Reduced Sugar food beverage Market

Rising Prevalence of Obesity

Nowadays obesity has been a common disease that occurs when an individual’s weight is higher than what is considered healthy for his/her height. The disease affects children as well as adults, there are various factors that have contributed to excess weight gains such as eating patterns, physical activity levels, and sleep routines apart from these factors’ genetics, social determinants of health, and medication consumed also plays an important role in weight gain. Due to this people are more focused on consuming healthy foods and beverages that are sugar-free which will assist in overcoming obesity and other related diseases.

For instance, a team from Emmanuela Gakidou of the Institute for Health Metrics and Evaluation at the University of Washington, in January 2022, published that obesity is becoming an increasing concern among the population, as it can also increase the change of numerous health problems, such as blood pressure, stroke, diabetes, and heart disease. At present, the top countries where half of the obesity population resides are the US, China, Russia, Brazil, Mexico, Egypt, Germany, Pakistan, and Indonesia.

Which US had the highest increase in the prevalence of adult obesity, this is followed by Australia where 28% of men and 30% of women have obesity, and in the UK a quarter of the adult population has obesity.

Due to this, the World Health Organization (WHO) had launched a campaign to stop increasing obesity by 2025. Also, according to WHO excessive consumption of sugar consumption is a key factor that increases obesity and diabetes. Reducing sugar intake lowers the risk of developing overweight and obesity. In 2021, the World Health Organization (WHO) recorded, a minimum of 1.9 billion adults who are 18 years and above worldwide were overweight, and of these, more than 648 million were obese.

The key players are also launching products that are reducing sugar and are assisting market growth. For instance, in May 2018, nestle launched an addition to its Milky bar range that contains 30% less sugar compared to ordinary chocolate bars. The product name is Milky bar Wow which contains all-natural ingredients and no sweeteners.

Government initiatives aimed at reducing sugar intake significantly influence the Global Reduced Sugar Food and Beverages Market Industry. Various countries have implemented regulations and guidelines to limit sugar consumption, particularly among children. For instance, taxes on sugary drinks have been introduced in several nations, encouraging manufacturers to innovate and provide healthier alternatives. This regulatory landscape not only promotes public health but also creates a favorable environment for reduced sugar products. As a result, the market is expected to expand, potentially reaching 153.4 USD Billion by 2035, driven by compliance with these regulations and the growing consumer preference for healthier options.

The increasing awareness of health and wellness among consumers drives the Global Reduced Sugar Food and Beverages Market Industry. As individuals become more informed about the adverse effects of excessive sugar consumption, they actively seek alternatives that align with healthier lifestyles. This trend is particularly evident in regions like North America and Europe, where consumers are gravitating towards products labeled as low-sugar or sugar-free. The market is projected to reach 69.5 USD Billion in 2024, reflecting a growing demand for reduced sugar options. Brands are responding by reformulating existing products and introducing new ones that cater to this health-conscious demographic.

The Global Reduced Sugar Food and Beverages Market Industry is projected to experience robust growth in the coming years. With a market value of 69.5 USD Billion in 2024, it is expected to reach 153.4 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 7.46% from 2025 to 2035. Such projections reflect the increasing consumer demand for healthier food and beverage options, driven by health consciousness, regulatory support, and innovative product development. The market's expansion is likely to create opportunities for manufacturers and retailers to capitalize on the growing trend towards reduced sugar consumption.

Shifts in consumer preferences towards healthier eating habits are a significant driver of the Global Reduced Sugar Food and Beverages Market Industry. As more individuals prioritize nutrition and wellness, there is a marked decline in the consumption of traditional sugary products. This change is particularly pronounced among younger demographics, who are more inclined to choose reduced sugar options. Brands are responding by reformulating existing products and launching new lines that emphasize lower sugar content. This evolving landscape is expected to propel the market forward, with projections indicating a substantial increase in demand for reduced sugar products in the coming years.

Innovation plays a crucial role in shaping the Global Reduced Sugar Food and Beverages Market Industry. Companies are increasingly investing in research and development to create new formulations that maintain taste while reducing sugar content. This includes the use of natural sweeteners and advanced processing techniques that enhance flavor without compromising health benefits. The introduction of innovative products, such as low-sugar snacks and beverages, caters to diverse consumer preferences and dietary needs. This trend is likely to contribute to a compound annual growth rate of 7.46% from 2025 to 2035, as brands strive to meet the evolving demands of health-conscious consumers.

The expansion of distribution channels and increased availability of reduced sugar products significantly impact the Global Reduced Sugar Food and Beverages Market Industry. Retailers are increasingly stocking a variety of low-sugar options, making them more accessible to consumers. This trend is observed in both physical stores and online platforms, where consumers can easily find and purchase reduced sugar alternatives. The growing presence of these products in mainstream retail settings enhances consumer awareness and encourages trial. As a result, the market is poised for growth, with an anticipated increase in sales as more consumers opt for reduced sugar choices.

By Region, the study segments the market into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. Asia Pacific reduced sugar food & beverages accounted for largest market share in 2021 and is expected to exhibit an fastest-growing 8.19% CAGR during the study period. The growth of reduced sugar food & beverages in Asia-Pacific can be attributed to the healthier consumption habits coupled with the wellness awareness among the consumers.

In North American nations like the U.S. and Canada, reduced sugar in food & beverages has been inclining due to the rising popularity of sugar-free products with reduced sugar. The region's growing population of health-conscious consumers is anticipated to fuel the steady expansion of the sugar business. Further, the major countries studied are: The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia & New Zealand.

Figure 4: GLOBAL REDUCED SUGAR FOOD & BEVERAGES SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America Reduced sugar food & beverages is one of the largest market in the global reduced sugar food and beverages market, with the United States and Canada being the major contributors. In recent years, the region has witnessed a significant shift towards a healthier lifestyle, leading to a rise in demand for reduced sugar products. The region is also witnessing an increase in the number of diabetic patients, which has further boosted the demand for low-sugar products.

The market is driven by factors such as the rising prevalence of lifestyle diseases, increasing awareness about health and wellness, and the availability of a wide range of products. The US and the Canadian government have also taken initiatives to promote healthier lifestyles, such as imposing a tax on sugary drinks. According to the Centers for Disease Control and Prevention (CDC), over 41.9% of U.S. adults are obese, and over 37 million people have diabetes. This has led to a growing demand for healthier alternatives to traditional sugary products.

In Canada, the federal government has implemented a number of policies aimed at reducing sugar consumption. Diabetes Canada recommends that Canadians limit their intake of added sugars to no more than 10% of their daily calories.

Europe is another key market for reduced sugar food and beverages. The market in Europe is more mature than in North America, with many consumers already accustomed to low-sugar products. As a result, manufacturers have had to innovate to meet the growing demand for healthier alternatives.

In the WHO European Region, over 60% of adults and 29% of boys, and 27% of girls who are youngsters are overweight or obese. This has led to an increase in the incidence of obesity-related diseases such as diabetes and heart disease. The adoption of reduced sugar food and beverages can help to lower the risk of these diseases. The United Kingdom reduced sugar market is one of the largest markets for reduced sugar food and beverages in Europe. The country has one of the highest obesity rates in Europe, with over 63% of adults being overweight or obese.

This has led to a growing demand for healthier alternatives to traditional sugary products. In response, manufacturers have developed a range of low-sugar and sugar-free products, including soft drinks, confectionery, and baked goods.

The Asia-Pacific region has become a significant player in the global reduced sugar food and beverage market, and the trend towards healthier consumption habits is continuing to grow. The region is home to some of the world's most populous countries, including China and India, and with an increasing focus on health and wellness, there has been a shift towards healthier food and beverage options. In a recent survey conducted by EY-Parthenon, it was found that 48% of consumers in the Asia-Pacific region are willing to pay more for healthy/” good for me” products.

The survey also revealed that the top reasons for choosing products were health concerns and weight management. One of the most significant contributors to the growth of the reduced sugar food and beverage market in the Asia-Pacific region is the increasing demand for low-calorie and low-sugar beverages. In China, for example, In a KuRunData study of 1,043 Chinese customers, around 81 percent of those polled indicated they preferred sugar-free drinks to regular ones at the same price point.

Thus , the Asia Pacific segment accounted for a market share of 32.66% in 2021 and is expected to register a CAGR of 8.19% during the review period.

Major market players are applying a lot of money on R&D to increase their product lines, which will help the reduced sugar food & beverages grow even more. Market applicants are also taking on a range of strategic enterprises to grow their worldwide footprint, including, contractual agreements, new product launches, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the reduced sugar food & beverages industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment. Many global, regional, and local vendors characterize the reduced sugar food & beverages market.

The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The market vendors’ growth depends on market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving services. Nestle SA (US), PepsiCo Inc. (US), Coca Cola (US), Kraft Heinz (US), Kellogg Company (US), The Hershey Company (US), Conagra Brand (US), Mars Inc. (Virginia), Unilever (UK), Mondeleze.

One of the main business approaches adopted by manufacturers in the global reduced sugar food & beverages industry to benefit clients and expand the reduced sugar food & beverages sector is to manufacture locally to reduce operating costs.