Natural Sweeteners Market

Natural Sweeteners Market Size:

The global natural sweeteners market size reached US$ 3.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.9 Billion by 2032, exhibiting a growth rate (CAGR) of 6.2% during 2024-2032. The market is growing rapidly driven by rising health consciousness among consumers, increasing prevalence of obesity and diabetes, growing demand for clean label products, imposition of regulatory policies and initiatives, and recent innovation in the food and beverage (F&B) industry.

Natural Sweeteners Market Analysis:

• Market Growth and Size: The market is witnessing stable growth, driven by rising health consciousness and a global shift towards healthier eating habits. Furthermore, recent advancements in the food industry and stringent health regulations are supporting the market growth.
• Major Market Drivers: Key drivers influencing the market growth include increasing awareness of health issues related to sugar consumption, such as obesity and diabetes, and a growing preference for clean label products. Furthermore, regulatory support for sugar reduction and the rising demand for natural ingredients in food and beverage (F&B) products is contributing to the market growth.
• Technological Advancements: Recent innovations in extraction and processing methods, which have improved the taste and functionality of natural sweeteners is driving the market growth. Furthermore, the introduction of advanced formulations techniques, enabling the creation of sweetener blends that mimic the taste and texture of sugar is supporting the market growth.
• Industry Applications: The market is experiencing high product demand in beverages, bakery products, confectioneries, dairy products, and pharmaceuticals.
• Key Market Trends: The key market trends involve the ongoing shift towards low-calorie and low-glycemic index sweeteners and increasing focus on sustainability and ethical sourcing.
• Geographical Trends: North America leads the market due to rapid economic development and changing consumer preferences. Other regions are also showing significant growth, fueled by rising health consciousness and stringent sugar regulations.
• Competitive Landscape: The market is characterized by the presence of both major players and smaller, niche companies. They are engaging in strategic initiatives like mergers, acquisitions, and product innovation to expand their market presence and meet the evolving demands of consumers.
• Challenges and Opportunities: The market faces various challenges, such as balancing taste and health benefits, managing production costs, and navigating varied regulatory environments across regions. However, recent innovation in product development and rapid expansion into new and untapped markets is creating new opportunities for the market growth.
   

Natural Sweeteners Market Trends:

Rising health consciousness among consumers

The burgeoning health consciousness among consumers across the globe is a pivotal driver for the natural sweeteners market. Consumers are becoming aware of the health impacts of excessive sugar consumption, including the risks of weight gain, heart disease, and dental issues. They are increasingly scrutinizing food labels, seeking products with natural, low-calorie, and low-glycemic index ingredients. In line with this, natural sweeteners, derived from plants like stevia or fruits like monk fruit, are perceived as healthier alternatives to traditional sugar and artificial sweeteners. They cater not only to the general health-conscious public but also to niche segments like fitness enthusiasts and those following specific diets like keto or paleo.

Increasing prevalence of obesity and diabetes

The escalating prevalence of obesity and diabetes is a significant factor propelling the natural sweeteners market. These chronic conditions have reached epidemic proportions, prompting public health campaigns and individual initiatives to reduce sugar intake. In line with this, natural sweeteners present a viable solution, offering sweetness without the high calorie and carbohydrate content that exacerbates obesity and diabetes. Furthermore, they have a lower glycemic index compared to regular sugar, meaning they do not cause rapid spikes in blood sugar levels, which is crucial for blood sugar management. Additionally, the increasing number of obesity cases, particularly in developed countries, which has led to a heightened awareness of the need for calorie control, is supporting the market growth.

Growing demand for clean label products

The emerging trend of clean label products, emphasizing simplicity, transparency, and naturalness in food and beverage (F&B) ingredients, is a key driver of the natural sweeteners market. Consumers are increasingly seeking products with labels that are easy to understand, contain fewer additives, and use ingredients that are perceived as natural and wholesome. Furthermore, the growing distrust of artificial ingredients and a preference for products that are deemed safer and healthier is acting as another growth-inducing factor. Natural sweeteners are marketed as free from artificial chemicals and additives, aligning with the clean label ethos. Furthermore, manufacturers are reformulating products to include natural sweeteners, often prominently featuring these ingredients on packaging and in advertising to appeal to health-conscious consumers.

Imposition of regulatory policies and initiatives

The introduction of governmental and regulatory support is playing a vital role in the growth of the natural sweeteners market. Governments and health organizations are increasingly focusing on reducing sugar consumption as part of broader public health initiatives. They are imposing regulatory policies driven by mounting evidence linking excessive sugar intake to a range of health issues, including obesity, diabetes, and heart disease. Furthermore, several countries have implemented measures such as sugar taxes, restrictions on advertising sugary products, and guidelines or limits on sugar content in foods and beverages (F&B). It creates a conducive environment for natural sweeteners as manufacturers seek alternatives to comply with these new standards and avoid potential penalties.

Recent innovations in the food and beverage (F&B) industry

Recent innovation within the F&B industry is a crucial factor driving the natural sweeteners market. Consumers are increasingly adopting healthier and more natural products, which is prompting industry players to explore and incorporate natural sweeteners into a diverse range of items. In line with this, food scientists and product developers are continually experimenting with various natural sweeteners, blends, and formulations to achieve the desired taste and texture in products ranging from beverages and confectionery to dairy and baked goods. Furthermore, recent advancements in food technology and a better understanding of the properties of different natural sweeteners, resulting in an ever-expanding array of products catering to health-conscious consumers, are driving the market growth.

Natural Sweeteners Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, form, distribution channel, and application.

Breakup by Type:

• Stevia
• Sorbitol
• Xylitol
• Mannitol
• Erythritol
• Sweet Proteins
• Others
   

Stevia accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes stevia, sorbitol, xylitol, mannitol, erythritol, sweet proteins, and others. According to the report, stevia represented the largest segment.

Stevia is dominating the market due to its zero-calorie content and ability to maintain stability under heat. Furthermore, it is much sweeter than sugar, yet it doesn't raise blood glucose levels, making it a preferred choice for diabetics and those managing their calorie intake. Additionally, the ongoing innovations in extraction and processing techniques leading to improved taste profiles and reduced aftertaste of stevia are positively influencing the market growth. Moreover, the widespread product utilization in beverages, dairy products, and confectionery, coupled with its growing acceptance as a tabletop sweetener, is boosting the market growth.

Sorbitol is widely used in sugar-free and diabetic-friendly products, such as toothpaste and sugar-free chewing gum, due to its non-cariogenic properties. It also finds application in the food industry, owing to its functional attributes, such as its role as a humectant and texturizer.

Xylitol is recognized for its dental benefits and is a popular sweetener in chewing gums, mints, and dental care products. Its sweetness is comparable to sugar, making it a favorable choice for low-calorie and sugar-free products. Furthermore, xylitol is also gaining traction in the food industry due to its low glycemic index, which is suitable for diabetics.

Mannitol is known for its unique cooling sensation and low-calorie content. It is primarily used in confectioneries, chewing gums, and as a coating agent for candies and pills. Furthermore, mannitol's low hygroscopicity makes it suitable for products requiring a long shelf life. Its application also extends to pharmaceuticals as an excipient and a therapeutic agent.

Erythritol is praised for having no calories and a glycemic index of zero. It is widely used in different products, such as baked goods and beverages, due to its dental-friendly properties and digestive tolerance compared to other sugar alcohols. Additionally, erythritol is commonly used in combination with other sweeteners to balance sweetness and reduce potential aftertaste.

Sweet proteins, such as thaumatin and monellin, are derived from certain fruits and are known for their intense sweetness, often several thousand times sweeter than sugar. They are used in high-end and niche products due to their cost and regulatory status in different regions. Sweet proteins are particularly appealing in applications where only a tiny amount is required to achieve significant sweetness.

Breakup by Form:

• Liquid
• Powder
• Solid and Crystals
   

A detailed breakup and analysis of the market based on the form have also been provided in the report. This includes liquid, powder, and solid and crystals.

Liquid form is used in beverage applications, including soft drinks, juices, and health drinks. Liquid natural sweeteners, such as liquid stevia or agave syrup, are favored for their ease of integration into liquid products, ensuring consistent sweetness distribution. Additionally, liquid form is also popular in the culinary world for sweetening sauces, dressings, and marinades, as it blends seamlessly without the need for dissolution.

Powdered natural sweeteners are widely used in baking, confectionery, and as tabletop sweeteners. They are popular due to their similarity in texture and application to traditional granulated sugar. Additionally, powdered sweeteners like stevia, erythritol, and xylitol are especially favored in baking, as they can contribute to the structure and volume of baked goods.

Solid and crystal forms of natural sweeteners, such as crystallized stevia or xylitol, cater to consumers seeking a direct replacement for traditional table sugar. They are particularly appealing for their ease of use in everyday applications like sweetening beverages and for sprinkling on cereals and fruits. Their granulated, crystalline structure closely mimics the physical properties of sugar, making them a popular choice in terms of look and feel.

Breakup by Distribution Channel:

• Business-To-Customer (B2C)
• Business To Business (B2B)
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes business-to-customer (B2C) and business to business (B2B).

The business-to-customer (B2C) segment involves the direct sale of products to end consumers, typically through retail channels, such as supermarkets, health food stores, and online platforms. It caters to individual consumers seeking healthier alternatives to traditional sugar for personal use. Furthermore, the B2C channel is benefiting from the increasing consumer awareness and demand for natural sweeteners, which is driven by rising health consciousness and dietary preferences.

The business-to-business (B2B) segment involves sales from manufacturers and distributors to various businesses, including food and beverage (F&B) manufacturers, pharmaceutical companies, and food service providers. It is driven by the demand for natural sweeteners as ingredients in product formulations, ranging from processed foods and beverages (F&B) to dietary supplements and medicinal products.

Breakup by Application:

• Bakery Products
• Confectioneries and Gums
• Spreads
• Beverages
• Dairy Products
• Frozen Desserts
• Tabletop Sweeteners
• Pharmaceutical Products
• Others
   

Beverages exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes bakery products, confectioneries and gums, spreads, beverages, dairy products, frozen desserts, tabletop sweeteners, pharmaceutical products, and others. According to the report, beverages accounted for the largest market share.

Beverages constitute the largest segment due to the rising consumer demand for healthier drink options. It includes soft drinks, juices, health drinks, and tea and coffee products. Beverage manufacturers are increasingly reformulating their products to reduce sugar content and meet the growing preference for natural ingredients. Natural sweeteners like stevia and erythritol are particularly favored for their ability to provide the desired sweetness without adding significant calories or affecting blood sugar levels. Additionally, the recent innovation in flavor and texture, as manufacturers strive to match the taste profiles consumers expect from traditionally sweetened beverages, is boosting the market growth.

Bakery products utilize natural sweeteners to cater to the growing market of health-conscious consumers looking for lower-calorie and diabetic-friendly options. Sweeteners such as xylitol and erythritol are popular in this segment for their heat stability and ability to provide bulk and texture, similar to traditional sugar.

Confectioneries and chewing gums use natural sweeteners like xylitol and sorbitol due to their dental benefits, such as reducing the risk of cavities. Additionally, they are utilized to produce a variety of sugar-free or reduced-sugar options, including chocolates, candies, and lozenges, that are appealing to consumers seeking indulgent yet healthier choices.

Natural sweeteners are used in spreads like jams, jellies, honey, and nut butter. These sweeteners offer an alternative to high-sugar content in traditional spreads, aligning with the demand for healthier, lower-calorie options. Furthermore, manufacturers are developing innovative formulations to maintain the desired texture and spreadability while reducing sugar content.

The dairy products segment, encompassing items like yogurt, ice cream, and flavored milk, utilizes natural sweeteners to meet the consumer demand for healthier dairy options. Sweeteners like stevia and erythritol are favored, owing to their ability to reduce calorie content without compromising the creamy texture and taste that consumers expect from dairy products.

Natural sweeteners are utilized in various frozen desserts, such as ice creams, sorbets, and other frozen treats. This segment benefits from sweeteners that can withstand freezing temperatures without losing their sweetening power or altering the texture of the final product.

Tabletop sweeteners, including sweetener packets and dispensers, represent a key segment in the natural sweeteners market. These products are targeted at consumers seeking to reduce sugar intake in their daily tea, coffee, or other homemade dishes. Furthermore, they offer a range of natural sweetener options, from stevia to monk fruit extracts, catering to diverse consumer preferences.

Natural sweeteners are extensively used in various pharmaceutical products, such as syrups, lozenges, and medicated confectionery. Additionally, the increasing focus on making medicines more palatable, especially for children, without compromising on health aspects is facilitating the adoption of natural sweeteners that are compatible with medicinal ingredients and that do not interfere with the medication's efficacy.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest natural sweeteners market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America holds the largest market share due to its high health consciousness, well-established F&B industry, and stringent regulations on sugar intake. Furthermore, the ongoing shift in consumer preferences towards healthier, low-calorie, and natural products is driving the market growth. Additionally, the presence of many key players in the region, contributing to strong research and development (R&D) activities and innovative product offerings, is bolstering the market growth. Besides this, the increasing prevalence of lifestyle-related diseases, such as obesity and diabetes, is further catalyzing the market growth.

The Asia Pacific region is a rapidly growing segment in the natural sweeteners market, driven by increasing health awareness, changing dietary habits, and rapid economic growth in various regional countries like China, India, and Japan. Furthermore, the region has a rich history of using natural sweeteners, with traditional products like stevia being native to some Asian countries.

Europe holds a significant position in the natural sweeteners market, influenced by stringent European Union (EU) regulations on sugar content in foods, a growing health-conscious population, and an inclination towards natural and organic products. Furthermore, the strong focus on sustainability and ethical sourcing, which aligns well with the production and consumption of natural sweeteners, is supporting the market growth.

Latin America has a rich biodiversity, which provides access to natural sweetener sources like stevia. Additionally, increasing health awareness, rising obesity rates, and the prevalence of diabetes in the region are boosting the market growth. Furthermore, the growing food and beverage (F&B) industry in the region, which offers potential for the incorporation of natural sweeteners in various products, is supporting the market growth.

The Middle East and Africa (MEA) region is showing potential for growth in the natural sweeteners market due to increasing health awareness, urbanization, and changes in lifestyle and dietary habits. Additionally, the rising incidence of diabetes and obesity, particularly in the region, is acting as another growth-inducing factor.

Leading Key Players in the Natural Sweeteners Industry:

Key players are actively engaging in a range of strategic initiatives to capitalize on the growing demand. It includes research and development (R&D) efforts focused on innovation in sweetener blends and formulations to enhance taste profiles and functionality. Additionally, several companies are expanding their product portfolios to include a diverse array of natural sweeteners, catering to various consumer preferences and application requirements in food and beverage (F&B) manufacturing. Furthermore, they are also investing in sustainable and ethical sourcing practices for their natural sweetener ingredients, responding to consumer demand for environmentally responsible and socially conscious products.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Archer-Daniels-Midland Company
• Cargill Incorporated
• FoodChem International Corporation
• GLG Life Tech Corporation
• Herboveda India
• Ingredion Incorporated
• Morita Kagaku Kogyo Co. Ltd
• PureCircle Ltd
• Pyure Brands LLC
• Roquette Frères
• Sweetly Stevia USA
• Tate & Lyle PLC
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News: 

• In July 2023, Tate & Lyle PLC. launched TASTEVA SOL stevia sweetener which can be utilized in the manufacturing of healthy food and beverages.
• In March 2022, Cargill Incorporated launched zero-calorie sweeteners named EverSweet+ClearFlo that can be used in dairy, energy, and immunity-boosting drinks.
• In December 2021, Ingredion launched PureCircle a new solution that delivers sweet taste at scale, under a natural flavor declaration.

Natural Sweeteners Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the natural sweeteners market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global natural sweeteners market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the natural sweeteners industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.