NATURAL SWEETENERS MARKET ANALYSIS

Global natural sweeteners market is expected to surpass US$ 4.63 Bn by the end of 2030 and exhibit a CAGR of 3.82% during the forecast period (2022 to 2030). Growing demand for natural sweeteners among the aging and geriatric population for their daily diet and exercise activities is expected to drive the product demand. Furthermore, natural sweeteners offers a wide range of applications in bakeries, desserts, beverages, confectionaries, dairy products, and others, and this is driving growth of global natural sweeteners market.

Drivers

Growing awareness about healthy life style among the consumers

 Consumers prefer less harmful and healthier alternative for artificial sweeteners across the globe. Moreover, there is speedy growth in the number of consumers that are adopting natural food products, owing to health issues. In recent times, consumers demand is shifting to food products made with natural sweeteners. Natural sweeteners consists less calories and low sugar content.  It is a natural- based product that maintains blood sugar level of person and leads to a healthier lifestyle.

Rising prevalence of chronic diseases

 Diseases such as obesity, heart- related diseases, diabetes, high blood pressure, and others, are caused due to the high consumption of sugar in daily diet. Natural sweeteners are more efficient, nutritive, and unprocessed than refined sugar, which has low effect on insulin level in human body. Furthermore, growing prevalence of such chronic diseases throughout the globe, is expected to boost growth of the global natural sweeteners market.

Figure 1. Global Natural Sweeteners Market Revenue Share (%), By Region, 2022

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Among regions, North America accounted for largest market share in 2022, owing to growing incidence of obesity and diabetes, in this region, which is creating a significant demand for natural sweeteners. In 2017, according to the CDC (Centre for Disease Control and Prevention), in U.S., more than 100 million people were suffering with pre-diabetes or diabetes issues. CDC is a leading organization, which provides science based data, and further works for the protection of the public’s health in U.S. Furthermore, various applications of natural sweeteners, across the food & beverages industry is expected to propel global natural sweetener market growth in the region.

Asia Pacific is expected to exhibit significant CAGR throughout the forecast period. In emerging economies such as China and India, natural sweeteners are used as a preservative in pickles, sauces, pastes, and others. Moreover, rising aging population and preferences for healthy lifestyle is expected to proliferate the global natural sweeteners market growth across the region. Furthermore, urbanization in developing countries, rise in per capita income, and diet diversification are the major factors to surge the demand for natural sweeteners. 

Market Trends

Research and developments activities among the global natural sweeteners market

Rising investments in research and development across the global natural sweeteners market, for better production of more efficient natural sweeteners is expected to create lucrative opportunity for natural sweeteners market players. For instance, GLG Lifetech, one of the global natural sweeteners market players, partnered with ADM (Archer Daniels Midland) company, a global market player in agricultural origination and processing company that offers animal and human nutrition products, on March 23, 2017. This partnership offered two new sweetener brands named as Very Sweet monk fruit and Sweet Right stevia that is further used in low-calorie food products, such as dairy products, juices, soft drinks, desserts, candies, and others. .

Figure 2. Global Natural Sweeteners Market Revenue Share (%), By End-use Industry, 2022

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By end-use industry, the global natural sweeteners market is categorized into food & beverages, pharmaceuticals, personal care, and others. Food & beverages segment held largest market share in 2022 and is further projected to grow at highest CAGR during the forecast period. Natural sweeteners are used in the production of various kinds of soft drinks, flavored water, energy drinks, fruit juices, and ready-to-drink teas, among others. Moreover natural sweeteners have a low glycemic index, and thus is widely used in confectionary food products.

In addition, pharmaceuticals segment held second largest market share, after food & beverages segment, in 2021. Natural sweeteners are used to improve the bitter taste of drugs, owing to its less toxicity, as compared to artificial sweeteners, and it is used by the diabetic patients. Furthermore, it offers super sweet and low- calorific value. Natural sweeteners are used in the cough syrup, oral preparations, and coatings of tablets and pills. Moreover natural sweeteners are also used in the preparation of excipients for pediatrics drugs.

Based on the type, the global natural sweeteners market is segmented into stevia, xylitol, sorbitol, erythritol, mannitol, sweet proteins, and others. Stevia segment is estimated to witness the highest CAGR during the forecast period. Stevia is derived from the leaves of stevia plants and is sweeter than refined sugar. Moreover, it does not contain calories, artificial ingredients, and carbohydrates which is boosting its demand. In Asia Pacific region, China is one of the major exporters of stevia throughout the globe. Moreover, stevia does not affect insulin level or blood glucose of the person and due to this health benefit of stevia, there is rising demand for stevia in the diabetic consumers. Stevia consists of antioxidant compounds and several sterols that includes kaempferol. This kaempferol is used to lower the risk of pancreatic cancer. Thus, booming demand for stevia is expected to boost the global natural sweeteners market growth.

Moreover, xylitol held second largest market share in 2022 due to rising preferences for low-calorie confectionery products. Moreover, xylitol offers anti-cariogenic properties and is further used to maintain oral hygiene. Furthermore, xylitol is used in different kinds of sectors such as pharmaceuticals, cosmetics & toiletries, oral healthcare product, personal health care products, and others. It is used as a healthy alternative for sucrose in dairy products. These are the key factors that propels demand for xylitol across the globe.

Market Restraints

High cost of natural sweeteners is hindering the market growth

The manufacturing cost of natural sweeteners that is higher than regular sugar is likely to hamper the global natural sweeteners market growth. Moreover, the overconsumption of natural sweetener causes kidney damage, endocrine disruption, hypoglycemia, and others.  Complex manufacturing process and availability of artificial sweeteners is expected to restrain the global natural sweetener market growth. Nevertheless, rising awareness regarding healthy lifestyle is projected to boost demand for natural sweeteners. 

Global Natural Sweeteners Market - Impact of Coronavirus (Covid-19) Pandemic

The breakout of the COVID-19 pandemic has impacted all industries. There is disruption in the supply chain of raw materials that are required for the production of natural sweeteners. According to World Health Organization, this pandemic disrupted regular economy throughout the globe. The market players of the natural sweeteners has stopped their production due to strict lockdown and social distancing. After the COVID-19, there is increase in the consumption of natural sweeteners, owing to rising preferences for healthy diet. Moreover, the increasing preference for low-calorie food is expected to create significant opportunity among the global market players of natural sweeteners.

Key Players

Key players operating in the global natural sweeteners market include Tate & Lyle, Sunwin Stevia International, Roquette Frères, GLG Lifetech, Cargill, Inc, Archer Daniels Midland Co., Wilmar International Ltd., Ingredion Incorporated, Ajinomoto Co., Inc., and PureCircle.