The artificial sweetener market was valued at US$7.542 billion in 2019 and is expected to grow at a CAGR of 3.59% over the forecast period to reach a total market size of US$9.318 billion in 2025. An artificial sweetener is a type of additive used in the food and beverage industry as a substitute for sugar. These sweeteners are considerably sweeter than sugar but offer less food energy and calorie content. Growing demand for low-calorie food and beverage items is the major driver of the artificial sweeteners market. There has been a rise in concerns regarding the high-calorie intake due to the continuously increasing prevalence of chronic diseases such as obesity and diabetes across various age groups, especially children. According to the Canada Journal of Diabetes, the frequency of Type 2 diabetes in children has increased around the world over the past two decades. Even food and beverage manufacturers are increasingly using approved artificial sweeteners into various food and beverage products such as baked goods, spreads, diet beverages, and others in order to maintain their market share and further expand it across the globe. Another major factor that is augmenting the demand for artificial sweetener is the strict guidelines set by governments in various regions/countries so as to reduce the burden of disease in the economy. The recent COVID-19 global pandemic outbreak, however, has negatively impacted the market growth of artificial sweetener, at least in the short run.
Artificial Sweetener market is segmented by type, application, and geography. By type, the global artificial sweetener market is segmented into sucralose, aspartame, acesulfame potassium, saccharin, neotame, and others. By application, the artificial sweetener market is segmented as dairy, beverages, confectionery and bakery, processed food, and others.
Growing demand for processed food worldwide
By application, the processed food segment holds a noteworthy market share throughout the forecast period. Rising disposable incomes and living standards is continuously boosting the consumption of convenient food and beverage products worldwide, especially in developing economies. However, there has been a rise in the awareness among people about the negative impact of a high-calorie intake diet on their health. As such, processed food manufacturers are adapting to this shift by using various artificial sweeteners into their products, thus spurring the market growth of artificial sweeteners. The dairy segment will witness a considerable CAGR during the forecast period owing to the booming demand for dairy products containing artificial sweeteners.
North America holds a significant market share throughout the forecast period
Geographically, the artificial sweetener market is segmented as North America, South America, Europe, Middle East, and Africa (MEA), and Asia Pacific (APAC). North America accounted for a significant market share in 2019 and will remain at its position until the end of the forecast period. Rising prevalence of diabetes and obesity in countries like the United States and Canada has increased the concerns among people as well as governments regarding this unhealthy lifestyle which includes the high intake of sugar. As such, people are switching to artificial sweeteners with low or zero calories as compared to added sugars. This is significantly propelling the market growth of artificial sweeteners across this region. Furthermore, the FDA (United States Food and Drug Administration) has already approved the use of several artificial sweeteners including neotame, saccharin, and sucralose, which can be used by processed food and beverage manufacturer, thus positively impacting the market growth of artificial sweeteners in this region during the forecast period. However, APAC is projected to witness a substantial CAGR during the forecast period owing to the increasing number of food and beverage manufacturers expanding their facilities in the region. With growing global trade volume, these manufacturers are using artificial sweeteners in place of added sugars so that they can export their products in countries where regulations and guidelines regarding high-calorie intake are strict and there is high awareness about the bad effects of added sugars on human health. This, in turn, is fuelling the demand for artificial sweeteners in the APAC region.
Prominent key market players in the artificial sweetener market include B&G Foods, Inc.,Ajinomoto Co, Inc.,Cumberland Packing Corp., Merisant Company , HYET Sweet, Roquette Frères, ADM, JK Sucralose Inc., Ingredion Incorporated, and Tate & Lyle. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the artificial sweetener market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.