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    Sugar Reducing Ingredients Market

    ID: MRFR/F-B & N/10308-CR
    250 Pages
    Snehal Singh
    June 2023

    Sugar Reducing Ingredients Market Research Report Information By Function (Sweeteners, Bulking Agents, and Texturants), Application (Food & Beverage and Pharmaceuticals & Nutraceuticals), Distribution Channel (B2B and B2C), and By Region (North America, Europe, Asia-Pacific, South America, Middle East & Africa) - Forecast Till 2032

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    Sugar Reducing Ingredients Market Infographic
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    Sugar Reducing Ingredients Market Summary

    The Global Sugar Reducing Ingredients Market is projected to grow from 35.2 USD Billion in 2024 to 66.0 USD Billion by 2035, reflecting a robust CAGR of 5.89%.

    Key Market Trends & Highlights

    Sugar Reducing Ingredients Key Trends and Highlights

    • The market valuation is expected to increase from 35.2 USD Billion in 2024 to 66.0 USD Billion by 2035.
    • A compound annual growth rate of 5.89% is anticipated for the period between 2025 and 2035.
    • The growing health consciousness among consumers is likely to drive the demand for sugar reducing ingredients.
    • Growing adoption of sugar reducing technologies due to increasing health awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 35.2 (USD Billion)
    2035 Market Size 66.0 (USD Billion)
    CAGR (2025-2035) 5.89%

    Major Players

    Ingredion Incorporated, Cargill Incorporated, Roquette Frères, DuPont, International Flavors & Fragrances Inc., GLG LIFE TECH CORP., Tate & Lyle, Kerry Group, Südzucker AG

    Sugar Reducing Ingredients Market Trends

    A large pool of people suffering from cardiovascular disease as well as diabetes

    The growing geriatric population coupled with the large pool of people suffering from cardiovascular disease as well as diabetes across the U.S. has increased the demand for sugar reducing ingredients owing to the health benefits provided by them. For example, according to the FDA, aspartame is a non-nutritive artificial sweetener that is 200 times sweeter than sugar. Sometimes, it is sold as Equal and NutraSweet in blue packets. Although aspartame is not zero-calorie like some other artificial sweeteners, it nevertheless has a low-calorie count.

    Furthermore, as part of this, according to the Centers for Disease Control and Prevention, in the United States, heart disease is the leading cause of death for both sexes and members of most racial and ethnic groups. In the United States, cardiovascular disease claims one life every 34 seconds.

    Almost 697,000 Americans died from heart disease in 2020, making up 1 in 5 fatalities in the country. Furthermore, various initiatives were taken by organizations across the country to educate the patients suffering from chronic which in turn are likely to contribute to its overall market growth. For example, the Administration for Community Living provides Chronic Disease Self-Management Education (CDSME) programs which provide education and tools to help them better manage chronic conditions and age-related diseases including diabetes, heart disease, arthritis, chronic pain, as well as depression.

    Through competitive funds in the form of cooperation agreements, the Administration on Aging (AoA) has supported the dissemination of CDSME programs since 2003.

    The increasing consumer demand for healthier food options is driving innovation in sugar-reducing ingredients, suggesting a transformative shift in the food industry towards lower sugar formulations.

    U.S. Department of Agriculture

    Sugar Reducing Ingredients Market Drivers

    Market Growth Chart

    Market Growth Projections

    The Global Sugar Reducing Ingredients Market Industry is experiencing robust growth, with projections indicating a market size of 35.2 USD Billion in 2024 and an anticipated increase to 66.0 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 5.89% from 2025 to 2035. Such figures reflect the escalating demand for sugar alternatives driven by health trends, regulatory changes, and consumer preferences for healthier food options. As the market evolves, stakeholders are likely to invest in research and development to enhance product offerings and capitalize on emerging opportunities.

    Rising Health Consciousness

    The increasing awareness of health and wellness among consumers is a pivotal driver for the Global Sugar Reducing Ingredients Market Industry. As individuals become more informed about the adverse effects of excessive sugar consumption, there is a noticeable shift towards healthier alternatives. This trend is particularly evident in regions such as North America and Europe, where consumers actively seek products with reduced sugar content. The market is projected to reach 35.2 USD Billion in 2024, reflecting the growing demand for sugar substitutes that align with healthier lifestyles. Consequently, manufacturers are innovating to create appealing products that cater to this health-conscious demographic.

    Innovation in Sugar Alternatives

    The continuous innovation in sugar alternatives is a crucial driver for the Global Sugar Reducing Ingredients Market Industry. Advances in food technology have led to the development of a variety of natural and artificial sweeteners, such as stevia, monk fruit, and erythritol, which provide sweetness without the calories associated with traditional sugar. These innovations not only cater to the growing demand for low-calorie products but also address consumer preferences for natural ingredients. As manufacturers increasingly incorporate these alternatives into their formulations, the market is poised for substantial growth, with a projected CAGR of 5.89% from 2025 to 2035.

    Regulatory Support for Sugar Reduction

    Government initiatives aimed at reducing sugar intake are significantly influencing the Global Sugar Reducing Ingredients Market Industry. Various countries have implemented policies and regulations to curb sugar consumption, including taxes on sugary beverages and mandatory labeling of sugar content. These measures are designed to combat rising obesity rates and related health issues. For instance, the implementation of sugar taxes in several countries has prompted food and beverage companies to reformulate their products, leading to an increased demand for sugar-reducing ingredients. This regulatory environment is expected to bolster market growth, with projections indicating a market size of 66.0 USD Billion by 2035.

    Consumer Demand for Low-Calorie Products

    The rising consumer demand for low-calorie and sugar-free products is a significant driver of the Global Sugar Reducing Ingredients Market Industry. As more individuals seek to manage their weight and improve their overall health, the appeal of low-calorie options continues to grow. This trend is particularly pronounced in the snack and beverage sectors, where consumers are actively searching for products that offer indulgence without the associated guilt of high sugar content. The market's expansion is further supported by the increasing availability of sugar-reducing ingredients in various food categories, thereby enhancing product offerings and meeting consumer expectations.

    Market Segment Insights

    Sugar Reducing Ingredients Market Segment Insights

    Sugar Reducing Ingredients Market Segment Insights

    Sugar Reducing Ingredients Function Insights

    Sugar Reducing Ingredients Function Insights

    Based on function, the Sugar Reducing Ingredients Market segmentation includes Sweeteners, Bulking Agents, and others. The bulking agents' segment held the majority share in 2023 contributing to around a market value of USD 16.24 Billion (2023) of Sugar Reducing Ingredients Market revenue. Bulking agents, a carbohydrate ingredient that provides calories and adds bulk to the food. Sugar’s role is not only constrained to sweetening functionality in the products but also provides bulk to the products like calories and fiber. Bulking agents also help in restoring the missing sugar properties like water solubility, viscosity, etc.

    Fructo-oligosaccharides, allulose, inulin, maltodextrins, polydextrose, sugar alcohols, tagatose, honey, and resistant starch are a few of the most commonly used bulking agents. This type of sugar-reducing ingredient is used in the manufacturing of various food products including desserts, confections, and baked goods, and helps maintain the overall volume and flavor. For instance, allulose and erythritol are used as sugar-reducing ingredients in ice cream. Honey as sugar reducing agent is used quite extensively owing to its easy marketability, natural source, lesser glycemic index value compared to sugar, and its ability to reduce the off-flavor notes used in bakery products.

    Another example is polydextrose’s use in dairy products as a bulking agent and it also helps in increasing the fiber content of the final product. 

    Figure 2: Sugar Reducing Ingredients Market, by Function, 2023 & 2032 (USD Billion)

    Sugar Reducing Ingredients Application Insights

    Sugar Reducing Ingredients Application Insights

    Based on application, the Sugar Reducing Ingredients Market has been segmented into food & beverage and pharmaceuticals & nutraceuticals. The food & beverage segment is further segmented into bakery & confectionery, beverages, dairy & desserts, and snacks & savory. The food & beverage segment is the largest segment accounting for a share of 79.73% and is likely to grow at a rate of 5.63% during the forecast period. The food & beverage sector is the leading user of sugar-reducing ingredients in various products.

    Sugars are one of the key ingredients of a range of food & beverage products and have several properties including palatability, flavor, texture, mouthfeel, volume, color, etc. making them an indispensable part of product development. However, excessive sugar consumption has several health implications which have resulted in governments implementing several initiatives to reduce sugar consumption and a shift in consumer preference. The above-said factors are pushing the food & beverage manufacturers to innovate and launch sugar-reduced products with no compromise in other factors of the final product.

    The Food & Beverage segment is expected to grow at a market CAGR of 5.94%. 

    Figure 2: Sugar Reducing Ingredients Market, by Application, 2023 & 2032 (USD Billion)

    Sugar Reducing Ingredients Distribution Channel Insights

    Sugar Reducing Ingredients Distribution Channel Insights

    Based on the distribution channel, the Sugar Reducing Ingredients Market has been segmented into B2B and B2C. The B2B segment accounted for the largest market share of 70.31% in 2021 and is likely to grow at a rate of 5.30% during the projected period whereas the B2C segment is likely to grow at a higher CAGR of 5.62% during the forecast period.

    B2B stands for the business-to-business transaction, is a type of trade of products between two business units meaning both the suppliers and buyer of the product are business firms where the buyer firm uses the product or service procured from the supplier as ingredients in the product development or a product for further businesses. The trade between businesses and retailers/wholesalers instead of directly to the consumer is a type of B2B transaction. Another example of a B2B transaction in the global market is the purchase of sugar-reducing ingredients by bakery & confectionery manufacturing units.

    Figure 2: Sugar Reducing Ingredients Market, by Distribution Channel, 2023 & 2032 (USD Billion)

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Get more detailed insights about Sugar Reducing Ingredients Market Research Report—Global Forecast till 2032

    Regional Insights

    Based on region, the Sugar Reducing Ingredients Market has been segmented into North America, Europe, Asia-Pacific, and the South America. The Asia-Pacific region accounted for the largest market share of 37.64% in 2023 and is likely to register a CAGR of 5.97% during the projected period. The North America region is the second largest market with a share of 26.59% in 2023.

    Around 227 million people in Asia-Pacific are diagnosed with type 2 diabetes, and 50% among them aren’t aware of the long-term implications of the disease, stated the managing director of BENO, Asia Pacific in the Food & Beverage Asia magazine. However, consumers are shifting to healthy lifestyle habits, the article further elaborated that the survey conducted among Singapore consumers has highlighted that around 66.67% of them are inclined towards adopting a healthier lifestyle and consumption habits. This trend is further fueled by the outbreak of the COVID-19 pandemic, making consumers conscious of the ingredients in food and drink products.

    The Asia-Pacific region consists of China, India, Japan, Australia & New Zealand, and the Rest of Asia-Pacific. Around 227 million people in Asia-Pacific are diagnosed with type 2 diabetes, and 50% among them aren’t aware of the long-term implications of the disease, stated the managing director of BENO, Asia Pacific in the Food & Beverage Asia magazine. However, consumers are shifting to healthy lifestyle habits, the article further elaborated that the survey conducted among Singapore consumers has highlighted that around 66.67% of them are inclined towards adopting a healthier lifestyle and consumption habits.

    This trend is further fueled by the outbreak of the COVID-19 pandemic, making consumers conscious of the ingredients in food and drink products.

    The major countries studied are the U.S., Canada, Mexico, Germany, France, the UK, Italy, Spain,  China, Japan, India, Australia and New Zealand, South America, the Middle East, and Africa.

    Figure 3: SUGAR REDUCING INGREDIENTS MARKET SHARE, BY REGION, 2023 & 2032 (USD Billion)

    SUGAR REDUCING INGREDIENTS MARKET SHARE, BY REGION, 2023 & 2032

    Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

    Key Players and Competitive Insights

    The Sugar Reducing Ingredients Market is projected to register a CAGR of 5.70% during the review period. The market's growth can be attributed to the surging demand for sugar reducing ingredients from food, beverages, and functional food industries. The sugar reducing ingredients market is facing higher competition, as the key players are continuously focusing on the adoption of growth strategies to enhance their market position. The growth strategies adopted by the manufacturers include product launches, re-innovation in their existing products, acquisition, and strategic collaboration to uplift their revenue.

    The companies are also focusing on the expansion of their operations across the regions, augmenting their production, sales, and distribution capabilities. However, the growth of market players is primarily dependent on market conditions, the development of industry, along with government support. Moreover, the increasing incidences of CVDs (Cardiovascular Disorders), obesity, and diabetes among consumers across the globe driving the demand for sugar reducing ingredients market. Moreover, the increasing government initiatives for the production of commodity-based ingredients are set to open up huge prospects for the manufacturers operating their business in sugar reducing ingredients market in the upcoming years.

    Key Companies in the Sugar Reducing Ingredients Market market include

    Industry Developments

    November 2022: Cargill Incorporated introduced its ingredients at the Food Ingredients Europe (FIE), such as a series of plant-based ingredients along with its soluble fiber sugar-reduction offerings for bakery and confectionery applications.

    November 2022: Tate & Lyle announced the expansion of its product portfolio of reduced sugar alternatives as it launched Erytesse Erythritol – which contains 70% of the sweetness of sucrose and has zero calories.

    Future Outlook

    Sugar Reducing Ingredients Market Future Outlook

    The Sugar Reducing Ingredients Market is projected to grow at a 5.89% CAGR from 2024 to 2035, driven by rising health consciousness, regulatory support, and innovation in sweetener technologies.

    New opportunities lie in:

    • Develop low-calorie sweeteners targeting health-conscious consumers.
    • Invest in R&D for natural sugar substitutes to meet clean label demands.
    • Expand distribution channels in emerging markets to capture new customer segments.

    By 2035, the Sugar Reducing Ingredients Market is expected to achieve substantial growth, reflecting evolving consumer preferences and industry advancements.

    Market Segmentation

    Sugar Reducing Ingredients Type Outlook

    • Sweeteners
    • Bulking Agents
    • Texturants

    Sugar Reducing Ingredients Regional Outlook

    • US
    • Canada
    • Mexico

    Sugar Reducing Ingredients Application Outlook

    • Bakery & Confectionery
    • Beverages
    • Dairy & Desserts
    • Snacks & Savory

    Sugar Reducing Ingredients Distribution Channel Outlook

    • B2B
    • B2C

    Report Scope

    Report Attribute/Metric Details
    Market Size 2023 USD 33.92 Billion
    Market Size 2024 USD 35.18 Billion
    Market Size 2032 USD 55.88 Billion
    Compound Annual Growth Rate (CAGR) 5.70 % (2024-2032)
    Base Year 2023
    Forecast Period 2024-2032
    Historical Data 2018-2022
    Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Segments Covered Function, Application, Distribution Channel, and Region
    Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
    Countries Covered USA, Canada, Mexico, UK, Germany, France, Italy Spain, Russia, China, India, Japan, Australia & New Zealand, Brazil, Argentina, South Africa, Turkey, GCC countries, North Africa,
    Key Companies Profiled Ingredion Incorporated (US), ADM (US), Cargill, Incorporated (US), Roquette Frères (France), DuPont (Denmark), International Flavors & Fragrances Inc. (US), GLG LIFE TECH CORP (Canada), Tate & Lyle (UK), Kerry Group (Ireland), and Südzucker AG (Germany)
    Key Market Opportunities ·       Growing expansion policies adopted by key players
    Key Market Dynamics ·       A large pool of people suffering from cardiovascular disease as well as diabetes ·       Favorable policies aid down by the government bodies

    Market Highlights

    Author
    Snehal Singh
    Assistant Manager - Research

    High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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    FAQs

    How much is the sugar reducing ingredients market?

    The sugar reducing ingredients market is valued at USD 35.18 Billion in 2024

    What is the key driving factor for the Processed meat market?

    A large pool of people suffering from cardiovascular disease as well as diabetes, Favorable policies aid down by the government bodies

    What is the growth rate of the sugar reducing ingredients market?

    The sugar reducing ingredients market is expected to grow at a CAGR of 5.70% during the forecast period

    Which region held the largest market share in the sugar reducing ingredients market?

    Asia-Pacific held the largest share market in the sugar reducing ingredients market

    Who are the key players in the sugar reducing ingredients market?

    The key players include ADM, Cargill Incorporated, Roquette Frères, DuPont, International Flavors & Fragrances Inc., GLG LIFE TECH CORP, Tate & Lyle, Kerry Group, and Südzucker AG.

    Sugar Reducing Ingredients Market Research Report—Global Forecast till 2032 Infographic
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