Health motivation among consumers is poised to reach a new high in the coming years with lifestyle-related diseases achieving pandemic proportions. Increased focus on health and wellbeing has become evident in developed countries, and is cascading down to emerging countries. Sugar alternatives—also known as alternative sweeteners—are a key component of this change. It is thus not surprising that the global alternative sweetener market will follow a steady growth course over the next few years to be worth over US$15,466.7 million by 2021, according to the estimates of Transparency Market Research.
While the North American alternative sweeteners market currently stands as the most dominant, the global market will only reach its maximum potential when sugar substitutes become a household product in the densely-populated Asian markets such as China and India. It will be at least five to six years before this shift is visible. Until then, new opportunities will continue to sprout in the alternative sweetener market, and growth will be hinged on natural (as opposed to synthetic) sweeteners.
Browse Market Research Report of Alternative Sweetener Market:
Here are three factors that create a rather conducive environment for the growth and expansion of the global alternative sweetener market:
#1. Diabetes and Obesity Help Drive Demand for Alternative Sweeteners
According to a recent study published in the Lancet, about one third of the global population is overweight or obese. Likewise, 2012 saw about 1.5 million diabetes-related deaths, according to the World Health Organization. Thus, it is easy to see why healthcare agencies are heaving under the weight of these two diseases. With the incidence of both diabetes and obesity soaring, consumers the world over are now making a concerted effort to cut out sugar from their diets.
They will consequently turn toward alternative sweeteners to fill this gap. Simultaneously, the demand for low-calorie food has been on an upswing for a few years now. Alternative sweeteners are a key ingredient of low-calorie foods.
#2. Emphasis on Natural Sugar Substitutes will Dent Demand for Synthetic Sweeteners
As many consumers are driven toward low-calorie sweeteners, the emphasis is also on consuming products that are made using natural ingredients. In the near future, synthetically-formulated products will likely be relegated to the back of supermarket shelves. This is both a threat to makers of artificial alternative sweeteners and an opportunity to explore natural high intensity sweeteners such as stevia. Consumers, in a bid to satiate their sweet cravings, will focus on natural ingredients.
Currently, natural sweeteners such as stevia hold a fairly small share of the larger alternative sweetener market. But with market leaders such as Coca-Cola and PepsiCo embracing stevia both awareness about and demand for sugar-stevia blends will see a rise. While the former launched Coca-Cola Life with a sugar-stevia blend, PepsiCo did the same with its drink, Pepsi True. The use of other natural sweeteners such as monkfruit is also seen to be high, especially in beverages.
#3. Sugar Prices and Production Remain Volatile, Compelling F&B Companies to Bank on Alternatives
With events such as the drought in Brazil, the production of sugar has taken a hit. On the other hand, the U.S. dollar’s appreciation brought the prices down a few notches. These various push and pull factors have led several financial institutions to alter their forecasts about sugar, indicating the volatility that exists in the sugar industry.
Browse Press Release of Alternative Sweetener Market:
As a result of this, the use of alternative sweeteners—especially the ‘natural’ ones—in confectionary and candy, jams, chewing gum, chocolates, biscuits, soft drinks, and dairy products will almost certainly intensify.