Sugar Substitutes Market Analysis by Mordor Intelligence
The global sugar substitutes market has market size of USD 8.77 billion in 2025 and is expected to grow to USD 10.96 billion by 2030, registering a compound annual growth rate (CAGR) of 4.56%. The rising prevalence of diabetes has increased awareness among consumers and policymakers about the need to reduce added sugar consumption. This has significantly boosted the demand for low-calorie sweetening alternatives. Supportive regulatory measures are further driving market growth. The Asia-Pacific region is leading the market in terms of size and growth, driven by key developments such as India’s approval of allulose for the first time and the rapid expansion of China’s health-food industry. Among the various types of sugar substitutes, high-intensity sweeteners hold the largest market share. However, stevia is growing at the fastest rate, thanks to advancements in bioconversion technologies that help overcome agricultural limitations. While plant-based sugar substitutes dominate the market, there is a growing trend toward biotechnologically fermented alternatives. These options are gaining popularity as manufacturers aim to establish more reliable and environmentally friendly supply chains with lower carbon footprints. The market remains highly fragmented, offering significant opportunities for differentiation and innovation.
Key Report Takeaways
- By type, high-intensity sweeteners claimed 58.95% of the sugar substitutes market share in 2024; sugar polyols is set to grow fastest at 5.96% CAGR to 2030.
- By origin, plant-based ingredients held 52.05% of the sugar substitutes market size in 2024, while biotechnology-fermented variants are forecast to expand at 6.27% CAGR through 2030.
- By form, powders represented 65.76% of the sugar substitutes market share in 2024, and liquids are projected to rise at 5.12% CAGR during 2025–2030.
- By application, beverages led with 40.93% of the sugar substitutes market size in 2024; food categories are advancing at 5.32% CAGR to 2030.
- By geography, Asia-Pacific captured 43.12% revenue in 2024 and is on track for a 5.73% CAGR, making it both the largest and fastest-growing regional segment.
Global Sugar Substitutes Market Trends and Insights
Drivers Impact Table
DRIVER | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
---|---|---|---|
Soaring diabetes and obesity rates fuel the demand for low-calorie sweeteners | +1.2% | Global, with highest impact in Asia-Pacific and North America | Long term (≥ 4 years) |
Surge in demand for clean-label sweeteners | +0.8% | North America and Europe, expanding to Asia-Pacific | Medium term (2-4 years) |
Advances in extraction and processing technologies reduce production costs | +0.9% | Global, led by North America and Europe | Short term (≤ 2 years) |
Expansion of Low/No-Sugar Products Fueling Market Growth | +0.4% | Europe and North America, emerging in Asia-Pacific | Long term (≥ 4 years) |
Sugar Substitutes Offer Customizable Sweetness and Texture Profile | +0.7% | Global, with strongest impact in emerging markets | Medium term (2-4 years) |
Rising shift to lower-carbon footprint ingredients | +0.5% | Europe and North America, with spillover to developed Asia-Pacific | Long term (≥ 4 years) |
Source: Mordor Intelligence
Soaring diabetes and obesity rates fuel the demand for low-calorie sweeteners
Health concerns around the world, especially the rising cases of diabetes and obesity, are pushing more people to look for sugar substitutes. According to the Diabetes Atlas, about 589 million adults aged 20-79 years are living with diabetes globally, which means roughly 1 in 9 people are affected. This number is expected to grow to 853 million by 2050, or 1 in 8 adults[1]Source: Diabetes Atlas Org, "Diabetes Global Report 2000 — 2050," diabetesatlas.org. This initiative is designed to help countries reformulate food products to address these health challenges. By 2035, over 750 million children aged 5-19 years are expected to be overweight or obese, according to World Obesity[2]Source: World Obesity Org, "World Obesity Atlas 2024," worldobesity.org. At the same time, the growing popularity of GLP-1 weight-loss drugs is changing how consumers think about food. Companies are stepping up to meet this demand. For example, Coca-Cola introduced stevia-sweetened drinks in December 2023, and PepsiCo continues to invest in zero-calorie options like Pepsi Zero Sugar. These efforts show how the industry is adapting to changing consumer preferences and health priorities.
Surge in demand for clean-label sweeteners
Consumers are increasingly demanding clean-label ingredients, which is reshaping the sugar substitutes market. Global consumers expect brands to focus on environmental sustainability while offering products with simple, recognizable ingredients. To meet these expectations, regulatory bodies are stepping up their efforts. For example, in 2024, the U.S. FDA granted GRAS (Generally Recognized As Safe) approvals for innovative sweeteners like brazzein and D-psicose[3]Source: Food and Drug Administration, "GRAS Notices," fda.gov. These sweeteners are either plant-derived or produced using precision fermentation, a process that creates nature-identical sweetness without relying on synthetic methods. This approach aligns well with the clean-label trend, as seen with Bestzyme’s brazzein, which the FDA approved for use in confectionery products. Europe is also becoming a key growth area, with updated regulations encouraging the use of natural alternatives. This shift has helped Stevia gain significant traction as brands move away from artificial sweeteners like aspartame.
Advances in extraction and processing technologies reduce production costs
Advances in extraction and processing technologies are steadily lowering the unit cost of sugar substitutes. Precision fermentation platforms now deliver high-purity Reb M stevia at industrial scale without farmland, cutting both raw-material spend and seasonal volatility for producers like Cargill’s Avansya venture. Bioconversion pipelines developed by Tate & Lyle and Manus transform stevia leaf extracts into better-tasting glycosides in a single enzymatic step, eliminating multiple solvent stages and lowering capital outlay for new entrants. In parallel, patented spray-drying methods enhance the solubility of rebaudioside M, allowing formulators to incorporate higher concentrations without precipitation and thereby reducing wastage in beverage factories. Collectively, these innovations compress production timelines, shrink facility footprints, and unlock price points that accelerate mainstream substitution across the food and beverage sector.
Expansion of low/no-sugar products fueling market growth
The increasing demand for low and no-sugar products is reshaping the food and beverage industry, with companies actively incorporating low-calorie sweeteners to meet evolving consumer preferences. For instance, Coca-Cola HBC revealed that 21% of its 2024 revenue came from low or no-sugar beverages, highlighting the growing importance of these product categories. Similarly, PepsiCo introduced Gatorade Hydration Booster in september 2024, a product free from artificial sweeteners and flavors, catering to consumers seeking healthier and cleaner-label options. These examples underscore how major brands are adapting to the rising health consciousness among buyers. The growing use of GLP-1 weight management drugs is influencing dietary habits, as these medications often lead users to reduce their intake of sweetened products. This trend has further fueled the demand for sugar substitutes. For example, Cargill launched the EverSweet + ClearFlo Stevia System, which combines steviol glycosides with a taste-enhancing agent to enhance flavor, solubility, and stability, offering a more appealing solution for manufacturers and consumers alike.
Restraints Impact Analysis
RESTRAINT | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
---|---|---|---|
Regulatory ambiguity around novel sweeteners | -0.6% | Global, with highest impact in Europe and emerging markets | Medium term (2-4 years) |
Consumer safety perception issues around artificial sweeteners | -0.4% | North America and Europe, with spillover to educated demographics globally | Short term (≤ 2 years) |
Competition from natural sugars | -0.3% | Global, with highest impact on companies dependent on Paraguay sourcing | Short term (≤ 2 years) |
Taste profile challenges in mass-produced products | -0.5% | Global, with varying impact across application segments | Medium term (2-4 years) |
Source: Mordor Intelligence
Regulatory ambiguity around novel sweeteners
Regulatory frameworks struggle to keep pace with biotechnological innovations in sweetener production, creating market uncertainty that constrains investment and commercialization timelines. The European Union's ongoing review of monk fruit extract status exemplifies this challenge, where insufficient clinical evidence on long-term effects delays market access despite approvals in the U.S., China, and Canada. The FDA's GRAS rule reform, while enhancing transparency, introduces additional compliance requirements that may slow ingredient introductions, particularly for smaller innovators lacking regulatory expertise. Japan's complex functional food regulatory framework, balancing risk-side quality and safety with benefit-side functionality, illustrates how regulatory sophistication can both enable and constrain market development. These regulatory uncertainties particularly impact precision fermentation products, where novel production methods require extensive safety documentation despite producing identical molecular structures to traditional extraction methods.
Consumer safety perception issues around artificial sweeteners
Health concerns are increasingly driving consumer skepticism toward both artificial and some natural-origin sweeteners. For instance, the World Health Organization recently classified aspartame as “possibly carcinogenic to humans,” sparking widespread public debate, even though regulators continue to affirm its safety when consumed within recommended limits. Similarly, sucralose has come under scrutiny due to studies linking it to changes in gut microbiota and increased appetite, which has raised caution among consumers. Erythritol, once considered a safer sugar alcohol, is also facing criticism after a potential connection was found between high erythritol levels in the blood and an increased risk of cardiovascular events. Also, individuals with the highest erythritol exposure had a two-fold higher risk of heart attack or stroke according to NIH (National Institutes of Government) as stated in 'Erythritol and cardiovascular events' published on March 2023. These growing concerns are prompting brands to pivot toward alternatives like stevia, allulose, and brazzein, which are derived from natural or fermentation processes.
Segment Analysis
By Type: High-Intensity Sweeteners Outperform While Sugar Polyols Support Texture
High-intensity sweeteners led the sugar substitutes market in 2024, capturing 58.95% of the market share. These sweeteners are highly favored by food and beverage manufacturers due to their intense sweetness and cost-effectiveness. Sugar polyols are expected to grow significantly, with a projected CAGR of 5.96%, as they increasingly replace high-intensity sweeteners in certain applications. These polyols, such as xylitol and erythritol, are gaining popularity due to their ability to provide bulk and retain moisture, making them highly effective in products like tablet coatings and controlled-release capsules. These functional benefits are driving their adoption in the pharmaceutical sector, where they help ensure the required compression strength and moisture control. Advancements in production technologies, such as circular-economy fermentation using lignocellulosic biomass, are reducing manufacturing costs. This cost reduction is encouraging more companies to incorporate polyols into their formulations.
Erythritol is particularly popular due to its zero glycemic impact and mild cooling effect, making it an ideal choice for products like chocolate and gum. Recent advancements in fermentation techniques have significantly improved erythritol production, increasing yields and reducing the cost gap with traditional cane sugar. Xylitol, derived from lignocellulosic feedstocks, is gaining traction as a sustainable option within the circular economy framework. Although sugar polyols generally have a lower sweetness intensity compared to high-intensity sweeteners, their unique properties and ongoing innovations are driving their adoption in various applications.

By Origin: Plant-Based Leads Yet Fermentation Races Ahead
In 2024, plant-based ingredients contributed 52.05% of the sugar substitutes market revenue. However, their dominance is expected to slightly decline as fermentation-based sweeteners (Biotechnologically Fermented) gain popularity, growing at an impressive CAGR of 6.27%. This growth is fueled by their ability to provide consistent yields and a reduced environmental footprint compared to traditional agricultural methods. For example, Cargill’s EverSweet stevia, produced through yeast fermentation, offers Reb M without relying on farmland or being affected by seasonal changes. Similarly, fermentation-based monk fruit production eliminates the dependency on specific climatic conditions in southern China, ensuring a reliable supply of mogroside V with consistent quality, regardless of crop variability.
Synthetic sweeteners continue to hold a small but significant share, particularly in price-sensitive markets where regulatory frameworks allow their use and cost-effectiveness remains a priority. However, consumer preferences are evolving, with a growing emphasis on sustainability and transparency. Many brands and retailers now highlight the origin and carbon footprint of ingredients on product labels, encouraging manufacturers to shift toward more sustainable options. This trend is expected to further boost the adoption of fermentation-based and plant-derived sweeteners, as they align better with consumer demand for environmentally friendly and ethically sourced products.
By Form: Powders Dominate But Liquids Gain Traction
Powdered sugar substitutes dominated the market in 2024, accounting for 65.76% of the revenue. Their popularity stems from their longer shelf life and ease of use in dry food systems, making them a preferred choice for bakery and confectionery applications. However, the demand for liquid formats is rapidly growing, especially in the beverage industry, where instant dispersion and clarity are critical. Liquid sugar substitutes are projected to grow at a CAGR of 5.12% through 2030. Clear beverage lines, such as sports drinks and ready-to-drink teas, make up a significant portion of this growth. Innovations like patented spray-drying and crystallization techniques have improved the solubility of ingredients like rebaudioside M, enabling higher concentrations without cloudiness.
Despite the rise of liquid formats, powdered sugar substitutes remain essential in bakery and confectionery products due to their ability to provide bulk, structure, and controlled moisture qualities that liquids cannot easily replicate. To address the limitations of both formats, hybrid solutions, such as granule-in-syrup combinations, are emerging. These hybrids are particularly useful in complex applications like frozen desserts, where they combine the benefits of powders and liquids to deliver optimal performance. The development of these hybrid solutions has led to improved stability and texture profiles in various food applications, particularly in products requiring extended shelf life. Manufacturers are increasingly investing in research and development to create customized hybrid formulations that meet specific product requirements while maintaining the desired sweetness profile.

By Application: Beverage Leadership Persists as Food Segments Accelerate
Beverages made up 40.93% of the market revenue in 2024, primarily due to extensive reformulations in cola and soft drinks aimed at reducing sugar content. However, food categories such as cereal bars, dairy alternatives, and baked goods are now growing at a faster rate, with a projected CAGR of 5.32%. This growth is fueled by advancements in technology that enable manufacturers to lower sugar levels without compromising on texture or flavor. Energy drinks and functional waters are emerging as key growth drivers, as brands increasingly incorporate natural sweeteners alongside botanicals and electrolytes to cater to health-conscious consumers. Similarly, confectionery manufacturers are leveraging innovative erythritol blends to achieve sugar reductions while maintaining the desired taste and bulk, ensuring consumer satisfaction.
Beyond food and beverages, the pharmaceutical sector is also contributing steadily to the sugar substitutes market. Products such as pediatric syrups and diabetic-friendly cough drops rely on sugar substitutes for their ability to mask unpleasant tastes and provide zero-glycemic responses. Although smaller in scale compared to the food and beverage sectors, the pharmaceutical segment plays a crucial role in diversifying revenue streams for suppliers. This diversification helps mitigate risks associated with market fluctuations in other sectors, providing a stable and consistent demand for sugar substitutes.
Geography Analysis
Asia-Pacific accounted for 43.12% of global revenue in 2024 and is growing at a robust CAGR of 5.73%. This growth is driven by factors such as regulatory clarity, urbanization, and the increasing purchasing power of the middle class. In China, health-food approvals reached 875 in 2023, creating opportunities for innovative sweeteners that comply with the updated GB 2760-2024 standards. India has also made significant progress, with the FSSAI approving allulose, signaling a shift toward natural, low-calorie sweeteners. This move has attracted foreign suppliers eager to establish local production. Meanwhile, Japan’s functional food market offers a premium segment where traceability and clinical data are highly valued, allowing manufacturers to command higher price points.
North America continues to lead in technology and production capacity. The FDA’s transparent GRAS (Generally Recognized as Safe) process has supported the development of innovative sugar substitutes. For instance, Nebraska’s Avansya facility produces fermented stevia at a commercial scale, ensuring a reliable domestic supply. The U.S. government’s push for zero-added-sugar policies has prompted multinational food companies to increase Research and Development investments in sugar substitute solutions that can be applied across North American, Latin American, and European product lines. Similarly, Canada’s alignment with these nutritional guidelines ensures consistency in labeling claims across the continent, further driving market growth.
In Europe, the demand for natural sweeteners like stevia and monk fruit is rising, driven by clean-label trends and strict safety regulations. The region is experiencing growth in natural sweeteners as consumers increasingly prefer products with fewer artificial ingredients. Additionally, Europe’s focus on carbon-reduction mandates has created a premium market for fermentation-based sweeteners, positioning the region as a leader in sustainable and green-label solutions. These high standards often influence export markets, further amplifying Europe’s impact on the global sugar substitutes market.

Competitive Landscape
The sugar substitutes market is highly fragmented, indicating significant opportunities for differentiation and innovation. Major players like Tate & Lyle are actively expanding their capabilities to stay competitive. For instance, Tate & Lyle acquired CP Kelco for USD 1.8 billion, aiming to integrate technologies for sweetening, mouthfeel, and fortification under one platform. Similarly, Cargill, Incorporated and DSM, through their Avansya joint venture, have invested in fermentation capacity, showcasing the growing interest of large corporations in biotechnology. At the same time, smaller, artisanal firms are entering the market, further contributing to its fragmented nature.
Innovative companies are also leveraging advanced technologies to carve out niches in the market. For example, Bestzyme has utilized precision fermentation to develop brazzein, a protein-based sweetener that offers thermal stability and zero glycemic impact, making it ideal for confectionery applications. Bestzyme announced that its flagship product Mellia Brazzein received the "No Questions" letter from the U.S. Food and Drug Administration (FDA) regarding its GRAS (Generally Recognized as Safe) status in April 2025. Vertical integration is another emerging trend, as seen with Amyris acquiring Ingredion’s stake in the Brazilian Real Sweet plant in May 2025. This move allows Amyris to gain full control over its process intellectual property and downstream revenues while still providing Ingredion exclusive access to fermented Reb M volumes. These strategies highlight how companies are positioning themselves to meet evolving consumer and industry demands.
Sustainability and intellectual property are becoming critical factors for success in the sugar substitutes market. Ingredion, for instance, has gained a competitive edge by offering stevia variants with strong life-cycle sustainability claims, appealing to multinational food brands with carbon-reduction goals. Smaller suppliers are also finding ways to stand out, focusing on regional sourcing stories or developing advanced formulation aids, such as solubility enhancers, which simplify the development of beverages. These efforts reflect the growing importance of sustainability and innovation in driving market growth and differentiation.
Sugar Substitutes Industry Leaders
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Cargill, Incorporated
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Archer Daniels Midland Company
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Tate & Lyle
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Ingredion
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International Flavors & Fragrances Inc.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- December 2024: Tate & Lyle partnered with BioHarvest to develop botanical-synthesis sweeteners that match sugar’s taste without residual off-notes. This partnership will focus on creating new plant-derived molecules, initially within the sweetener platform, with the potential to expand into other areas.
- October 2024: Tate & Lyle and Manus Bio formed a strategic partnership and introduced stevia Reb M, marking the first large-scale commercialization of an Americas-sourced and manufactured bioconverted stevia Reb M ingredient. This partnership aims to provide customers with a reliable, high-quality source of Reb M while also expanding access to natural sugar reduction solutions.
- July 2024: Sweegen introduced its Tastecode taste optimization tools at the IFT FIRST event in Chicago. The company showcased its reduced-sugar natural flavor technologies to address taste challenges in healthier food products.
- May 2024: Ingredion's PureCircle introduced a stevia sweetener that directly replaces sugar in formulations. The natural sweetener functions similarly to sugar without requiring additional ingredients and is suitable for beverages, syrups, and sauces.
Global Sugar Substitutes Market Report Scope
Sugar substitutes are chemical or plant-based substances used to sweeten or enhance the flavor of food products and beverages.
The sugar substitute market is segmented by type, origin, form, application, and geography. By type, the market is segmented into high-intensity sweeteners (acesulfame potassium, advantame, aspartame, neotame, saccharin, sucralose, stevia, monk fruit and others) and sugar polyols (sorbitol, xylitol, maltitol, erythritol and others). By origin, the market is segmented into plant-derived, synthetic and biotechnologically fermented. By form, into powder and liquid. By application, the market is segmented into food, beverage, pharmaceuticals and others. The food segment is further segmented into bakery and cereals, confectionery, dairy and dairy alternatives, sauces, condiments, and dressings, and other food applications. The beverage segment is further segmented into carbonated soft drinks, RTD tea and coffee, sports and energy drinks and other beverages. The report further analyses the market's global scenario, including a detailed analysis of North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
By Type | High-Intensity Sweeteners | Acesulfame Potassium | |
Advantame | |||
Aspartame | |||
Neotame | |||
Saccharin | |||
Sucralose | |||
Stevia | |||
Monk Fruit | |||
Other High-Intensity Sweeteners | |||
Sugar Polyols | Sorbitol | ||
Xylitol | |||
Maltitol | |||
Erythritol | |||
Other Sugar Polyols | |||
By Origin | Plant-Derived | ||
Synthetic | |||
Biotechnologically Fermented | |||
By Form | Powder | ||
Liquid | |||
By Application | Food | Bakery and Cereals | |
Confectionery | |||
Dairy and Dairy Alternatives | |||
Sauces, Condiments and Dressings | |||
Other Food Applications | |||
Beverage | Carbonated Soft Drinks | ||
RTD Tea and Coffee | |||
Sports and Energy Drinks | |||
Other Beverages | |||
Pharmaceuticals | |||
Other Applications | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
Rest of North America | |||
Europe | United Kingdom | ||
Germany | |||
Spain | |||
France | |||
Italy | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
India | |||
Japan | |||
Australia | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle East and Africa | Saudi Arabia | ||
South Africa | |||
Rest of Middle East and Africa |
High-Intensity Sweeteners | Acesulfame Potassium |
Advantame | |
Aspartame | |
Neotame | |
Saccharin | |
Sucralose | |
Stevia | |
Monk Fruit | |
Other High-Intensity Sweeteners | |
Sugar Polyols | Sorbitol |
Xylitol | |
Maltitol | |
Erythritol | |
Other Sugar Polyols |
Plant-Derived |
Synthetic |
Biotechnologically Fermented |
Powder |
Liquid |
Food | Bakery and Cereals |
Confectionery | |
Dairy and Dairy Alternatives | |
Sauces, Condiments and Dressings | |
Other Food Applications | |
Beverage | Carbonated Soft Drinks |
RTD Tea and Coffee | |
Sports and Energy Drinks | |
Other Beverages | |
Pharmaceuticals | |
Other Applications |
North America | United States |
Canada | |
Mexico | |
Rest of North America | |
Europe | United Kingdom |
Germany | |
Spain | |
France | |
Italy | |
Russia | |
Rest of Europe | |
Asia-Pacific | China |
India | |
Japan | |
Australia | |
Rest of Asia-Pacific | |
South America | Brazil |
Argentina | |
Rest of South America | |
Middle East and Africa | Saudi Arabia |
South Africa | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
What is the current size of the sugar substitutes market?
The sugar substitutes market stands at USD 8.77 billion in 2025 and is projected to reach USD 10.96 billion by 2030.
Which region leads the sugar substitutes market?
Asia-Pacific holds the largest share at 43.12% and is also the fastest-growing region with a 5.73% CAGR through 2030.
Which product type dominates sales?
High-intensity sweeteners account for 58.95% of global revenue, with stevia exhibiting the quickest growth within that segment.
Which form dominates sales?
Powders represented 65.76% of the global revenue in 2024 and liquids are exhibiting the quickest growth within that segment.
Page last updated on: July 4, 2025