The global Sugar Substitutes Market is predicted to reach USD 19.1 billion in the forecast period owing to the growing customer’s preference towards the low-calorie foodstuffs. Sugar Substitutes are the chemical or plant-based constituents that sweeten the flavor of drinks and foods. They are also known as the “artificial sweeteners” or “non-caloric sweeteners” which are used as an ingredient in processed foods and drinks or as a tabletop sweetener like sweetening a glass of ice tea.

The sugar substitutes are sweeter than sugar, therefore small quantity of these substitutes offer greater level of sweetness. Most Sugar Substitutes are less in calorie or contain no calorie. The growing demand for low-calorie foodstuffs are projected to boost the sugar substitutes market significantly by 2024 with a CAGR of 4.2%. The demand for sugar substitutes is spurring across the globe. Especially in the beverage industry where the sweetness intensity varies from drink to drinks, sugar substitutes are extensively used. The market growth is driven by the factors like quality of the sugar substitutes, the mixture and content in processing foods, the standards enforced by local and international governments.

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One of the major drivers of the market is the rise in number of ventures pertaining to food industry. This is because the food industry is the main source of taste and has wide applications in medications too. The rising cost of raw material and the growing supply chain prices are expected to restrain the market in future. However, consumption of high content sugar foods leading to diabetes, heart disease and obesity is also increasing. Currently, people are adopting sugar-free products as a preventive measure for the growing health problems. Most health issues are found among people above 45 years of age and are expected to fuel the sugar substitute market in the coming years.

Stevia is a unique food ingredient, obtained from plants is best known for restricting the calories in the body. It is gaining demand in the European countries since it can be added to beverages as a sweetener in combination with sucrose. Strict safety standards is a major challenge for the sugar substitutes players. They are required to receive approvals from authorities like Foods Standard Agency before the launch of the product. The beverages and foods that contain artificial sweeteners must essentially follow the guidelines imposed by the regulatory bodies concerning the quantity sweeteners to be used, labeling, marketing and the daily average intake of sweeteners.

The sugar substitutes industry is segmented especially due to the existing of numerous large and small players that strengthen the competition for factors like quality, price, innovation, reputation, packaging, distribution and marketing channels. Such a penetrating competition among the players along with speedy technological variations is a key challenge that affects the operations of the players in the sugar substitutes industry. To stand successfully in such a competitive market, the vendors must distinguish themselves through USP (Unique Selling Proposition).

The sugar substitutes market is categorized on the grounds of product type, composition, application and geography. On the grounds of product type, the market is divided into High-intensity sweeteners, Low-intensity sweeteners and High-fructose syrups. On the grounds of composition, the industry is divided into High-intensity sweeteners and Low-intensity sweeteners. High-intensity sweeteners can be further classified as Stevia, As per tame, Cyclamate, Sucralose, Saccharin, Ace-K, and others. Low-intensity sweeteners can be further classified as D-Tagatose, Sorbitol, Maltitol, Xylitol, Mannitol, Erythritol and others. On the grounds of application, the sugar substitutes industry is divided as Beverages, Food (Confectionery, bakery, dairy and frozen foods) and Health & Personal Care.

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Geographically, the sugar substitutes market is sub-segmented as North America, Asia Pacific, Europe, Latin America and rest of the world (RoW). The speedy growth of consuming low-caloric food is observed especially in developing nations like Middle East, Asia-Pacific, Latin America, and Africa. This is predicted to drive the global market. This also results in rising focus of main sugar substitute manufacturers on offering superior quality and safe products with the help of advanced technologies. This is projected to affect the market in terms of quality and quantity.

The major players in the sugar substitutes industry are Cargill Incorporated, Tate & Lyle PLC, E. I. du Pont de Nemours and Company, Roquette Freres S.A., and Pure Circle Ltd., Ajinomoto Co. Inc., Archer Daniels Midland Company, MacAndrews & Forbes Incorporated, Ingredion Incorporation, and JK Sucralose Incorporation.

Market Segment:

Sugar Substitutes Product Outlook (Volume, Thousand Tons; Revenue, USD Million, 2013 - 2024)
    • High intensity sweeteners
    • Low intensity sweeteners
    • High fructose syrup

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The ancient plant has been used in Ayurveda, through pills, paste, powder, and raw.

Market Scenario       

Sugar-free confectioneries are among the recent trends in the market. Increasing obesity and diabetes from consumption of confectioneries have influenced the consumers to incline towards the consumption of sugar-free confectioneries. This increasing inclination towards the sugar-free confectioneries is driving the growth of the market.

Increasing disposable income and changing consumption pattern are some of the factors supporting the growth of Sugar-Free Confectionery Market. Moreover, increasing health awareness and continuous efforts to reduce weight and cholesterol content among the consumers is propelling the growth of sugar-free confectionery market. However, the traditional taste of the sweetness in confectionery may not be maintained, which might restrain the growth of the market among consumers highly inclined towards confectionery products. 

Global Sugar-Free Confectioneries Application Industry are a wide range of products, which are devoid of sugar or contain artificial sweeteners in replacement of sugar. They are consumed as a healthy alternative to the sugar-based confectionery products. Growing trend of health and wellness activities have inclined consumers from sugar confectioneries to sugar-free confectioneries. The different types of sugar-free confectioneries are available in the market such as sweets, candy, candy nuts, chocolates, chewing gum, and others. They are available in different attractive packaging including sachets, boxes, and others.  

Key Players

Some of the key players profiled in the Global Sugar-Free Confectionery Market are-

• THE HERSHEY COMPANY (U.S.)
• Nestlé (Switzerland)
• Mars Incorporated (U.S.)
• Mondelez International (U.S.)
• Chocoladefabriken Lindt & Sprüngli AG (Switzerland)
• Ferrero (Italy)
• HARIBO of America, Inc. (Germany)

Segments

Sugar-free confectionery market is segmented based on a type such as sweets, candy, candy nuts, chocolates, chewing gum, and others. The chocolate segment is dominating the market and is expected to grow substantially over the forecast period. Sweets segment is projected to witness a moderate growth during the estimated period.

Based on the packaging, sugar-free confectionery market is segmented into sachets, boxes, and others. The sachet segment is dominating the market. However, boxes segment are expected to grow at the fastest rate in the coming years.

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Regional Analysis

The global sugar-free confectionery market is segmented into North America, Europe, Asia Pacific and rest of the world (RoW). North America is dominating the global market followed by Europe. Increasing health-conscious population is driving the sugar-free confectionery market in North America.The U.K and the Netherlands are major contributors to the European sugar-free confectioneries market.

In Asia Pacific, India is the major consumer of confectionery products owing to the involvement of confectioneries in their various traditional customs, which has a high opportunity for sugar-free confectionery in this region.

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