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Latest Regulatory Trends Impacting the Sugar Substitutes Market

(Food-Beverage-News.Com, December 16, 2020 ) According to MarketsandMarkets "Sugar Substitutes Market by Type (High Fructose Syrup, High-Intensity Sweetener, Low-Intensity Sweetener), Composition, Application (Beverages, Food Products, and Health & Personal Care Products), and Region - Global Forecast to 2025", the global sugar substitutes market size is estimated to be valued at USD 16.5 billion in 2020 and projected to reach USD 20.6 billion by 2025, recording a CAGR of 4.5% during the forecast period. The global sugar substitute industry has witnessed growing trends in the past years. The growth of this industry is majorly driven by an increase in health consciousness among consumers to encourage the demand for healthier food choices, an increase in demand for natural sweeteners due to the rise in consumer inclination toward natural products, and growing demand for sugar substitutes in various applications in the food & beverage industry.

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COVID-19 Analysis:

The global sugar substitutes market is impacted highly due to the uncertain pandemic circumstances that occurred across the globe. The effects of COVID-19 impact the supply chain of the final products, as well as raw material ingredients. The North American region, followed by the Europe and Asia Pacific region, plays a vital role in the sugar substitutes market due to the concentration of several key players operating from these regions. Hence, the market in terms of supply is projected to witness hindrances, as sugar substitutes produced by many key players in these regions cater to the end-users across the world. However, regional consumption is projected to witness a surge in the respective market itself, as consumers are increasingly concentrating on maintaining weight and following different diets for maintaining good health. This, altogether, is projected to drive the demand for sugar substitutes.

Drivers: Increase in health consciousness among consumers to encourage the demand for healthier food choices

Easy access to near-infinite information is increasingly making consumers aware of their nutritional needs. Owing to this, consumers have become more conscious about healthier choices with respect to food & beverages. They are increasingly demanding healthier, low-calorie food & beverages owing to the growing health problems. According to a National Diabetes Statistics Report, published by the US Department of Health & Human Services in 2020, 10.5% of the US population had diabetes in 2018, 13.0% of all US adults had diabetes, 2.8% of all US adults met laboratory criteria for diabetes were not aware of or did not report having diabetes, and 21.4% of all US adults were diagnosed with diabetes. According to the same source, the prevalence of obesity was 40.0% among young adults aged 20 to 39 years, 44.8% among middle-aged adults aged 40 to 59 years, and 42.8% among adults aged 60 and older. These increasing health conditions are resulting in an increased demand for low-calorie food & beverage products for helping consumers maintain a healthy diet. Most health-conscious consumers prefer sugar substitutes because they contain fewer calories than regular sugar. The consumption of sugar substitutes helps in providing benefits for health-conscious consumers. For instance, the consumption of sugar substitutes helps in weight control and diabetes. Artificial sweeteners are not carbohydrates, owing to which they generally don’t raise blood sugar levels. Sugar substitutes have virtually no calories, whereas a teaspoon of sugar has about 16 calories. Stevia is a sugar substitute that is hundreds of times sweeter than sugar and has virtually no calories.

Restraints: Adherence to international quality standards and regulations for sugar substitutes products

International bodies such as the National Food Safety and Quality Service (SENASA), Canadian Food Inspection Agency (CFIA), US Food and Drug Administration (FDA), World Health Organization (WHO), and Committee on the Environment, Public Health and Food Safety (EU) are associated with food safety regulations. These organizations have control over the usage of different chemicals and materials used in food processing, directly or indirectly. Sugar substitute products are subjected to rigorous health and safety checks. Various studies have been conducted by regulatory bodies for measuring and assessing the impact of these products on humans. Based on the results, products are classified, and the daily intake allowance (DIA) has been set. Standards set by agencies for the classification and usage levels differ with respective authoritative bodies and pose a serious problem to companies for streamlining product developments. European laws are stringent with artificial sweeteners, wherein the US regulations favor the introduction of novel sweeteners irrespective of the origin. Alitame, neotame, and stevioside are some of the sweeteners which are not currently permitted in Europe. Many stringent regulations on the processing, usage, consumption, and labeling of sugar substitutes cause difficulties for market growth. These regulations for the use of sweeteners as a food ingredient limit the growth of the sweeteners industry globally, especially in European countries.

By application, the beverage segment is projected to experience the fastest growth in the sugar substitutes market during the forecast period

The beverage segment accounted for a major share in the global sugar substitutes market, in 2019, in terms of value. Sugar substitutes are currently preferred in beverages, such as diet carbonated drinks, flavored water, and other beverages. Stevia is a key sugar substitute used in beverages. It is a preferred sugar substitute with reduced-calorie and zero glycemic indexes, which is used to produce numerous versions of energy drinks, soft drinks, ready-to-drink teas, flavored water, and fruit juices. Other sugar substitutes, such as erythritol and xylitol, are also preferred among key players in the beverage industry. High-intensity sugar substitutes witness an increase in preference for the production of beverages. As a low volume of HIS is enough for imparting the required degree of sweetness to products, it remains a more economical option for the beverage industry. Thus, the expansion of the consumer base for beverage products provides an incentive for developing new sugar substitutes and products, thereby driving the market growth during the forecast period.

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The North American region is projected to hold the largest market share during the forecast period

The North America region is projected to dominate the sugar substitutes market during the forecast period. The North American region is projected to dominate the global sugar substitutes market due to a variety of key factors, such as the busy lifestyle of consumers, increase in the prevalence of chronic diseases due to hectic lifestyles, and rise in awareness among consumers regarding the health benefits of reduced sugar in food and beverage products. The US has a large market for confectionery, bakery, packaged, and food convenience food products, due to which it constitutes a major share in the market. Consumers in the US are becoming calorie-conscious, attributed to the increase in health problems in the country. Due to these factors, low-calorie and low-fat food products are becoming popular in the country. The increase in incidences of obesity and cardiac diseases has led to a surge in demand for natural and low-calorie ingredient-based food products among consumers.

This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as DuPont (US), ADM (US), Tate & Lyle (UK), Ingredion Incorporated (US), Cargill Incorporated (US), Roquette Frčres (France), PureCircle Ltd (US), MacAndrews & Forbes Holdings Inc. (US), JK Sucralose Inc. (China), and Ajinomoto Co. Inc. (Japan).

About MarketsandMarkets™

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

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Mr. Aashish Mehra


Source: EmailWire.Com
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