Sugar substitutes market forecast for growth to $29 billion by 2029 - Confectionery Production

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Posted: 1 November 2024

Related core topics: Business news, Ingredients, New products, Sustainability

Related topics: sugar substitutes

Related organisations: MarketsAndMarkets

Related regions: worldwide

Latest analysis of the sugar substitutes market has noted it stands at $23.56 billion in 2024 and is forecast to make significant gains over the next five year, reaching an anticipated $29.90 bn by 2029, according to sector research, writes Neill Barston.

The study from MarketsandMarkets, estimated compound growth of nearly 5% annually, as the segment continues to show a strong upward trajectory including clean label demand is a very prominent factor, as consumers are focusing on natural ingredients without artificial additives.

Moreover, innovation in food and beverages is inspiring manufacturers to develop substitutes for sugar in the marketplace, creating alternatives to be able to enhance their product formulations with the retention of taste and quality.

As the organisation noted, the trend for consumption of plant-based diets is increasing demand for natural sweeteners such as stevia and monk fruit extract. Regulatory support and favorable government policies towards sugar substitutes usage support the food manufacturing industry. Technological and production improvements tend to be more efficient and cost-effective with high-intensity sweetener extraction and refinement. The increasing maturity of the e-commerce segment and health-focused retail channels is providing such alternatives to consumers and further driving the growth of the market.

Liquid sweetener growthNotably, liquid sweeteners are grasping importance globally in the food and beverage industry. It has gained popularity through the years with the establishment of nutrition benefits, long shelf life, and easy consumption. There are various types of sugar substitutes that are available in liquid and syrup form.

For instance, high-fructose corn syrup is sometimes used in the manufacture of chocolates. Furthermore, liquid maltitol has 75 to 90 percent of sucrose’s sweetness content. Hence, it finds applications in various confectionery products such as candies as it does not impact much on tooth decay and reduces the risk of oral cavities.

As the study noted, consumers are constantly on the lookout for a healthy alternative to sugar. Liquid sweeteners with no calories and all-natural high-intensity sweetness are thus on the rise. Sweeteners like those advanced by Elo have an outstanding sensory profile as they derive from plant sources that are readily available. Hence, they find application in the food and drinks manufacturing sector seeking viable alternatives that are safe and cheaper to add flavor without compromising on the quality.

Furthermore, as MarketsandMarkets observed, the high fructose corn syrup segment is having a significant share in the sugar substitutes market. High Fructose Corn Syrup or HFCS is a corn-based starch syrup produced through the processes of hydrolysis, isomerization, and purification, thus obtaining a different glucose composition and fructose. The sweet, relatively cheap alternative for sucrose soon found its place on food industry shelves, adding sweetness, stability, and functional benefits to many products, such as sodas and fruit drinks, baked goods, and condiments, among many more processed foods. According to FDA regulations (21 CFR 184.1866), HFCS typically contains either 42% or 55% fructose and is available in two forms the 42 and the 55 Glucose and water make up the rest. HFCS 42 is typically used in cereals, processed foods, and baked goods. Most soft drinks use HFCS 55.

Europe has a very significant share in the sugar substitutes market for several reasons. Consumer preference for healthier, low-calorie alternatives has been growing in the region, and it is well correlated with health awareness. The regulatory structure is even stronger in Europe than in other regions, aiding better development and adoption of sugar substitutes, which encourages more innovation.