The Sugar Reducing Ingredients market is experiencing dynamic shifts driven by a confluence of factors that respond to changing consumer preferences, health concerns, and regulatory guidelines. One of the primary drivers influencing market dynamics is the increasing awareness of the negative health impacts associated with high sugar consumption. Consumers are actively seeking products with reduced sugar content as a way to address health concerns such as obesity and diabetes. This growing health consciousness has propelled the demand for sugar reducing ingredients, creating a dynamic market environment.
Changing dietary patterns and the rise of lifestyle-related health issues have played a pivotal role in shaping the dynamics of the Sugar Reducing Ingredients market. As consumers become more mindful of their food choices, there is a demand for products that not only taste good but also align with their health and wellness goals. Sugar reducing ingredients offer a solution for food and beverage manufacturers to create products that retain sweetness without the detrimental effects of excessive sugar. This trend has catalyzed the development of various sugar reducing solutions, including natural sweeteners, sugar alcohols, and innovative formulations that mimic the taste of sugar without the caloric impact.
Regulatory initiatives and guidelines advocating for reduced sugar intake have significantly influenced the market dynamics of sugar reducing ingredients. Governments and health organizations worldwide are emphasizing the importance of curbing sugar consumption to combat the rising incidence of chronic diseases. This has led to increased scrutiny of food and beverage products, prompting manufacturers to reformulate their offerings with sugar reducing ingredients to meet regulatory standards. The market is, therefore, driven not only by consumer demand but also by the evolving regulatory landscape that encourages healthier formulations.
Innovation in the food industry and the quest for product differentiation have spurred the incorporation of sugar reducing ingredients into a wide array of products. From beverages to baked goods and snacks, manufacturers are exploring ways to reduce sugar content without compromising taste and quality. This dynamic response to consumer preferences has led to the diversification of the Sugar Reducing Ingredients market, with an expanding range of options available for food and beverage producers to create healthier alternatives that resonate with their target audiences.
The rise of natural and plant-based sweeteners has emerged as a significant trend influencing the Sugar Reducing Ingredients market dynamics. Consumers are increasingly drawn to sweeteners derived from natural sources, such as stevia, monk fruit, and erythritol. These alternatives offer the sweetness without the calories and metabolic impact of traditional sugars. As a result, there is a growing market for these natural sugar reducing ingredients, reflecting the broader trend of plant-based and clean label preferences among consumers.
Retail and distribution channels play a crucial role in shaping the accessibility and visibility of products featuring sugar reducing ingredients. The market dynamics are influenced by the strategic placement of these products in supermarkets, health food stores, and online platforms. The collaboration between sugar reducing ingredient suppliers and food manufacturers, along with effective marketing strategies, contributes to the successful penetration of these products into the consumer market.
Despite the positive market dynamics, challenges such as taste concerns, cost implications, and the need for consumer education about sugar reducing ingredients remain. Overcoming these challenges requires continued research and development, transparent labeling, and communication strategies to build consumer trust. The ability of the industry to address these challenges and adapt to evolving consumer preferences will ultimately determine the sustained growth and success of the Sugar Reducing Ingredients market. In conclusion, the market dynamics reflect a dynamic interplay of health trends, regulatory influences, industry innovations, and consumer choices, shaping an environment where sugar reducing ingredients play a crucial role in the transformation of the food and beverage landscape.
Report Attribute/Metric | Details |
---|---|
Market Opportunities | Growing expansion policies adopted by key players |
Market Dynamics | A large pool of people suffering from cardiovascular disease as well as diabetesFavorable policies aid down by the government bodies |
Sugar Reducing Ingredients Market Size was valued at USD 31,947.79 million in 2022. The sugar reducing ingredients market industry is projected to grow from 32,859.17 million in 2023 to USD 50,022.89 million by 2030, exhibiting a compound annual growth rate (CAGR) of 5.39%during the forecast period (2023 - 2030).The large pool of people suffering from cardiovascular disease as well as diabetes along with the favorable policies laid down by the government bodies are driving the market growth.
Figure 1: Sugar Reducing Ingredients Market, 2022 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Sugar Reducing Ingredients Market Trends
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. Organizations eligible for grants include tribes, NGOs, universities, and local agencies on aging. Funds are utilized to expand, scale up, and maintain evidence-based CDSME activities. Under the terms of these grants, grantees are carrying out a range of initiatives, such as partnering with local health departments, hospitals, rural clinics, and area agencies on aging to deliver programs, focusing on self-management programs for people affected by chronic pain and opioid abuse, documenting health care cost savings through HIEs, and securing reimbursement from Medicare, Medicare Advantage, and Medicaid. Hence, such factors are likely to increase the demand for reduced sugar ingredients which in turn would boost its market growth in the upcoming years
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 2022 contributing to around a market value of USD 15,227.20 million 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. Â
January 2021 Evolva launched L-arabinose, a natural sugar blocker that has diversified applications in food and beverages. This launch will maintain the sugar levels of blood and weight.
November 2020 Ingredion Incorporated has acquired Verdient Foods Inc. with James Cameron and Suzy Amis Cameron. This acquisition further expands the company’s manufacturing capability and co-creates with customers to serve the increasing consumer demand for plant-based foods.
Figure 2: Sugar Reducing Ingredients Market, by Function, 2022 & 2030 (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 segmentation includes food & beverage, and pharmaceuticals & nutraceuticals. The food & beverage segment held the majority share in 2022 contributing to around ~75 to 85% of the Sugar Reducing Ingredients Market revenue. The segment is further segmented 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. The Food & Beverage segment is expected to grow at a market CAGR of 5.63%.Â
 Sugar Reducing Ingredients Distribution Channel Insights
Based on Distribution Channels, the global sugar reducing ingredients industry market data has been segmented into B2B and B2C. The B2B segment accounts for the largest market share of 70.31% in 2022. B2B stands for 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. There are several sugar-reducing ingredient suppliers in the market including sweeteners, bulking agents, and texturants which are used as key ingredients in various processed food and beverage 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.
June 2022 Ingredion Inc launches a new ad campaign in EMEA to create awareness regarding the product portfolio of texturizers and sweeteners to fulfill the surging demand of consumers for improved Nutri-Score and reduced-sugar products.
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 Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific sugar reducing ingredients market accounts for the largest market share of USD 11,994.36 million in 2022. 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 sugar reducing ingredients market and India sugar reducing ingredients market have 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. Malaysian sugar reducing ingredients market government reports stated that the incidence of overweight and obesity among the adult population has reached 47.7% in 2015 from 21.0% in 1996. To overcome the health issues due to high levels of sugar consumption, the nation’s government 2019 implemented a tax on sugary beverages that have added sugar of 5g or higher amount per 100ml of carbonated drinks. The tax was USD 0.09 per liter. In India, approximately 5.8 million people die due to various non-communicable diseases including diabetes, cardiovascular diseases, and cancer each year and the expert groups have confirmed that can be prevented with proper dietary habits. As a part of it, the government is working on implementing the front of the package labeling to achieve sugar reduction. Similar were the trends in other countries of the region including Thailand sugar reducing ingredients market, the Phillippines sugar-reducing ingredients market, China, Singapore sugar reducing ingredients market, etc. These increasing government initiatives are expected to create opportunities for sugar-reducing ingredient manufacturers during the forecast period in the region.
The major countries studied are the U.S., Canada, Mexico, Germany, France, the UK, Italy, Spain, Â China, Japan, India, Australia and New Zealand, South America, the Middle East, and Africa.
Figure 3: SUGAR REDUCING INGREDIENTS MARKET SHARE, BY REGION 2022
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The North America sugar reducing ingredients market comprises US, Canada, and Mexico and held the second-largest market share in 2022. 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. Centre for Disease Control and Prevention data highlights that presently an average American adult man consumes 19 teaspoons of sugar, whereas an average woman consumes 15 teaspoons of sugar and excessive sugar consumption has resulted in several diseases including weight gain and obesity, type 2 diabetes, high blood pressure, and tooth decay. Given the above-stated factors, many states in the US sugar reducing ingredients market have implemented several steps like the sugar tax; National Salt and Sugar Reduction Initiative; National Strategy on Hunger, nutrition, and Health; etc. which have made the ingredients manufacturer launch sugar-reducing ingredients and expand the businesses further. Moreover, the FDA in 2020 mandated food and beverage manufacturers in the revenue bracket USD 10 million and above to add the “added sugars” label in complement with the “total sugars” and required the food processors in the revenue bracket below USD 10 million to follow the same in 2021. The labeling recommendations have impacted consumers buying behavior significantly suggested the International Food Information Council’s (IFIC)’s 2021 survey. Thus, these increasing government initiatives are driving the growth of the sugar-reducing ingredients market in the North American region
The Europe sugar reducing ingredients market is one of the prominent regions across the globe that includes most of the developing countries such as Germany, Italy, Spain, the UK, and France. 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. The Childhood Obesity Plan’s Sugar Reduction Programme of the UK sugar reducing ingredients market government has directed manufacturers in the food industry to reduce the sugar content by 20% in 2020 which has positively impacted the growth of sugar-reducing ingredients these years. For instance, the estimates of the Union of European Soft Drinks Associations highlighted that the European soft drinks industry has achieved a sugar reduction of approximately 17.7% over 2015-2021 and has goals to reduce an additional 10% further by 2025. Also, initiatives like Public Health England guidelines on sugar reduction, and WHO European region’s Sugar and Calorie Reduction Network are driving the growth of the sugar-reducing ingredients market and are expected to create more lucrative opportunities during the forecast period.
Sugar Reducing Ingredients Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their Application lines, which will help the Sugar Reducing Ingredients market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new Application launches, contractual agreements, mergers and acquisitions, partnerships with local manufacturers in key markets, increased investments, and marketing initiatives to strengthen their presence. Competitors in the Sugar Reducing Ingredients industry must offer innovative Applications that are trending to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global sugar reducing ingredients industry to benefit clients and expand the sugar reducing ingredients market sector is a strategic partnership that gives a competitive advantage over the other players in the market.
Ingredion Incorporated is a global ingredient solutions company. The company is involved in the production of starches, nutrition ingredients, sweeteners, and biomaterials that are utilized in products from foods and beverages to paper and pharmaceuticals. The product portfolio of Ingredion comprised glucose syrups, refined corn oil, polyols, corn gluten meal, high maltose syrup, food-grade starches, caramel color, dextrose, high fructose corn syrup, glucose and syrup solids, and maltodextrins. The Ingredion company endeavors to provide its customers with gluten-free and high-fiber foods. The company offers its products to customers in several sectors, such as food, beverage, pharmaceutical, brewing, paper and corrugating, and animal nutrition. Ingredion directly markets its products to various distributors and manufacturers. The company also sells and manage its customer across 120 countries across the globe.
ADM (Archer Daniels Midland Company) is one of the producers, processors, and transporters of various agricultural products, and ingredients. The company also offers various products for commodities. ADM also operates its nutrition business which focuses on both animals and humans. ADM manufactures various ingredients for food and beverages, and the other products offered by the company are made of wheat, corn, oilseeds, and other agricultural commodities. The product portfolio of the company includes various natural colors and flavors, nutrition and health products, flour, corn sweeteners, vegetable oil, biofuels, and animal feed. In addition, ADM also stores cleans, and transports various agriculture commodities including oilseeds, oats, corn wheat, barley, milo, and other products sourced from grain producers across the globe. The company is also a major producer of ethanol, starches, and corn-based sweeteners. Moreover, the company also offers services including logistics, transport, and farmer services. Apart from the US, the products offered by ADM are transported to different regions across the globe, as it has operations in the Americas, Asia Pacific, Europe, and the Middle East & Africa.
Key Companies in the Sugar Reducing Ingredients market include
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.
September 2019Â Cargill Incorporated made an investment of $ 5 Mn in its chocolate facility based in Belgium, to improve its sugar reduction capabilities in chocolates. This investment was done by the company to develop a diverse range of sugar replacements
March 2018 ADM announced the agreement to the acquisition of 50% of Russian firm Aston Foods and Food Ingredients, the company mainly operates in the business of starches and sweeteners. This strategic move made by ADM has enabled its business in the Russian market.
Sugar Reducing Ingredients Market Segmentation
Sugar Reducing Ingredients Type Outlook
Sugar Reducing Ingredients Application Outlook
Sugar Reducing Ingredients Distribution Channel Outlook
Sugar Reducing Ingredients Regional Outlook
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