Artificial Sweeteners Market size is estimated to reach $11.30 Billion by 2025 and is poised to grow at a CAGR of 5.88% during the forecast period 2020-2025. Artificial sweeteners are artificial sugar substitutes. They are derived from the natural substances, such as herbs or the sugar itself. Artificial Sweeteners are widely used in processed foods such as powdered drink mixes, desserts, jam and jelly, baked goods, dairy products, beverages, and others to keep the taste and make it healthier. The artificial sweeteners market is growing owing to the increased awareness and health consciousness among the people, the demand for low-calorie sugar substitutes and sugar-free products is increasing. Hence, the food manufacturers produce low-calorie and sugar-free alternatives as the main products, which in turn help stimulate market growth over the forecast years 2020-2025.

Artificial Sweeteners Market Segment Analysis – By Application

The global Artificial Sweeteners Market based on Application, can be further segmented into Bakery Products, Beverages, Confectionery, Dairy products, and others. The Beverages segment registered for highest revenue in 2019 and projected to grow at the highest CAGR during the forecast period 2020-2025. Artificial sweeteners have closely replaced sugar in the beverage sector, especially soft drinks. Artificial sweeteners properties such as the natural look and clean label are driving the artificial sweeteners market. Besides, in soft drinks, the quantity of sugar used is reduced without affecting appearance and taste, which enables manufacturers in the beverage industry to replace sugar with artificial sweeteners across the globe.

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Artificial Sweeteners Market Segment Analysis – By Distribution Channel

The global Artificial Sweeteners Market based on Mode of Distribution Channel, can be further segmented into Supermarkets/Hypermarkets, Online Channel, Specialty Stores, and others. Supermarkets/Hypermarkets segment registered for the highest revenue in 2019 and is estimated to grow at highest CAGR over the forecast years 2020-2025 owing to the one-stop shopping experience, and a wide range of availability for artificial sweeteners.

Artificial Sweeteners Market Segment Analysis – By Geography

The global Artificial Sweeteners Market based on Geography, can be further segmented into North America, Asia-Pacific, Europe, and Rest of World. Asia-Pacific registered for the highest revenue in 2019 and is set to continue for the forecast period (2020-2025) owing to the rising health awareness among consumers in the region. There is also a weight loss trend in the region which reduces table sugar use and boosts the market. However, North America is estimated to stand next to Asia-Pacific in CAGR growth during the forecast period 2020-2025 owing to the evolving dietary patterns such as low-calorie and zero-calorie foods are increasing in the processed and packaged foods sector, leading to an increased demand for artificial sweeteners in the region.

Artificial Sweeteners Market Drivers

Rising demand in the food and beverage industry to drive growth

The artificial sweeteners market is gaining growth primarily owing to the increasing use of low-calorie sugar substitutes and sugar-free products. Moreover, the harmful effects of sugar, health problems, and the spread of lifestyle diseases like heart disease and diabetes have led the consumers to choose healthy alternatives like artificial sweeteners which in turn boosts the market growth.

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Artificial Sweeteners Market Challenges

Excessive intake

The long-term and excessive use leads to diabetes, which interferes with body’s ability to regulate the blood sugar is projected to hamper the market growth. The long-term consumption of the artificial sweeteners leads to diarrhea, bloating, and gastrointestinal disorders. However, the high-intensity sweeteners, such as saccharin, and aspartame, causes blood related disorders, including leukemia, which even leads to death. This is acting as a major challenge for the growth of the Artificial Sweeteners Market during the forecast period 2020-2025.

Artificial Sweeteners Market Industry outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Artificial Sweeteners Market. Key companies of this market Tate & Lyle PLC, Cargill Inc, Raizen S.A., Ingredion Incorporated, Wilmar International Limited, E.I Dupont De Numours and Company, Associated British Foods Plc, Archer Daniels Midland Company, Ajinomoto Corporation Inc, and Nestlé S.A.

Acquisitions/Product Launches:

In November 2019, Cargill-DSM joint venture Avansya has started the commercial-scale production of EverSweet™ stevia sweetener, as consumers increasingly demand reduced-calorie food and beverages.

In April 2019, Tate & Lyle has signed a multi-year agreement with Codexis Inc, for the supply and licensing of the novel Codexis performance enzymes used in the manufacture of the Tate & Lyle’s TASTEVA® M Stevia Sweetener.

Key Takeaways

Geographically, the Asia-Pacific area is poised to see extraordinary development owing to the rising health awareness among consumers concerned about obesity, diabetes in the region and is set to continue during forecast period 2020-2025.

The global demand for the Artificial Sweeteners Market is owing to the increasing use of low-calorie sugar substitutes and sugar-free products across the globe.

The long-term and excessive use leads to diabetes, which interferes with body’s ability to regulate the blood sugar is estimated to restrain the market growth during the forecast period 2020-2025.

Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the Artificial Sweeteners Market report.

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