Sweeteners Market

Market Overview

The global sweeteners market size was valued at USD 88.32 billion in 2021 and is predicted to reach at USD 115.44 billion by 2030, increasing at a CAGR of 3.02% from 2022 to 2030. The market is anticipated to develop as a result of customers' growing demand for natural and healthier meals, which is being driven by a rise in health-conscious consumers. New product releases and technical improvements will also present growth prospects for the sweeteners industry.The market is anticipated to develop as a result of customers' growing demand for natural and healthier meals, which is being driven by a rise in health-conscious consumers. New product releases and technical improvements will also present growth prospects for the sweeteners industry.

Natural sweeteners are made from naturally occurring compounds and are as sweet as or sweeter than table sugar. In terms of calories, it is one of the best substitutes for normal sugar. Sweeteners are utilised all around the world because they have a low-calorie content. A wide variety of foods contain sweeteners, from sauces and baked goods to sweets and jellies to canned goods and ice cream and yoghurt. Additionally, it is utilised in a number of sugar-free goods. The fact that sweeteners have no calories makes them a healthier alternative to sugar. When it comes to dieting, there is a vast market for sweeteners.

In recent years, the global sweetener market has seen a boom in organic sweetener manufacturing. Organic honey, organic sugar, stevia, and more are being added to the sweetener market's product line by companies who are listening to their customers' preferences. Blood sugar levels are lower after using these products. Stevia also has a low carbohydrate content and a high digestive tolerance, according to a number of research investigations. The sweetener business may increase tremendously if such a combination of health benefits and the taste of sugar could be achieved.

Market Dynamics

Market Driving Factors

Increasing Preference for Natural and Healthier Foods to Increase Market Size

It's hard to keep up with the constant shifts in consumer tastes. The food industry is currently undergoing a tectonic transition toward better-for-you options. More and more people are becoming health-conscious and concerned about their well-being, which has led to an increase in the number of food-related developments in recent years. New food products, such as sweeteners, are becoming increasingly popular as consumers seek for healthier choices. The worldwide sweeteners market is expected to see the introduction of new artificial and natural sweeteners over the forecast period, as the use of sweeteners continues to rise globally.

An important driver of the sweeteners market's expansion is expected to be a change toward a healthy lifestyle and an increase in ongoing research. Sweeteners are becoming increasingly popular around the world as consumers become more knowledgeable about the many functional characteristics of different components, the quality of food items, the sourcing of ingredients, and other important parameters. Plant-based sweeteners are being produced in Europe and North America as a result of the growing demand for natural food items, which is expected to drive the growth of the global sweeteners market.

Increasing Health-Conscious Consumers to Drive Sweeteners Market's Growth

The food and beverage industry is heavily influenced by contemporary customer tastes and preferences. Technology, food production breakthroughs, and the availability of knowledge on a wide range of foods have all contributed to the constant rise in demand for innovative food ingredients, including sweeteners. As a result, the demand for natural sweeteners is expected to rise over the forecast period. There is a growing preference for natural sweeteners in the sweeteners market over artificial sweeteners, mainly due to the increasing preference for natural food products. Sweetener sales have been boosted by consumers' desire for products that have no added sugar, free-form sugar, or low-sugar options. In the present sweeteners industry scenario, several companies spend increasingly in the creation of new sweeteners that adhere to FDA laws and guidelines. This includes (FDA).

Market Restraining Factors

Side Effects and High Prices Act as Restraints

However, artificial sweeteners can have a number of negative side effects. Weight gain, dental damage, and other health issues can be caused by the usage of sugar substitutes. Consumption of these sweeteners should be kept under control because excessive consumption can lead to a variety of serious health issues such as gastrointestinal distress or low blood sugar or kidney damage. The market's expansion is being stifled by the requirement to conduct numerous clinical trials to verify that the sweeteners are safe.

Artificial and natural sweeteners are both readily available. Sweeteners can be expensive to produce because of the cost of the raw components. And making sweeteners isn't easy either. High-intensity sweeteners face a huge difficulty because of the high cost of manufacture and the high price of the sweeteners compared to conventional sugar. Market leaders are doing everything they can to meet these issues.

Key Market Opportunities

New Product Launches and Technological Advancements to Offer New Opportunities

The manufacture of natural and plant-based sweeteners has picked up speed in the last several years. Several companies are taking advantage of developments in enzyme technology to introduce new sweetener alternatives. Enzyme engineering is also expected to be used by a number of other businesses to improve the manufacture of sweeteners. Biotech business e-Lecta, for example, has announced plans to collaborate with sweetener makers in the region to increase the manufacturing of zero-calorie plant-based sweetener. In order to meet the growing demand from beverage producers for plant-based sweeteners, the business is using its enzyme engineering knowledge to produce huge volumes of plant-based sweeteners.

However, new plant-based sweetener products may also be launched by incumbent market players to gain an advantage. However, it is projected that many manufacturers would broaden their product line to attract more health-conscious consumers. There is a growing demand for sugar-free and sugar-reduced products, which prompted the company to introduce the new product. Over the course of the forecast, these will lead to new opportunities.

Regional Analysis

The Global Sweeteners Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Over 40% of the total market share was contributed by Asia Pacific in 2021, making it the region's most important contributor. A significant customer base for the consumption of food goods exists in China, India, Indonesia, and Bangladesh; as a result, demand in the region will be driven by these countries. In addition, it is anticipated that this region will increase at a rate that is apparent during the period covered by the prediction. This is due to the increasing population as well as the expanding incomes available to individuals. The Food and Agriculture Organization (FAO) estimates that the Asia Pacific region will be responsible for consuming approximately forty percent of the world's sugar supply in the year 2020.

It is anticipated that Europe would see the highest compound annual growth rate (CAGR) of 3.31% between the years 2022 and 2030. The expanding need for sweeteners in this region as a result of the numerous health benefits offered by goods and the shifting patterns of dietary consumption are the primary factors driving the expansion of the market in this region. In addition, makers of food and beverages in this region have taken notice of the rising popularity of honey and artificial sweeteners as a source of sweetness in their products. As a direct response to this, they have decided to launch a new product line that contains artificial as well as other types of sweeteners.

Segmental Analysis

The Global Sweeteners Market is divided into different segments according to the Product, Distribution Channel, and Region (Geography).

By Product, the Global Sweeteners Market is segmented into Sugar, Honey, and Artificial Sweeteners. Sugar was the market category that brought in the most revenue in 2021, contributing more than 70% of the total, and it is anticipated to increase at a compound annual growth rate of 2.91% from 2022 until 2030. The rise in sugar consumption can be attributed, in large part, to the expansion of the world's population, as well as to the quickening pace of urbanization, rising incomes, and changed eating habits. Nevertheless, during the duration of the forecast, the expansion of the market may be hampered by the increasing prevalence of health issues that are linked to the intake of sugar, such as diabetes and obesity.

The honey market is anticipated to rise at a rate that is projected to be 3.52% faster than any other market segment between 2022 and 2030. Over the past several years, the expansion of this market sector has been propelled forward by a rising demand for food that is both nutritive and healthy. Honey is a great source of a wide variety of nutrients, including as minerals, calcium, vitamins, and antioxidants. These nutrients are made available to customers through retail channels, which in turn is driving the expansion of the market. In addition, the increasing popularity and desire for alternative sweeteners, along with the rising disposable income of consumers, are key factors contributing to the expansion of the industry.

By Distribution Channel, the Global Sweeteners Market is segmented into Offline and Online. In 2021, the offline channel was responsible for more than 78% of the total revenue generated by the market. Consumers are increasingly gravitating toward offline distribution channels for the purchase of consumer goods, groceries, and food products like sugar because these channels allow them to personally verify the product quality. Additionally, the convenience of searching for a variety of sweeteners through retailers is likely to be the primary factor that has driven the market segment's expansion over the past few years. Because of the expansion of offline channel networks around the world, we anticipate that offline channels will continue to hold the majority of market share throughout the projected period.

It is expected that the online sector of the market would have the highest growth rate with a compound annual growth rate of 3.51% between the years 2022 and 2030. The recent years have seen a lucrative development in the internet penetration rate, which has led to the considerable growth of the e-commerce industry around the globe, which is pushing the growth of this segment. The growth of this segment is being fueled by the growth of this segment. Multiple vendors who sell these goods are currently doing business online by selling their wares through online marketplaces like Amazon and eBay, and they anticipate a rise in demand for their products over the next few years.

By Region or Geography, the Global Sweeteners Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2021, the Asia Pacific region accounted for the greatest proportion of the global market, at over 40%. The need for food in the region will be driven by the large populations of food consumers in China, India, Indonesia, and Bangladesh. From 2022 to 2030, Europe is predicted to grow at a CAGR of 3.31%, making it the fastest-growing market. Demand for sweeteners has increased in this region as a result of changing eating habits and increased interest in health advantages.

Recent Developments

• June 2022 - Natural food production and the consumption of animal-based goods are becoming increasingly popular among consumers. Adding plant-based feed additives to healthy animal feed has a very high development potential. Cargill, the world's top agribusiness, stated it has reached a binding deal to buy Delacon, the world's foremost expert in plant-based phytogenic additives, to help feed clients in this expanding market.
• June 2022 - T&L PLC (Tate & Lyle) announced on 9th June 2022 that it has completed the acquisition of Quantum Hi-Tech (Guangdong) Biological Co., Ltd (Quantum), one of China's leading prebiotic dietary fibre businesses situated in China. On March 31, 2022, it was announced that the signing of a conditional agreement for this transaction would take place.