Reduced Sugar food and beverage Market is predicted to reach USD 124.61 billion at a CAGR of 7.17% during the forecast period

Market Research Future (MRFR) has published on the “Global Reduced Sugar Food & Beverages Market”.

Reduced Sugar Food & Beverages is a high-quality product with less or negligible amounts of sugar. Reduced sugar food & beverages have at least less than 25% sugar content as compared to regular products. Increasing demand for less sugar and healthy food & beverages owing to surging health concerns among the population is the key enabler for the reduced sugar food & beverages market. Due to growing worries about the harmful health impacts of increased sugar consumption, including obesity, diabetes, and tooth damage, the market has seen tremendous growth in recent years. Products with less sugar are designed to taste nice and retain the ideal texture and consistency of the original product. Manufacturers employ a range of sweeteners, including honey, maple syrup, agave nectar, stevia, erythritol, and xylitol, as well as monk fruit extract, to achieve this.

The increasing awareness and knowledge regarding the health impacts associated with conventional sugar-based products have rung the bells among consumers. The consumption of conventional sugar-based products is leading to the incidences of various diseases such as obesity and diabetes, that in turn drives the demand for reduced sugar food & beverages market. Moreover, the increasing popularity of healthy, and fortified diet in developed as well as developing nations such as the US, Canada, UK, Germany, and France, among others are contributing to the growth of reduced sugar food & beverages market over the forthcoming years. Moreover, the introduction of products with less sugar content is further providing a significant growth for the market. Additionally, the reduction of sugar has become a macro trend associated with health among consumers, this is mainly owing to the shift in a dietary pattern leading towards general health and well-being. Consumers are increasingly citing the reduction of sugar as one of the key priorities associated with health, mainly when it comes to weight management. Rising concern regarding the influence of sugar on a surge in weight has put pressure on governments to decrease the overall consumption of conventional sugar-based products.

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Market Synopsis

According to the MRFR analysis, The global reduced sugar food & beverages market was valued at USD 58.63 billion in 2021 and is projected to reach USD 124.61 billion by 2032 at a CAGR of 7.17%.

The main driver of market expansion is the rising global awareness of calorie- and sugar-reduced, nutritious foods. The manufacturers operating in the global reduced sugar food & beverages market are focusing on the introduction of fortified food & beverages. Global consumer food consumption behaviors during times of lockdown have undergone substantial adjustments, which has also supported market expansion. During the height of the epidemic, there was a surge in interest in low-sugar and other healthful diet products, which helped the industry to grow. During the COVID-19 pandemic, doctors recommended eating healthily on a regular basis to keep the body healthy and its immune system strong. Online sales of food and drink items skyrocketed during the shutdown, which aided the market’s expansion.

Nowadays obesity has been a common disease that have occurred when an individual’s weight is higher than what is considered healthy for his/her height. The disease affects children as well as adults, there are various factors that have contributed to excess weight gains such as eating patterns, physical activity levels, and sleep routines apart from these factors’ genetics, social determinants of health, and medication consumed also plays an important role in weight gain. Due to this people are more focused on consuming healthy foods and beverages that are sugar-free which will assist in overcoming obesity and other related diseases. For instance, a team from Emmanuela Gakidou of the Institute for Health Metrics and Evaluation at the University of Washington, in January 2022, published that obesity is becoming an increasing concern among the population, as it can also increase the change of numerous health problems, such as blood pressure, stroke, diabetes, and heart disease. At present, the top countries where half of the obesity population resides are the US, China, Russia, Brazil, Mexico, Egypt, Germany, Pakistan, and Indonesia. Which US had the highest increase in the prevalence of adult obesity, this is followed by Australia where 28% of men and 30% of women have obesity, and in the UK a quarter of the adult population has obesity.

Due to this World Health Organization (WHO) had launched a campaign to stop increasing obesity by 2025. Also, according to WHO excessive consumption of sugar consumption is a key factor that increases obesity and diabetes. Reducing sugar intake lowers the risk of developing overweight and obesity. In 2021, the World Health Organization (WHO) recorded, a minimum of 1.9 billion adults who are 18 years and above worldwide were overweight, and of these, more than 648 million were obese.

The key players are also launching products that are reducing sugar and are assisting the market growth. For instance, in May 2018, nestle launched an addition to its Milky bar range that contains 30% less sugar compared to ordinary chocolate bars. The product name is Milky bar Wow which contains all-natural ingredients and no sweeteners.

Covid-19 Impact On Organic Industrial Sugar Market

Inflation is known as a rate at which the price of goods and services increases over a time period or in other words reduced the value of money. For instance, product pricing and cost-cutting strategy have been a concern for the food and beverage manufacturers in the Middle East, because of International Monetary Fund has forecasted a high level of inflation of around 13.9% throughout 2022, caused due to Russia-Ukraine war. Additionally, the implementation of sugar taxes in a few markets like the United Arab Emirates (UAE) and Saudi Arabia, which are 50% rate of all sugar-sweetened beverages with added sugar or sweeteners and 100% of energy drinks. Consumer in the Middle East region is more conscious regarding their health and demand food and beverages that don’t compromise on taste, because of which the products become price sensitive due to inflation. Because of this, the key players are investing in campaigns and marketing strategies and also participating the programs that will help in overcoming inflation that are focused on reduced sugar food and beverages.

For instance, the UAE food and beverage business group and the UAE ministry of industry and advanced technology conducted a program that is Middle East Sugar and Calorie Reduction program. Tate & Lyle has proposed a strategy related to sugar reduction that will help the brand to innovate and reformulate the sugar levels and will help product manufacturers to be cost-effective which can help in driving the product prices down and attract more consumers easily. For instance, to optimize the use of sweeteners like stevia that can assist in driving the cost down. There are various types of stevia sweeteners and research that shows results of not only reducing sugar content in a product by up to 41% but also driving costs down by up to 15% while making changes..

Competitive Landscape

The global reduced sugar food & beverages market is fragmented and consists of many systematized and unorganized industry players. include Nestle SA (US), PepsiCo Inc. (US), Coca Cola (US), Kraft Heinz (US), Kellogg Company (US), The Hershey Company (US), Conagra Brand (US), Mars Inc. (Virginia), Unilever (UK), Mondeleze International Inc. (US). are the main companies in the market which contest in terms of availability, excellence, price, and expertise. They mainly focus on the development of industrial sugar products. Although international players dominate the market, regional and foreign players with small market shares also have a occurrence. The international players may strengthen their presence worldwide through acquisitions during the forecast period. It has also been forecast that improvement of the global economic scenario, combined with efforts to enhance infrastructure in emerging nations, is fueling the market growth, thereby making it an ideal time to launch new products of industrial sugar and increase the global market share.

Segmentation

By Product Type

• Bakery & Confectionery: The bakery and confectionery segment of the reduced sugar food and beverage market includes a wide range of products such as cakes, cookies, muffins, pastries, and chocolates that have been formulated with less sugar. As people become more health conscious, they are looking for healthier alternatives to traditional bakery and confectionery products that are typically high in sugar and calories. In addition to reducing sugar, some products may also be lower in calories or use healthier ingredients such as whole grains or natural flavors


• Beverages: The beverages segment of the reduced sugar food and beverage market includes carbonated soft drinks, fruit juices, sports drinks, and energy drinks, among others. As people become more aware of the negative effects of high sugar intake on their health, they are turning to reduced sugar alternatives. These products may be sweetened use of artificial sweeteners like aspartame, sucralose, and saccharin has not only reduced the sugar content but also made these drinks more appealing to consumers who are looking for low-calorie options.


• Dairy & Desserts: These products are becoming increasingly popular as people look for healthier options that are low in sugar but still taste great. Reduced sugar dairy and dessert products are often made with natural sweeteners like honey, agave nectar, and fruit purees in these products have not only reduced the sugar content but also added flavor and nutritional value. Examples of reduced sugar dairy and dessert products include low-sugar ice cream, sugar-free yogurt, and reduced sugar pudding. One example of reduced sugar dairy products is Chobani Less Sugar Greek Yogurt, which contains 40% less sugar.


• Snacks & Savoury: The snacks and savory segment of the reduced sugar food and beverage market includes products such as popcorn, chips, and crackers that have been formulated with less sugar. These products may use alternative sweeteners such as stevia or erythritol or may use savory seasonings such as herbs or spices to enhance flavor. Some products may also be lower in fat or calories or use natural ingredients such as whole grains or legumes. Examples of reduced sugar snacks and savory products include low-sugar popcorn, sugar-free crackers, and reduced sugar trail mix.


• Others: The others segment of the reduced sugar food and beverage market includes products such as condiments, sauces, and breakfast cereals. Reduced sugar condiments and sauces are often made with natural sweeteners such as stevia or erythritol, which have fewer calories and a lower glycemic index than traditional sugar. Reduced sugar breakfast cereals are often made with whole grains and natural sweeteners such as honey or maple syrup. For example, Walden Farms produces zero-calorie dressings, sauces, and dips that are free from sugar, fat, and carbohydrates

By Product Type

• Gen X: Generation X (born between 1965-1980) is a consumer group that has witnessed the rise of high-sugar diets in their lifetime and the negative health effects associated with them. As a result, they tend to be more health-conscious and aware of the importance of maintaining a balanced diet. However, they also prioritize convenience and practicality, making them more likely to opt for packaged reduced sugar food and beverages. Gen X tends to prefer options that are easy to consume on-the-go, such as low-sugar granola bars and reduced-sugar yogurt


• Gen Z : Generation Z (born between 1997-2012) is the youngest consumer group and has grown up in an era of health consciousness and social media influence. This generation is more aware of health issues, including obesity and diabetes, and has a strong interest in natural and organic food products. They are also known to prioritize reduced sugar options that are marketed as healthier alternatives to traditional high-sugar products. Gen Z tends to prefer reduced sugar alternatives that offer unique flavors and packaging, such as flavored sparkling water and low-sugar snack bars. They are also more likely to choose products that contain natural sweeteners, such as stevia or honey, over artificial sweeteners


• Millennials: Millennials (born between 1981-1996) are more health-conscious than previous generations and tend to be more open to trying new and innovative products. They are the most diverse and multicultural generation and are more inclined to try food products from different cultures. Millennials also tend to indulge in treats and sweets but are conscious of their sugar intake and seek out reduced sugar options.


• Boomers: Boomers (born between 1946-1964) are a consumer group that prioritizes health and wellness, especially as they age. They are more likely to read food labels and opt for products that contain natural ingredients. Boomers tend to prefer reduced sugar products that are marketed as "low-carb" or "diabetic-friendly," including low-sugar jams and low-carb cereals. Boomers tend to prefer options that are easy to prepare and consume, such as low-sugar protein bars and reduced-sugar yogurt.

By End User

• PowderedResidential: The residential segment includes households and individual consumers who purchase reduced sugar food and beverage products for personal consumption. The demand for these products in this segment is also driven by health concerns related to high sugar consumption, as well as changing consumer preferences. The demand for reduced sugar products in the residential segment is also driven by factors such as changing lifestyles, increasing disposable income, and the availability of a wide range of reduced sugar products in supermarkets and online stores..


• Commercial: The commercial segment includes food service providers, such as restaurants, cafes, and hotels, as well as manufacturers of reduced sugar food and beverage products. The demand for reduced sugar products in this segment is driven by several factors, including increasing health awareness among consumers, rising obesity rates, and government initiatives to reduce sugar consumption..

• Supermarkets & Hypermarkets: Supermarkets and hypermarkets are the most popular and widely used distribution channels for reduced sugar food and beverages. The segment includes stores, shops, and other outlets that provide several categories of products where customers can directly buy products. Supermarkets & hypermarkets account for the majority of sales of Reduced sugar food and beverages products. These retail outlets offer a wide range of products and have a large customer base. An increasing number of these outlets and other merchandisers are offering more business to reduced sugar food and beverages products.


• Convenience Stores: Convenience stores are small retail outlets located in high-traffic areas, such as gas stations, train stations, and airports. Convenience stores and neighborhood businesses have traditionally supported families and local communities in significant ways. The Covid-19 epidemic has made local retailers more important to consumers. These stores offer a limited range of products, but they are convenient for consumers who want to make quick purchases.


• Specialty Stores: Specialty stores are retail outlets that focus on specific products or categories. In the reduced sugar food and beverages market, specialty stores focus on products that are health-focused, organic, or locally sourced. These stores offer a unique shopping experience and attract customers who are passionate about a particular product or category. Ease of access to buying, availability of the store, and convenience of shopping have further increased the overall sales of reduced sugar food and beverages products.


• Online: The online segment includes e-commerce, wherein manufacturers distribute reduced sugar food and beverages products through various online shopping sites and their websites. Due to lockdowns and limitations, the pandemic, however, promoted a shift from dependence on traditional stores to online distribution channels. Because of the benefits and discounts associated with online purchasing, as well as the availability of consumer reviews and social media influencers, this market is growing. Companies are launching new products with enhanced quality and types, which cannot always be made available to consumers in different regions.
  Others: Other distribution channels include direct sales, vending machines, and food service providers. Direct sales involve manufacturers selling their products directly to consumers through their own retail stores or e-commerce websites. Vending machines offer consumers a convenient way to purchase products on-the-go, and foodservice providers, such as restaurants and cafes, offer consumers the opportunity to consume reduced sugar food and beverages as part of a meal or snack

By Region

• North America: North America is one of the largest regions in the global reduced sugar food and beverages market, with the United States and Canada being the major contributors. In recent years, the region has witnessed a significant shift towards a healthier lifestyle, leading to a rise in demand for reduced sugar products. The region is also witnessing an increase in the number of diabetic patients, which has further boosted the demand for low-sugar products. The market is driven by factors such as the rising prevalence of lifestyle diseases, increasing awareness about health and wellness, and the availability of a wide range of products. The US and the Canadian government have also taken initiatives to promote healthier lifestyles, such as imposing a tax on sugary drinks.


• Europe: Europe is another key market for reduced sugar food and beverages. The market in Europe is more mature than in North America, with many consumers already accustomed to low-sugar products. As a result, manufacturers have had to innovate to meet the growing demand for healthier alternatives. In the WHO European Region, over 60% of adults and 29% of boys, and 27% of girls who are youngsters are overweight or obese. According to recent estimates, overweight and obesity rank fourth among the risk factors for NCDs in the region, after high blood pressure, unhealthy eating, and tobacco use. Obesity is anticipated to be directly responsible for at least 2,00,000 additional cancer cases yearly throughout the WHO European Area, and this number is expected to rise in the future decades.


• Asia-Pacific: The Asia-Pacific region has become a significant player in the global reduced sugar food and beverage market, and the trend towards healthier consumption habits is continuing to grow. The region is home to some of the world's most populous countries, including China and India, and with an increasing focus on health and wellness, there has been a shift towards healthier food and beverage options. Governments in the Asia-Pacific region are also playing a role in promoting healthier consumption habits. For example, in 2018, the Indian government introduced a "Eat Right" campaign aimed at encouraging consumers to make healthier food choices, including reducing their sugar intake. The campaign includes a range of initiatives, such as nutrition labeling and advertising regulations, aimed at promoting healthier food and beverage options


• Rest of the World: The market in the rest of the world consists of South America, the Middle East, and Africa. The market in the rest of the world accounted for 9.12% market share in 2021 and is projected to register a growth rate of 5.57% during the forecast period. In South America, there has been a significant shift towards reduced sugar products. For example, the Brazilian government implemented a sugar tax on sweetened beverages, which led to a reduction in sugar consumption and an increase in the consumption of healthier alternatives.