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A major factor hampering revenue growth of the global sweetener market is the stringent regulatory norms regarding the use of artificial sweeteners as a food ingredient. This is due to side effects such as allergic reactions, improper functioning of the digestive system and other health-related issues. Although cultivation and consumption of novel sweeteners such as stevia are increasing at a rapid pace, various end-use industries such as confectionery, bakery and others are witnessing a slow adoption of sweeteners as a food ingredient. This is due to limited regulatory approvals by various legislator bodies keeping in mind the health concerns of consumers across the globe.
After-taste of sucrose alternative sweetener products and the high prices of low-calorie sweeteners is restricting acceptance of these products among consumers and thus restricting market growth to a certain extent. Lack of consumer awareness and acceptance of natural ingredients as an alternative to sugar in products such as confectionery, snacks, dairy products and others has resulted in low consumption of sugar-alternative sweeteners that include other natural sweeteners, artificial sweeteners, novel sweeteners and sugar alcohols.
Investments by key players in non-calorie sweeteners, cost optimisation and process standardisation are the new trends in the global sweetener market
The novel sweetener and artificial sweetener market have few buyers and sellers in the global market, and hence companies are focussing on cost optimisation in order to increase productivity and market share. Moreover, manufacturing non-sugar and low-calorie sweeteners involves a standard extraction process. Companies in the global sweetener market have patent extraction processes for the same. This is further supported by stringent government regulations due to health issues.
Increasing investments by companies coupled with geographical expansion by market players has led to high competitiveness in the global sweetener market. In addition to this, increased brand awareness of products dealing with specific issues such as obesity curtailment, nutritive advantages and health benefits is expected to drive demand for artificial sweeteners and novel sweeteners specifically stevia extracts in the near future.
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Food and beverages segment anticipated to account for a relatively high value share in the global sweetener market over the forecast period
The food and beverages segment is expected to account for around 70% share in terms of value throughout the forecast period. This segment is anticipated to register a significant CAGR of 3.2% in terms of value. The sweet spreads sub-segment of the food and beverages segment is expected to witness an increase in revenue share by 2027 end owing to increasing popularity of sweet spreads among consumers. This sub-segment is estimated to account for about 14% revenue share of the global sweetener market by 2017 end. The sweet spreads segment is the fastest growing sub-segment and is expected to be valued at close to US$ 12 Bn in 2017 and will reach a market valuation of about US$ 14 Bn by 2027 end. This is attributed to increasing demand for sweet spreads and its increasing popularity among consumers.
Owing to increasing exports and manufacturing of food and beverage products, the related segment is expected to expand at a high CAGR in North America
By the end of 2027, the food and beverages segment in the North America sweetener market is projected to reach more than US$ 18 Bn, expanding at a CAGR of 3.0% over the forecast period and revenue is expected to increase 1.3x by 2027 end as compared to 2017. The food and beverages segment is estimated to account for a little more than 70% value share in the North America sweetener market by 2017 end and is expected to show little growth in the value share by 2027 over 2017.
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