Sugar Reducing Ingredients Market is predicted to reach USD 55.88 Billion at a CAGR of 5.70% during the forecast period

Market Research Future (MRFR) has published on the “Global Sugar Reducing Ingredients Market”.

Market Synopsis

Global Sugar Reducing Ingredients Market Size was valued at USD 33.92 Billion in 2023. The sugar reducing ingredients market industry is projected to grow from 35.18 Billion in 2023 to USD 55.88 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.70%during the forecast period (2023 - 2032). The global sugar reducing ingredients market has been gaining momentum in recent years, driven by various factors such as the rising prevalence of diabetes and cardiovascular diseases, favourable government policies, and increasing consumer awareness about the health risks of consuming excessive sugar. This market is expected to grow at a steady pace in the coming years, providing opportunities for businesses that produce sugar-reducing ingredients and products.

COVID-19 Impact on Sugar Reducing Ingredients Market

The onset of COVID-19 has resulted in a global crisis. The pandemic, affecting many nations throughout the world, has already impacted the global economy and is likely to cause chaos, leading to global revocation. People's life has been entirely turned upside down by the COVID-19 outbreak, owing to its growing cases every day. Different industries are affected by COVID-19 differently. Every area of the economy experienced growth after the pandemic. This pandemic has impacted the commodity market in numerous ways. However, various initiatives were taken by government bodies in various regions worldwide to recover the region from post-pandemic. For instance, in May 2020, the US government invested USD 2.2 trillion economic rescue package for U.S. businesses affected the most during the pandemic, including the automotive sector.

The whole supply chain has been severely affected owing to the covid-19 pandemic as most of the sugar reducing ingredients manufacturers were from China. For instance, according to MRFR analysis, the leading beverage company Coca-Cola experience a delay in its artificial sweetener from China owing to the novel coronavirus outbreak. This usually affected the production of its diet and no-sugar drinks such as Coca-Cola, Sprite, Fanta, Aquarius, as well as Minute Maid. Moreover, the company usually purchases non-nutritive sweeteners such as sucralose from suppliers across the United States and China, whereas the other non-nutritive sweeteners used in its products include aspartame, acesulfame potassium, saccharin, cyclamate, and steviol glycosides. However, as the covid-19 cases are decreasing, things are turning normal as well as positively impacting the supply chain.

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Competitive Landscape

The key players operating in the Germany-Netherland energy balls products market include Ingredion Incorporated (US), ADM (US), Cargill, Incorporated (US), Roquette Frères (France), DuPont (Denmark), International Functions & Fragrances Inc. (US), GLG LIFE TECH CORP (Canada), Tate & Lyle (UK), Kerry Group (Ireland), and Südzucker AG (Germany) dominate the market due to brand reputation, product differentiation, financial stability, and strong distribution network. The market players are focused on investing in research & development and adopting strategic growth initiatives such as expansion, product launches, agreements, partnerships, acquisitions, and mergers to strengthen their market position and capture a large customer base.

Segmentation

By Function

1. Sweeteners: Sweeteners are ingredients that are generally used as a replacement for sugar and provide a greater taste with a complete replacement. The high-intensity sweeteners also referred to as non-nutritive sweeteners and noncaloric sweeteners, are known for the superior sweetness provided by them compared to conventional sugar, thus used in very low quantities in product development. Aspartame, saccharin, sucralose, and stevioside are a few examples of high-intensity sweeteners. Sweeteners are used in both food & beverages and pharmaceutical applications. In pharmaceutical formulations, sweeteners are used for sweetening the taste and boosting the palatability of the drug formulations. Acesulfame potassium, alitame, aspartame, and sucralose are some examples of sweeteners used in pharmaceutical formulations. The trend of clean-label products is driving the growth of the segment and constant innovation in the sweeteners is expected to create opportunities for the segment during the forecast period

2. Bulking Agents: Bulking agents, a carbohydrate ingredient that provides calories and adds bulk to the food. Sugar’s role is not only constrained to sweetening functionality in the products but also provides bulk to the products like calories and fiber. Bulking agents also help in restoring the missing sugar properties like water solubility, viscosity, etc. Fructo-oligosaccharides, allulose, inulin, maltodextrins, polydextrose, sugar alcohols, tagatose, honey, and resistant starch are a few of the most commonly used bulking agents.

3. Texturants: Texturants also called texturizers are used for sugar reduction, altering and improving the texture of the food in addition to the calibrating mouthfeel, viscosity, stability, and delicacy of the product. Texturants comprise hydrocolloids, emulsifiers, specialty carbohydrates, and enzymes. The type of texturants varies with the base material they are made up of including rice, corn, tapioca, potato, or pulses. These are used as sugar-reducing ingredients in various food and beverage products including juices, and smoothies, where they help in achieving the sensory experience which gets impacted due to low sugar levels.

By Application

1. Food & Beverages: The food & beverage sector is the leading user of sugar-reducing ingredients in various products. The segment is further divided into bakery & confectionery, beverages, dairy & desserts, and snacks & savory. Sugars are one of the key ingredients of a range of food & beverage products and have several properties including palatability, flavor, texture, mouthfeel, volume, color, etc. making them an indispensable part of product development. However, excessive sugar consumption has several health implications which have resulted in governments implementing several initiatives to reduce sugar consumption and a shift in consumer preference. The above-said factors are pushing the food & beverage manufacturers to innovate and launch sugar-reduced products with no compromise in other factors of the final product.

2. Pharmaceuticals & Nutraceuticals: Pharmaceuticals & Nutraceuticals comprise dietary supplements, infant formula/baby food, dental care formulations, medicated gums, and nutraceutical gummies. Sugar is used in various pharmaceutical confections including cough syrup, lozenges, and vitamins. Powdered fructose, dextrose, maltitol, mannitol, and sorbitol are some of the commonly used sugar-reducing ingredients in drug formulations.

By Distribution Channel

1. B2B: B2B transaction in the global market is the purchase of sugar-reducing ingredients by bakery & confectionery manufacturing units. There are several sugar-reducing ingredient suppliers in the market including sweeteners, bulking agents, and texturants which are used as a key ingredients in various processed food and beverages products. The growing government’s and regulatory bodies' initiatives to reduce sugar consumption across the globe are driving the demand for sugar-reducing ingredients in the like sugar tax, front-of-the-package labeling, etc.


2. B2C: Business-to-consumer is a type of commerce activity where the products are sold directly to consumers from the organization for the customers' end-use. Consumers nowadays are taking several initiatives to reduce sugar intake in home cooking and baking. Also, the outbreak of the COVID-19 virus has fueled home baking and confectionery preparations and along with the concern about healthy food consumption, the purchase of sugar-reducing ingredients has been witnessing a significant impact.

By Region

1. North America: North America region includes the US, Canada, and Mexico. World Health Organization (WHO) has taken several initiatives to regulate sugar consumption and reduce sugar intake. In 2015, it issued a new guideline for the reduction of sugar intake in the t total energy intake among the population category adults and children to less than 10%. The target limit was set with an aim to reduce the risk of tooth decay, obesity, and being overweight, based on scientific analysis. Banking on additional health benefits, WHO has issued a conditional recommendation of daily sugar intake reduction by 25 grams or an equivalent of 6 teaspoons a day. As per the data stated in a blog of the Chocolate Academy of Barry Callebaut, 74% of US consumers believe a healthy diet has lower sugar content, and around 33% of North Americans regard low-sugar or no-sugar confectioneries comprising of chocolate and candy as better options than the conventional confectioneries. In line with these, a 2021 research study conducted among US consumers by ADM highlighted that 8 out of 10 consumers are engaged in reducing their sugar consumption. These changes in sugar consumption behavior are part of the shifting consumer preference for a healthy lifestyle, the COVID-19 pandemic has further fueled the shift in sugar consumption. For instance, IFIC’s 2020 Food & Healthy Survey stated that 74% of consumers are attempting to reduce or avoid sugars. Hence, the increasing shift in consumer behavior focused on healthy lifestyles is fueling the demand for sugar-reduced, low-sugar, and clean-label food and beverages products which are expected to create opportunities for the players in the North American sugar-reducing ingredients market during the forecast period

2. Europe: Europe region consists of Germany, the UK, France, Spain, Italy, and the Rest of Europe. The report named “Incentives and disincentives for reducing sugar in manufactured foods – An exploratory supply chain analysis: published by WHO highlighted that European consumers are incorporating high levels of sugar in their diets. It stated that the average sugar consumption of the UK and Denmark's young population is 40 grams a day. Cakers, soft drinks, chocolates, biscuits, and pastries are some of the key sources of this excessive sugar. This excessive sugar consumption results in several health issues, for instance, the WHO estimates highlighted that out of all the regions, WHO Europe is the most affected region by non-communicable diseases and an unhealthy diet is one of the contributing factors to such diseases. To overcome these health implications, the European Union (EU) and the countries in the region are engaged in several initiatives to reduce sugar consumption, significantly. In addition, in line with these growing trends of clean-label products and sugar reduction in food & beverage products, manufacturers are taking several initiatives to capitalize on the demand in the region

3. Asia-Pacific: The Asia-Pacific region consists of China, India, Japan, Australia & New Zealand, and the Rest of Asia-Pacific. Around 227 million people in Asia-Pacific are diagnosed with type 2 diabetes, and 50% among them aren’t aware of the long-term implications of the disease, stated the managing director of BENO, Asia Pacific in the Food & Beverage Asia magazine. However, consumers are shifting to healthy lifestyle habits, the article further elaborated that the survey conducted among Singapore consumers has highlighted that around 66.67% of them are inclined towards adopting a healthier lifestyle and consumption habits. This trend is further fueled by the outbreak of the COVID-19 pandemic, making consumers conscious of the ingredients in food and drink products. Owing to increased urbanization, rise in disposable income, and changing lifestyles in China and India has resulted in an increased frequency of the snacking habit. Along with the increasing health awareness among Asia-Pacific consumers, manufacturers are also working on the launch and expansion of sugar-reduced products

4. 
   

   Rest of the World: The rest of the world segment comprises South America, the Middle East, and Africa. The trend of better-for-you and sugar reduction is fueling the usage of sugar-reducing ingredients in South America. This is a result of various government initiatives like the front of the package labeling indicating the level of sugar in processed food & beverage products in Ecuador (in 2014) and Peru (in 2019); imposition of a higher tax on sugary beverages in Chile (2016); and signing of a group of beverage associations sugar reducing agreement with the Ministry of Health in Brazil (2018). Similar were the trends in Africa and other Middle East countries, for instance, South Africa introduced Health Promotion Levy on sweetened beverages an amount of 2.1 cents on each additional gram over and above 4g of sugar per 100ml.