Sweetener Market Research, 2031
The global sweetener market size was valued at $82.3 billion in 2021, and is projected to reach $130.6 billion by 2031, growing at a CAGR of 4.6% from 2022 to 2031.
Sweeteners are food additives used to increase the experience of sweetness during consumption. Sweeteners are numerous natural and artificial compounds that add sweetness to meals and beverages. Sweeteners are employed in a variety of activities, including food preservation, fermentation (in brewing and winemaking), baking (to provide texture, tenderization, and leavening), and food browning and caramelization. Low-calorie sweeteners are commonly used in meals and beverages to minimize dental caries and decrease the number of calories as they prevent the rise of blood sugar levels.
Emerging markets like Asia-Pacific, Latin America, and Africa are witnessing a rise in population, economic growth, urbanization, and increasing knowledge of the benefit of low-calorie and healthy sweeteners. More than 75% of the world's population is projected to reside in Asia and Africa. The majority of the countries in these two regions are emerging nations and are experiencing strong economic growth. The rise in penetration of quick service restaurants and fast-food chains, beverage processing companies, and food processing companies are boosting the demand for low-calorie sweeteners. Moreover, a significant rise in the consumption of soft drinks and fruit juice concentrates fuels the growth of developing regions. The presence of a large population and their consumption behavior boost the demand for confectioneries, soft drinks, and processed food across the developing regions. This is expected to foster the demand for sweeteners among the food & beverages manufacturers in the developing regions.
In the current scenario, the vaccination drive and the fall of COVID-19 cases around the globe have helped to normalize the situation. Governments have lifted the lockdown which has eased the difficulties in the supply chain. The sweetener market is witnessing new heights of growth and is expected to recover its losses in the next 1-2 years. The change in consumer consumption patterns has increased the popularity of low-calorie products in the sweetener market. Consumers are eager to try new sweetener products and maintain a healthy lifestyle to cope with the post-effect of the COVID-19 pandemic.
The majority of sugar alcohols are manufactured industrially by catalytic hydrogenation of sugars at high pressure and temperature. However, conventional chemical procedures demand severe temperatures and expensive chromatographic purification stages, resulting in a poor end product yield. With these limitations, several research projects are underway to develop cost-effective procedures for the manufacturing of such high-value-added products, intending to help both customers and the industry. One such step forward produced by current research is the biotechnological manufacture of sugar alcohols. Microbial fermentation-based biotechnological manufacturing provides safer and more environmentally friendly procedures. However, due to a variety of difficulties, including increased manufacturing and purification costs and low efficiency, not all fermentative techniques are suitable for industrial-scale manufacture. Therefore, sugar alcohol biotechnological processes are competitive and cost-effective, it is essential to diversify value-added chemical compounds derived from sugar alcohols, improve the applicability of low-cost substrates such as cellulosic hydrolysates, and develop effective bioconversion procedures to produce higher-value derivatives of sugar alcohols. As a result, the high manufacturing costs of sugar alcohols relative to sugar are projected to limit the sweetener market expansion.
Manufacturers in the sweetener industry are continuously investing in R&D to expand their product portfolios and market presence. The need for cost-effective procedures for manufacturing sweeteners will aid in minimizing the ultimate cost of the product and fuel the sweetener market expansion. For instance, in April 2020, ERYSTA, the first polyol sweetener produced by Ingredion EMEA, enables producers to decrease or replace sugar to fulfill nutrition-related claims including no added sugar or calorie-reduced in a variety of applications. Furthermore, Cargill, Incorporated, debuted their newest label-friendly sweetener TruSweet 01795 in 2020, which allows for a 30% sugar and calorie reduction in drinks and other food applications through reduced consumption levels. The entire sweetener industry is expected to grow at an increasing pace in the upcoming years owing to the expansion of the range of sugar and sweetener producers.
According to the European Starch Industry Association, Europe is one of the leading manufacturers of sweeteners using starch. The demand for sweeteners made from starch is on a significant increase in Europe. The starch sweetener manufacturers are investing in business expansion and are positioning their businesses for long-term growth. For instance, Cargill made an investment of around $48 million in February 2022 to open its corn mill in Fort Dodge, Iowa, which will help expand value-added corn production for the company’s food ingredient market. Similarly, the major global sweetener manufacturers are adopting business expansion as a key strategy for long-term growth of the sweetener market.
Key players like Archer Daniels Midland Company and Tate & Lyle Plc are investing in the establishment of new manufacturing facilities and emphasizing R&D activities to promote innovation. In October 2021, Tate & Lyle PLC opened a new state-of-the-art food and beverage Technical Application Centre in Dubai to promote R&D activities in the region and to help improve the quality of its products. In May 2022, Archer Daniels Midland Company announced the plans to expand the production of starch in its Marshall, Minnesota, facility, to keep up with the increase in demand for food and beverage additives and sweeteners. Therefore, the rising investments in business expansion by the leading sweetener market players are expected to offer lucrative growth opportunities to the market players in the foreseeable future.
On the other hand, product awareness of high-intensity and low-calorie sweeteners is poor in rural regions, which acts as a barrier to the expansion of the sweeteners market in the rural areas of emerging nations. Access to supermarkets, hypermarkets, and department shops is confined to metropolitan regions and certain rural areas, which is the primary source of the market's lack of understanding of sugar alternatives. The development of urbanization in rural regions is predicted to flourish the market for sweeteners in the upcoming years, and the availability of alternative sweeteners at affordable prices will help increase sales.
The sweetener market is segmented into type, application, distribution channel, and region. Depending on the type, the market is bifurcated 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 channels, 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).
On the basis of type, the sucrose segment gained a major share in the global market in 2021 and is expected to sustain its market share during the forecast period as sucrose is the most common form of a sweetener that is used by the global population for consumption and is easily available in the market. There is an increase in the demand for processed food owing to rise in global population, which, in turn, increases the usage of sugar to ensure the production process is running smoothly. According to the U.S. Department of Agriculture in 2021, the overall consumption of sugar by the global population
According to sweetener market trends, on the basis of application, the others segment gained a major share in the global market in 2021 and is expected to sustain its market share during the forecast period. The others segment includes meats & seafood, desserts, sauces, dressing, and others. The use of sweeteners in these food categories is highest due to the increasing consumption and demand from the global population. In addition, the hectic schedule of global consumers is forcing them to look for food solutions that would provide them ease and save their time for cooking. Canned food is the perfect food solution for busy consumers, and therefore, increasing the demand for canned food directly boosts the t sweetener market growth.
According to sweetener market analysis, on the basis of distribution channel, the supermarkets & hypermarkets segment accounted for around 35% of the global sweetener market size in 2021 and is expected to sustain its sweetener market share during the forecast period. Supermarkets & hypermarkets offer a convenient experience of diverse shopping under a single roof to the consumers. Supermarkets & hypermarkets provide the consumers a premium advantage, i.e., higher availability of sweetener products at discounts, the assistance of sales representatives, and easy checkouts. These advantages are expected to drive the growth of Supermarkets & hypermarkets during the forecast period.
On the basis of region, Asia dominated the sweetener market in 2021 and is expected to remain dominant during the sweetener market forecast period. The dominance of the market is largely due to the deep product knowledge among the consumers and the increase in the consumption of sugar by the local population. The industry is witnessing an increase in the demand for healthy sweeteners as customers turn toward healthier food options. In this region, sedentary lifestyles and lifestyle changes have increased the adoption of alternative sweeteners. The region has the maximum presence of manufacturers and suppliers. In addition, an increase in purchasing power, high growth rate, and development in new food habits including, the consumption of low calories sodas and diet drink supplements increase the sweetener market demand.
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 foods, Spectrum Organic Products, LLC, Higher Nature Limited., Vitane Pharmaceuticals, Inc., The Kraft Heinz Company, Bragg Live Food Products, Inc, and Swanson Health Products, Inc.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the sweetener market analysis from 2021 to 2031 to identify the prevailing sweetener market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the sweetener market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global sweetener market trends, key players, market segments, application areas, and market growth strategies.
Sweetener Market Report Highlights
| Aspects | Details |
 By Type |
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 By Application |
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 By Distribution Channel |
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 By Region |
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 Key Market Players | Cargill, Incorporated, Associated British Foods Plc, Roquette Freres, DuPont de Nemours, Inc., Ingredion Incorporated, Celanese Corporation, Südzucker Group, Ajinomoto Co, Inc., Kerry Group, Archer Daniels Midland Company, Tate and Lyle Plc |
Analyst Review
According to CXOs, "One sweetener’s loss is another sweetener’s gain." The occurrence of obesity and weight-related concerns in individuals is rapidly growing, prompting people to change toward healthier eating options. Obesity raises an individual's risk of diabetes, cardiovascular mortality, and hypertension. Sugary products are not ideal for long-term consumption, therefore, the popularity of plant-based and artificially synthesized sweeteners will increase in the upcoming years.
Hectic lifestyles of the urban population as well as a surge in the working population have reduced the time available for the consumption of cooked meals. This has encouraged the population to shift toward the consumption of processed food to fulfill hunger. As a result, to meet their calorie requirements, the population is migrating toward the consumption of sugary food.
Though sugar harms the body, the consumption volume of sugar is increasing. The production cost of sugar is comparatively less than other alternative sweeteners which decreases the final price of the product. The low price attracts the middle-class population; therefore, it could be stated the consumption of sugar in urban areas is decreasing but the consumption of sugar in rural areas is increasing. Furthermore, product awareness of high-intensity and low-calorie sweeteners is poor in rural regions, which acts as a barrier to the expansion of the sweeteners market in the rural areas of the emerging nations. Access to supermarkets, hypermarkets, and department shops is confined to metropolitan regions and certain rural areas, which is the primary source of the market's lack of understanding of sugar alternatives. The development of urbanization in rural regions is predicted to flourish the market for sweeteners in the upcoming years, and the availability of alternative sweeteners at an affordable price will help increase sales.
The sweetener market size was valued at $82,338.6 million in 2021 and is estimated to reach $130,555.9 million by 2031, registering a CAGR of 4.6% from 2022 to 2031.
The global sweetener market registered a CAGR of 4.6% from 2022 to 2031.
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The forecast period in the sweetener market report is from 2022 to 2031.
The top companies that hold the market share in the sweetener market include Archer Daniels Midland Company, Associated British Foods Plc, Cargill, Incorporated, DuPont de Nemours, Inc., Ingredion Incorporated, Kerry Group, and Tate & Lyle Plc.
The sweetener market report has 3 segments. The segments are type, application, and distribution channel.
The emerging countries in the sweetener market are likely to grow at a CAGR of more than 9% from 2022 to 2031.
Post COVID-19, the vaccination drive and the fall of COVID-19 cases around the globe have helped to normalize the situation. Governments have lifted the lockdown which has eased the difficulties in the supply chain. The sweetener market is witnessing new heights of growth and is expected to recover its losses in the next 1-2 years. The change in consumer consumption patterns has increased the popularity of low-calorie products in the market.
Asia-Pacific will dominate the sweetener market by the end of 2031.
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