Novel Sweeteners Market

Global Novel Sweeteners Market Size (2024 to 2029)

As per our analysis report, the global novel sweeteners market is expected to reach USD 1.50 billion by 2029 from USD 1.13 billion in 2024, growing at a compound annual growth rate (CAGR) of 5.8 % during the forecast timeline.

Novel sweeteners are commonly referred to as sugar substitutes. Along with natural sweeteners like Stevia and Monk fruit extract, artificial sweeteners like aspartame, sucralose, and saccharin, and sugar alcohols like erythritol and sorbitol, among others, they can come in a variety of types. Novel sweeteners are sugar substitutes with lower calories that can be used to offer sweetness to numerous foods and beverages without adding extra calories. As these sweeteners are typically sweeter than regular sugar, very small quantities are required to consume. People who are seeking to manage diseases like diabetes and obesity or restrict their sugar consumption for various health reasons are using novel sweeteners more regularly. The increasing number of individuals with obesity and diabetes offers a substantial growth opportunity for market expansion. As health concerns like obesity and diabetes are increasing rapidly, there is a great demand for low-calorie and sugar-free options to help manage weight and blood sugar levels among these people. Novel sweeteners have the opportunity to meet this demand as they offer sweet tastes without the caloric content of sugar. They present a preferred way of developing diabetes-friendly products and helping with weight-loss efforts. Hence, it promotes the market reach that will influence the novel sweeteners market shares in the coming years as the prevalence of obesity and diabetes is on the rise.

Further, the growing demand for functional foods and beverages creates a significant opportunity for the novel sweeteners market growth. Functional foods serve to deliver specific health benefits beyond those provided by basic nutrition, and as people put a greater focus on their well-being, demand for such products is constantly rising. Novel sweeteners can be used as main ingredients in making functional foods, which can improve the flavor of functional foods and beverages without adding a lot of calories or sugar. As manufacturers explore healthier, low-calorie, and sugar-reduced options enriched with vitamins, minerals, probiotics, and other beneficial ingredients, this trend presents a significant market opportunity.

Global Novel Sweeteners Market Drivers:

One of the major drivers of the novel sweeteners market growth is the surging demand for sugar-free and low-calorie foods and beverages. Nowadays, people are actively seeking alternatives that enable them to enjoy sweet flavors without compromising their well-being due to the growing awareness of health concerns associated with excessive sugar consumption, including obesity, diabetes, and oral health issues. This trend is in sync with the increasing popularity of diabetes management, weight management, and healthy eating practices, which are promoting demand for sugar-free and low-calorie alternatives. Also, the market for these sweeteners continues to grow as regulatory bodies permit novel sweeteners for safe consumption, and the food industry responds with creative formulations, satisfying the shifting demands of health-conscious consumers all over the globe. This growing market trend is promoting demand for novel sweeteners, ultimately boosting the market size expansion.

The increasing consumer preferences for natural and organic ingredients is another crucial driver propelling the novel sweeteners market demand. As health consciousness among consumers rapidly increases after the pandemic, individuals are looking for healthier and more nutritious solutions; they are turning to natural sweeteners like monk fruit extract and steviol glycosides from the Stevia plant, among others. As they are lightly processed and free of synthetic chemicals, these sweeteners are considered healthier alternatives. The demand for organic credentials is yet another indicator emphasizing the demand for pure sweetening agents. The demand for novel sweeteners is expanding as a result of this shift towards natural and organic sweeteners, which not only addresses health issues but also corresponds with more general sustainability and ethical consumption patterns.

Global Novel Sweeteners Market Restraints:

The high cost associated with novel sweeteners is a notable restraint on the market expansion. These sweeteners often require complex process steps, specific raw materials, and regulatory compliance, all of which raise production costs. Hence, novel sweetener-containing products usually turn out to be more expensive for both producers and customers, making them costly in markets where price is a major consideration. The adoption of novel sweeteners is also restricted by high costs, especially in areas or demographic groups where affordability is the main concern. The pricing pressure from traditional sugar and other sweeteners can further limit the novel sweeteners market growth.

The limited awareness of novel sweeteners is another significant challenge for market development. Many consumers are still unaware of the availability, advantages, and uses of these substitute sweeteners. Due to this ignorance, consumers may not be ready to use products that contain novel sweeteners and instead opt for regular alternatives like traditional sugar or other sugar substitutes. This limited awareness can deter the adoption of novel sweeteners, hence declining the market share.

Impact of COVID-19 on the Novel Sweeteners Market:

The consumption of regular sugar is more than that of other natural or artificial sweeteners, but during the pandemic, there was a shift toward healthier food alternatives like low-calorie, sugar-free products. This contributed to a boost in the novel sweeteners market demand as a result of the growing emphasis on overall health and wellness due to the spread of COVID-19. However, market growth was negatively impacted by the limited availability of raw materials used to produce novel sweeteners like stevia, tagatose, and monk fruit extractions, which further affected the production and distribution processes and led to a decline in the market expansion during this critical period.

REPORT COVERAGE:

This research report on the global novel sweeteners market has been segmented and sub-segmented based on type, end-user, application, and region.

Global Novel Sweeteners Market - By Type:

• Stevia Extracts
• Tagatose
• Trehalose
• Other

By type, the stevia extracts segment is ruling the novel sweeteners market demand during the anticipated period. Steviol glycosides, a natural sweetener found in the leaves of the Stevia plant, are much sweeter than regular sugar. Stevia extracts have a low glycemic index and are calorie-free. Also, they are heat-stable, which makes them a perfect ingredient for various foods and beverages. These attributes greatly boost the demand for this segment and push the market forward. However, the tagatose segment is deemed to grow at the fastest rate during the projected period. It is a sugar alcohol with a low glycemic index, low calories, and heat-stable properties, which is naturally found in fruits and vegetables. Hence, it is a perfect sugar substitute mainly used in baked goods, beverages, and dairy products, causing an increase in the demand for this segment.

Global Novel Sweeteners Market - By End Use:

• Food and Beverages
• Pharmaceuticals
• Direct Sales
• Baby Snacks
• Other

By End Use, the food and beverages segment is dominating the novel sweeteners market share during the forecasted period. The rising demand for foods and beverages that are sugar-free and low in calories is the driver that is fueling the growing demand for novel sweeteners in this sector. Novel sweeteners have applications in various foods and drinks, such as dairy products, sodas, sports drinks, snacks, sauces, candies, and baked goods, to minimize sugar content while retaining taste and flavor. These factors mainly induce market sales globally. At the same time, the pharmaceutical industry will be the fastest-growing segment in the upcoming years. The increasing use of novel sweeteners to treat diabetes and other medical diseases is supporting the market growth. Various medicinal products, such as tablets, capsules, and syrups, use novel sweeteners as an ingredient, which is influencing the demand for these sweeteners.

Global Novel Sweeteners Market - By Application:

• Bakery Goods
• Sweet Spreads
• Confectionery and chewing Gums
• Beverages
• Dairy products
• Others

By Application, the dairy products segment is anticipated to dominate the novel sweeteners market sales during the forecasted period. It is expected that the dairy product's novel sweeteners market shares will reach USD 678.12 million by the end of 2028. Novel sweeteners are widely used in the dairy sector as they act as a sugar substitute in many of the products. The bakery goods segment is next in leading the dominant shares of the novel sweeteners market.

Global Novel Sweeteners Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The Asia Pacific region is ruling the novel sweeteners market shares during the anticipated period owing to the increasing prevalence of diabetes and obesity among the people in this region. As these people are increasingly opting for low-calorie and sugar-free products, there is a boost in the adoption of novel sweeteners like stevia extracts, tagatose, etc., in various foods and drinks. These attributes are stimulating market demand in this region. North America has the second-largest novel sweeteners market share in the upcoming years. The growing health-conscious consumers in this region stimulate the production of healthy alternatives like sugar-free snacks, diet sodas, and sugar-reduced desserts made with the applications of novel sweeteners. This attribute is majorly influencing the demand for novel sweeteners and hence pushing the market forward in this segment.

KEY MARKET PLAYERS:

Major Key Players in the Global novel sweeteners market are Ajinomoto Co. Inc., Cargill Inc., DuPont Nutrition & Health, The Coca-Cola Company, Firmenich International Flavors & Fragrances Inc., Givaudan, Johnson Matthey PLC, Merisant International, Inc., Nestlé S.A., PureCircle Limited, Tate & Lyle PLC

RECENT HAPPENINGS IN THE MARKET:

In December 2020, Tate & Lyle acquired Sweet Green Fields (SGF), a global provider of stevia solutions, as part of a strategic move to enter the rapidly expanding Asia Pacific market as well as take advantage of the specialized stevia production facility and research and development labs located in Anji, China.