Reduced Sugar Food and Beverage Market Research Report Information by Type (Bakery & Confectionery, Beverages, Dairy & Desserts, Snacks & Savory, and Others), Consumer Group (Gen X, Gen Z, Millennials, and Boomers), End User (residential and commercial), Distribution Channel (supermarkets & hypermarkets, convenience stores, specialty stores, online, and others), And by Region (North America, Europe, Asia-Pacific, and Rest of the World) - Forecast Till 2030

Global Reduced Sugar Food and Beverage Market Overview

Reduced Sugar food and beverage Market size was valued at USD 58.63 billion in 2021. The reduced sugar food and beverage market industry is projected to grow from USD 62.33 billion in 2022 to USD 108.49 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.17% during the forecast period (2022 - 2030). The key factors driving the growing trend among consumers worldwide are to cut back on their sugar intake helps to the market's expansion. The expansion of the market is significantly attributed to the rising demand for food products with fewer sweeteners in developed nations including the U.S., UK, Germany, Canada, and China.

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

Reduced Sugar Food and Beverage Market Trends

• 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.

Reduced Sugar food and beverage Market Segment Insights

Reduced Sugar food and beverage Type of Cover Insights

The Reduced Sugar food and beverage Market segmentation, based on the type, includes Bakery & Confectionery, Beverages, Dairy & Desserts, Snacks & Savory, and Others. The beverage segment held the majority share in 2021 contributing to around 50-55% concerning the Reduced Sugar food and beverage Market revenue. 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. Examples of reduced sugar beverages include diet soda, sugar-free sports drinks, and low-sugar fruit juice. One example of reduced sugar beverages is PepsiCo's Gatorade Zero, which is a low-calorie sports drink that contains zero sugar. Another example is Coca-Cola's Diet Coke, which has zero sugar and is the company's flagship low-calorie drink. In addition to reducing sugar, some products may also be lower in calories or use natural ingredients such as real fruit juice or herbal extracts.

Figure 2: Reduced Sugar food and beverage Market, by Type, 2021 & 2030 (USD Billion)

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

Reduced Sugar food and beverage Consumer Group Insights

The global consumer group market data has been bifurcated by 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. This has further broadened the growth opportunity for the reduced sugar food and beverage industry. 

Figure 2: Reduced Sugar food and beverage Market, by Consumer Group, 2021 & 2030 (USD Billion)

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

Reduced Sugar food and beverage End User Insights

Based on End User, the global reduced sugar food and beverage industry has been segmented 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.

Reduced Sugar food and beverage Regional Market Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. The Asia-Pacific region has become a significant player in the 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. Further, the major countries studied are U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: REDUCED SUGAR FOOD AND BEVERAGE MARKET SHARE BY REGION 2021 (%)

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

The North America reduced sugar food and beverage market 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. 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.

Reduced sugar food and beverage Key Players & Market Competitive Landscape

The reduced sugar food and beverage market is expected to expand thanks to the heavy investment in research and development by market major players. Recent market statistics show that new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations are just some of the strategic steps market participants are doing to expand their global footprint, broaden their market outlook and focus on market growth.

There are numerous worldwide, regional, and local players in the market for reduced sugar food and beverage. There is a lot of competition in the market, and everyone is trying to expand their part of it. The primary factors that challenge the expansion of the global market are the rapid development of new products. The suppliers contend on the basis of price, product quality, and, most importantly, product availability across different regions. In order to be competitive, suppliers must offer reasonably priced, high-quality reduced sugar food and beverage. While tier-1 and tier-2 corporation control over 67% of the worldwide market share between them, tier-3 companies make up the rest of the pie. A number of factors, including market and economic growth, government laws, and technological progress, affect how quickly and how large market players can expand. As a result, businesses in the sector need to concentrate on increasing output to keep up with demand and bettering their offerings to grow in line with the expected market forecast.

Latest market report from Market Research Future portrays the leading players in the reduced sugar food and beverage industry, which 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), and Mondeleze International Inc. (US). Most of these firms are investing R&D resources into creating new, high-end reduced sugar food and beverage. Despite the dominance of global corporations, a number of regional and local players with relatively minor market shares are present as well. In key markets like North America, Europe, Asia-Pacific, and Rest of the World, the global players who have established production facilities or sales offices have expanded their operations.

Key Companies in the Reduced Sugar food and beverage market 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. (US)


• Unilever (UK)


• Mondeleze International Inc. (US)

Reduced sugar food and beverage Industry: Market Developments

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 2022

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.

August 2022

Capri Sun, the brand owned by the Kraft Heinz company has announced its sugar reduced product launch. The company has reduced sugar levels in the products by 40%.

August 2021

Mars has acquired with Kind to add more products in healthy snacks bar in its product portfolio, The kind brand trust and strong presence will help Mars in anchoring newly formed health and wellness segment.

Reduced Sugar food and beverage Market Segmentation

Reduced Sugar Food and Beverage Type of Cover Outlook

• Bakery & Confectionery


• Beverages


• Dairy Desserts


• Snacks & Savory


• Others

Reduced Sugar Food and Beverage Consumer Group Outlook

• Gen X


• Gen Z


• Millennials


• Boomers

Reduced Sugar Food and Beverage End User Outlook

• Residential


• Commercial

Reduced Sugar Food and Beverage Distribution Channel Outlook

• Supermarkets & Hypermarkets


• Convenience Stores


• Specialty Stores


• Online


• Others

Reduced Sugar Food and Beverage Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 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
  
  
  • Africa
  
  
  • Middle East