The global artificial sweetener market is experiencing remarkable growth, with its value projected to rise from US$ 7 billion in 2022 to US$ 12 billion by 2032, at a compound annual growth rate (CAGR) of 5.5% over the forecast period. Among the key regions, the United Kingdom is anticipated to contribute significantly, accounting for 30% of the global market by 2032, while aspartame-based artificial sweeteners are expected to grow at a CAGR of 4% during the same period.
Key Drivers of Market Expansion
Increasing Demand for Low- or Zero-Calorie Foods and Beverages
The growing preference for healthier diets has led to increased consumption of low- or zero-calorie foods and beverages, propelling the artificial sweetener market forward. Health-conscious consumers are driving demand for high-intensity artificial sweeteners, which enable food manufacturers to create light, low-calorie products with appealing flavor profiles.
Products containing artificial sweeteners, such as sugar-free gums, diet beverages, tabletop sweeteners, frozen dairy items, and yogurts, have gained significant popularity. For instance, sugar-free gum sales have grown notably compared to their regular counterparts.
Urban lifestyles, characterized by busy schedules and sedentary habits, have also played a role in shaping consumption patterns. The rising intake of sugary beverages to combat fatigue and hunger has led to increased health concerns, further boosting the demand for low-calorie alternatives like artificial sweeteners.
Prominent companies are responding to these consumer preferences. For example, in July 2021, PepsiCo announced plans to reduce sugar content by 25% in its iced tea and soda ranges across the European Union by 2025. This initiative aligns with the growing trend toward low-sugar products, catering to health-conscious consumers.
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Post-COVID-19 Market Resurgence
The COVID-19 pandemic had a moderate impact on the artificial sweetener market. Disruptions in global sugar production and supply chains, particularly in Brazil, influenced the market’s dynamics. The pandemic caused fluctuations in sugarcane distribution between sugar and ethanol production, while crude oil price volatility further complicated the situation.
By March 2020, global sugar prices dropped over 20%, partly due to reduced ethanol production. However, prices rebounded by April 2020, stabilizing the market. In the post-pandemic period, the artificial sweetener market is anticipated to witness substantial growth, driven by the increasing focus on health and wellness among consumers worldwide.
The United Kingdom: Europe’s Leading Artificial Sweetener Market
The United Kingdom is poised to become Europe’s most lucrative artificial sweetener market, capturing 30% of the global market share by 2032. Factors driving this growth include rising consumer awareness of healthier food options and the implementation of stringent food safety regulations.
The UK government has introduced several initiatives aimed at combating health issues such as diabetes, obesity, and high cholesterol. These measures, coupled with the growing availability of innovative, healthier products, are expected to drive demand for artificial sweeteners in the region.
Competitive Landscape
The artificial sweetener market is highly competitive, featuring a mix of global and regional players. To strengthen their market positions, leading companies are leveraging advanced technologies, developing innovative products, and pursuing strategic mergers and acquisitions.
Recent developments in the industry include:
- Codexis and Tate & Lyle extended their collaboration in 2021 to enhance the production of Tate & Lyle’s latest sweetener, Tasteva M Stevia Sweetener.
- AnalytiCon Discovery and Roquette announced successful R&D efforts in 2021, focusing on Brazzein, a protein-based sweetener derived from African berries (Pentadiplandra).
- Tate & Lyle PLC acquired Sweet Green Fields, a leading stevia solutions provider, in December 2020. This acquisition expanded Tate & Lyle’s portfolio, enabling the production of lower-calorie, cleaner-labeled foods and beverages for global consumers.
Future Outlook
The global artificial sweetener market is on a strong growth trajectory, driven by evolving consumer preferences, technological advancements, and government initiatives promoting healthier lifestyles. With major players focusing on innovation and sustainability, the market is well-positioned to address the rising demand for low-calorie and zero-sugar products.
By catering to health-conscious consumers and leveraging strategic collaborations, the artificial sweetener industry is set to play a pivotal role in reshaping the global food and beverage landscape over the coming decade.
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