Sugar Reducing Ingredients Market Analysis

Global Sugar Reducing Ingredients Market Overview

Sugar Reducing Ingredients Market Size was valued at USD 32.85 Billion in 2023. The sugar reducing ingredients market industry is projected to grow from 35.18 Billion in 2024 to USD 55.88 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.70% during the forecast period (2023 - 2032). The 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.

 Figure 1: Sugar Reducing Ingredients Market, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Sugar Reducing Ingredients Market Trends

A large pool of people suffering from cardiovascular disease as well as diabetes

The growing geriatric population coupled with the large pool of people suffering from cardiovascular disease as well as diabetes across the U.S. has increased the demand for sugar reducing ingredients owing to the health benefits provided by them. For example, according to the FDA, aspartame is a non-nutritive artificial sweetener that is 200 times sweeter than sugar. Sometimes, it is sold as Equal and NutraSweet in blue packets. Although aspartame is not zero-calorie like some other artificial sweeteners, it nevertheless has a low-calorie count. Furthermore, as part of this, according to the Centers for Disease Control and Prevention, in the United States, heart disease is the leading cause of death for both sexes and members of most racial and ethnic groups. In the United States, cardiovascular disease claims one life every 34 seconds.

Almost 697,000 Americans died from heart disease in 2020, making up 1 in 5 fatalities in the country. Furthermore, various initiatives were taken by organizations across the country to educate the patients suffering from chronic which in turn are likely to contribute to its overall market growth. For example, the Administration for Community Living provides Chronic Disease Self-Management Education (CDSME) programs which provide education and tools to help them better manage chronic conditions and age-related diseases including diabetes, heart disease, arthritis, chronic pain, as well as depression. Through competitive funds in the form of cooperation agreements, the Administration on Aging (AoA) has supported the dissemination of CDSME programs since 2003.

Sugar Reducing Ingredients Market Segment Insights

Sugar Reducing Ingredients Function Insights

Based on function, the Sugar Reducing Ingredients Market segmentation includes Sweeteners, Bulking Agents, and others. The bulking agents' segment held the majority share in 2023 contributing to around a market value of USD 16.24 Billion (2023) of Sugar Reducing Ingredients Market revenue. 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. This type of sugar-reducing ingredient is used in the manufacturing of various food products including desserts, confections, and baked goods, and helps maintain the overall volume and flavor. For instance, allulose and erythritol are used as sugar-reducing ingredients in ice cream. Honey as sugar reducing agent is used quite extensively owing to its easy marketability, natural source, lesser glycemic index value compared to sugar, and its ability to reduce the off-flavor notes used in bakery products. Another example is polydextrose’s use in dairy products as a bulking agent and it also helps in increasing the fiber content of the final product. 

Figure 2: Sugar Reducing Ingredients Market, by Function, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Sugar Reducing Ingredients Application Insights

Based on application, the Sugar Reducing Ingredients Market has been segmented into food & beverage and pharmaceuticals & nutraceuticals. The food & beverage segment is further segmented into bakery & confectionery, beverages, dairy & desserts, and snacks & savory. The food & beverage segment is the largest segment accounting for a share of 79.73% and is likely to grow at a rate of 5.63% during the forecast period. The food & beverage sector is the leading user of sugar-reducing ingredients in various products. 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. The Food & Beverage segment is expected to grow at a market CAGR of 5.94%. 

Figure 2: Sugar Reducing Ingredients Market, by Application, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Sugar Reducing Ingredients Distribution Channel Insights

Based on the distribution channel, the Sugar Reducing Ingredients Market has been segmented into B2B and B2C. The B2B segment accounted for the largest market share of 70.31% in 2021 and is likely to grow at a rate of 5.30% during the projected period whereas the B2C segment is likely to grow at a higher CAGR of 5.62% during the forecast period. B2B stands for the business-to-business transaction, is a type of trade of products between two business units meaning both the suppliers and buyer of the product are business firms where the buyer firm uses the product or service procured from the supplier as ingredients in the product development or a product for further businesses. The trade between businesses and retailers/wholesalers instead of directly to the consumer is a type of B2B transaction. Another example of a B2B transaction in the global market is the purchase of sugar-reducing ingredients by bakery & confectionery manufacturing units.

Figure 2: Sugar Reducing Ingredients Market, by Distribution Channel, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Sugar Reducing Ingredients Regional Insights

Based on region, the Sugar Reducing Ingredients Market has been segmented into North America, Europe, Asia-Pacific, and the South America. The Asia-Pacific region accounted for the largest market share of 37.64% in 2023 and is likely to register a CAGR of 5.97% during the projected period. The North America region is the second largest market with a share of 26.59% in 2023. 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. 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.

The major countries studied are the U.S., Canada, Mexico, Germany, France, the UK, Italy, Spain,  China, Japan, India, Australia and New Zealand, South America, the Middle East, and Africa.

Figure 3: SUGAR REDUCING INGREDIENTS MARKET SHARE, BY REGION, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Sugar Reducing Ingredients Key Market Players & Competitive Insights

The Sugar Reducing Ingredients Market is projected to register a CAGR of 5.70% during the review period. The market's growth can be attributed to the surging demand for sugar reducing ingredients from food, beverages, and functional food industries. The sugar reducing ingredients market is facing higher competition, as the key players are continuously focusing on the adoption of growth strategies to enhance their market position. The growth strategies adopted by the manufacturers include product launches, re-innovation in their existing products, acquisition, and strategic collaboration to uplift their revenue. The companies are also focusing on the expansion of their operations across the regions, augmenting their production, sales, and distribution capabilities. However, the growth of market players is primarily dependent on market conditions, the development of industry, along with government support. Moreover, the increasing incidences of CVDs (Cardiovascular Disorders), obesity, and diabetes among consumers across the globe driving the demand for sugar reducing ingredients market. Moreover, the increasing government initiatives for the production of commodity-based ingredients are set to open up huge prospects for the manufacturers operating their business in sugar reducing ingredients market in the upcoming years.

Key Companies in the Sugar Reducing Ingredients market include

• Ingredion Incorporated


• ADM


• Cargill Incorporated


• Roquette Frères


• DuPont


• International Flavors & Fragrances Inc.


• GLG LIFE TECH CORP.


• Tate & Lyle


• Kerry Group


• Südzucker AG

Sugar Reducing Ingredients Industry Developments

November 2022: Cargill Incorporated introduced its ingredients at the Food Ingredients Europe (FIE), such as a series of plant-based ingredients along with its soluble fiber sugar-reduction offerings for bakery and confectionery applications.

November 2022: Tate & Lyle announced the expansion of its product portfolio of reduced sugar alternatives as it launched Erytesse Erythritol – which contains 70% of the sweetness of sucrose and has zero calories.

Sugar Reducing Ingredients Market Segmentation

Sugar Reducing Ingredients Type Outlook

• Sweeteners


• Bulking Agents


• Texturants

Sugar Reducing Ingredients Application Outlook

• Food & Beverage
  
  
  
  • Bakery & Confectionery
  
  
  • Beverages
  
  
  • Dairy & Desserts
  
  
  • Snacks & Savory
  
  
  
  


• Pharmaceuticals & Nutraceuticals

Sugar Reducing Ingredients Distribution Channel Outlook

• B2B


• B2C

Sugar Reducing Ingredients Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia  and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • South America