Sugar-Free Food and Beverage Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 3.98 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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Sugar-Free Food and Beverage Market Analysis
The Sugar-Free Food And Beverage Market size is expected to grow from USD 19.17 billion in 2023 to USD 23.30 billion by 2028, at a CAGR of 3.98% during the forecast period (2023-2028).
- As people have learned more about the negative effects of eating improperly processed food, they have become more selective about what they put in their bodies. The move from a conventional to a health-conscious outlook has encouraged producers to expand their product lines with novel, high-quality goods. Products that claim to be dairy, lactose, gluten, or sugar-free tend to be the most widely available.
- For instance, in February 2021, Halsa expanded its product line with the addition of 24oz family-size plain unsweetened zero Sugar oat milk yogurt. The new zero-sugar oat milk yogurt has only 90% calories per serving and has multiple uses as a base for making healthy probiotic smoothies, dips, sauces, salad dressings, and many other plant-based recipes at home.
- Mounting incidences of diabetes and overweight/obesity are pushing consumers from sugar and toward sugar-free alternatives. Both conditions are prevalent. The American Heart Association recommends no more than six teaspoons of added sugar a day for women to be safe from diabetes and obesity.
- Moreover, less sugar prevents glycation. Consequently, obesity caters to a significant percentage of total health expenditure in many countries. According to the analysis of the Organization for Economic Co-Operation and Development (OECD), the percentage of health expenditure spent on overweight and related conditions is predicted to account for 14% in the United States from 2020 to 2050.
- Moreover, the increasing demand for low-calorie beverages and the associated cost-cutting advantage of using sugar substitutes is perhaps considered to be the foremost reason for the growth of the sugar-free foods and beverages market. The growing demand for sugar-free products can also be attributed to the increasing acceptance of veganism, which is often linked to being gluten-free, raw, refined sugar-free, organic, non-GMO, oil-free, and so on. People who adhere to these diets often search for food and drink options that don't contain any animal ingredients and have low sugar content. Companies in the food and drink industry are responding to this trend by releasing more sugar-free options.
Sugar-Free Food and Beverage Market Trends
Rising Concern About Lifestyle Diseases
- Food and beverage products contain many calories and sugar content. Owing to this factor, health-conscious consumers try to consume low-calorie and no-sugar food products. Meanwhile, the increasing prevalence of obesity is anticipated to increase the sales of sugar-free food and beverages in the market over the forecast period. Over the last decade, the prevalence of overweight and obesity has increased.
- North American countries such as the United States recorded 31.9% population aged 18 and over being overweight as per the Centers for Disease Control and Prevention agency data. As sugar-containing products are high in calories, several consumers in the market prefer no added sugar or sugar-free products like juices, biscuits, dairy products, and others. Similarly, the increasing diabetic population in the region is further driving the sales of sugar-free food and beverages.
- According to the International Diabetes Federation (IDF), in 2021, 51 million people in North America and the Caribbean lived with diabetes. Thus, the increasing diabetic population is inclining toward sugar-free bakery products like biscuits, cookies, muffins, etc.
- Some of the benefits of reducing sugar intake include it helps in losing weight and preventing obesity, lowers the risk of type 2 diabetes or pre-diabetes, and reduces the risk for inflammatory digestive conditions such as irritable bowel disease and Crohn's disease. The low-carb beverages are designed to provide sustained energy and help accelerate the metabolic state. Therefore this factor is driving the growth of the market. New product innovation with attractive packaging is the main strategy adopted by players.
- For instance, in September 2021, Mondelez International launched a new line of sugar-free Oreos in China. The Oreo biscuits contain maltitol instead of sucrose and glucose. Two products on sale are the "classic" Oreo flavor and rose-flavored Oreo zero thin biscuits that have a floral taste with a crispy texture.
North America Holds Largest Market
- The World Health Organization (WHO) found that a rise in fast food sales is correlated to a rise in body mass index, and Americans are very much fond of fast foods. Rising concerns regarding obesity and diabetes through extensive awareness means consecutively generating the demand for healthier food and beverage products in the market. In 2022 around 5% and 3% of people in the United States are suffering from obesity and diabetes, according to a survey conducted by Research America, creating a promising demand for sugar-free food and beverage market in the United States.
- US consumers, therefore, accepted the sugar-free concept offerings very well. So the manufacturers commenced repositioning and validating the recipe of the products as the primary strategy to serve the diverse demands and strengthen the consumer base. For instance, in March 2022, MusclePharm, a global provider of leading sports nutrition and lifestyle branded nutritional supplements, launched a high whey protein drink line (Ready-To-Drink protein drink) with over 20 g of protein in multiple sugar-free flavors.
- Most food product categories have established markets, and there is great room for volume growth of free-from food products. The key players in the market are focused on offering new products and expanding their presence in the country, attracting a larger customer base. These players offer no added sugar in plant-based food and beverages, catering to the growing consumer requirement for vegan and sugar-free alternatives.
- For instance, in February 2021, Nadamoo!, a dairy-free coconut milk ice cream company, launched its no added sugar flavors of ice creams in the United States. The new products were available in four flavors: vanilla, chocolate, mint chip, and strawberry. The company also claimed the product to be certified non-GMO and gluten-free.
Sugar-Free Food and Beverage Industry Overview
The global sugar-free food and beverages market is highly competitive, with the presence of many players across the world. High investments in R&D activities and product innovation have led them to gain a major market share in the global market. Some of the key players in the market include The Hershey Company, Nestle S.A, PepsiCo, Mars Incorporated, and the Kellogg Company.
The key players are embarking on mergers and acquisitions in the market to expand their portfolio and cater to the interests of local consumers, and concentrate on acquiring new leading brands. Some of the players are also using social media platforms and campaigns for marketing and promoting their products. For instance, in March 2022. Coca-Cola India launched a new campaign for its new brand Coca-Cola Zero Sugar.
Sugar-Free Food and Beverage Market Leaders
The Hershey Company
Nestlé S. A
PepsiCo
Mars Incorporated
The Kellogg Company
*Disclaimer: Major Players sorted in no particular order
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Sugar-Free Food and Beverage Market News
- March 2023: Voortman Cookies launched zero-sugar mini wafers. The new mini wafers are available in two delectable flavors: vanilla and chocolate. The poppable, shareable wafers are baked with real vanilla or cocoa, include no artificial flavors or colors, no high-fructose corn syrup, and are packaged in resealable stand-up pouches.
- February 2023: PepsiCo launched a caffeine-free lemon-lime flavored soda in the United States in regular and zero-sugar formats. The company claims that Starry Lemon & Lime would be available across United States retailers and food service outlets.
- February 2023: YouTube stars Logan Paul and KSI extended into the energy drinks category with the launch of Prime Energy. The energy line will be available in five flavors - Blue Raspberry, Tropical Punch, Lemon Lime Orange Mango, and Strawberry Watermelon - with each 12 oz (355 ml) can containing 200 mg of caffeine, 300 mg of electrolytes, 10 calories, and zero sugar.
- January 2023: Pepsi unveiled an updated version of its Pepsi Zero-Sugar. In comparison to the original Pepsi Zero Sugar variety, the new Pepsi Zero Sugar formula incorporates a new sweetener system that delivers a more refreshing and robust flavor profile.
- September 2022: Trident, a chewing gum brand under Mondelez International, collaborated with Chloe Bailey, a Rhythm & Blues singer, to release a song promoting its new launch of Trident Sour Patch Kids Gum, sugar-free chewing gum for kids. The company's #ChewTheVibe challenge included the song.
- October 2021: Beyond Better Foods unveiled the latest edition of sugar-free cookie lines. These cookies are available in three variants: chocolate chip, P.B. chocolate chunk, and double chocolate. The new rage is made with zero grams of added sugar and two grams of net carbohydrates.
Sugar-Free Food and Beverage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Beverage
5.1.2 Dairy and Dairy Alternatives
5.1.3 Confectionery
5.1.4 Bakery Products
5.1.5 Dietary Supplements
5.1.6 Other Product Types
5.2 Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience Stores
5.2.3 Pharmacies/Drug Stores
5.2.4 Online Retail Stores
5.2.5 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Spain
5.3.2.2 United Kingdom
5.3.2.3 Germany
5.3.2.4 France
5.3.2.5 Italy
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 South Africa
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 The Hershey Company
6.3.2 Nestle SA
6.3.3 The Kellogg Company
6.3.4 Mars, Incorporated
6.3.5 PepsiCo Inc.
6.3.6 The Coca-Cola Company
6.3.7 The Kraft Heinz Company
6.3.8 Hostess Brands, Inc.
6.3.9 Mondelez International Inc.
6.3.10 Strauss Group Ltd
6.3.11 Meadbery
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Sugar-Free Food and Beverage Industry Segmentation
Sugar-free food and beverages contain no added sugars, no artificial sweeteners, and no added sugars. However, it doesn't mean the food contains no sugar, as it may have naturally occurring sugars.
The global sugar-free food and beverage market is segmented into product type, distribution channel, and geography. The market is segmented by product type into beverages, dairy and dairy alternatives, confectionery, bakery products, dietary supplements, and other product types. Based on the distribution channel, the market can be classified into supermarkets/hypermarkets, convenience stores, pharmacies/drug stores, online retail stores, and other distribution channels. Furthermore, the market is segmented based on geography across the world, including North America, Europe, Asia-Pacific, South America, and Middle-East and Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | |
| Beverage | |
| Dairy and Dairy Alternatives | |
| Confectionery | |
| Bakery Products | |
| Dietary Supplements | |
| Other Product Types |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores | |
| Pharmacies/Drug Stores | |
| Online Retail Stores | |
| Other Distribution Channels |
| Geography | |||||||||
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Sugar-Free Food and Beverage Market Research FAQs
What is the current Sugar-Free Food And Beverage Market size?
The Sugar-Free Food And Beverage Market is projected to register a CAGR of 3.98% during the forecast period (2024-2029)
Who are the key players in Sugar-Free Food And Beverage Market?
The Hershey Company, Nestlé S. A, PepsiCo, Mars Incorporated and The Kellogg Company are the major companies operating in the Sugar-Free Food And Beverage Market.
Which is the fastest growing region in Sugar-Free Food And Beverage Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Sugar-Free Food And Beverage Market?
In 2024, the North America accounts for the largest market share in Sugar-Free Food And Beverage Market.
What years does this Sugar-Free Food And Beverage Market cover?
The report covers the Sugar-Free Food And Beverage Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sugar-Free Food And Beverage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sugar-Free Food and Beverage Industry Report
Statistics for the 2024 Sugar-Free Food And Beverage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Sugar-Free Food And Beverage analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
