Artificial Sweetener Market Size, Regional Outlook, Growth Potential, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3643
Artificial Sweetener Market size is expected to register appreciable gains by 2027. The market growth can be attributed to increased awareness and health consciousness among consumers, leading to a higher demand for sugar-free products and low-calories sugar substitutes. The harmful effects of regular sugar, growing health problems, and the occurrence of lifestyle diseases such as diabetes and heart disease have led consumers to select healthy alternatives such as artificial sweeteners. To keep up with this trend, many food and beverage brands are replacing regular sugars with low-calories sugar alternatives, which could be a major factor augmenting the market expansion.
Artificial sweeteners have virtually no calories compared to a teaspoonful of regular sugar, making them a suitable option for obese and overweight individuals or people who are trying to cut down their weight. These products are also best-suited for diabetic patients as they do not raise the blood glucose levels. Thus, the presence of a large number of obesity and diabetes patients should foster artificial sweeteners market growth.
Artificial sweeteners are prominently used in dairy products, bakery products, beverages, confectionery, and others to make them healthier while maintaining the taste. Beverage application segment is likely to account for a major share of artificial sweeteners market by 2027. Artificial sugar substitutes are gradually replacing regular sugars in the beverage sector, especially soft drinks. Leading beverage brands are replacing sugar with substitutes as they can be used in lower quantities without affecting the taste and appearance of the product, bringing significant cost benefit.
Geographically, the market for artificial sugars in North America will witness rapid expansion over the forecast period 2021-2027. The regional demand trends can be linked with the widespread occurrence of diabetes. In the U.S., the overall number of diabetes cases have surpassed 34 million, according to the U.S. CDC’s National Diabetes Statistics Report for 2020. The region is also home to a significant number of obese and overweight adults. Increasing health awareness among consumers is driving the consumption of zero-calorie and low-calorie foods.
Cargill Inc, Tate & Lyle PLC, Whole Earth Sweetener, Ajinomoto Co. Inc, Beijing Vitasweet Co. Ltd., Madhava Sweeteners, and Ach Food are some of the world’s leading brands in the artificial sweeteners business. Manufacturers are constantly looking to upgrade their products portfolio through R&D and product innovation. Numerous companies are also relying on partnerships, acquisitions, mergers, and other strategies to gain a market advantage.
For instance, in December 2020, Tate & Lyle had completed the acquisition of Sweet Green Fields to strengthen its position as a leading provider of innovative sweetener solutions. The acquisition would also help the company expand its presence in the Asia Pacific market with dedicated R&D facilities in China. In July 2021, Tate & Lyle signed a USD 1.3 billion deal with private equity firm KPS Capital Partners to sell a 50% stake in its artificial sweeteners and industrial starches businesses.
Impact of COVID-19 pandemic on artificial sweetener market
The coronavirus pandemic has brought about a significant change in the diet patterns of consumers. The consumption of healthy and nutrition-rich products has increased worldwide owing to a renewed focus on wellbeing and immunity. Demand for regular sugar substitutes has also emerged as a notable trend in the food industry.
The adoption of sugar alternatives, both natural and artificial, has increased, especially among obesity and diabetes patients. Since these conditions are linked to lifestyle diseases such as heart disease, hypertension, stroke, and others, obese and diabetic patients are at a greater risk of COVID-19 infection and associated complications.
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