The monk fruit sugar market is projected to grow considerably during the forecast period
Originating from Southeast Asia, luo han guo, commonly known as monk fruit, dates back to the 13th century when it was first cultivated by Buddhist monks, thus acquiring its name.
Traditionally employed in both beverages and medicinal practices, monk fruit sweetener is remarkably sweet yet boasts zero calories, carbohydrates, or sugar. It is processed into granulated, powdered, or liquid forms, this sweetener undergoes a meticulous production method involving the removal of seeds and skin, crushing the flesh, and collecting the juice. Similar to other calorie-free sweeteners, monk fruit sweeteners exhibit an intense level of sweetness, ranging from 100-250 times sweeter than sugar. Only small quantities are required to match the sweetness provided by sugar in a product.
The monk fruit sugar market, segmented by application into beverages and food, is also categorized by form, offering options such as powder, granules, and liquid. This comprehensive range of monk fruit sugar applications and forms caters to diverse preferences and usage scenarios.
Market Drivers
The global surge in diabetes cases is increasing the demand for specialized food and beverages to meet the dietary requirements of diabetic individuals. Evolving lifestyles have prompted a growing inclination towards packaged food and beverages that incorporate diabetic sweeteners. This heightened awareness is reflected in data illustrating the increasing prevalence of diabetes on a global scale. According to the 2023 India Diabetes (ICMR INDIAB) study, the reported prevalence of diabetes stands at 10.1 crores. In 2021, diabetes affected 38.4 million Americans, making up 11.6% of the population. In Europe, as per estimates from the IDF Diabetes (20-79 years), the number reaches 61,425.1 (000'). These statistics underscore the anticipated future demand for food and beverages designed for individuals managing diabetes.
Monk fruit sugar, known for its capacity to not influence blood sugar levels, emerges as a safe alternative for people with diabetes. Furthermore, it is frequently employed as a sugar substitute in ketogenic diets. The presence of mogrosides in monk fruit adds an antioxidant dimension, safeguarding the body against oxidative stress. Thus, monk fruit may play a role in promoting overall health and well-being.
The surging demand for packaged food and beverages is driving the monk fruit market growth. Monk fruit, renowned for its heightened sweetness and beneficial properties for diabetic individuals, is increasingly favored as a healthier alternative. Governments worldwide are actively promoting the manufacturing of processed foods, collaborating with the market to meet these growing needs.
In India, initiatives such as the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) have played a pivotal role. As of September 2023, numerous projects have been sanctioned under various schemes, shaping a dynamic landscape. This includes 41 mega food parks, 371 cold chain projects, 68 agro-processing clusters, 474 proposals under creation/expansion of food processing & preservation capacities (cefppc), 61 creation of backward and forward linkages projects, 46 operation green projects, and 186 food testing laboratories projects approved across the country.
This concentrated effort has created an ecosystem, where the production of food and beverages aligns with market demands. The emphasis on infrastructure development and various initiatives underscores the commitment to fostering a thriving market that caters to the evolving preferences of consumers, which will add to the demand for the monk fruit sugar market as a significant ingredient.
Market Restraints
China serves as the primary hub for monk fruit cultivation, with the existing production capacity facing challenges in keeping pace with the escalating global demand. As the exclusive producer and a designated region for monk fruit cultivation, the supply remains restricted, further constrained by climatic considerations.
Monk fruit sugar market is segmented by application into beverages and food
The Monk Fruit Sugar market is categorized by application, with a segmentation into beverages and food. In the realm of beverages, monk fruit is employed across a diverse spectrum, encompassing soft drinks, teas, coffees, energy drinks, and sports drinks. In the food sector, Monk fruit sugar serves as an ingredient in various products such as yogurt, granola, sauces, condiments, jams, and confectionery items.
APAC is anticipated to hold a significant share of the Monk Fruit market
The Monk Fruit market is poised to see a substantial presence in the Asia-Pacific (APAC) region. Notably, India has demonstrated significant growth in agricultural and processed food product exports, recording a 13% increase to $19.69 billion within the first nine months of the current fiscal year (2022-23). Meanwhile, China maintains its status as the 5th largest market for U.S. processed food exports, reaching nearly US$2.1 billion in 2021, given that monk fruit is indigenous to China. These two leading nations are expected to play a crucial role in shaping the landscape of the monk fruit sugar market.
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