Neotame Market

Neotame Market Size Share Growth Analysis 2022 - 2027:

Neotame Market was at USD 13 million in 2018 and is anticipated to reach over USD 17 million by the end of the assessment period. The market is also estimated to experience reasonable growth to record a CAGR of 7.45% throughout the foreseen period 2022 - 2027.

Neotame is an artificial sweetener with a sweet taste similar to sucrose but excluding the bitter aftertaste. Neotame has some advantages over other sweeteners, such as decent neutral pH stability, mild temperature stability, extremely potent, metabolizes quickly, making it useful in baked goods and confectionery. Neotame was first popularized by NutraSweet, an American nutrient company, after which it received little criticism, but later with the approval flag from the Food and Drug Administration (FDA) and the World Health Organization (WHO), the market for neotame found demand. Neotame in its final form resembles confectionery sugar and thus provides flexibility for manufacturers to develop a new product line capable of meeting consumer demand and needs with a profitable business model.

Recent Developments

1. Neotame, a recently introduced high intensity sweetener by the American company NutraSweet, has been approved by the Indian authorities for use in pharmaceutical preparations. The sweetener is structurally similar to aspartame, but is 30 to 60 times sweeter, so less should be needed in pharmaceutical formulations. It is around 8000 times sweeter than sucrose and can also improve favorably. Taste and flavor equal to or less than sweetness levels, according to NutraSweet.
2. NutraSweet calorie-free sweetener neotame will be authorized in the EU, prior social authorization from the European Commission. It is about 8000 times sweeter than sugar and 30 to 60 times sweeter than aspartame (depending on application), but to have a sweet taste and no calories.
3. A Massachusetts biotech company acquired the former NutraSweet plant in East Augusta, which it plans to reopen to produce a natural, calorie-free sweetener. Manus Bio Inc. will create up to 50 jobs in manufacturing, product development and distribution, according to an announcement Tuesday by the Georgia Department of Economic Development.

REPORT COVERAGE:

Market Drivers and Restraints:

The global market for neotame is in a nascent stage as the demand for food additives is increasing at a rapid rate and many manufacturers are slowing down their trend to use neotame as an artificial sweetener. In addition, it reduces the cost of production by the amount necessary to achieve the desired softening. The global market for neotame is invariably associated with the food and beverage industry, as neotame is increasingly used to manufacture a variety of products due to its simple cost and immense efficiency. Neotame as a sweetener provides better sugar than normal. It is rapidly metabolized, it is completely eliminated from the body, which helps to keep the sugar levels in the body low. Since customers are now particularly inflexible about their health, they want an alternative that offers the same amount of sweetness as sugar with a certain amount of nutrients. This is emerging as the most positive market driver for the global neotame market. Although it was approved by the FDA in 2002, the only negative market driver affecting the global market for neotame is believed to be the ongoing debate about its limited use in food products and its harmful effects when consumed in large quantities.

Market Segmentation:

The global market for neotame is growing as the demand for food additives grows at a rapid pace and manufacturers use neotame as it reduces the cost of production by reducing the amount needed to achieve the desired sweetness. The neotame market can be segmented according to application and regions. The neotame market, depending on the application, can be segmented into the food and beverage industry, the pharmaceutical industry, the cosmetic industry and the agriculture/feed industry.

Among all other applications, neotame is widely used in food and beverage. The application in food and beverages can be subdivided into beverages, confectionery, bakery and other food products (such as candy, gum, etc.). Food and beverage applications dominate the global neotame market in terms of value and volume. Other applications such as cosmetics and pharmaceuticals are developing at a constant rate in terms of volume of consumption. Food and beverage manufacturers are increasingly using neotame to manufacture a variety of products, due to its low cost and high efficiency, coupled with food authority approval, resulting in increased demand for neotame.

Impact of COVID-19 on Neotame Market

Coronavirus is supposed to continue its influence on the worldwide food industry and its associated businesses like neotame market. As an initial step to curb the transmission of coronavirus, several countries have imposed strict lockdown conditions, resulting in the temporary closure of production units and sales channels. This has led to a decline in the sales and revenue of the neotame market. Also, the market for these products is very low in the developing nations, which is acting negatively for this industry.  Although the lockdown conditions have been lifted recently, the neotame market has not fully recovered from its losses. This is supposed to continue for some time in the future or until at least an effective vaccination is developed for the COVID-19.

Regional Analysis:

The global Neotame market has been categorized by geography into regions of North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. Increasing awareness of neotame and its different applications are the expected factors to drive demand for neotame in the Asia Pacific region during the outlook period. The expansion of the food and beverage industry, due to increased consumer affordability and a focus on healthy living, is supposed to drive the market in Asia Pacific.

The product has also qualified all regulatory controls in the sweetener market in Australia and New Zealand, the Middle East and Africa. The sweetener market is estimated to be driven by the increasing number of restaurants and cafes in the UAE, Qatar, and Asian countries (especially India).

The European market is also anticipated to experience significant growth because of the regulatory policies on product safety. The pre-eminent bakery market in Europe, regarded as the staple food market, represents a significant demand for these additives.

Leading Company

Foodchem International Corporation had the largest share of the Neotame Market in terms of sales and revenue in 2018.

Key Players

Major players in the Global Neotame Market include Jk sucralose Inc., Foodchem International Corporation, A & Z Food Additives Co., Ltd., Sweetener India., Shaoxing Marina Biotechnology Co., Ltd., H & A Canada Inc., JJD Enterprises, Prinova Group LLC, Sweetner Holdings, Inc., Fooding Group Limited, and among others.