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Sugar Substitutes Market Size Worth $ 18.8 Bn by 2027, at CAGR of 4.6%, Growing Demand in Various Applications in the Food & Beverage Industry | Reports and Data

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Sugar Substitutes Market Size Worth $ 18.8 Bn by 2027, at CAGR of 4.6%, Growing Demand in Various Applications in the Food & Beverage Industry | Reports and Data

February 16
17:26 2021
Sugar Substitutes Market Size Worth $ 18.8 Bn by 2027, at CAGR of 4.6%, Growing Demand in Various Applications in the Food & Beverage Industry | Reports and Data
Growing health issues due to increased sugar intake and the rising consumer preferences for low-calorie, healthier foods are the key propellers for the market growth. Market Size – USD 14.9 Billion in 2019, Sugar Substitutes Market Growth – CAGR of 4.6%, Market Trends – Rising demand for prebiotic and probiotic products infused with sugar substitutes

The global Sugar Substitutes Market is expected to be valued at USD 18.8 Billion in 2027 from USD 14.9 Billion in 2019, registering a CAGR of 4.6% through the forecast period. Sugar substitutes are food additives that imitate the sweet taste of sugar while containing relatively lesser calories and energy. These are healthier and low-calorie alternatives to sugar-based sweeteners and are extensively used in a wide range of food products, including bakery items, confectionery, beverages, dairy products, ice-creams, yogurt, and vegan desserts. Stevia, sorbitol, maltitol, aspartame, saccharin, acesulfame, neotame, and D-tagatose are some of the most commonly known sugar substitutes.

Revenue from the global sugar substitutes market is estimated to register a substantially high growth rate over the forecast years, owing to various growth-inducing parameters. The surging prevalence of diabetes, obesity, and high blood sugar levels, the growing health consciousness among consumers worldwide, increasing awareness about the health risks associated with sugar intake, and the amplifying use of natural sweeteners in the food & beverage industry have propelled the global market growth. As per the U.S. Department of Health & Human Services’ 2020 National Diabetes Statistics Report, around 10.5% of the American population was diagnosed with diabetes in 2018.

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The demand for stevia has gained traction worldwide over recent years. The product effectively helps lower blood sugar levels, as well as high blood pressure in hypertensive people. Additionally, it helps improve insulin sensitivity and reduces oxidized LDL cholesterol. Therefore, the rising consumption of stevia, especially among diabetic patients and obese people, the surging focus on physical fitness, growing awareness about sugar substitutes, and their increasing usage in various nutritional supplements are the other vital factors triggering the market growth. Increased spending by manufacturers on research & development activities to develop new, more effective products creates further growth prospects for the global sugar substitutes market. However, stringent regulations and standards concerning sugar substitutes imposed by regulatory bodies like the U.S. Food and Drug Administration (FDA) and the World Health Organization (WHO) might hamper the market growth in the coming years.  

Key findings of the report:

  • Based on the origin, the natural sugar substitutes sub-segment is estimated to record the fastest CAGR of 4.7% over the forecast timeline. The growing emphasis on health & wellness, rising prevalence of obesity and diabetes, increasing food safety concerns, and the escalating demand for organic and non-GMO (genetically modified organisms) sugar alternatives have triggered the growth of this segment.
  • The stevia sub-segment stands out as the most dominant of the various product segments, with the highest CAGR of 7.3%. Recent launches of stevia-based food & beverage products and rising awareness about the health benefits of naturally sourced sugar substitutes like stevia have prompted this segment’s growth.
  • The Asia Pacific sugar substitutes market is foreseen as the leading regional market, poised to register the highest CAGR of 5.2% in the forthcoming years. The increasing health issues due to high sugar intake, growing consumer preferences for natural sugar substitutes, rising adoption of healthy diets and improved lifestyles, and the soaring disposable incomes are the key factors propelling the Asia Pacific market growth.
  • The well-known market players include Cargill, Inc. (U.S.), The NutraSweet Company (U.S.), Ingredion Inc. (U.S.), Tate & Lyle (U.K.), Archer Daniels Midland Company (U.S.), Ajinomoto Co. Inc. (Japan), Roquette Frères (France), PureCircle (Malaysia), E. I. DuPont De Nemours (U.S.), and JK Sucralose Inc. (China).
  • In May 2020, Ingredion, the renowned American food ingredients company, introduced a new sugar substitute product, called Erysta, made from erythritol polyol through the fermentation process. The new product is intended for use as a sweetener in various food items.

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For the purpose of this report, the global sugar substitutes market has been segmented on the basis of origin, category, product type, application, end-use industry, and region:

By Origin (Revenue, USD Billion; 2017-2027)

  • Natural
  • Artificial

By Category (Revenue, USD Billion; 2017-2027)

  • High-intensity Sweeteners
  • Low-intensity Sweeteners
  • High-fructose Syrups

By Product Type (Revenue, USD Billion; 2017-2027)

  • Stevia
  • Saccharine
  • Sugar Alcohols
  • Cyclamate
  • Aspertame
  • Sucralose
  • Ace-k

By Application (Revenue, USD Billion; 2017-2027)

  • Food
    • Bakery Products
    • Confectionery
    • Condiments
    • Dairy & Frozen Yogurt
    • Ice-cream
    • Others
    • Beverages
      • Fruit juices and zero-calorie drinks
      • Carbonated soft drinks (CSD)
      • Functional drinks
      • Smoothies
      • Others (flavored water, powdered beverages)
    • Others

By End-use Industry (Revenue, USD Billion; 2017-2027)

  • Food & Beverage
  • Hospitality
    • Restaurants and Hotels
    • Airlines
    • Cruise Lines
    • Fast food Centers
    • Others

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By Region (Revenue, USD Billion; 2017-2027)

             North America

•             U.S.

•             Canada


•             Germany

•             U.K.

•             France

•             BENELUX

•             Rest of Europe

             Asia Pacific

•             China

•             Japan

•             South Korea

•             Rest of Asia Pacific

             Latin America

•             Brazil

•             Rest of Latin America

             Middle East & Africa

•             Saudi Arabia

•             U.A.E.

•             Rest of Middle East & Africa


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