The global artificial and natural sweetener market is expected to grow at a CAGR of 1.98% over the forecast period to reach a market size of US$28,846.997 million in 2025 from a market size of US$25,639.598 million in 2019.
Rising demand for low-calorie food and beverages is driving the growth of the market over the forecast period.
There has been a steady rise in both the number of cases and prevalence of diseases such as obesity, diabetes, and cardiovascular diseases (CVDs) worldwide over the past few decades. According to the World Health Organization (WHO), about 422 million people globally have diabetes, with 1.6 million deaths are directly attributed to this chronic disease annually. Also, worldwide obesity has nearly tripled since 1975. High-calorie intake is the major factor behind this growing prevalence. As people are getting more and more concerned about their health, they are switching from high-calorie table sugar to low- or zero-calorie sweeteners, both artificial as well as natural. Thus, this factor is one of the prime factors behind the growing demand for artificial and natural sweeteners thereby driving the overall sweetener market growth. With a hectic lifestyle these days, people with rising purchasing power are opting for low- or zero-calorie convenient and processed food and beverage products that are made from sweeteners and so, deliver low-calorie consumption. Thus, the growing demand for low-calorie processed food and beverage products is, in turn, augmenting the demand for artificial and natural sweeteners across the global food and beverage processing industry.
In Europe, the United Kingdom is driving the growth of the market
The market is further segmented into the Germany, UK, France, Spain, and Italy among other artificial and natural sweetener markets. Natural sweeteners are getting popular in the region owing to the growing demand for sugar alternatives and rising health awareness. The gradual shift towards these sweeteners on account of the increasing prevalence of diabetes in the region is expected to drive the market during the forecast period. Also, due to the increasing product launches in the region and investments by big market players the artificial sweeteners market is anticipated to witness substantial growth over the coming years. Furthermore, expanding the bakery and confectionery industry is anticipated to widen the growth opportunities for manufacturers and vendors during the forecast period. Growing concerns about the high sugar content in food and beverage along with the introduction of the sugar tax are anticipated to propel the market growth opportunities for manufacturers and vendors in the country. In addition, the country’s expanding food and beverage industry coupled with the growing investments by big market players in the country to increase their market share are anticipated to propel the market growth opportunities in the coming years. Furthermore, increasing strategic investment by big market players in mergers and acquisitions is anticipated to propel the market growth opportunities during the forecast period. For instance, in October 2018, PureCircle increases production capacity for stevia sweeteners by nearly two hundred percent to meet rising demand in the country. Also, in December 2017, Newport Maple syrup maker Clarks a major producer and supplier of maple syrup in the United Kingdom was acquired by Hain Daniels (a UK subsidiary of US-based food group Hain Celestial Inc). However, due to the current COVID-19 pandemic, the British retailer suffered a significant fall in sales in the last decade and the extension of lockdown restriction in a social gathering in the country is expected to restrain the growth of the market in short term.
By application, the dairy industry is expected to hold a significant share in the global market
Dairy products include a wide range of products that are made specifically from the milk of mammals such as cattle, buffaloes, goats, and others. The products across the dairy industry include yogurt, cheese, and butter among others. The increasing consumer preferences towards the consumption of various products that contain nutritious ingredients along with the rising consciousness among the consumers regarding the consumption of naturally sweetened dairy products is also providing an impetus for the market to grow in the coming years. Furthermore, the growing consumption of dairy products globally is also a key factor bolstering the demand for natural sweeteners for their applications in the dairy industry, thereby positively impacting the market growth throughout the forecast period. Also, in the developing economies, there is a growing demand for a wide variety of milk products such as flavored yogurts, cheese, and others primarily due to the improvement in the standards of living which has further led to a change in the tastes and preferences of the consumers. For instance, according to the FAO, more than 6 billion people around the globe consume milk and its products and out of which a majority of them live across the developing economies. Moreover, the launch of new naturally sweetened dairy products further widens the opportunities for the manufacturers over the next five years. For example, in August 2019, PureCircle, one of the leading companies in the field of stevia for the food and beverage industry announced the launch of its new product lineup of gourmet ice cream with stevia sweeteners. Similarly, in April 2019 Nestle Australia announced to launch a new milo product in the country in which the cane sugar will be replaced with stevia.
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