Sugar Substitutes Market: Global Industry Insights, Market Size Estimation and Growth Forecast, 2017 – 2025

Sugar Substitutes Market - Introduction

The global sugar substitutes market is expected to experience an opportunistic growth rate in coming years. Sugar substitutes can be defined as food additives that provide an alternative for sugar while containing low calories. It can be of two types namely natural and artificial sweeteners. Sugar substitutes market is segmented in terms of types, end user, and geography. Sugar substitutes mainly find application in processed foods which includes soft drinks, drinks, powdered drink mixes, dairy products, canned foods, candy, jams and jelly drinks, ice creams and baked goods among others.

Growing food industry has been the catalyst for product innovation related to different sugar substitutes.

Applications of sugar substitute are spread across different industry verticals such as food, beverage, pharmaceutical, health and personal care etc. Growing food industry has acted as the catalyst for product innovation related to different varieties of sugar substitutes. Only seven intensely sweet sugar substitutes have been approved for use in the U.S .It includes neotame, sucralose, acesulfame potassium (Ace-K), stevia, saccharin, aspartame and advantame.

Report Overview
Aspect Details
Base Year of Estimation 2016
Value Estimation Year 2017
Forecast Period 2017 - 2025
Market Segmentations By type, end user, region
Regional Scope North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Latin America
Report Coverage Technology Analysis, Market Dynamics, Market Trends, Segmentation Overview and Competitive Landscape of the market

 

Technology Analysis

Sugar substitutes mainly aspartame is produced through series of fermentation, synthesis, and purification technology process. In Direct fermentation technology process, the starting amino acids required for the manufacture of aspartame are produced. In this process, definite types of bacteria are raised in large quantities.

The next technology process involves synthesis process where sugar substitutes are manufactured by various synthetic chemical pathways.

These have the ability to produce amino acids .The amino acids are harvested and the bacteria are destroyed during the course of around three days. The next technology process involves synthesis process where sugar substitutes are manufactured by various synthetic chemical pathways. Basically, phenylalanine after being modified by reaction with methanol is combined with modified aspartic acid to form aspartame. In the purification process, the finished, powder aspartame is obtained after the crystals are filtered.

 

Market Dynamics

As of 2016, growth in demand for sugar substitute is driven by factors including increasing awareness and adoption of consumers for low-calorie food and beverage products and increasing application of sugar substitutes in health and personal care industry.

Strict regulatory framework complying with the international quality standards followed by an increase in the price of raw materials is identified as major restraints for the market.

Growth in health conscious population of countries from Asia Pacific has positively impacted the growth of the market. In addition, increasing health problems associated with high sugar intake is also driving the sugar substitutes market. Strict regulatory framework complying with the international quality standards followed by increase in price of raw materials are identified as major restraints for market. In addition, ambiguity related to the disadvantages of sugar substitute products are also restraining the growth of this market. In coming years, sugar substitutes blending with prebiotic and probiotic products followed by increasing focus of key manufacturers on research and development of new sugar substitutes are expected to emerge as growth opportunity for the market during the forecast period 2017 to 2025.

 

Market Trends

In recent years, trend shows that consumers are shifting towards natural and organic products. This in turn has increased the demand for natural sugar substitutes and organic sweeteners. Demand for sugar substitutes has also increased over the years due to growing health issues which include obesity and diabetes among others. In addition, demand for sucralose which is a part of high intensity sweeteners has also increased over the years. Hence, as a preventive measure, consumers are opting for sugar free products which include natural and organic sweeteners.

On the other hand, application of sugar substitutes in food and beverages sector is increasing and this trend is expected to continue throughout the forecast period. In addition,

Asia Pacific will remain one of the fastest growing regions due to increase in diabetic population.

key players in the food and beverages industry are focusing on new product development with sugar substitutes to drive sales and meet market demand. In coming years, the growth of sugar substitutes market in Asia Pacific will remain one of the fastest due to growing diabetic population in this region. In terms of market structure, the fragmented market for sugar substitutes is resulted due to the presence of large numbers of players.

 

Segmentation Overview

By types, the sugar substitutes market has been segmented into high-intensity sweeteners, high fructose syrup, and low intensity sweeteners. By end user, the market has been segmented into Food & Beverages, health and personal care etc. In 2016, High-intensity sweeteners held the largest market share owning to its wide application in food and alcoholic beverages.

By geography, the market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Latin America. In terms of revenue and volume, North America held the largest share of the sugar substitutes market. Growth of North America sugar substitutes market is driven by increase in demand for functional food, alternative sugar sources and convenience food. Asia Pacific is estimated to be the fastest growing region in the global sugar substitutes market owing to the increase in demand of high-intensity sweeteners in the beverage industry.

Market Segmentation Overview
By Term Segments
By Type High-intensity sweeteners, high fructose syrup and low intensity sweeteners
By End User Food & Beverages, health and personal care and others
By Region North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Latin America

 

Competitive Landscape

Leading players operating in the sugar substitutes market are Tate & Lyle(The U.K), Ajinomoto Co., Inc.(Japan), Cargill, Incorporated(The U.S.),Ingredion Incorporated(The U.S.), JK Sucralose Inc(The U.S.), Pure Circle Limited(Malaysia), E. I. DuPont De Nemours and Company(The U.S), Hermes Sweeteners Ltd(Switzerland) and Roquette Frères (France) .Key players such as Cargill Incorporated, Ajinomoto and JK Sucralose among others focus on developing new products to retain market position and generate new revenue streams. As compared to Asia and North America, concentration of sugar substitute producer is low in countries from Middle East and Africa (MEA).

 

Conclusion

Considering the increase in consumer awareness regarding the health issues associated with intake of sugar, rising applications of sugar substitutes in end use industries and rise in food and beverages sector in emerging economies, it has been estimated that the market for sugar substitutes market is about to accelerate in coming years. Furthermore, increase in demand of sucralose in personal and healthcare applications is expected to drive the growth of the market. Due to conjoint impact of push factors, sugar substitutes market is estimated to experience significant growth during the forecast period.

KEY QUESTIONS ANSWERED BY THE REPORT
What will be the nature of growth of the market till 2025?
What are the major push factors that will affect the growth of the market?
What are the growth possibilities in different segments of the market?
Who are the leading market players?
What are the key strategies implemented by the market leaders to sustain growth in the market?
What are the major restraining factors for the market?
What are the ways to generate new revenue streams?
In-depth analysis of the competitive landscape and competitor behavior in the market

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