Market Research Report
Natural Sweeteners - Global Market Outlook (2021 - 2028)
|Natural Sweeteners - Global Market Outlook (2021 - 2028)|
Published: April 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
Delivery time: 2-3 business days
According to Stratistics MRC, the Global Natural Sweeteners Market is accounted for $3.16 billion in 2021 and is expected to reach $5.93 billion by 2028 growing at a CAGR of 9.4% during the forecast period. Natural sweeteners are the substances that provide a sweet taste to food and beverages. They are widely used as an alternative to artificial sweeteners. These sweeteners are widely used by geriatric population and aging, especially when they are following exercise and diets. Natural sweeteners, in comparison to nonnutritive sweeteners, contain calories and nutrients, are metabolized, and change as they pass through the body. They include agave nectar, brown rice syrup, date sugar, honey, maple syrup, molasses and blackstrap molasses, sorghum syrup and stevia.
Rising health-consciousness among consumers
Owing to the new product launches and growing awareness regarding preventive healthcare alternatives, consumers are increasingly getting aware of their nutritional needs. Hence, with growing health consciousness, consumers are now shifting towards healthier choices with respect to the consumption of various food & beverage products. Recent consumer trends involve a demand for low-calorie, reduced sugar, and all-natural & organic ingredient-based products, owing to the various health benefits offered and rising incidences of chronic diseases across the globe as a result of unhealthier dietary lifestyles. Among that, too, the majority of the health-conscious consumers are preferring products containing natural sweeteners because they contain fewer calories than conventional sugar and also is less prone to side effects on human health as compared to artificial sweeteners. Consumption of natural sweeteners helps in providing various health benefits for consumers opting to lead a healthier lifestyle.
High cost f natural sweeteners
The raw materials required for the production of artificial sweeteners can e easily procured as compared to that of natural sweeteners. The costs of these natural raw materials are generally higher than the chemicals required manufacturing artificial sweeteners. Also, the processing of artificial sweeteners consumes lesser effort and time than that of natural sweeteners. Natural sweeteners have to undergo various tests and trials and labeling norms & regulations to be labeled as a natural sweetener. All these factors accumulatively add up to the costs of production, ultimately leading to adding up in the cost price. Thus, natural sweeteners are premium priced as compared to artificial sweeteners. This may possess a challenge in the growth of the natural sweeteners market.
Increasing R&D activities
The successful research and developments in the sweetener market for the production of safer and better products to cater to the increasing demand of consumers for safe, health-benefiting products would create a huge growth opportunity for the sweeteners market, and, in turn, for the natural sweeteners market, in the coming years. Researchers are coming with new ranges of natural sweetener products to meet the growing need of consumers for health-promoting products. For instance, monk fruit sweeteners are introduced by the major players in the food & beverage industry, owing to its numerous health benefits and higher safety levels. ADM provides three ranges of monk fruit sweeteners under the brand name SweetRight. ADM launched these monk fruit sweeteners in 2017 through its partnership with GLG Life Tech Corporation (Canada). Monk fruit sweeteners have numerous food and beverage applications, including juices, soft drinks, dairy products, candies, desserts, and condiments.
Doubtfulness among the consumers
Overconsumption of natural sweeteners can lead to health problems, such as tooth decay, weight gain, poor nutrition, and increased triglycerides. Stevia is a non-nutritive or zero-calorie sweetener made of steviol glycosides. When used as a sweetener or to flavor foods, experts do not consider highly purified stevia to cause adverse side effects. While several studies have identified potential side effects of stevia over the last few decades, most were done using laboratory animals, and many have since been disproved. The United States Food and Drug Administration (FDA) only consider high-purity steviol glycosides to be safe for human consumption currently. Because the FDA has not approved crude stevia extracts and stevia leaves as a food additive, companies are not allowed to market them as sweetening products. According to the FDA, the acceptable daily intake for stevia glycosides is 4 milligrams (mg) per kilogram of body weight.
The beverages segment is expected to be the largest during the forecast period
The beverages segment is estimated to have a lucrative growth. Stevia is a key natural sweeteners used in beverages. It is a preferred natural sweetener with reduced-calorie and zero glycemic indexes, which is used to produce numerous versions of energy drinks, soft drinks, ready-to-drink teas, flavored water, and fruit juices. Other natural sweeteners, such as erythritol and xylitol, are also preferred among key players in the beverage industry. The natural sweeteners are currently preferred in beverages, such as diet carbonated drinks, flavored water, and other beverages. Thus, the expansion of the consumer base for beverage products provides an incentive for developing new natural sweeteners and products, thereby driving the growth of the market during the forecast period.
The stevia segment is expected to have the highest CAGR during the forecast period
The stevia segment is anticipated to witness the fastest CAGR growth during the forecast period. China is one of the leading exporters of stevia products across the globe. Moreover, stevia sweeteners do not contribute carbohydrates or calories to the food and beverage it is added to. It also does not affect blood glucose or insulin response. Owing to this, people with diabetes can consume a wider variety of foods and comply with a healthy meal plan by substituting sugar with stevia. The sweet-tasting components of stevia are called steviol glycosides, which are naturally present in the stevia leaf. There are eleven major steviol glycosides present in stevia. These are the sweet components isolated and purified from the leaves of stevia. Out of these eleven steviol glycosides, stevioside and rebaudioside A are the most abundant steviol glycosides. Also, stevia comprises several sterols and antioxidant compounds, including kaempferol. Kaempferol can reduce the risk of pancreatic cancer by 23%. Hence, with such widespread acceptability and availability of stevia, it is expected to drive the market growth.
Region with highest share:
North America is projected to hold the largest market share during the forecast period due to the increased prevalence of diabetes and obesity in the region, which is motivating people to switch from conventional to natural sweetener consumption. According to the Center for Disease Control and Prevention (CDC), in 2017, more than 100 million U.S population was found to be living with diabetes or prediabetes. Diversified applications of natural sweeteners and availability of various food and beverages with natural ingredients are factors contributing to revenue growth of the market in the region.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period owing to the exponentially growing demand for natural sweeteners in preparation of Asian food products, such as sauces, pastes, pickles, and others. Rising the aging population and inclination of consumers towards a healthy lifestyle is also projected to play a significant role in boosting the growth of the natural sweeteners market of the region. As the volume of global trade is rising, the companies having their manufacturing facilities across this region are increasingly demanding natural sweeteners so as to export their products in countries where the demand for products made with natural sweeteners is growing tremendously. The growing focus of consumers in countries like China, India, and Japan to stay fit and healthy is also propelling the APAC regional market growth.
Key players in the market
Some of the key players profiled in the Natural Sweeteners Market include Ajinomoto Co, Archer Daniels Midland Company, Associated British Foods plc, Cargill, Inc, Dohler GmbH, Dupont, Heartland Food Products Group, LLC, Ingredion Incorporated, Koninklijke DSM N.V., Nestle SA, Raizen S.A., Sweegen, Symrise AG, Tate and Lyle PLC, and Wilmar International Limited.
In May 2021, Ingredion Incorporated has made research & development collaboration with Amyris for development of sustainably sourced, nature-based sweeteners, zero-calorie, and potentially other types of fermentation-based food ingredients.
In June 2020, Sweegen announced its successful commercial production of Reb B (Bestevia Rebaudiosides). It is a highly soluble stevia sweetener providing good performance in a range of applications, especially beverages.
In April 2020, Ingredion acquired a 75% controlling stake in PureCircle for an undisclosed amount. PureCircle manufactures natural sweeteners such as stevia for food & beverage industry. With this acquisition, PureCircle will benefit from Ingredion's diverse product portfolio and global distribution network, which will result in significant growth benefits and considerable cost savings for both firms.
In July 2020, Tate & Lyle launched the VANTAGE sweetener solution design tools. It is a set of new and innovative sweetener solution design tools along with an education program, which is designed for creating sugar-reduced food and drinks using low-calorie sweeteners.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.