Sugar Substitutes Market Report 2025

The sugar substitutes market size has grown strongly in recent years. It will grow from $23.38 billion in 2024 to $25 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to health and wellness trends, rising obesity concerns, diabetic population growth, government initiatives, changing consumer preferences.

The sugar substitutes market size is expected to see strong growth in the next few years. It will grow to $35.01 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to continued health consciousness, rising diabetic cases, clean label preferences, innovations in product formulations, global dietary shifts. Major trends in the forecast period include expansion of stevia-based sugar substitutes, utilization of monk fruit extract as a natural sweetener, development of sugar substitute syrups and liquid forms, focus on clean taste and flavor enhancement, collaborations for research and development in sugar substitute technologies.

The increasing prevalence of obesity and diabetes is significantly driving the growth of the sugar substitutes market. As more individuals seek to manage their health conditions, there is a growing demand for low-sugar alternatives that can help control blood pressure, body weight, and blood sugar levels. For instance, in April 2024, the Office for Health Improvement and Disparities, a UK-based Department of Health and Social Care, reported that 63.8% of adults aged 18 and older were classified as overweight or obese in the year ending November 2022, reflecting a 0.5% increase from the previous year. This trend underscores the urgent need for sugar substitutes, as consumers increasingly turn to these products to support healthier lifestyles. Consequently, the rising rates of obesity and diabetes are expected to significantly fuel the growth of the sugar substitutes market in the coming years.

The increasing consumer inclination towards healthier lifestyles and dietary choices is anticipated to drive the growth of the sugar substitute market in the future. Healthier lifestyles and dietary choices involve intentional decisions and habits that enhance overall well-being, focusing on nutritious foods and positive lifestyle practices. Sugar substitutes play a significant role in promoting healthier lifestyles and dietary choices by offering a low-calorie alternative to conventional sugar, helping to decrease sugar intake and calorie consumption. For example, in June 2024, an online survey conducted by the International Food Information Council (IFIC), a US-based non-profit organization that provides science-based information on food safety, nutrition, and health, revealed that out of 3,000 surveyed Americans, 54% reported following a healthy diet or eating pattern in 2024, a noticeable increase from 52% in 2023. Therefore, the rising consumer preferences for healthier lifestyles and dietary choices are propelling the growth of the sugar substitute market.

In the sugar substitutes market, product development centers on zero-calorie sweeteners to cater to health-conscious consumers. Tate & Lyle PLC introduced ERYTESSE Erythritol in November 2022, a zero-calorie sweetener offering 70% of the sweetness of sucrose. This product responds to the increasing demand for healthier, reduced-sugar options across various categories such as beverages, dairy, bakery, and confectionery, providing a sugar-such as taste experience.

Leading companies are committed to developing innovative natural sugar alternatives to maximize market profitability. These alternatives, derived from natural sources and devoid of synthetic ingredients, cater to consumer preferences. For instance, in June 2023, Wisdom Natural Brands introduced SweetLeaf Indulge Zero Calorie Sweeteners and 50% Reduced Calorie Sugars. These products utilize natural sweeteners such as stevia and monk fruit, addressing taste concerns while offering a broader appeal.

In October 2023, Pritzker Private Capital, a private equity firm based in the US, acquired Sugar Foods Corporation for an undisclosed amount. This acquisition aims to leverage Sugar Foods' potential for product innovation and growth while preserving its culture that emphasizes employee welfare. Sugar Foods Corporation is a US-based company focused on the production and distribution of sugar substitutes.

Major companies operating in the sugar substitutes market include Cargill Incorporated, Archer Daniels Midland Company (ADM), E. I. du Pont de Nemours and Company, International Flavors & Fragrances Inc., Ajinomoto Co Inc., Kerry Group plc, Ingredion Incorporated, DuPont Nutrition & Biosciences Inc., Roquette Frères S.A., Tate & Lyle plc, JK Sucralose Inc., Whole Earth Brands Inc., PureCircle Limited, Biosweet Ventures, Merisant Company, The NutraSweet Company, Manus Bio Inc., Pyure Brands LLC, Hermes Sweeteners Ltd., GLG Life Tech Corporation, Wisdom Natural Brands Corp, Hunan Nutramax Inc., Sweetly Stevia USA, Morita Kagaku Kogyo Co Ltd., Stevia Corp, Shandong Aojing Biotechnology Co Ltd., Sunrise Nutrachem Group Co Ltd., Xianghua GL Stevia Co, Matsutani Chemical Industry Co Ltd., Hill Pharmaceutical Co Ltd., BioVittoria Limited, Nutrinova Nutrition Specialties & Food Ingredients GmbH, SinoSweet Co Ltd., Suzhou Hope Technology Co Ltd.

North America was the largest region in the sugar substitutes market share in 2024. The Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the sugar substitutes market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the sugar substitutes market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Sugar substitutes, either chemical or plant-based, enhance sweetness in food and drinks with fewer calories, offering health benefits.

Sugar substitutes come in various categories such as high-intensity, low-intensity, and high-fructose syrup. High-intensity substitutes offer increased sweetness compared to regular sugar, often used sparingly in foods, contributing minimal calories. They manifest in diverse forms such as aspartame, sucralose, neotame, acesulfame potassium, and advantame. These substitutes derive from both natural and artificial sources, available in solid and liquid forms, finding applications across food, beverages, nutritional supplements, pharmaceuticals, animal feeds, and personal care products.

The sugar substitutes market research report is one of a series of new reports that provides sugar substitutes market statistics, including sugar substitutes industry global market size, regional shares, competitors with a sugar substitutes market share, detailed sugar substitutes market segments, market trends, and opportunities, and any further data you may need to thrive in the sugar substitutes industry. This sugar substitutes market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The sugar substitutes market consists of sales of stevia, aspartame, maltitol, and neotame. Sugar substitutes are used in breakfast cereals, pudding, tea, and other sweet beverages. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.