The global sweeteners market size was evaluated at USD 102.2 billion in 2022 and is expected to hit around USD 144.86 billion by 2032, growing at a compound annual growth rate (CAGR) of 3.6% over the forecast period 2023 to 2032.
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The sweeteners market comprises the agents that help to substitute sugar but still provide sweetness to food products. There are variations in the calorific value of the final food product. The glycemic response which is provided by these sweeteners also varies according to the type.
Sucrose has been or actual sweetening agent for a long period. The sweetness that is provided by the sweeteners is considerably higher as compared to the natural sweetening agents. A very small amount of the sweetener can provide a substantial level of sweetness to the food product. These sweeteners do not directly contribute to the calorific value of the food product and hence are considered as a first choice by many consumers.
The energy that is provided by beverages and food products containing sweeteners is not like the energy that is provided by natural sugar. The calories that are provided by beverages and food products are considerably lower and hence are majorly preferred by the younger generations. The key market players have been carrying out research and development programs for introducing dietary sweeteners into the market so that sucrose can be replaced.
The outbreak of the pandemic had a marginal effect on the sweeteners market. The amount of sugar consumed by people globally is seen to be stagnated in 2020 because of the increasing demand for artificial sweeteners. People became increasingly conscious regarding their health after the outbreak of the pandemic which resulted in a reduction in sugar intake. Increasing awareness among people regarding the importance of health harmed the growth of the sweeteners market. The various health benefits that were obtained from artificial sweeteners were successful in capturing the potential market.
Report Scope of the Sweeteners Market
|Market Size in 2023||USD 105.37 Billion|
|Market Size by 2032||USD 144.86 Billion|
|Growth Rate from 2023 to 2032||CAGR of 3.6%|
|Forecast Period||2023 to 2032|
|Segments Covered||By Type, By Form and By Application|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
Increasing demand for processed food products has boosted the market for artificial sweeteners. Because of modern lifestyle practices, the demand for packed food products and beverages has increased rapidly. Consumption of baked food products and beverages helps to save a huge amount of time which proves to be beneficial for the working class.
On the other hand, increasing the consumption of energy drinks by youngsters to fulfill their nutrition demands is assisting the market to record a significant revenue. Increasing demand for soft drinks has also emerged as a major driving force for the sweeteners market. Carbonated soft drinks have emerged as one of the largest-selling beverages globally.
Increasing demand for higher nutritive value is also supporting the growth of the sweetener market. The demand for convenience foods has increased due to a hectic lifestyle and this is one of the major reasons driving the market growth. The demand for carbonated drinks has also increased, especially in the younger population. The profit margin of this industry is increased to a great extent as the manufacturer distributes the products through hypermarkets and supermarkets.
Key Market Drivers
Growing demand for natural sweeteners
Consumers' inclination towards natural products has increased in recent times and health-conscious consumers are making healthier choices. The use of natural sweeteners in various industries has grown significantly. The food and beverages industry is making use of natural sweeteners to a great extent owing to the benefits offered by these sweeteners. This is a low-calorie option available in the market which will provide maximum growth opportunities.
Increasing prevalence of diseases
As the number of patients suffering from various chronic disorders in the world has grown, the need for sweeteners is also expected to grow. Diabetes is one such chronic illness that has created the maximum demand for sweeteners in the market. Sweeteners that offer low-calorie intake have better market growth. The side effect of natural sweeteners is less due to which the demand for this product is less.
Key Market Restraints
Expensive raw materials
The cost of raw materials needed for the manufacturing of sweeteners is high. The manufacturing process is also complex. And this happens to be a major challenge for the growth of the market, especially for the production of high-intensity products. Prominent market players are constantly making efforts to invest in research and development activities to come up with innovative products.
Key Market Challenges
Prolonged consumption of artificial sweeteners may have several side effects. Tooth decay, weight gain, health problems, and poor nutrition are a few side effects associated with the consumption of artificial sweeteners. Limited consumption of this product may not cause many health problems. Kidney damage and low blood sugar are the prolonged issues associated with the consumption of sweeteners. All of these factors will hamper the market growth.
Key Market Opportunities
Increased consumption of processed food products and convenience products
A hectic lifestyle is one of the factors creating growth opportunities for the sweeteners market. Processed beverages and foods are easily available in the market. Frozen meals and snacks with good nutritive value are offered. All of these factors will drive the market for sweeteners during the forecast period. The working women population is another factor driving the market growth. Rapid urbanization and the increase in disposable income will also provide major opportunities for the growth of this market.
Based on the type, the sucrose segment has emerged as the leading segment in the global market. The common name of sucrose is table sugar which is one of the daily consumable food products. Sucrose can be obtained naturally from nuts, fruits, and vegetables. Sucrose can be obtained from fructose and glucose which is a disaccharide.
Sugar cane is one of the largest sources of sucrose and hence it is utilized commercially for obtaining the final product. Bakery food products obtain they are required consistency and structure with the help of sucrose. Medicine formulations include the application of sucrose as it plays an important role in imparting an agreeable smell and taste to the chemicals. Various medicines in the market have been introduced that make use of sweeteners, such as chewable tablets, lozenges, syrups, and gummies. These medicines usually have a sweet taste because of the sucrose content in them.
The utilization of sucrose in manufacturing soft drinks and other beverages plays an important role in the growth of the market. Sucrose has been largely utilized for making desserts, which proves to be a major driving force. Tagatose is gradually gaining popularity because of the various health benefits that are obtained from them.
The properties are similar to that of sucrose and hence it is utilized in the pharmaceutical industry. This product is also utilized in the healthcare industry for the treatment of obesity and diabetes. Constant research and development programs are being carried out by the key market players for introducing new applications of tagatose.
Based on application, the bakery and confectionery segment has emerged as the largest segment as these products commonly make use of sucrose as a sweetener. Sucrose forms an important component of the food products that are baked as they provide a particular shape and structure. Cookies and cakes contain huge amounts of sucrose for maintaining their shape and structure. Sucrose is also utilized as a bulking agent in bakery food products.
The presence of sucrose provides a specific color to the food products. It helps to increase the shelf life of the food products which makes them durable. Faster growth is expected from the pharmaceutical segment because of the utilization of sweeteners in manufacturing medicines. The usage of sweeteners in the pharmaceutical industry makes the medicines palatable for the consumer. The utilization of artificial sweeteners for diabetic patients has emerged as a major driving force for the growth of the market.
Based on form, the solid form segment has emerged as the largest segment and was generated more than 71% of revenue shares in 2022 as it is the most common form of sweetener that is available in the market. Various functional benefits that are provided by the solid form of sweeteners make it feasible for the manufacturers to transport it from one place to another.
The beverage and food industry makes use of solid sweeteners on a large scale in bakeries, confectionery, and other food applications. The physical properties of the solid form of sweeteners make it easy to use in the food and beverage industry.
Sweeteners Market Share, By Region, 2022 (%)
|Regions||Revenue Share in 2022 (%)|
Based on geography, the region of Asia Pacific has emerged as the largest market of around 31% in 2022. because of the booming beverages and food industry. Growing economies that are present in this region include the younger population that is influenced by fast food and beverages. Because of the emerging modern lifestyle practices, the consumption of fast food and beverages has increased rapidly. Asian countries are the largest consumers and producers of sucrose.
The availability of raw materials such as sugar cane is high in these regions, which proves to be a major driving force for the market. Significant growth has been presented by the region of North America because of the increasing demand for low-calorie food products and beverages. Increasing health consciousness among the people regarding the benefits of artificial sweeteners has helped the market to record significant revenue.
Key Market Players
Segments Covered in the Report
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