FOOD SWEETENER MARKET ANALYSIS

The global food sweetener market size was valued at USD 85,347.89 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 2.47% from 2022 to 2030. The market for food sweeteners is growing as more people are becoming health conscious and concerned about calories. Rising populations and income levels in emerging countries are also driving the market growth. Moreover, huge demand for food and beverages in developing countries has opened new markets for food sweeteners throughout the value chain. The beverage segment is the largest market, accounting for the majority of the overall market share.  The rising health consciousness among consumers has led beverage brands to formulate their products with fewer calories and sugar. In addition, sweeteners can help mask unpleasant flavor profiles and add bulk to foods and beverages.

Global Food Sweetener Market: Regional Insights

Regionally, North America is expected to dominate the global food sweetener market over the forecast period owing to the growing demand for food sweetener from bakery, confectionery, and beverage industries, especially soft drink manufacturing in the U.S. The United States food sweetener market was valued at USD 10,831.20 million in 2020, and it is projected to reach USD 12,286.95 million by 2026, recording a CAGR of 2.17% during the forecast period, 2021-2026.

At the same time, Europe is also projected to witness fastest growth in the global market over the forecast period and this is attributed to the presence of developed countries such as UK, Germany, and France. Germany is the largest market for sweetener. The German food sweetener market was valued at USD 2,965.74 million in 2020, and it is projected to reach USD 3,311.07 million by 2026, registering a CAGR of 1.90% during the forecast period (2021-2026). Moreover, key players are expanding and investing in the manufacturing of sweeteners in order to meet the growing demand for sweeteners in the country. For instance, in July 2019, Cargill invested USD 200 million for transforming its production site in Krefeld, Germany, from a corn sweetener processing plant to a wheat sweetener processing plant. Thus, such innovations in terms of natural sweeteners are boosting the overall sweetener market in the country

Figure 1. Global Food Sweetener Market Value Share (%), By Region, 2021

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Global Food Sweetener Market Drivers:

Growing demand for natural sweeteners due to growing consumer preferences towards natural sweeteners is driving growth of the food sweeteners market. Rising prevalence of lifestyle disorder such as obesity and diabetes is contributing to surge in demand for natural sweeteners. According to 2017–2018 data from the National Health and Nutrition Examination Survey (NHANES) Nearly 1 in 3 adults (30.7%) are overweight. More than 2 in 5 adults (42.4%) have obesity and about 1 in 11 adults (9.2%) have severe obesity.

Increasing production capacity of sweeteners across developed countries in order to meet the growing demand is again augmenting market growth. For instance, in January 2018, Cargill and ARASCO, through a joint venture in Saudi Arabia, opened a new corn milling facility, MEFSCO, that tripled its total production volume and expanded its product portfolio to include high fructose corn syrup to meet the growing demand across the confectionery, juice, bakery, and catering segments to serve the Gulf Cooperation Countries (GCC), which include a group of six countries like Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Bahrain, and Qatar.

Global Food Sweetener Market Opportunities:

Around 50% of the consumers are cutting down sugar intake in order to reduce weight, and 56% of the consumers are cutting down the intake for future health concerns. However, the right blend of sweeteners can replace 50% or more of sugar without a noticeable change in taste. For instance, in February 2021, Batory Food launched Batory Sweet Essentials, a lineup of five high-intensity sweetener blends as sucrose replacers. They may be used in applications, such as baked foods, dairy, frozen foods, snacks, and beverages. The blends meet Generally Recognized As Safe (GRAS) regulations from the US Food and Drug Administration.

Increasing taxes on sugar in order to incentivize consumers to eat less sugar is creating demand for natural alternatives. This hold significant growth opportunities for the key players. This is boosting demand for stevia from food and beverages producers.

Global Food Sweetener Market Trends:

No sugar and low-calorie trend among health conscious consumers. This will augment the market growth over the forecast period. No sugar and low-calorie allow manufacturer to develop products with nutritional related claims.

Stevia-based antioxidant food and beverage product is a gaining traction in the market. For instance, recently the global producer of Stevia, PureCircle, has launched a stevia antioxidant ingredient, which is ideal for the health and wellness food product categories. The company has developed a unique extraction and purification technique for the stevia antioxidant ingredient.

Global Food Sweetener Market Restraints:

Government authorities are increasing taxes on sugar in order to reduce the sugar consumption among consumers, due to the growing obesity epidemic across the world becoming a serious public health problem. Consumption of sugar increase the risk of chronic diseases, such as Type 2 diabetes, cardiovascular diseases, and certain cancers.

Misconception regarding the consumption of sweeteners and their negative effects on human health among consumers is expected to restrict the market growth.  For instance, The United States Food and Drug Administration (FDA) only considers high-purity steviol glycosides to be safe for human consumption currently. Because the FDA has not approved crude stevia extracts and stevia leaves as food additives, companies are not allowed to market them as sweetening products. According to the FDA, the acceptable daily intake for stevia glycosides is 4 milligrams (mg) per kilogram of body weight.

Figure 2. Global Protection Chemicals Market Value Share (%), By Origin, 2021

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Global Food Sweetener Market Segmentation:

The global food sweetener market report is segmented into type, application, and geography

Based on type, the market is segmented into Sucrose (Common Sugar), Starch Sweeteners and Sugar Alcohols, and High Intensity Sweeteners (HIS). Out of which, Sucrose is expected to dominate the global market over the forecast period and this is attributed to the high demand for liquid form sucrose from food &beverage industry. It is also available in powdered and granulated form. The sucrose (common sugar) segment of the market studied was valued at USD 65,559.65 million in 2020, and it is projected to reach USD 73,830.59 million by 2026, registering a CAGR of 2.03% during the forecast period.

Starch Sweeteners and Sugar Alcohols segment is also expected to witness significant growth in the near future owing to the growing demand for processing and convenience food.

Based on application, the market is segmented into Bakery and Confectionery, Dairy and Desserts, Beverages, Meat and Meat Products, Soups, Sauces, and Dressings, and Other Applications. Out of which, Bakery and Confectionery is expected to dominate the global market over the forecast period as it is one of the largest market for sweeteners. The bakery and confectionery segment of the market studied was valued at USD 22,218.01 million in 2020. It is projected to reach USD 26,881.41 million by 2026, registering a CAGR of 3.27% during the forecast period.

Beverages segment is also expected to witness significant growth in the near future owing to the growing demand for low-calorie beverages among health conscious consumers. The beverages segment of the market studied was valued at USD 26,872.99 million in 2020, and it is projected to reach USD 29,108.67 million by 2026, registering a CAGR of 1.38% during the forecast period.

Global Food Sweetener Market: Key Developments

1. In July 2021, Tate & Lyle PLC (Tate & Lyle) launched a new sustainability program to enable stevia growers in China to lower their environmental impact and gain greater economic benefit from producing this in-demand no-calorie sweetener.
2. In January 2021, Tate & Lyle and Codexis extended their partnership to enhance the production of Tate & Lyle’s newest sweetener: TASTEVA   M   Stevia Sweetener.
3. In December 2020, Tate & Lyle acquired Sweet Green Fields (SGF), a global stevia solutions business. The acquisition also extends Tate & Lyle’s presence in the faster-growing Asia Pacific region with dedicated stevia production and research and development facilities in Anji, China.
4. In March 2018, Cargill Incorporated officially started producing its new EverSweet, a zero-calorie, next-generation sweetener made with two of the best tasting sweet compounds found in the stevia leaf, Reb M and Reb D. This enables food and beverage companies to cater to consumers’ desire for healthier food choices with this zero-calorie sweetener without losing taste.
5. In Novemeber 2018, Cargill Incorporated and Royal DSM announced a partnership to produce highly sought-after, sweet-tasting molecules, such as steviol glycosides Reb M and Reb D through fermentation, giving food and  beverage  manufacturers  even  more  scalable, sustainable, and low cost-in-use solution under one brand name, EverSweet.
6. In March 2018, Archer Daniels  Midland  Company  (ADM)  announced  an agreement to acquire a 50% equity stake in the sweeteners and starches  business  of  Russia-based  Aston  Foods  and  Food Ingredients. Under the agreement terms, ADM will become 50% owner of Aston’s corn wet mills in Ibred and Novlyanka, strategically located close to major customers in the Russian food and beverage industry.

Global Food Sweetener Market: Key Companies Insights

The global food sweetener market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global food sweetener market are Tate & Lyle PLC, Cargill Incorporated, Archer Daniels Midland Company, DuPont de Nemours Inc., Ingredion Incorporated, Ajinomoto Co. Inc., S&W Seed Company, Manus Bio Inc. (NutraSweet), GLG Life Tech Corporation, Tereos SA, Celanese Corporation, and Foodchem International Corporation

*Definition: Food Sweeteners are a great way to sweeten food without adding calories or sugar. Sucralose is an artificial sweetener that is about 600 times sweeter than table sugar, and the majority of it is not absorbed by the body. It has been approved for use as a food sweetener in the EU since 2004 as E955.Fructose, also known as levulose, is extracted from sugar cane and is about half as sweet as sucrose. It is used as a food sweetener in beverages and baked goods, and it is low in the glycemic index. However, it is not recommended for use in infant formula.