Sugar Free Foods Market - 2023-2030

Overview

Global Sugar Free Foods Market reached US$ 15.41 billion in 2022 and is expected to reach US$ 23.64 billion by 2030, growing with a CAGR of 5.5% during the forecast period 2023-2030.

Rising demand for healthy and nutritious food products among health-conscious consumers raises the demand for sugar free foods. Sugar-free foods are gaining popularity among people willing to control their calorie intake. According to WHO 2022, more than 1 billion people are obese globally. The increasing prevalence of such lifestyle diseases increased the use of products with sugar substitutes or natural sweeteners.

With the increasing cases of health issues of sugar consumption, such as obesity and diabetes, the governments of many nations have taken initiative steps to reduce sugar intake by imposing taxes on sugar-containing drinks. In addition, the recommendations from worldwide organizations like WHO to reduce sugar intake may positively affect the market for sugar-free foods.

Increasing consumer awareness of the health benefits of sugar-free foods over sugary product boost market sales. Expanding distribution channels, these products' wide availability, and growing e-commerce platforms and convenience stores fuel the market expansion. Further, the increased affordability of consumers and the significant influence of social media on people's health and lifestyle expand product growth.

Dynamics

Growing Concerns Sugar-Containing Products

Sugar free food products are healthy alternatives to sugar-containing products. Low-calorie values sugar free products help in maintaining a healthy diet. The adverse health effects of sugar and sugar-based products increase sugar-free product demand. The growing consumption of sugar-based products may result in various health issues such as diabetes, obesity, tooth decay and other chronic problems.

The International Diabetes Federation Atlas estimated that around 537 million adults suffer from diabetes in 2021. It is expected to reach up to 643 million by 2030. The increasing prevalence of obesity and diabetes encourages health-conscious consumers to take up sugar-free foods, driving the market growth. Various sugar-free food products help consumers to decrease sugar consumption and help manage lifestyle disorders.

Rising Demand for Healthier Sugar Free Foods

Consumers prefer low-calorie value healthy food. Changing consumer consumption patterns resulted in extensively using sugar substitutes in different foods. Various bakery, confectionery and beverages are produced with sugar free nature. Natural sweeteners like honey are highly in demand for homemade food products. The ability of sugar substitutes to replace the sugar without affecting the product taste favours their use in various foods and beverages.

The major players in the market are producing healthier sugar free products to meet the changing consumer food preferences. For instance, a Canadian cookie-producing company, Voortman Cookies Limited, launched their zero-sugar mini wafers with two different flavors of vanilla and chocolate, in March 2023. No artificial colors and flavors are used in the product. These cookies free-from nature makes it a healthier option.

Adverse Effects of Alternative Sweeteners

Sugar-free products are produced with the help of sugar substitutes such as saccharin, aspartame and others. The excessive consumption of these sugar substitutes causes adverse health effects. According to NIH, the long-term consumption of saccharin may result in health-related issues of liver, kidney and others. Further, the organization also revealed the increased risk of cardiovascular and other health problems related to aspartame.

The growing awareness among people regarding the health challenges of artificial sweeteners is reducing their acceptance, restraining the market growth. In addition, the vast number of sugared product availability and taste issues with artificial sweeteners can hinder the market expansion. Further, high prices of sugar substitutes may increase the product's final price, making it harder for price-sensitive consumers to afford them.

Segment Analysis

The global sugar free foods market is segmented based on product, sweetening type, category, distribution channel, end-user and region.

Increased New and Innovative Product Launches

The global sugar free foods market is segmented based on its product into sugar-free bakery products, dairy products, confectionery, beverages, nutrition & health supplements and others. The sugar free beverage segment holds the largest market share due to its greater demand among sports and fitness enthusiasts. The large penetration of sugar free beverage products in various regions and increased availability may add point to segment growth.

New product launches by manufacturers drive segment growth. For instance, in June 2023, American food company Chobani unveiled the launch of Chobani Zero Sugar Drinks. This nutritious drink is sugar-free and gives consumers an advantage in on-to-go protein options. The product developments with different flavors expands its demand. For instance, Rockstar, an energy drink brand, launched its new zero-sugar energy drinks in new flavors including watermelon, kiwi and strawberry lime.

Geographical Penetration

Increased Health Consciousness Among Consumers

North American region is regarded as the largest region for the global sugar-free foods market due to consumers' rising adoption of sugar-free products to lead a healthy lifestyle. The hectic lifestyles of people push them towards convenient and fast-food products. Most of the processed food products are high in sugars, which may lead to higher calorie intake. Consumers of this region are consuming more sugar free products to stay fit & and physically active.

According to the National Diabetes Statistics Report 2022 by the Centers for Disease Control and Prevention, more than 130 million adults are dealing with diabetes in the United States. Similarly, around 41.9 % of adults and 19.7% of children suffer from obesity. The increasing diabetes and obesity prevalence pushes consumers to purchase sugar-free products.

The key market players of this region are launching new and healthy sugar-free products to gain consumer attention. For instance, PepsiCo, an American multinational food, snack, and beverage corporation, launched their new zero sugar, caffeine-free lemon-lime flavored soda in the United States in February 2023. The increased disposable incomes and wide spread of product availability in all possible sale sectors increase the product reach to consumers, driving the market growth.

Competitive Landscape

The major global players in the market include Mars Wrigley, Coco-Cola, Hershey's, Nestle, The Sugarless Co, Britannia, Fifty50, Newtrition Plus Health, PepsiCo and Smartveda.

COVID-19 Impact Analysis

The COVID-19 pandemic had a significant effect on global sugar free foods. The shortage in raw materials and labor made it harder for the sugar free foods units to produce the required quantities of the products. The supply chain and distribution channel disruptions lowered product distribution and decreased product availability to consumers.

Most companies faced economic losses due to decreased sales during the pandemic. The lower affordability conditions due to reduced income sources made it impossible for middle-class people and price-sensitive consumers to take up high-priced sugar free foods. On the other hand, reduced physical activity increases the prevalence of obesity. According to NIH, there is an increased prevalence of obesity among 2 to 20-year age groups during lockdowns, driving the need for sugar free foods.

The increased consumer health awareness during the pandemic increased demand for healthy food products. People's knowledge regarding reduced sugar and lower sugar products raised the demand for sugar free foods. The change in consumer purchasing behavior also impacted the market growth. The rise in the e-commerce sector and consumer adoption of online food purchasing increased demand for the market.

Russia- Ukraine War Impact

The Russia-Ukraine war had a significant effect on every industry. The food and beverage sectors faced a huge impact due to the war. The disruption in the supply chain activities halted production. Disruption in distribution channels affected the product distribution activities in all sectors. The imbalance in the demand-supply chain negatively affected the market.

The political and economic uncertainty created due to the war had a negative impact on the sugar-free foods market. The import and export trade disruptions resulted in economic disturbances. The war resulted in higher costs of products. Unemployment caused by war decreased the purchasing power of consumers, negatively affecting the market.

By Product

• Sugar-Free Bakery Products
  • Cake
  • Biscuits
• Sugar-Free Dairy Products
  • Milk
  • Ice Cream
  • Others
• Sugar-Free Confectionary
  • Gums
  • Chocolate
  • Sweets & Candies
• Sugar-Free Beverages
  • Soft Drinks
  • Energy Drinks
  • Others
• Sugar-Free Nutrition & Health Supplements
• Others

By Sweetening Type

• Sugar Substitutes Sweetened Sugar-Free Products
  • Polyols
  • Stevia
  • Sucralose
  • Acesulfame Potassium (Ace-K)
  • Luo Han Guo (Monk Fruit) Extract
  • Saccharin
  • Neotame
  • Aspartame
  • Other Sugar Substitutes
• Naturally Sweetened Sugar-Free Products

By Category

• Gluten-Free
• Lactose-Free
• Organic
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience stores
• Online Stores
• Specialty Stores
• Others

By End-User

• Diabetic Patients
• Health-Conscious Individuals
• Others

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 June 2023, U.S-based powdered hydration company, Liquid I.V., launched Sugar-Free Hydration Multiplier. This product is rich in vitamins and electrolytes.
• In February 2023, Pepsi, a carbonated soft drink manufacturing brand of PepsiCo, launched the updated version of its Pepsi Zero-Sugar, with a new and favorable sweetener.
• In June 2022, Sweet Victory, a leading natural and sugar-free chewing gum brand, partnered with Givaudan, a Swiss flavors and fragrance developer, to launch a sugar-free gum that helps deal with sweet cravings in children.

Why Purchase the Report?

• To visualize the global sugar free foods market segmentation based on product, sweetening type, category, 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 sugar free foods 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 sugar free foods market report would provide approximately 77 tables, 82 figures and 189 Pages.

Target Audience 2023

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