Natural Sweeteners Market Size, Share, Forecast, & Trends Analysis by Type (High Fructose Corn Syrup, Stevia, Monk Fruits, Sorbitol, Mannitol), Nature (Nutritive, Non-nutritive), Form (Liquid, Solid), Application (Beverages, Food) - Global Forecast to 2031

The Natural Sweeteners Market was valued at $17.36 billion in 2023. This market is expected to reach $24.48 billion by 2031, from an estimated $18.23 billion in 2024, at a CAGR of 4.3% during the forecast period 2024-2031.

Natural Sweeteners Market Size & Forecast

The growth of this market can be attributed to several factors, including the increasing prevalence of diabetes and obesity, the growing consumption of natural sweeteners, and the increasing demand for natural ingredients in the food & beverages industry. Moreover, increasing government regulation for reducing sugar consumption and emerging economies are expected to offer growth opportunities for the players operating in this market.

Natural Sweeteners Market Growth Drivers

Increasing Prevalence of Diabetes and Obesity

Diabetes stands as a significant global health concern, with Type 2 diabetes witnessing a stark rise and projected to escalate further. The surge in diabetes prevalence worldwide is primarily linked to factors like obesity and sedentary lifestyles. According to the International Diabetes Federation (IDF), approximately 537 million adults aged 20–79 years had diabetes in 2021. This number is anticipated to soar to 783 million by 2045, with 541 million adults at heightened risk of developing Type 2 diabetes.

A noteworthy aspect is that most Type 2 diabetes patients grapple with obesity and its attendant complications, encompassing cardiovascular ailments and hepatic steatosis. Moreover, diabetes, among the array of non-communicable diseases, poses a risk of premature mortality. Simple sugar consumption is often implicated in diabetes development. Nevertheless, the adoption of low-calorie sweeteners emerges as a favorable alternative to mitigate this risk, aiding in carbohydrate control and blood glucose management. Non-caloric sweeteners, serving as low-calorie sugar substitutes, effectively regulate blood sugar levels without contributing to caloric intake. These dynamics underscore the growing traction towards natural sweeteners, propelling market growth in this domain.

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Growing Consumption of Natural Sweeteners

Rising mortality rates linked to heart diseases, strokes, obesity, and Type 2 diabetes, coupled with a growing health-conscious mindset, have spurred a notable shift towards low-calorie and nutritious dietary choices. This trend has fueled a surge in the consumption of natural ingredients as alternatives to artificial additives. Among these, natural sweeteners stand out as pivotal components in food formulations aimed at reducing sugar content. Polyols, allulose, and high fructose corn syrup emerge as key natural sweeteners widely employed across various food categories, encompassing dairy, bakery, confectionery, beverages, and functional foods. The burgeoning emphasis on health consciousness among consumers has intensified the demand for healthier food options, thereby amplifying the market demand for natural sweeteners.

Natural Sweeteners Market Trends

Increasing Adoption of Clean-label Products

The "clean label" movement reflects a consumer-driven demand for authenticity and transparency in food products, advocating for real ingredients that are natural and free from artificial or synthetic substances. This trend emphasizes the use of recognizable ingredients that consumers perceive as wholesome.

In 2022, clean label claims significantly influenced the purchasing decisions of approximately two-thirds of consumers worldwide. Moreover, nearly half of global consumers expressed a willingness to pay a premium for products with clean labels, with Asian consumers showing an even greater propensity to do so. According to a recent study by Ingredion, a substantial 78% of global consumers are willing to pay extra for products bearing clean labels, denoting natural, organic, or non-artificial ingredients. As consumers increasingly seek to reduce their sugar intake, natural sweeteners like stevia, monk fruit, and D-Psicose emerge as healthier alternatives to traditional sugars, aligning with the clean-label trend and benefiting consumers' health.

The shift towards clean-label food and beverage products presents significant opportunities for players in the natural sweeteners market, highlighting the growing importance of this trend in shaping consumer preferences and driving market growth.

Increasing Awareness of Health & Wellness

Increasing health issues are the major factor encouraging consumers to choose healthy living by consuming healthy food. Also, rapid urbanization, changing lifestyles, and growing disposable incomes have boosted the consumption of healthy foods. According to Ingredion’s recent study in 2023 stated that 78% of global consumers are ready to pay extra for clean labels (natural, organic or non-artificial ingredients).

Health-conscious consumers generally prefer foods with low-calorie or no-calorie sweeteners. Replacing sugar with sugar substitutes, including stevia and sugar alcohol, is an option that allows them to cut down on sugars and avoid caloric intake. Diabetes, obesity, and heart stroke are major health concerns globally. It is tough for people with diabetes to overcome their cravings for sweet foods. The use of sugar substitutes can help them satisfy their cravings while keeping sugar levels in check. People with health issues such as obesity can reduce their daily caloric intake by replacing sugar with natural sweeteners. Thus, people’s growing adoption of healthier lifestyles is a prominent trend that positively influences the natural sweeteners market.

Natural Sweeteners Market Opportunity

Increasing Government Regulation for Reducing Sugar Consumption

The global rise in obesity, diabetes, tooth decay, and chronic diseases is largely attributed to the overconsumption of sugar. To address this issue, the World Health Organization (WHO) recommends reducing the daily intake of free sugars to less than 10% of total energy intake, with further reductions to below 5% encouraged.

In response to the alarming health implications of excessive sugar consumption, many governments have taken proactive measures by implementing sugar taxes. Sugary drinks, in particular, contribute significantly to sugar intake, especially among children and adolescents. Consequently, several countries have imposed taxes on these beverages. For example, in Mexico, the introduction of a 1 peso per liter excise tax on sugary drinks resulted in an average reduction in purchases of 11.7% across the population and 7.6% in households with limited resources within two years of implementation. Similarly, the Spanish government raised the value-added tax (VAT) on sweetened drinks to 21% in 2021 to combat childhood obesity and reduce sugary beverage consumption.

The increasing adoption of sugar taxes by governments is expected to drive demand for sugar substitute products, presenting lucrative opportunities for manufacturers in this market.

Natural Sweeteners Market Analysis: Key Findings

By Type: In 2024, the High Fructose Corn Syrup (HFCS) Segment to Dominate the Natural Sweeteners Market

Based on type, the natural sweeteners market is segmented into high fructose corn syrup (HFCS), stevia, monk fruits, sorbitol, mannitol, xylitol, erythritol, sweet proteins, and other natural sweeteners. In 2024, the high fructose corn syrup segment is expected to account for the largest share of 71.9% of the natural sweeteners market. The large market share of this segment can be attributed to factors such as high solubility, high stability, ease of handling, and increasing demand for acidic beverages. There is increasing adoption of high fructose corn syrup as a cost-effective sweetener in various food and beverage applications, including carbonated drinks, baked goods, processed foods, and confectionery, further driving the growth of the market.

However, the stevia segment is projected to witness the highest growth rate of 7.9% during the forecast period of 2024–2031. This growth is driven by the growing demand for natural ingredients in various food and beverage products, growing demand for sugar-free and low-sugar confectionery products, and growing consumer preference for clean-label and healthy products.

By Nature: In 2024, the Nutritive Natural Sweeteners Segment to Dominate the Natural Sweeteners Market

Based on nature, the natural sweeteners market is segmented into nutritive natural sweeteners and non-nutritive natural sweeteners. In 2024, the nutritive natural sweeteners segment is expected to account for the larger share of the natural sweeteners market. The large market share can be attributed to its easy availability and high utilization of high fructose corn syrup and sugar alcohols in beverages, bakeries, and different processed foods.

However, the non-nutritive natural sweeteners segment is projected to witness the highest growth rate during the forecast period of 2024–2031. This growth is driven by the growing demand for low-calorie and sugar-free products and the increasing adoption of non-nutritive natural sweeteners like stevia as a healthier option with no calories and a lower glycemic index than sugar.

By Form: In 2024, the Liquid Segment to Dominate the Natural Sweeteners Market

Based on form, the natural sweeteners market is segmented into liquid and solid. In 2024, the liquid segment is expected to account for the larger share of the natural sweeteners market. The large market share of this segment can be attributed to its easy availability, ease of dissolving, versatility, flavor enhancement, and high availability of sweeteners in the form of syrups.

By Application: the Beverages Segment to Witness Highest Demand During the Forecast Period

Based on application, the natural sweeteners market is segmented into beverages, food, nutrition and health supplements, pharmaceuticals, and other applications. In 2024, the beverages segment is expected to account for the largest share of the natural sweeteners market. The large market share of this segment can be attributed to the increasing adoption of beverage products, high health benefits of natural sweeteners in beverages, increasing natural sweeteners-based product launches and product innovation in beverages, and increasing demand for sugar-free beverages among young consumers. Also, there is increasing demand for various sports supplements and sports drinks, further supporting the growth of the market.

However, the food segment is projected to witness the highest growth rate during the forecast period of 2024–2031. This growth is driven by the growing food demand, increasing consumer preference for fat-free & sugar-free food products, changing food consumption patterns, and extensive use of natural sweeteners in different vegan food products.

Geographical Analysis

Based on geography, the natural sweeteners market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 42.1% of the natural sweeteners market, followed by Asia-Pacific and Europe. North America's significant market share can be attributed to several key factors, including the growing demand for healthy food products, the increasing population of obese & diabetic population, the presence of several players offering natural sweeteners with well-established food & beverage industry, and the high demand for sugar-free products.

Additionally, in the North American region, the U.S. is expected to account for the larger share of the natural sweeteners market, followed by Canada.

However, the Asia-Pacific region is slated to register the highest CAGR of 5.0% during the forecast period. The growth of this regional market is attributed to factors such as changing lifestyles, rapid urbanization, increasing spending on premium food products, growing consumption of healthy food & Ingredients, and rising awareness regarding the side effects of high consumption of sugar-based products.

Natural Sweeteners Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the Natural Sweeteners market are Archer-Daniels-Midland Company (U.S.), Cargill, Incorporated (U.S.), SweeGen, Inc. (U.S.), Tate & Lyle PLC (U.K.), Ingredion Incorporated (U.S.), Roquette Frères (France), Guilin Layn Natural Ingredients Corp. (China), Monk Fruit Corp. (U.S.) DSM-Firmenich AG (Switzerland), Associated British Foods plc (U.K.), Sunwin Stevia International, Inc. (U.S.), Dupont De Nemours, Inc. (U.S.), Matsutani Chemical Industry Co., Ltd. (Japan), Anderson Advanced Ingredients (U.S.), FoodChem International Corporation (China), and Stevia Hub India (India).

Natural Sweeteners Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Elo Life Systems, Inc. (U.S.) raised USD 20.5 million in a Series A2 round and aims to launch a natural high-intensity sweetener in 2026.
• In July 2023, Zhucheng Haotian Pharm Co., Ltd. (HOWTIAN) (China) launched SoPure Galaxy, the next-generation stevia for dairy applications.
• In May 2022, Tate & Lyle established a new customer innovation and collaboration center in Santiago, Chile, to address the growing demand for solutions that help reduce sugar, fat, and calories and add fiber to consumer products.
• In June 2021, Layn Natural Ingredients announced plans to invest USD 148 million in infrastructure, expansion, and innovation to strengthen its position in natural sweeteners.

Natural Sweeteners Market Research Summary:

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