Global Artificial Sweetener Market - Forecasts from 2024 to 2029

The global artificial sweetener market is valued at US$8.492 billion in 2024. It is expected to grow at a CAGR of 3.16% over the forecast period to reach a total market size of US$9.904 billion in 2029.

An artificial sweetener refers to an additive employed in food and in the manufacture of beverages to sweeten the foods in a similar way as sugar does. Still, the best artificial sweeteners do not contain the calories in sugar. They are several times as sweet as sugar but contain fewer calories. The principal factor encouraging the artificial sweetener market is the increasing consumer interest in low-sugar food and drink products. The worries of overconsumption of calories have received much attention in the recent past because of the growing incidences of chronic illnesses, inclusive of obesity and diabetes, that have affected young and children populations.

The market for artificial sweeteners is highly saturated, as the market is shared between several large and numerous small competitors. New product development and innovation, product differentiation and promotion, adherence to rules and legal proceedings, and pricing strategies also cause severe competition. As businesses work to launch new items, enhance old ones, and answer consumer complaints, the market stays dynamic and inventive.

GLOBAL ARTIFICIAL SWEETENER MARKET DRIVERS:

• The shift of consumer consciousness to health, as well as adjustments in diet, has been a key booster for the artificial sweetener market. With increasing obesity, people are seeking healthier alternatives to most of the foods that are commonly associated with sugar. Non-sugar sweeteners, being low-calorie and sugar-free, have been widely adopted by nutritionists, dieticians, and other specialists, who recommend weight loss diets and overall health improvement.  For instance, as per the stats presented by the Australian Institute of Health and Welfare in 2022, 26% of children and teenagers aged between 2 and 17 years were either overweight or obese in the nation.  Meanwhile, as much as 66% of Australians aged 18 and above were overweight or obese.

Moreover, an expanding market for artificial sweeteners has been occasioned by a growing diabetes population. Diabetes patients often have to monitor their blood sugar levels, and artificial sweeteners help with this. As of 2022, almost 4.4 million people in the United Kingdom had diabetes, amongst which 1.2 million had type 2 diabetes. However, diabetic individuals are now privileged to have more varieties of foods and drinks in the market that can be sweetened using artificial sweeteners and still have no effects on their blood sugar levels.

• Rising disposable incomes and living standards continuously boost convenient food and beverage consumption worldwide, especially in developing economies. According to the U.S. Bureau of Economic Analysis, personal disposable income increased from US$57,577 in 2022 to US$61,242 in 2023.

However, there has been a rise in awareness among people about the negative impact of a high-calorie diet on their health. As such, processed food manufacturers are adapting to this shift by using various artificial sweeteners in their products, thus spurring the market growth of artificial sweeteners. As part of its pep+ (PepsiCo Positive) goals, the company plans to eliminate added sugars in its beverage range and provide more Positive Choices to customers. PepsiCo is trying to minimize added sugars to 100 calories or less per 12 fluid ounces serving in at least 67% of its beverage portfolio by volume by 2025.

Moreover, as sugar consumption in daily foods has risen, the FSSAI has changed the food safety standard for synthetic sweeteners. It stresses on the right amount of artificial sugars in products made from artificial sweeteners to meet the customer’s need for a decent intake of artificial sweeteners while not compromising taste. From the start of this program in 2017 to 2022, Coca-Cola eliminated almost 900,000 tonnes of added sugar in its global product range by changing more than 1000 products.

GLOBAL ARTIFICIAL SWEETENER MARKET SEGMENT ANALYSIS:

By type, aspartame is anticipated to be one of the fastest-growing segments in the artificial sweetener market.

Aspartame is the methyl ester of a dipeptide, a molecule composed of two amino acid residues - hydrophilic, aspartic acid (Asp) and hydrophobic, phenylalanine (Phe) - which makes it unique. According to the FDA, aspartame is 200 times sweeter than sugar.

Various factors have contributed to aspartame’s extensive popularity. For instance, its high sweetening intensity makes it possible to decrease the caloric content substantially while preserving its palatability. This makes it a drug of choice for anyone who wants to shed some pounds or boost their overall health. Its versatility is another strength since it can be employed in various food and beverages, such as soft drinks and diet sodas, besides baked products and gum.

These factors have led to aspartame's continuous expansion and domination in the artificial sweetener business. It meets regulatory permission, has high sweetening power, is flexible and low-cost, and is preferred by customers and producers seeking healthy and convenient options.

North America’s artificial sweetener market is anticipated to grow significantly.

Geographically, the artificial sweetener market is segmented into North America, South America, Europe, the Middle East, and Africa (MEA), and Asia Pacific (APAC). North America is anticipated to grow substantially during the forecast period. The rising prevalence of diabetes and obesity in countries like the United States and Canada has increased concerns among people as well as governments regarding this unhealthy lifestyle, which includes a high intake of sugar. According to new population figures from 2022 presented by the Centers for Disease Control and Prevention, 22 states in the United States have an adult obesity prevalence of 35% or more, up from 2021. Moreover, in Canada, 27% of the elderly population (65+ years) were diagnosed with diabetes in 2021, followed by people aged 40-64 years, accounting for 10.9%.

Following this, people are switching to artificial sweeteners with low or zero calories compared to added sugar. This is significantly propelling the market growth of artificial sweeteners across this region. Furthermore, the FDA (United States Food and Drug Administration) has already approved the use of several artificial sweeteners, including neotame, saccharin, and sucralose, which can be used by processed food and beverage manufacturers. Thus, the market growth of artificial sweeteners in this region during the forecast period will be positively impacted.

The Asia Pacific region is also projected to witness a substantial CAGR during the forecast period owing to the increasing number of food and beverage manufacturers expanding their facilities. By 2025, the Indian food processing market is expected to reach $535 billion, with a compound yearly growth rate of 15.2%. Tier II and Tier III cities may follow the trend seen in metropolitan regions by consuming more processed food in the future.

With the growing global trade volume, various manufacturers are using artificial sweeteners in place of added sugars to export their products to countries with strict regulations and guidelines regarding high-calorie intake and high awareness about the bad effects of added sugars on human health. This, in turn, is fuelling the demand for artificial sweeteners in the APAC region.

Global Artificial Sweetener Market Key Developments:

• In August 2024, HOWTIAN introduced SoPure™ Dorado, a natural sweetener that addresses the growing demand for minimally processed, plant-based goods. SoPure™ Dorado is an unprocessed golden stevia extract that is the least processed, plant-based, and zero-calorie sweetener.

The global artificial sweetener market is segmented and analyzed as follows:

By Type

• Aspartame
• Acesulfame K
• Saccharin
• Sucralose
• Neotame
• Others

By Application

• Dairy
• Beverages
• Confectionary and Bakery
• Processed Food
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Rest of the Middle East and Africa
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific