Market Trends of Sugar-Free Food And Beverage Industry
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.
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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.
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