Global Neotame Market - 2023-2030

Overview

Global Neotame Market reached US$ 16.50 million in 2022 and is expected to reach US$ 27.92 million by 2030, growing with a CAGR of 6.8% during the forecast period 2023-2030.

Neotame is derived from aspartame and is 7,000 to 13,000 times sweeter than table sugar. Neotame is one of the most used artificial sweeteners in the world. This high-intensity sweetener water-soluble sweetener achieved FDA approval in 2002. It is a sweetener and flavour enhancer in various food and beverage applications.

Consumers who are conscious about their calorie intake are shifting their preference from sugar to artificial sweeteners such as neotame, which is non-caloric and provide flavor to the food product, increasing the market demand. Along with the consumer's interest, manufacturers also benefit from the use of the neotame as it requires only a lower amount to produce the needed taste and flavor of the products, helping food product manufacturers to maintain their production costs.

With the increasing demand for the product in the market, neotame manufacturers are also taking ways various new and convenient ways to approach the end-users with the help of various distribution channels such as health stores, pharmacies and other offline stores. The high availability and accessibility of the product through the e-commerce platform boost market sales.

Dynamics

Increasing Demand for Sugar-Free and Low-Calorie Sweeteners

Increasing health concerns about high-calorie intake are increasing the demand for low-calorie sugar alternatives in the world. According to the WHO statistics for 2022, more than 1 billion people worldwide are currently suffering from obesity. In total value, there are about 650 million adults and 340 million adolescents. The severity of obesity is also critical in children accounting for up to 39 million.

According to the IDF Diabetes Atlas of 2021, there are 537 million adults living with diabetes globally. According to the organization, the prevalence of diabetes is increasing vigorously and is estimated to reach 643 million by 2030. The rising prevalence of obesity and diabetes worldwide is improving the need for low-sugar or sugar alternatives to be used in various food and beverage applications, positively driving the market demand.

Increasing Neotame Applications in Multiple Sectors

The artificial sweetener, neotame has various applications in food and non-food applications such as pharmaceuticals, cosmetics and animal feed. It is free from off taste and induces a sweetening effect promoting its use in food and pharmaceutical applications. For instance, in May 2022, MilliporeSigma introduced the sugar-like flavor Neotame Emprove Essential NF excipient, a high-intensity sweetener to mask the bitter flavor of active pharmaceutical ingredients.

The good heat stability of neotame highlights its use in the baking industry. In the beverage industry, it is used as flavor enhancer and artificial sweeter in carbonated and on-carbonated beverages. Its stability during the fermentation process drives its use in the manufacturing of dairy drinks. In animal feed, it is used as a seasoning and feeding-promoting agent. Further, it is used as a fixative agent in the cosmetic industry.

Health Risks Associated with the Use of Non-Sugar Sweeteners

In May 2023, the World Health Organization released new guidelines and advised not to use non-sugar sweeteners such as neotame, aspartame and others for weight control. Through the studies conducted, WHO concluded that there are no long-term benefits of using these non-sugar sweeteners in reducing body fat and helping in reducing weight.

In addition, the organization also revealed that the long-term use of these non-sugar sweeteners may result in undesirable health risks of type 2 diabetes and cardiovascular diseases. With the high suggestions and recommendations from WHO and other organizations, consumers are actively looking for other ways of reducing their sugar intake and reducing their consumption of non-sugar sweeteners such as neotame, hindering the market growth.

Segment Analysis

The global neotame market is segmented based on form, functionality, distribution channel, end-use and region.

High Demand for Natural and Low-Calorie Food Products

The food and beverage segment with its high demand for artificial sweeteners in the food and beverage sectors, accounted for the largest share of the global market. FDA regulates it as a food additive and various food and beverage industries are highly using neotame as artificial sweeteners in multiple food and beverage products.

With the increasing health concerns related to high sugar and calorie consumption, consumers are shifting their focus to adopt low-calorie and sugar-free products. With the increasing consumer interest in adopting natural ingredients, manufacturers are increasing their use of neotame in various food applications to attract health-conscious consumers.

In various food products such as confectionery, beverages and desserts, neotame is used as an artificial sweetener. The water-soluble, pH stability and heat stability nature drives its use in both culinary and baked products. It improves the sweetening & flavouring properties of some of the flavours.

Geographical Penetration

Increasing Health Consciousness Among People

In countries such as India and China of Asia-Pacific, sugar is a widely used ingredient in various food and beverage products to improve their taste. The high sugar content of food products is increasing health concerns such as overweight and diabetes in the region, making consumers acknowledge their calorie intake and choose among sugar substitutes.

According to International Diabetes Federation 2021, in India, 74.2 million people are living with diabetes and it is predicted to rise by 1.7 times by 2045. As per the Indian Council of Medical Research, India Diabetes study published in 2023, the prevalence of diabetes is 10.1 crores. According to World Obesity Atlas 2023, in India, the annual increase in child obesity 2022-2035 is very high accounting for up to 9.1%. The overweight impact on national GDP 2035 is expected to be 1.8%.

To reduce the increasing health concerns related to high-calorie intake, consumers are shifting toward the use of non-caloric artificial sweeteners. The use of aspartame, neotame, isomaltulose and other artificial sweeteners in food products, was allowed by the FSSAI in the country. According to a recent survey from Local Circle, about 38 % of urban Indians consume artificial sweeteners monthly.

Competitive Landscape

The major global players in the market include: Foodchem International Corporation, Fooding Group Limited¸ Guangzhou Liangjian Food Co., Ltd, WuHan HuwSweet Co Ltd., Avanschem, Fengchen Group Co., Ltd, SCM Pioneering Co., Ltd., MUBY Chemicals, BANGYE Company and Pat Impex.

COVID-19 Impact Analysis

The COVID-19 pandemic moderately impacted the global neotame market. The market faced both positive and negative impacts during the pandemic time. The sudden outbreak of the pandemic created several challenges on a global basis. Improper facilities created disruptions in the global supply chain activities including the interrupted demand supply chain of raw materials and finished goods.

Manufacturers faced challenges in souring in raw materials are arrangements required resources for the manufacturing of the neotame and neotame-based products. The reduced production of neotame-based products decreased the market demand in the initial pandemic period. On the other hand, the high risk of sugar-based products on human health created awareness among consumers to take to sugar and low-calorie food products, driving the need for artificial sweeteners in the market.

Russia- Ukraine War Impact

The international conflict between Russia and Ukraine has impacted various industries in a negative way, including the neotame market. The war interrupted trade transitions at the global level causing challenges for the manufacturers in souring the raw materials and distributing the finished product among worldwide consumers. The political conflict also caused price fluctuations.

By Form

• Powder
• Liquid

By Functionality

• Flavour Enhancer
• Sweetener
• Others

By Distribution Channel

• Health & Beauty Store
• Pharmacies/Drugstores
• E-Commerce
• Others

By End Use

• Food and Beverage
  • Bakery
  • Confectionary
  • Candies and Jellies
  • Chewing gums
  • Beverage
  • Desserts
  • Dairy Segment
  • Ice Creams
• Pharmaceuticals
• Animal Feed
• Cosmetics and Personal Care
• Other

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In May 2023, Foodchem International Corporation participated in the Vitafoods Europe 2023, the premier European exhibition for nutrition and health food products and projected a diverse range of health product ingredients and cutting-edge sweetener solutions.
• In August 2022, Wuhan HuaSweet Co., Ltd was successfully selected into the fourth batch of technologically advanced little giant enterprises published by Hubei Provincial Department of Economy and Information Technology.
• In November 2022, Pharma's almanac expanded its taste optimization portfolio and launched a new product, Neotame Emprove Essential NF into the market.

Why Purchase the Report?

• To visualize the global neotame market segmentation based on form, functionality, distribution channel, end use and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of neotame market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global neotame market report would provide approximately 69 tables, 70 figures and 204 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies