Reduced Sugar Food & Beverages Research Report Information By Type (Bakery & Confectionery, Beverages, Dairy & Desserts, Snacks & Savory, Others), By Consumer Group (Gen X, Gen Z, Millennials, Boomers), By End User (Residential, Commercial), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Specialty Stores, Online, Others) By Region (North America, Europe, Asia-Pacific, And Rest Of The World) - Forecast Till 2032

Global Reduced Sugar Food & Beverages Overview

Global Reduced sugar food & beverages Size was valued at USD 58.63 billion in 2021. The Reduced sugar food & beverages industry is projected to grow from USD 124.61 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.17% during the forecast period (2022 - 2032). Owing to the rising prevalence’s of obesity and governments’ initiative on reduced sugar consumption.

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

Reduced Sugar Food & Beverages Trends

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  Rising Prevalence of Obesity

  
  

Nowadays obesity has been a common disease that occurs 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, the 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 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.

Moreover, Food and beverage production is supposed to be a driver of environmental pressures on biodiversity. After the pandemic consumers are becoming conscious regarding the food and beverages they are purchasing or consuming as the product also has an environmental impact. The food and beverages industry uses a lot of resources and is responsible for 25% of greenhouse gases. For instance, Kerry Tastesense conducts a Life Cycle Assessment that assists in determining the environmental impact of the products. That shows a 20% carbon emissions reduction, 30% water use reduction, and 30% calorie reduction versus sugar.

Reduced Sugar Food & Beverages Segment Insights

Reduced Sugar Food & Beverages Product Type Insights

The global reduced sugar food & beverages segmentation, based on product type, bakery & confectionery, beverages, dairy & desserts, snacks & savory, and others. 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. These products are often made with natural sweeteners such as stevia, erythritol, or monk fruit, which have fewer calories and a lower glycemic index than traditional sugar. One example of reduced sugar bakery products is Sara Lee's Delightful Bread, which contains only 45 calories and no sugar per slice, compared to traditional white bread, which contains up to 3 grams of sugar per slice.

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. Thus, the beverages segment accounted for the largest market share. Moreover, Reduced sugar dairy and dessert products include ice cream, yogurt, and pudding, among others. 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.

The global reduced sugar beverage market is expected to experience significant growth in the coming years, driven by increased demand for healthier alternatives to sugary soft drinks. The Beverages segment accounted for the market share of 45.86% in 2021 and is projected to register a CAGR of 8.19% during the forecast period. The reduced sugar dairy and dessert market is expected to continue growing in the coming years, driven by increasing health awareness and the desire for healthier dessert options. The Dairy & Desserts segment accounted for the market share of 11.53% in 2021 and is projected to register a CAGR of 6.21% during the forecast period.

June 2022: Mondeleze International Inc. company launched its reduced sugar products such as Cadbury dairy milk, sugar free Oreos, and The Cadbury plant bar.

Figure 1: Global Reduced sugar food & beverages, By Type, 2021 & 2032 (USD Billion)

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

Reduced sugar food & beverages Consumer Group Insights

The global reduced sugar food & beverages segmentation, based on consumer group, Gen X, Gen Z, Millennials, and Boomers. 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. They are also open to trying new products that offer reduced sugar content without compromising on taste. Additionally, they are more likely to read food labels and choose products that contain natural ingredients. The Gen X segment accounted for the market share of 29.46% in 2021 and is projected to register a CAGR of 8.60% during the forecast period. Additionally, 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. Additionally, they are more willing to experiment with plant-based or vegan options that offer reduced sugar content. The Gen Z segment accounted for the market share of 20.86% in 2021 and is projected to register a CAGR of 6.90% during the forecast period. However, 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.

Figure 2: Global Reduced sugar food & beverages, By Consumer Group, 2021 & 2032 (USD Billion)

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

Reduced sugar food & beverages End User Insights

The global reduced sugar food & beverages data has been bifurcated by end user into residential and commercial. 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. The residential segment accounted for the market share of 61.35% in 2021 and is projected to register a CAGR of 7.46% during the forecast period. Whereas, 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. According to research published in the Harvard Gazette by Massachusetts General Hospital (MGH), lowering sugar intake by 20% from packaged foods and 40% from drinks can avoid 2.48 million cardiovascular disease events (such as strokes, heart attacks, and cardiac arrests), 490,000 cardiovascular deaths, and 750,000 diabetes diagnoses in the United States throughout the lifespan of the adult population. This has led to a growing demand for reduced sugar products in the food service industry.

July 2021: PepsiCo announced its new products with reduced sugar content by 25% in sodas and iced tea in the European region. Through this technology the company aims to catch the attention of health-conscious consumers.

Figure 3: Global Reduced sugar food & beverages, By End User, 2021 & 2032 (USD Billion)

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

Reduced sugar food & beverages Distribution Channel Insights

The Reduced Sugar Food & Beverages Market has been bifurcated by supermarkets & hypermarkets, convenience stores, specialty stores, online, and others. 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. Hypermarkets and supermarkets have been concentrating on providing several categories, such as reduced sugar food and beverages items, put up to attract customers' interest and provide them the ability to pick from a variety of brands before making a purchase. They provide a convenient one-stop shop for consumers, with competitive pricing and promotions, and they offer manufacturers the opportunity to reach a large audience. The supermarkets & hypermarkets segment accounted for the market share of 40.01% in 2021 and is projected to register a CAGR of 7.15% during the forecast period.

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. Convenience stores are popular among busy consumers who want to save time and are willing to pay a premium for convenience. Whereas 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. Specialty stores provide manufacturers with a niche market and the opportunity to develop brand loyalty. The specialty store segment accounted for the market share of 23.05% in 2021 and is projected to register a CAGR of 6.86% during the forecast period

Reduced Sugar Food & Beverages Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. Asia Pacific reduced sugar food & beverages accounted for largest market share in 2021 and is expected to exhibit an fastest-growing 8.19% CAGR during the study period. The growth of reduced sugar food & beverages in Asia-Pacific can be attributed to the healthier consumption habits coupled with the wellness awareness among the consumers.

In North American nations like the U.S. and Canada, reduced sugar in food & beverages has been inclining due to the rising popularity of sugar-free products with reduced sugar. The region's growing population of health-conscious consumers is anticipated to fuel the steady expansion of the sugar business. Further, the major countries studied are: The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia & New Zealand.

Figure 4: GLOBAL REDUCED SUGAR FOOD & BEVERAGES SHARE BY REGION 2021 (%)

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

North America Reduced sugar food & beverages is one of the largest market 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. According to the Centers for Disease Control and Prevention (CDC), over 41.9% of U.S. adults are obese, and over 37 million people have diabetes. This has led to a growing demand for healthier alternatives to traditional sugary products. In Canada, the federal government has implemented a number of policies aimed at reducing sugar consumption. Diabetes Canada recommends that Canadians limit their intake of added sugars to no more than 10% of their daily calories.

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. This has led to an increase in the incidence of obesity-related diseases such as diabetes and heart disease. The adoption of reduced sugar food and beverages can help to lower the risk of these diseases. The United Kingdom reduced sugar market is one of the largest markets for reduced sugar food and beverages in Europe. The country has one of the highest obesity rates in Europe, with over 63% of adults being overweight or obese. This has led to a growing demand for healthier alternatives to traditional sugary products. In response, manufacturers have developed a range of low-sugar and sugar-free products, including soft drinks, confectionery, and baked goods.

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. In a recent survey conducted by EY-Parthenon, it was found that 48% of consumers in the Asia-Pacific region are willing to pay more for healthy/” good for me” products. The survey also revealed that the top reasons for choosing products were health concerns and weight management. One of the most significant contributors to the growth of the reduced sugar food and beverage market in the Asia-Pacific region is the increasing demand for low-calorie and low-sugar beverages. In China, for example, In a KuRunData study of 1,043 Chinese customers, around 81 percent of those polled indicated they preferred sugar-free drinks to regular ones at the same price point. Thus , the Asia Pacific segment accounted for a market share of 32.66% in 2021 and is expected to register a CAGR of 8.19% during the review period.

Reduced sugar food & beverages Key Market Players & Competitive Insights

Major market players are applying a lot of money on R&D to increase their product lines, which will help the reduced sugar food & beverages grow even more. Market applicants are also taking on a range of strategic enterprises to grow their worldwide footprint, including, contractual agreements, new product launches, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the reduced sugar food & beverages industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment. Many global, regional, and local vendors characterize the reduced sugar food & beverages market.

The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The market vendors’ growth depends on market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving services. 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. One of the main business approaches adopted by manufacturers in the global reduced sugar food & beverages industry to benefit clients and expand the reduced sugar food & beverages sector is to manufacture locally to reduce operating costs.

Key Companies in the Reduced sugar food & beverages includes.

• Bunge Limited


• 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


• Wangkanai Sugar Co. Ltd

Reduced sugar food & beverages Industry Developments

Prigat introduced a line of new, lower-sugar soft drinks in 2024. "Prigat" introduces new lower-sugar soft drinks with only 19 calories per 100 milliliters (per 100 milliliters) and 40% less sugar in popular flavors including orange, grapefruit, and grape.

September 2022: Nestle Froneries launched its new Ice Creams bar’s with cutting 70% of sugar. The product produced with the help of resugar cooperation helped the company to encourage the overall sales.

September 2020: Coca cola Australia announced to launch its non-alcoholic beverages by reducing the sugar by 25%. The company announced around 27 sugar reduced products in the region

January 2019: Conagra Brand Launched its extensive summer line up of new production of the new food products such as Quick Roasters.

Reduced sugar food & beverages Segmentation

Reduced Sugar Food & Beverages Type Outlook

• Bakery & Confectionery


• Beverages


• Dairy & Desserts


• Snacks & Savory


• Others

Reduced Sugar Food & Beverages Consumer Group Outlook

• Gen X


• Gen Z


• Millennials


• Boomers

Reduced Sugar Food & Beverages End User Outlook

• Residential


• Commercials

Reduced Sugar Food & Beverages Distribution Channel Outlook

• Supermarkets & Hypermarkets


• Convenience Stores


• Specialty Stores


• Online


• Others

Reduced Sugar Food & Beverages Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa