Press release
Expansion of local brands in developing regions is expected to boost the global sweetener market
The demand for low-calorie sweeteners in Asia-Pacific is expected to increase at a rapid pace over the forecast period, owing to the continuous product launches and expansion by key players. Moreover, the expansion of local brands in developing regions is expected to boost the global sweetener market.The sweetener market size was valued at $82.3 billion in 2021, and is estimated to reach $130.6 billion by 2031, growing at a CAGR of 4.6% from 2022 to 2031.
Sweeteners are sugar and sugar substitutes that are used to provide taste, texture, and viscosity to a product. Sweeteners are of two types-natural and artificial. Natural sweeteners are derived by processing and refining natural raw materials. While artificial sweetener is derived by artificially synthesizing herbs and plants. Artificial is called intense sweeteners, wherein the intensity of sweetness is more than sugar. These are low-calorie alternatives as well.
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Sugar is the most common food additive that is used in the production of different kinds of food & beverages. It adds taste to the product, ensuring that the food & beverage maintains its distinct taste and increases the shelf life. Sugar in the diet, particularly in liquid form, Increases the risk of dental cavities, obesity, and type 2 diabetes. In 2016, Soft Drinks Industry Levy introduced a sugar tax, and in 2018, it was implemented and adopted by 39 countries from different regions. The tax was issued to encourage healthy habits and overcome obesity-related aliment in consumers. The concept was that if the sugar content of a beverage exceeded 5g per 100 mL, the tax would be charged. This law posed a challenge for manufacturers, particularly small-scale industries that had no other option than sugar.
Players operating in the global sweetener market have adopted various developmental strategies to expand their sweetener market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Ajinomoto Co, Inc., Archer Daniels Midland Company, Associated British Foods Plc, Cargill, Incorporated, Celanese Corporation, DuPont de Nemours, Inc., Ingredion Incorporated, Kerry Group, Roquette Freres, Südzucker Group, and Tate & Lyle Plc. The other market players are Carl Kühne KG (GmbH & Co.), Castelo Alimentos S/A, Aspall Cyder Ltd., White house food, Spectrum Organic Products, LLC, Higher Nature Limited., Vitane Pharmaceuticals, Inc., The Kraft Heinz company, Bragg Live Food Products, Inc., Swanson Health Products, Inc.
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The sugar tax compelled the manufacturers to increase the prices of the goods to benefit from sales. Large-scale manufacturers, on the other hand, have turned to using sugar alternatives to avoid paying taxes. Currently, after the advent of the pandemic, the governments of different countries have increased the strictness toward the use of sugar and have increased the tax amount to discourage manufacturers and consumers to opt for sugary products. The sugar tax is acting as a restraint on the sweetener market growth.
The adoption of high-intensity sweeteners is heavily reliant on the unique needs of end users, which promotes the introduction of new rivals. Furthermore, because the sweeteners industry is dominated by advanced technology, a moderate capital expenditure is necessary to build sweetener production facilities. Furthermore, products differ in nature, resulting in substantial entry barriers for new entrants. As a result, the risk of new entrants to the worldwide market is low to moderate. End customers demand efficient and cost-effective sweeteners; nevertheless, the products on the market have significant restrictions due to concentration levels and other environmental laws. As a result, the danger of alternatives in the sweeteners industry is moderate to high. This provides the key players with the sweetener market opportunities for improving and innovating the existing product available on the market.
The significant factors impacting the growth of the sweetener market include the sale of processed food & beverages, innovations in product offerings, and the popularity of low/zero calorie sweeteners. Moreover, the risk of developing diabetes & other ailments and the negative impact of high prices discourage the distribution of sweeteners, which affects the market growth. In addition, the market is influenced by the increase in health consciousness among consumers. However, each of these factors is anticipated to have a definite impact on the sweetener market demand during the forecast period.
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The sweetener market is segmented into type, application, distribution channel, and region. Depending on the type, the market is classified into sucrose, starch sweeteners & sugar alcohol, and high-intensity sweeteners. Depending on application, it is segregated into bakery & cereal, beverages, dairy, confectionery, table top sweeteners and others. By distribution channel, it is categorized into supermarkets & hypermarkets, departmental stores, convenience stores, online stores, and others. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, Malaysia, Thailand, Indonesia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, UAE, South Africa, and rest of LAMEA).
Key findings of the study
According to the sweetener market analysis, on the basis of type, the sucrose segment is projected to witness the highest CAGR of 4.5%, in terms of revenue, during the sweetener market forecast period.
According to the sweetener market trends, on the basis of application, the others segment is expected to dominate the market from 2022 to 2031.
On the basis of distribution channel, the supermarkets & hypermarkets segment is expected to grow at a significant CAGR during the forecast period.
On the basis of region, India, in Asia-Pacific, was the largest country, in terms of revenue generation for the sweetener market in 2021.
On the basis of region, Asia-Pacific is anticipated to witness the highest growth rate in the sweetener industry in 2021, registering a CAGR of 5.3% from 2022 to 2031.
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