Aspartame Market is Anticipated to Touch a CAGR of 2.3% During the Forecast Period (2023-2031).
Aspartame is one of the largest consumed artificial sweeteners and falls under the high-intensity sweeteners category. It is identified as a low-calorie sweetener, which is widely used as a sugar alternative in the food and beverage, pharmaceutical, and personal care, and cosmetics industries. The aspartame market is growing at a faster rate, owing to changing consumer trends and lower sugar consumption patterns. The artificial sweetener is around 200 times sweeter than sucrose and other alternatives, supplying a sugar-like taste to various food products.
Aspartame is used in dietary food products and nutraceuticals due to its low-calorie value. High sugar intake results in multiple health problems, such as diabetes, dental caries, obesity, and many others. In line with this, people are demanding low-calorie or zero-calorie products to avoid health problems and maintain blood-sugar levels. Moreover, the government regulations for the food and beverage industry to reduce sugar consumption is expected to fuel the market growth during the forecast period.
Sugar-based food and beverages are known to have adverse health effects and are responsible for increasing overall public health costs for the treatment of diabetes, tooth decay, and cardiovascular diseases. In 2019, global diabetes expenditure was about USD 760 billion, which is 10% of total spending on adults. The mounting pressure on the healthcare infrastructure of the countries has compelled the government to take up initiatives to lower sugar consumption. As per the World Health Organization (WHO) estimations, on average, a single can of drink contains around ten teaspoons of sugar.
According to the data published by the American Diabetes Association, in 2018, around 10.5% of the population or 34.2 million Americans were diagnosed with diabetes. Moreover, the statistics presented by the International Diabetes Federation (IDF) states that more than 465 million people lived with diabetes in 2019, with the number rising to 700 million by 2045, further driving the demand for aspartame.
The sedentary working style of people and increasing consumer income are largely contributing to the rising cases of weight gain and obesity, which has compelled the consumers to address their sugar intake and sugar levels. Figures represented by the World Health Organization (WHO) states that more than 1.9 billion adults were overweight in 2016, of which about 39% of adults aged 18 and above were overweight and around 13% were obese. The below-mentioned info-graph depicts the average death rate from obesity in the regions across the globe for 2017. (Number of deaths per 100,000 individuals)
Most of the world’s population is concentrated in countries where obesity is the reason for premature deaths. As per the ADA standards, the use of aspartame helps in significantly reducing calorie intake and plays a vital role in weight loss. Additionally, when compared to its counterpart, aspartame has higher sweetening power, so it can be consumed in small quantities.
Consumers across the globe have become health conscious and are shifting towards healthier living. Today, the rising purchasing power of consumers and increased focus on aesthetics has led to higher spending on products with additional benefits. There is a tremendous demand for supplements and nutraceutical products for attaining the necessary nutritional level and avoid health problems. Key manufacturers are trying to cash in on the new health trends by including aspartame in the supplements for improved taste.
Increasing supplement consumption is expected to fuel the demand for aspartame in the coming future. China’s pharmaceutical industry is booming, with the market reaching USD 242 billion in 2018, up by 6.3% from the previous year. In recent years, China’s pharmaceutical industry has witnessed constant growth and is estimated to reach USD 161 billion by 2023, garnering for 30% share in the global market.
There are various artificial sweeteners available at the disposal of the key consumers of the aspartame market. The growing demand for natural and organic food products has encouraged the players to innovate and develop natural stevia leaves-based sweeteners. Consumers are nowadays seeking organic, plant-based low-calorie sweeteners for their food and beverages. This factor is expected to limit the revenue potential for the aspartame market.
Over the years, concerns have been raised relating to artificial sweeteners and the health problems caused by them. Experts claim that aspartame has the potential to cause cancer and damage genes in the long-run. However, many regulatory bodies, such as the U.S. Food and Drug Administration (FDA) and the WHO, among others, favor the proportional consumption of aspartame.
Food and Beverage: Largest Consumer of Aspartame
The food and beverage segment holds the highest market share in the aspartame market. The beverage industry is the largest consumer for artificial sweeteners as it is utilized to enhance the taste and flavor of the drinks. There is a sudden shift towards low-calorie beverage consumption and higher demand for dietary beverages around the world. The key players are capitalizing on the growing opportunity to retain their market position. The food and beverage manufacturers are also extending their offerings by including low-calorie alternatives to their star products. The below-mentioned info-graph depicts the consumption of aspartame by applications for the forecast year 2017–2029. (%)
Asia-Pacific is anticipated to observe a high growth rate in the aspartame market, particularly in India and China. The region is home to more than half of the global population and is rich in terms of geography. Changing demographics and growing millennials in the region are expected to boost the demand for aspartame. Extensive research indicates that millennials spend more on trying new food and beverages than the baby boomers, and prefer nutritional and healthy options.
Asia is one of the regions with the highest number of diabetic patients in the world. The patient pool with diabetes and obesity in Asia is presenting a potential market for aspartame. More than 60% of people living in Asia have diabetes, with a larger number residing in India and China. More than 138 million people have diabetes in the Western Pacific, and the number is anticipated to reach 201 million by 2035. To address Asia’s fast-growing diabetes epidemic, many international health organizations are encouraging the consumption of sugar alternatives, further driving the market growth.
The demand for aspartame is growing in the European countries, strongly supported by changing consumer consumption patterns and the burgeoning soft drinks industry. The British Soft Drinks Association stated that over 60% of the soft drinks consumed in the region are low-calorie products. The availability of aspartame and the approval by the European organization helps the food and beverage producers to meet commitments on improving public health while offering alternatives. The U.K. soft drink manufacturers have increased advertising spending on low-calorie drinks by 70% to augment sales.
The above-mentioned info graph depicts the overall soft drinks market by calories in the year 2019. The companies have considerably reduced their sugar intake by 13.6% for attracting more customers. Purity soft drinks have reduced 19% of added sugar levels in its core range and plan to reduce significantly in the coming years. The aforementioned factors are indicating Europe’s potential market for aspartame in the coming years.
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