Diabetic Food Market

Market Overview

The global diabetic food market was valued at USD 12.71 billion in 2022. It is projected to reach USD 20.93 billion by 2031, growing with a CAGR of 5.7% during the forecast period (2023–2031). The diabetes epidemic has been on the rise, primarily due to unhealthy lifestyles and dietary choices, which is expected to drive the growth of the diabetic food market. Key industry players have responded by introducing a plethora of diabetic and dietary products, making them readily accessible to consumers, thus contributing significantly to market expansion in the foreseeable future.

Market Overview

Diabetes has emerged as a prevalent health condition characterized by disruptions in the body's metabolic processes, leading to a partial loss of its capacity to convert glucose into energy. Diabetic dietary options, comprising low-calorie, sugar-free ingredients devoid of preservatives, play a vital role in regulating blood sugar levels and effectively managing diabetes. Heightened awareness regarding the health advantages of diabetic food, along with increasing per capita income, particularly in developing regions, is poised to further stimulate market growth. Diabetic food primarily comprises nutritionally rich ingredients, resulting in a higher price point than regular food items, which could serve as a significant restraining factor for market growth. In some developing economies, there exists a limited awareness about diabetic dietary options, posing an additional hurdle to the growth of the market.

Market Dynamics

Global Diabetic Food Market Drivers:

Increasing Prevalence of Diabetes Among Younger Generation

The escalating incidence of juvenile diabetes among children and adolescents is a pivotal driver behind the burgeoning market. Diabetes prevalence is on a global upswing, particularly affecting the younger population. A predominant proportion of children grapple with Type 1 diabetes during their formative years, warranting dietary considerations. For individuals managing Type 1 diabetes, health professionals often advocate the Mediterranean dietary regimen, characterized by nutrient-rich elements like fresh vegetables, select fruits, plant-based fats like olive oil and nuts, fish like sardines, and occasional consumption of meat and dairy products. According to a report released by the Institute for Health Metrics and Evaluation in June 2023, the global prevalence of diabetes has reached a significant rate of 6.1%, positioning it among the top ten leading causes of mortality and morbidity globally.

Regionally, North Africa and the Middle East exhibit the highest prevalence at 9.3%, with a projection indicating a surge to 16.8% by 2050. In Latin America and the Caribbean, a similar upward trend is expected, with a projected prevalence of 11.3%. The impact of diabetes is particularly pronounced among individuals aged 65 and above across all nations, with a staggering prevalence exceeding 20% within this demographic on a global scale. Within this age group, the highest recorded prevalence stands at 24.4%, notably among those aged 75 to 79. A closer examination of regional data reveals North Africa and the Middle East as the super-region with the most acute prevalence, reaching a striking 39.4%, while Central Europe, Eastern Europe, and Central Asia record the lowest rate at 19.8%.

Growing Consumer Awareness

The mounting consumer awareness regarding diabetes is fostering the industry's growth trajectory. Heightened consciousness among consumers concerning diabetes and its enduring consequences has kindled a focused interest in dietary choices, sugar intake, and weight management. Numerous companies are launching awareness initiatives to enlighten the public about the burgeoning diabetic population and the advent of novel labels and products in this sector. For instance, the American Diabetes Association unveiled the "Better Choices for Life" program on March 30, 2021, designed to enlighten consumers regarding ADA-endorsed claims and product labeling across three product categories: food and nutrition, health and wellness, and diabetes management.

Global Diabetic Food Market Restraint:

High Cost Associated with Diabetic Foods

The escalating costs linked to diabetic foods pose a formidable challenge to the growth of this niche market. For individuals grappling with diabetes, access to specialized food products tailored to their dietary requirements is not just a preference but a necessity. Unfortunately, the elevated price tags associated with diabetic-friendly foods often deter consumers from consistently incorporating them into their diets. The intricate process of developing these products, which often involves meticulous formulation and sourcing of low-glycemic ingredients, drives up production expenses.

Moreover, stringent quality control measures further contribute to the overall cost. As a result, many individuals with diabetes find themselves facing financial constraints when attempting to maintain a health-conscious diet, thereby impeding the market's expansion. Addressing this challenge through innovation and cost-effective solutions remains crucial in ensuring that individuals with diabetes can access affordable and sustainable dietary options.

Global Diabetic Food Market Opportunities: 

Shifting Consumer Preferences for On-The-Go Diabetic Food Options with Wholesome Ingredients

Consumers are more interested in diabetic foods that manage blood sugar and come with natural and wholesome ingredients. The Internet and digital technologies have expanded global product accessibility, allowing diabetic food producers to market their goods more easily and profitably. Creating tasty and unique diabetic-friendly foods, making snacks with lower sugar levels, using sugar substitutes or natural sweeteners, and making gluten-free or low-sugar products are some methodologies to increase the product portfolio of the diabetic food industry, thereby providing various options to the customers.

Furthermore, the addition of healthy ingredients and on-the-go products can help create new market opportunities for the market. Diabetic food manufacturing companies offer creative and a wide range of foods that can satisfy different tastes and dietary needs. Collaborating with healthcare professionals, implementing e-commerce strategies, and tailoring dietary choices are among the potential avenues for businesses to accommodate and satisfy the demands of health-conscious consumers.

Regional Analysis

North America Dominates the Global Market

Based on regions, the global market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant shareholder and is expected to expand substantially over the forecast period. This is due to the rising prevalence of diabetes and obesity in North American countries, especially in the U.S. As per the Centers for Disease Control and Prevention, more than 100 million U.S. adults were found to be living with prediabetes or diabetes in 2017. The growing aging population of North America, coupled with increasing adoption of a healthy lifestyle by the region's population, is anticipated to aid the growth of the diabetic food market.

Asia-Pacific is the fastest growing area due to the rising prevalence of diabetes, rising dairy merchandise and confectionery, and growing disposable. It is worth noting that the diabetic food market in India is reckoned to amass notable gains over the estimated timeline owing to the growing prevalence of diabetes and the surge in the geriatric population base. According to a report by Down to Earth, dated December 6th, 2021, the projected number of individuals diagnosed with diabetes in the age range of 20-79 is 74.2 million for the year 2021. This figure is anticipated to rise to 124.8 million by the year 2045 in the Asia-Pacific region.

Competitive Analysis of the Global Diabetic Food Market:

Nestlé, Unilever, The Kellogg Company, Conagra Brands, Inc., Fifty 50 Foods, Inc., Mars Inc., Tyson Foods, Sushma Gram Udyog, The Hershey Company, Hain Celestial Group, Archer Daniels Midland Company, Del Monte Food, Inc., Zen Health Japan Co., Shenzhen Zeneca Bio-Technology,

Segmental Analysis

The global diabetic food market is bifurcated into products and distribution channels.

Based on the product, the global  market is divided into bakery, confectionery, dairy products, dietary beverages, snacks, and others.

The dairy product segment dominates the global market and is expected to grow substantially over the forecast period. The segment held the highest revenue share of approximately 26% in 2022. Fermented dairy products such as yogurt are known to be natural sources of probiotics, have a positive effect on intestinal health, and are linked with the improvement of glucose and insulin levels in the body. Many dairy products have a low glycemic index (G.I.) as foods with a low G.I. are digested and absorbed more slowly, gradually increasing blood sugar levels. This slow rise in blood sugar can be advantageous for people with diabetes to prevent spikes and crashes in blood glucose. Greek Yogurt, String Cheese, Fat-free milk, and grass-fed dairy options are usually consumed by consumers having diabetes, which defines the growth prospects in the dairy sector of the diabetic food market.

The confectionery segment is projected to grow fastest owing to new product launches in the confectionery segment by key brands and startups across the globe. In January 2021, BeyondBrands made a strategic foray into the sugar-free chocolate segment through the introduction of a distinct brand exclusively committed to sugar-free offerings, known as "GoodSam Foods." This product line encompasses three chocolate variants: pure dark chocolate, dark chocolate infused with sea salt nibs, and dark chocolate with a hint of mint.

Based on distribution channels, the global market is divided into supermarkets and hypermarkets, specialty stores, online sales channels, and others.

The supermarkets and hypermarkets segment owns the highest market share and is expected to expand significantly over the forecast period. The substantial proliferation of supermarkets and hypermarkets globally is the principal determinant contributing to its significant economic output in the year 2022. The key motivation for consumers to visit neighboring supermarkets and hypermarkets is the convenient shopping experience offered by the availability of various food goods, including those suitable for individuals with diabetes. Likewise, the introduction of new products in sectors such as bakery, dairy, and confectionery inside supermarket settings is expected to positively impact the future growth of these segments. In July 2021, Fitbakes introduced a sugar-free caramel cake to the market, making it available at around 1,000 Tesco stores across the United Kingdom.

The online delivery channel is expected to have significant growth in the foreseeable future, mostly due to the changing consumer preferences towards online merchants like Amazon and Walmart. Brands and companies who operate within the diabetic food sector have a preference for introducing their products via third-party e-commerce shops. For example, Amazon U.S. provides a distinct selection of diabetic foods and snacks from several brands, including Happy Belly, PLANTERS, Simple Mills, and KIND.

Recent Developments

• February 2022- Kate Farms launched glucose support 1.2 plant-based, organic Nutrition Shake for diabetic people in the U.S.
• December 2021- Glucose Health, Inc. launched new GLUCODOWN "enhanced water" drink mixes now available for purchase at Amazon in North America.
• December 2021- Danone India unveiled Protinex Diabetes Care, a product tailored to cater to the dietary requirements of individuals with diabetes in India. The scientifically formulated offering ensures an adequate intake of protein and fiber, both of which play pivotal roles in the effective management of blood sugar levels.
• September 2021- Healthtech Startup BeatO acquired Novique Health to help Indians reverse diabetes. The company will help people with diabetes by finding out the root cause of diabetes, suggesting suitable preventive measures, and educating them about the food products available in the market for diabetic food.