Natural Sweeteners Market Scope, Drivers, Restraints, Challenges, Factors Impacting the Market, Covid-19 Impact and Forecast 2026

Consumer appeal towards physical fitness and the inclusion of natural ingredients in food products will accelerate the consumption of natural sweeteners. Excessive intake of refined sugar has contributed to the prevalence of chronic health disorders like type 2 diabetes, blood pressure, obesity as well as heart health issues. These adverse effects have led to the rise in the demand for zero-calorie natural sweeteners.

Various high-quality natural sweetener formulations have been developed to counter the bitter aftereffects of a few of the natural sweeteners that are adopted across diverse applications. Numerous regulatory policies have also been implemented by the U.S. FDA.

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There are consistent efforts undertaken by some of the leading suppliers to list clean labels on their products. As per a recent research report, the global natural sweeteners market size could cross an annual value of more than USD 12.5 billion by 2026.

Diabetic control from monk fruit natural sweeteners
Industry share of monk fruit natural sweeteners is likely to grow at an exponential rate through the coming years as they render numerous health benefits when combined with other sweeteners in beverage products. They can be touted as the best natural sweeteners for diabetics as they have minimum influence on the levels of calorie intake, glucose as well as insulin in the human body.

Monk fruits possess zero calories and anti-inflammatory properties of mogrosides besides being good antioxidants. The fruit is found to be over 100–250 times sweeter over refined sugar and helps to reduce the risk of cancer.

Demand for stevia and xylitol natural sweeteners
Global revenue of the stevia natural sweeteners market is anticipated to gross more than USD 1.05 billion up to 2026. This is due to the advantages like decreased blood sugar and pressure levels offered by these sweeteners.

On the other hand, the xylitol natural sweetener industry size is projected to surpass an annual value of USD 1.5 billion and hit a CAGR of 5.7% over the same period considering the lower fructose content in xylitol. These sweeteners offer abilities to enhance the dental and bone health of the consumers.

Potential in sports supplement applications

Demand for natural sweeteners in sports supplements is expected to expand through 2026 due to the rising need of consumers to maintain personal health and hygiene. Owing to this trend, the global health club industry was responsible for close to USD 96.7 billion in 2019 as sports and physical activities have gained popularity and importance in recent years.

The confectionary application segment for natural sweeteners will gain traction in the next few years with the surging demand to include natural ingredients in the food items. The growth can be also attributed to the robust tendency of customers to inspect the ingredient list before purchasing the confectionary products.

Higher consumption in the APAC region

Asia Pacific is an abode to a prominent dairy sector in the world and the regional industry is poised to grow exponentially over the coming years. Natural sweeteners see an increased presence in sauces and dressings in some of the traditional delicacies of China and Japan. There is an also incessant need for dairy products like flavored milk and yogurt in the region.

Several government policies have been formed to reinforce the dairy industry across different nations in the continent. These factors are likely to boost the regional adoption of the sweeteners in various dairy applications.

Increasing developments in the industry
Suppliers of natural organic sweeteners are focusing on marketing strategies to incorporate various technologies to develop affordable and superior quality sweeteners albeit the COVID-19 pandemic. They are also keen on R&D investments to come up with products with lower calorie content and the same taste as that of refined sugar. For instance, in May 2020, Ingredion introduced Erysta, a natural sweetener derived from a fermented erythritol polyol. The product is less sweet and has zero calorie content.

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Evolva Holdings S.A., Archer Daniels Midland Company, Madhava Natural Sweeteners, PureCircle, Procarvit Food Products (India) Pvt Ltd, Malt Products Corporation, Sunwin Stevia International, Inc., CargillTruvia, Herboveda, Roquette, Danisco, and Sweetener Supply Corporation, are some of the other global firms.

The higher pricing associated with the production of the sweeteners from natural sources may negatively impede the industry forecast to some extent. Also, the slightly bitter aftertaste incurred post the consumption of stevia natural sweeteners could stall its intake among the consumers.

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