, restrictions, and regulation on certain ingredients to be used in products and increase in competition hinder the market growth.

The global sugar substitute market trends are as follows:
The surge in the use of sugar substitutes
Several sugar substitutes have been introduced in the market and are highly preferred for daily household use as well as commercial use. They are used as low-calorie healthy substitutes in bakery, confectionery, beverages, medicines, semi-processed foods, ready to eat foods, and others. Health awareness and healthy dietary habits have led to an increase in the requirement of sugar substitutes as the millennial and Z generation are being more mindful of the daily sugar intake and carbohydrates. The increased level of sugar intake generally leads to hyperglycemia causing damage to the blood vessels, stroke, heart disease, nerve problems, kidney disease, liver disease, obesity, chromium deficiency, tooth decay, and increased stress level as well. The artificial sugar substitutes derived from chemical synthesis such as sucralose is highly used in the food & beverage sector for various products. They are recognized as safe and guidance has been provided under acceptable daily intake (ADI) by the FDA for the healthy consumption of the substitutes. The sugar alcohols also are known as polyolssuch as mannitol, sorbitol, erythritol, isomalt, lactitol, xylitol, and maltitol, do not get completely absorbed in the blood and have less food energy than the natural sugars. They are used widely for taste enhancement in hard candy, chewing gums, ice creams, pudding, chocolate, baked products, and others.

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Plant-based sugar substitutes such as stevia, obtained from leaves of plant Stevia rebaudiana consist of zero calories, impart the sweet taste to the product, and are widely used in various parts of the world under different regulations. Some of the sugar substitutes such as cyclamate and mongroside faced a ban in earlier times and have very limited use in some countries. The key manufactures are inclined toward investing in R&D and processing sugar substitutes so that they can be recognized safe for used by the FDA and has potential health benefit as well.

Segments covered
Product Type, Origin,Application, Distribution Channel, and Region

Companies covered
Cargill Incorporated, Tate & Lyle PLC, Archer Daniels Midland Company, JK Sucralose Inc., Kerry Group,Ingredion Inc., Roquette, Ajinomoto Co., PureCircle, NutraSweet Company, DuPont De Numerous

Regions covered
North America (U.S., and Canada), Europe (Germany, UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Malaysia, Thailand, Indonesia, and Rest of Asia-Pacific), LAMEA (Middle East, Brazil, and Rest of LAMEA)

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