Specialty Sweeteners Market - Forecast(2023 - 2028)

Specialty Sweeteners Market Overview

Specialty Sweeteners market size was valued at $ 3,638 million in 2020, and is anticipated to grow at a CAGR of 5.81% during the forecast period 2021-2026. Specialty Sweeteners are defined as food additives to stimulate a sense of sweetness during consumption. The specialty sweeteners consists of sucralose, dextrose, maltodextrin, sorbitol, aspartame, polysaccharide, Steviol Glycosides, etc. Researchers have advanced and found the sugar substitutes to sweeten the products, which is known as specialty sweeteners. This sweeteners has an extensive application across the end-use industry. Specialty Sweeteners have an advantage over regular sweeteners owing to increasing health concerns and negative consumer opinions about sugar and other high calories have brought high-intensity natural sweeteners and polyols on a center-stage. This trend is poised to remain strong during the forecast period 2021-2026. Specialty Sweeteners are utilized in a wide range of applications, including bakery, confectionery, beverages, etc. The Specialty Sweeteners industry is growing owing to the increased industrial and non-industrial applications and changing consumer preferences. However, lack of awareness regarding the long-terms usage of specialty sweeteners is poised to hinder the specialty sweeteners market growth.

Specialty Sweeteners Market Report Coverage

The report: “Specialty Sweeteners Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Specialty Sweeteners Market:

By Product Category: Artificial and Natural.
By Product Type: Starch Sweeteners and Sugar Alcohols and High-Intensity Sweeteners (HIS).
By Application: Food and Beverages.
By Distribution Channel: Hypermarket/Supermarket, Specialty Stores, Pharmacies and Others.
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan, India, South Korea, Australia and Others), South America(Brazil, Argentina and Others) and RoW(Middle East and Africa).

Key Takeaways

• Geographically, North America region held the highest market share of 35.34% in 2020.
• The factors such as the increasing consumer awareness regarding the positivity of specialty sweeteners usage coupled with rising use of processed food products across the globe are amongst the major factor projected to impel growth of Specialty Sweeteners market.
• Additionally, factors such as companies investing in product innovations to reformulation to incorporate low calorie specialty sweeteners in their product portfolio through technological up gradations thereby, reducing the sugar content of their products are to create opportunities paving a way for the growth in the market during forecast period 2021-2026.

Specialty Sweeteners Market Segment Analysis – By Application, 2020(%)

Specialty Sweeteners Market Segment Analysis - By Product Category

On the basis of product category, artificial segment accounted for the largest segmental revenue of the Specialty Sweeteners market in 2020. The large share can be attributed to the fact that artificial specialty sweeteners are currently preferred as it promotes rising demand for low-calorie sugar substitutes and sugar free products which thus accelerates the growth of the Specialty Sweeteners market. Moreover, the product category can be used in cooking and as a garnish which has increased demand for sugar substitutes hence, is ideal for various applications in the food and beverage industry.

On the other hand, natural segment is projected to dominate over the forecast period 2021-2026 with a CAGR of 6.3% as the product category demand is poised to be supported by the increase in the demand for natural sweeteners owing to the consumer's great tendency towards natural products. Owing to its uniqueness towards the health awareness consumers which helps to encourage the demand for healthy food options, hence the gaining popularity are also aiding further increase in the growth of this market.

Specialty Sweeteners Market Segment Analysis - By Application

In 2020, on the basis of application, food segment accounted for the largest segmental revenue of the specialty sweeteners market on account of the factors such as growing demand for specialty sweeteners in confectionery, availability of choice of flavour, increase in the inclination towards a sedentary lifestyle, increase in the product launches and innovations and rise in the disposable income of individuals are to cater the market revenue for the segment.

On the contrary, beverage segment is projected to witness healthy growth throughout the forecast period 2021-2026 with a CAGR of 6.6% since there is an increasing in the standard of living, shift in the consumption patterns of foods and growing demand for innovative products in beverages which is also set to increase the growth of the market during the forecast period 2021-2026.

Specialty Sweeteners Market Segment Analysis - By Geography

North America is the major region dominating the Specialty Sweeteners market with a market share of 35.34% in the year 2020. This can be attributed to the growing demand for specialty sweeteners in industrial and non-industrial applications and shifting consumer preferences have accelerated market growth in the region. Moreover, North America is a leading producer and consumer in the sweetener market, owing to the increasing demand for prepared foods, functional foods, and alternative sugar sources. Apart from this, increase in the disposable income of individuals, increase in the demand for convenience foods and increase in the investment by the major companies are also to pave for its growth.

On the other hand, Asia Pacific is projected to be the significant-growing market during the forecast period 2021-2026 health consciousness among individuals, increase in the inclination towards sedentary lifestyle and increase in the product launches and innovations owing to growing population of overweight, obese, and diabetic patients in countries of India; is resulting in growth in this category thereby, leading to an increased demand for Specialty Sweeteners in the region.

Specialty Sweeteners Market Drivers

Rising Demand For Sugar-Free Premium Foods

The Specialty Sweeteners market driver can be attributed to the increase in the demand for sugar-free premium foods is estimated to enhance the growth of Specialty Sweeteners Market. Rapid urbanization and growing popularity of healthy foods have made consumers to focus more on sugar-free and low-calorie foods. Many benefits associated with specialty sweeteners are driving the demand for sugar-free food items. The food manufacturers are experiencing the demand for sugar-free foods by the consumers owing to health benefits of specialty sweeteners. This is estimated to boost the market during the forecast period 2021-2026.

Specialty Sweeteners Market Challenges

High Consumption And Long-term Usage

The restraining factor that is to create a negative impact during the forecast period 2021-2026 is the high consumption of specialty sweeteners products which is projected to hamper the market growth as it causes bloating, gastrointestinal disorders, and diarrhea. Also, long-term usage of specialty sweeteners involves diabetes, which interferes the body’s ability to regulate blood sugar. This factor is restraining the growth of the Specialty Sweeteners Market during the forecast period 2021-2026. Apart from this, high-intensity sweeteners, such as saccharin and aspartame, causes leukemia, and blood-related disorders, which even leads to death. These factors are estimated to challenge the market growth during the forecast period 2021-2026.

Specialty Sweeteners Market Landscape

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Specialty Sweeteners market. In 2020, Specialty Sweeteners market share is fragmented by the top ten players present in the market. The Specialty Sweeteners market top 10 companies are Nestle SA, PepsiCo Inc., Coca Cola Company, Pure Circle Ltd, Cargill. Inc., GLG Life Tech Corp, Stevia Corp, Imperial Sugar, Ingredion, Zydus Wellness, Tate & Lyle, The Nutra Sweet Company and others.

Acquisitions/Product Launches

• In November 2020, Ingredion EMEA has expanded its portfolio of sugar reduction and specialty sweeteners solutions across Middle East and Africa regions, with the launch of Stablesweet LD low sugar glucose syrup.
• In December 2020, myris Inc. has launched PURECANE™ Brand Sweetener for the health-conscious consumers to satisfy their sweet tooth with a natural, zero-calorie sweetener.
• In March 2019, PureCircle Limited has launched the next generation Stevia leaf sweeteners.

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