Global Natural Sweeteners Market - 2023-2030

Market Overview

The Global Natural Sweeteners Market reached US$ 3.1 billion in 2022 and is expected to reach US$ 4.9 billion by 2030 and is expected to grow with a CAGR of 6.1% during the forecast period 2023-2030.

Natural sweeteners are alternatives to traditional sugar and artificial sweeteners that are derived from natural sources such as plants or fruits. They offer a sweet taste while often providing additional health benefits or a lower impact on blood sugar levels. Honey has been used as a natural sweetener for centuries. It is produced by bees from the nectar of flowers and is known for its distinct flavor profile.

Companies are continuously innovating and developing new natural sweetener formulations to cater to consumer preferences and dietary needs. For instance, there are now natural sweeteners available with specific functionalities, such as being heat-stable for baking or having a similar taste profile to sugar. These advancements in natural sweetener formulations enhance their versatility and make them more appealing to a wider range of consumers.

Market Dynamics

Increasing Awareness of Health Concerns Related to Artificial Sweeteners is Driving the Natural Sweeteners Market

Consumers have become more aware of potential health risks associated with artificial sweeteners, such as aspartame and saccharin. There have been concerns about their impact on weight management, metabolism, and potential links to certain health conditions. As a result, consumers are seeking healthier alternatives, including natural sweeteners. According to the International Dairy Foods Association and the Sweetener Users Association, 72% of consumers worldwide were actively trying to reduce their sugar intake.

The rising global prevalence of obesity and diabetes has fueled the demand for healthier sweetening options. Artificial sweeteners, despite being low in calories or sugar-free, have been associated with weight gain and metabolic disturbances. In contrast, natural sweeteners are often perceived as having a lower impact on blood sugar levels and a more favorable effect on overall health. According to the International Diabetes Federation, the global prevalence of diabetes is expected to reach 10.2% by 2030. This increasing prevalence has contributed to the demand for natural sweeteners.

Growing Popularity of Low-Glycaemic Index Sweeteners Can Show a Remarkable Opportunity

High-GI sweeteners, such as traditional sugar and some artificial sweeteners, can cause rapid spikes in blood sugar levels. This has been associated with various health issues, including diabetes, obesity, and metabolic disorders. As a result, there is a growing interest in low-GI sweeteners, including natural alternatives, as a healthier option to manage blood sugar levels. According to the World Health Organization (WHO), about 422 million people worldwide have diabetes, the majority living in low-and middle-income countries, and 1.5 million deaths are directly attributed to diabetes each year.

The increasing prevalence of diabetes has led to a higher demand for sugar substitutes among diabetic individuals who need to carefully manage their blood sugar levels. Natural sweeteners with low GI, such as stevia, monk fruit extract, and coconut sugar, have gained popularity as suitable alternatives for individuals with diabetes. The International Diabetes Federation estimates that approximately 537 million adults aged 20-79 years were living with diabetes in 2021.

Competition From Artificial Sweeteners and Traditional Sugar is Holding Back the Natural Sweeteners Market

Traditional sugar, derived from sources like sugarcane or sugar beets, has long been the most widely used sweetener globally. According to the United Nations Food and Agriculture Organization (FAO), global sugar consumption was estimated to reach 176 million metric tons in the 2023/2024 period. The entrenched position of traditional sugar in the market creates a significant barrier for natural sweeteners to penetrate and gain market share.

Artificial sweeteners, such as aspartame, sucralose, and saccharin, are often cheaper to produce than natural sweeteners. The cost-effectiveness of artificial sweeteners contributes to their widespread use in various food and beverage products. Additionally, traditional sugar is readily available, thanks to established supply chains and global production capabilities. This accessibility and lower cost make artificial sweeteners and traditional sugar more appealing to manufacturers and consumers, limiting the market share of natural sweeteners.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The global natural sweeteners market is segmented based on source, application, end-user, and region.

By End-Use, the Food & Beverage Segment is Estimated to Have Significant Growth During the Forecast Period

Natural sweeteners are used extensively in the food and beverages industry due to their ability to provide sweetness while offering perceived health benefits. They are utilized in a wide range of products, including bakery goods, confectionery, beverages, dairy products, snacks, and more. The versatility of natural sweeteners allows for their integration into various food and beverage formulations, making this segment the largest consumer of natural sweeteners.

Regulatory bodies in various countries have implemented regulations to promote the use of natural ingredients, including natural sweeteners, in food and beverages. For instance, the Food and Drug Administration (FDA) in the United States has categorized certain natural sweeteners, such as stevia and monk fruit extract, as Generally Recognized as Safe (GRAS) substances. This regulatory support has encouraged the incorporation of natural sweeteners in food and beverage products, boosting the market share of this segment.

Geographical Analysis

Asia Pacific is the Fastest Growing Market in the Natural Sweeteners Market

The Asia Pacific region has seen a significant increase in the prevalence of diabetes. According to the International Diabetes Federation, diabetes was responsible for an estimated US$ 966 billion in global health expenditure in 2021. Diabetic individuals often require alternatives to traditional sugar and artificial sweeteners to manage their blood sugar levels. This has created a strong demand for natural sweeteners in the region.

Several countries in the Asia Pacific region have implemented regulations and initiatives to promote the use of natural ingredients in the food and beverage industry. For instance, the Food Safety and Standards Authority of India (FSSAI) has set regulations for the use of natural sweeteners like stevia. Such regulatory support encourages the adoption of natural sweeteners and drives the market growth in the region.

Competitive Landscape

The major global players in the market include: British Foods PLC, Cargill Incorporated, Dupont De Nemours Inc., HYET Sweet B.V., Ingredion Incorporated, PureCircle, Roquette Freres, Symrise AG, Tate & Lyle PLC, and Tereos Starch and Sweeteners.

Why Purchase the Report?

• To visualize the global natural sweeteners market segmentation based on source, application, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of natural sweeteners market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global Natural Sweeteners market report would provide approximately 61 tables, 62 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies