Artificial Sweetener Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The artificial sweetener market is projected to register a CAGR of 3.7% during the forecast period (2022-2027).

The COVID-19 pandemic created uncertainty regarding the allocation of sugarcane between ethanol and sugar in Brazil. Furthermore, crude oil price fluctuations and the Renovabio ethanol program had significant effects on the international market for sugar by altering the export levels from Brazil. According to the National Federation of Co-operative Sugar Factories, the global price of sugar dropped by 22%, as the oil price fell by 30%, which encouraged the refineries to limit the sugarcane used for ethanol products, thereby increasing the sugar availability in the global market (higher supply than the demand resulted in the low price of the product) in March 2020. However, this low price did not last for long and increased after April 2020 end.

Artificial sweeteners are sweeter than table sugar, but they have energy density far lower than table sugar. Artificial sweeteners find increased applications in the food and beverage industry in products like soft drinks, sauces, chewing gum, jellies, dressings, baked goods, candy, fruit juice, ice cream, etc. The soft drink industry is found to have the maximum consumption of artificial sweeteners due to the increasing demand for low sugar and diet beverages.

While increasing concerns regarding clean-label solutions and the complex regulatory structure in Europe and the United States may impede the market growth, product innovation and growing demand for artificial sweeteners may help the market grow further during the forecast period.

Scope of the Report

A sugar substitute is a food additive that provides a sweet taste like that of sugar while containing significantly less food energy than sugar-based sweeteners, making it a zero-calorie or low-calorie sweetener. The artificial sweetener market is segmented by type (aspartame, acesulfame K, saccharin, sucralose, and neotame), application (bakery, dairy, confectionery, beverages, soups, sauces and dressings, and other applications), and geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecasts in value (USD million) for all the above segments.

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Key Market Trends

Rising Propensity for Low or No-calorie Versions of Foods and Beverages

Increasingly health-conscious consumers are paying close attention to the sugar and calorie content of their favorite foods. They say that a low-calorie claim is important to them when buying food or drinks. With the health-conscious audience gravitating for low- or no-calorie versions of food and beverages, artificial sweetener consumption is on the rise. In response to customer demand, food manufacturers are using high-intensity artificial sweeteners to create light goods with fewer calories and enticing flavor profiles.

Sugar-free gums, for example, have shown substantial sales growth compared to normal gums. Diet beverages, tabletop sweeteners, yogurt, and frozen dairy products are some other goods that use artificial sweeteners as a key component. Urban inhabitants find it challenging to maintain a healthy lifestyle due to their hectic and sedentary lifestyles. This frequently leads to harmful habits such as irregular eating and the intake of sugary drinks to quench hunger and thirst at inappropriate times. Low-calorie RTD drinks are projected to rise in popularity as the world's population becomes more sedentary and unhealthy. In July 2021, PepsiCo announced its plans to reduce sugar content by 25% in sodas and iced tea beverage portfolios across the EU by 2025. By introducing products with less sugar content, the company aims to catch the attention of health-conscious consumers in the region.

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