The global sugar replacement market is projected to reach USD 23.56 billion in 2024, with an anticipated growth rate of 4.9% CAGR, reaching USD 29.90 billion by 2029. This growth is largely fueled by the rising consumer preference for low-calorie, natural, and functional alternatives to sugar. As public awareness increases about the health risks associated with high sugar intake, there is a significant push from consumers, industries, and regulators for healthier substitutes, creating a thriving market landscape for innovation.
Opportunities
in Diabetic Wellness and Sweetener R&D
The global diabetes epidemic
presents a substantial opportunity for the sugar substitutes market. According
to the International Diabetes Federation's 2021 report, 10.5% of adults (20–79
years) live with diabetes, and the number is expected to rise by 46%, reaching
783 million by 2045. Over 90% of these cases involve type 2 diabetes, driven by
urbanization, aging populations, reduced physical activity, and rising obesity.
This alarming increase highlights the demand for diabetic-safe sugar replacement.
Growing consumer awareness about diet and health impacts has spurred research
into sweeteners like monk fruit, stevia, and aspartame, which offer a better
taste experience and minimal effect on blood sugar.
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Key Market
Segment: Food Products
The food products sector
holds a significant share of the sugar
replacement market, driven by the rising demand for low-calorie and
sugar-free foods among health-conscious consumers. Regulatory support also
bolsters growth, as seen with Health Canada's recent updates to its List of
Permitted Sweeteners in July 2024. Approved sweeteners like aspartame,
acesulfame potassium, and erythritol are now used in products such as breakfast
cereals, yogurt, and baked goods, reflecting a favorable regulatory environment
for alternative sugar in food applications.
Regional
Outlook: Rapid Growth Expected in Asia Pacific
The Asia Pacific region is
poised for substantial growth between 2024 and 2029, driven by increasing
diabetes rates and significant investments in sugar replacement production.
According to the IDF’s Diabetes Atlas, the Western Pacific has the highest
global diabetes rate, with 90 million cases in Southeast Asia alone.
Projections indicate a sharp rise in Southeast Asia, with diabetes cases
expected to reach 113 million by 2030 and 151 million by 2045. Growing
awareness about health risks, such as obesity and tooth decay, is prompting
consumers to choose sugar substitutes. Government initiatives like China's
"Healthy China 2030" action plan aim to reduce per capita sugar
consumption by at least 17% by 2030, creating substantial market opportunities
for sugar alternative.
Recent
Developments in the alternative
sugar market
· Ingredion and Better Juice Partnership: In January 2024, Ingredion (US)
partnered with Better Juice (Israel) to expand sugar-reducing technology in the
US. Better Juice's technology converts natural sugars into non-digestible
compounds, reducing sugar content by up to 80% while preserving nutrients,
aligning with Ingredion's goal to advance its sugar alternatives platform.
· Cargill’s Expansion in India: In October 2023, Cargill (US)
announced an investment of USD 35 million in a new manufacturing facility in
Nellore, South India, to strengthen supply chain resilience and meet the demand
for sugar alternatives in India’s evolving food market.
· Ingredion’s Stevia Facility Expansion: In November 2023, Ingredion expanded
its PureCircle stevia facility in Malaysia to increase production of steviol
glycosides, including zero-calorie Reb M. This expansion supports Ingredion’s
recent launch of PureCircle Clean Taste Solutions, a natural, zero-calorie
sweetener designed for a clean taste.
With these developments and
the demand for healthier diets, the alternative
sugar market is positioned for robust growth, driven by innovation,
regulatory support, and heightened consumer awareness.
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