Sugar Alternative Market Analysis

Global Sugar Alternative Market Overview

Sugar Alternative Market Size was valued at USD 17.66 billion in 2023. The Sugar Alternative industry is projected to grow from USD 18.45 Billion in 2024 to USD 25.15 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.94% during the forecast period (2024 - 2032). Increasingly concerned about their health and favoring low-calorie and healthier diets are the key market drivers enhancing the sugar alternative market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Sugar Alternative Market Trends

• Health Effects of Sugar Overconsumption and Favourable Government Policies in Different Countries are Driving the Market Growth

Urbanisation has risen recently as a result of rapid industrialization around the globe. With more time spent at work and less exercise, people live increasingly sedentary lives. As a result, their bodies' imbalanced energy intake is to blame. The number of calories consumed outweighs the number of calories burnt by the body. Obesity and fat storage in the body result from calorie-dense food consumption. Several health issues, including type 2 diabetes, cardiovascular disease, high blood pressure, and cancer, are brought on by obesity. As a result, customers have become increasingly demanding low-calorie sweeteners for food and beverages in recent years. One of the main causes of the rise in people with diabetes worldwide is the massive consumption of sugar and sugar-based food items in nations like the United States, China, Japan, and India.

Additionally, the International Diabetes Foundation reports around 537 million diabetics ly. People with diabetes cannot absorb sugar because their cells grow resistant to insulin. Thus, this factor is driving the Sugar Alternative market CAGR.

The usage of goods without added sugars and sweeteners has greatly expanded due to consumers' rising preference for healthy foods and growing attention to excellent health and wellness. National government initiatives in France and the U.K. to limit sugar consumption through selective taxes, product reformulations, and explanatory front package labels would aid Sugar Alternative market expansion. These initiatives support WHO's 2015-2020 European Food and Nutrition Action Plan's policy recommendations for a better food environment.

Twenty government agencies enacted levies in 2015 due to the World Health Organization's 2013–2020 Action Plan for the Prevention and Control of Non communicable Diseases (GAP), particularly for Sugar-sweetened Beverages (SSB). By the middle of 2018, 39 nations had implemented nutrition levies and had increased their adherence to measures of voluntary sugar reduction. The Indian NITI Aayog also suggested in 2022 that the Indian government implement tariff regulations for foods with high sugar content. Thus, this aspect is anticipated to accelerate Sugar Alternative market revenue.

Sugar Alternative Market Segment Insights

Sugar Alternative Type Insights

The Sugar Alternative market segmentation, based on type, includes High Fructose Syrup, High-Intensity Sweeteners, and Low-Intensity Sweeteners. The High-Intensity Sweeteners segment dominated the market, accounting for 35% of Sugar Alternative market revenue. The market will expand due to the rising incidence of noncommunicable illnesses, rising demand for low-calorie sweeteners, several health advantages offered by sugar replacements, and rising interest in natural and ecologically responsible alternatives to conventional sugar.

Sugar Alternative Distribution Channel Insights

The Sugar Alternative market segmentation, based on distribution channels, includes store- based and non-store based. The store-based category generated the most income. The store-based distribution channel has been further divided into convenience shops, specialty merchants, supermarkets & hypermarkets, and others. A store-based business claims to sell all the necessities under one roof, saving clients the trouble of visiting several shops to make purchases. Customers benefit greatly from this factor's tremendous ease, time, and energy savings, promoting Sugar Alternative's market expansion.

Figure 1:  Sugar Alternative Market, by Distribution Channel, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Sugar Alternative Application Insights

Based on Application, the Sugar Alternative industry has been segmented into Food, Beverages, Cosmetics & Personal Care. Beverages held the largest segment share in 2022. This results from customers' rising demand for formulations with little or no calories. Additionally, as people gravitate towards organic, natural, practical, and useful beverages, the Sugar Alternative market for sugar alternatives, notably natural sweeteners produced from monk fruit, agave, and stevia, is predicted to expand.

Sugar Alternative Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Sugar Alternative market accounted for USD 7.74 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. One of the world's biggest markets for these goods in North America. The rising need to promote the use of low-calorie foods in the area is one of the main motivators. The primary factor anticipated to propel the growth of the sugar alternatives market is the adoption of healthy meals and beverages among North American consumers. Due to changes in socioeconomic and demographic factors, food patterns in the United States have drastically changed. The younger generation enjoys experimenting with novel and innovative goods. Regulatory developments in the U.S. that consider sugar addition in a minimal or needed quantity coincide with knowledge of diet-related disorders. Additionally, in many goods that traditionally include sugar, the food and beverage sector is increasingly substituting artificial sweeteners for sugar.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SUGAR ALTERNATIVE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Asia Pacific Sugar Alternative market industrialization has increased middle-class households' discretionary income. As a result, there is now more demand for goods that improve health, such as wholesome food. There is a rising desire for meals and drinks with fewer calories in Asia and the Pacific. Rising consumer health consciousness is blamed for this surge, fueling the Sugar Alternative market's expansion. Sugar substitutes are frequently employed in drinks, ice cream, powdered drink mixes, sauces, jellies, puddings, sweets, dairy products, powdered drink mixes, and other refined foods. Moreover, China’s Sugar Alternative market held the largest market share, and the Indian Sugar Alternative market was the fastest-growing market in the Asia-Pacific region.

Different sugar substitutes, including stevia, sugar alcohols, sucralose, and comparable products, are very well-liked by customers in the Europe Sugar Alternative market. This has prompted producers of sugar alternatives to consider the possibilities of creating novel, excellent, delicious, and nutrient-rich goods for the market. European food and beverage manufacturers are seeking safe and sustainable sweeteners for consumers to consume. The lack of calories in stevia and monk fruit sweeteners is one of their main selling points. European consumers are becoming more aware of stevia, and its uses in food and beverage items are growing. Consumers in Europe are becoming more and more interested in items that are natural and healthy. Additionally, it's thought that the manufacture of stevia has less of an environmental impact than regular sugar. Further, the German Sugar Alternative market held the largest market share, and the U.K. Sugar Alternative market was the fastest-growing market in the European Region.

Sugar Alternative Key Market Players & Competitive Insights

Leading industry companies are making significant R&D investments to broaden their product offerings, which will spur further expansion of the market for Sugar Alternative products. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The Sugar Alternative industry must offer reasonably priced products to grow and thrive in a more competitive, cutthroat environment.

One of the primary business strategies manufacturers employ in the worldwide Sugar Alternative industry to benefit customers and expand the market sector is local manufacturing to reduce operating costs. The Sugar Alternative industry has recently provided some of medicine's most important benefits. Major players in the Sugar Alternative market, including Cargill Incorporated (U.S.), E. I. du Pont de Nemours and Company (U.S.), Roquette Freres S.A. (France), Tate & Lyle PLC (U.K.), Archer Daniels Midland Company (U.S.), Ingredion Incorporated (U.S.), Ajinomoto Co. Inc. (Japan), and others, are attempting to increase market demand by investing in research and development operations.

Tate & Lyle PLC is a multinational provider of ingredients for food and beverages to industrial sectors, headquartered in Britain. It started as a company that refined sugar, but starting in the 1970s, it started to diversify. In 2010, it sold its sugar business. Tate & Lyle plc announced in December 2020 that it had acquired Sweet Green Fields (SGF), a provider of stevia solutions. Tate & Lyle could access a fully integrated stevia supply chain because of this purchase, including leaf varietal development, leaf procurement, and cost-effective production.

Cargill's sweetener has characteristics like sugar, maize sweeteners, erythritol, liquid sucrose, stevia, polyols, and many others. Cargill introduced their stevia products with EverSweet + ClearFlo technology in March 2022. This innovative sweetener system, which mixes a natural flavor with Cargill's stevia sweetener, has several benefits, such as flavor modification, quicker dispersion, and enhanced solubility and stability in formulations.

Key Companies in the Sugar Alternative market include

• Cargill Incorporated (U.S.)


• E. I. du Pont de Nemours and Company (U.S.)


• Roquette Freres S.A. (France)


• Tate & Lyle PLC (U.K.)


• Archer Daniels Midland Company (U.S.)


• Ingredion Incorporated (U.S.)


• Ajinomoto Co. Inc. (Japan)

Sugar Alternative Industry Developments

• November 2022: Tate & Lyle introduced ERYTESSE, a brand-new sweetener, to its line-up. It is 70% as sweet as sucrose yet has no calories. It may be utilized in various products, including dairy, bread, confectionery, and alcoholic drinks.


• June 2022: When International Flavours & Fragrances Inc. ("IFF") and DuPont's Nutrition & Biosciences ("N&B") combined, certain legal entities related to DuPont's N&B business were transferred to IFF. Through the union of IFF and N&B, a world leader in high-value ingredients and solutions for the food and beverage industry was established. The United firm would be better equipped to fulfill client requests and the expanding demand for natural, healthier, and "better for you" products thanks to its enlarged skill set and worldwide reach.

Sugar Alternative Market Segmentation

Sugar Alternative Type Outlook

• High Fructose Syrup


• High-Intensity Sweeteners


• Low-Intensity Sweeteners

Sugar Alternative Application Outlook

• Food


• Beverages


• Cosmetic & Personal Care


• others

Sugar Alternative Distribution Channel Outlook

• Store-Based


• Non-Store-Based

Sugar Alternative Regional Outlook

• North America


• US


• Canada


• Europe


• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe


• Asia-Pacific


• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific


• Rest of the World


• Middle East


• Africa


• Latin America