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Sugar Free Market Overview
Sugar Free Market size is estimated to reach $259.4 billion by 2027, growing at a CAGR of 6.1% during the forecast period 2022-2027. Sugar Free products are free from added sugar and artificial sweeteners. However, some products contain natural sugar, while some manufacturers use food additives as sugar substitutes to act as sweeteners like aspartame, which is 200 times sweeter than table sugar. Others are mannitol, erythritol, and xylitol, used as sugar substitutes. As per the U.S. Food And Drug Administration (FDA), the inclusion of fewer than 0.5 grams of sugar is considered sugar-free. The increasing prevalence of diabetics and obesity pushes consumers from high sugar-containing food and beverages to Sugar Free substitutes. As per the World Health Organization (WHO), diabetes and cardiovascular diseases are leading diseases around the world causing most deaths. In 2019, 1.5 million deaths were directly caused by diabetics. To prevent diabetics and to reduce sugar intake many people preferred sugar free food and beverages for consumption.
The increasing predominance of diabetics with growing awareness among consumers is set to drive the Sugar Free Market. The soaring variety of innovative sugarfree products, including new product launches and the surging R&D activities by key market players are set to propel the growth of the Sugar Free Market during the forecast period 2022-2027. This represents the Sugar-Fre Industry Outlook.
Report Coverage
The report: “Sugar Free Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Sugar Free Market.
By Product Type: Beverages, Confectionery (Sweet & Candy confectionery, Chocolate confectionery), Dairy, Bakery, Ice-Creams, and Others.
By Distribution Channel: Supermarkets, Hypermarkets, E-commerce Websites, and Others.
By Geography: North America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia, Rest of South America), and Rest Of The World (Middle East, Africa).
Key Takeaways
- Geographically, North America Sugar Free Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the increasing demand for sugar free products by health-conscious consumers in the North American region.
- Sugar Free Market growth is being driven by the surging demand for low-calorie beverages and the related cost-cutting benefit of the application of sugar substitutes. However, zero or less sugar beverage has high-potency sweeteners which have very distinctive after-tastes like bitterness and astringency, which is one of the major factors hampering the growth of the Sugar Free Market.
- Sugar Free Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Sugar Free Market report.
Sugar Free Market: Market Share (%) By Region, 2021
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Sugar Free Market Segment Analysis - By Product Type
The Sugar Free Market based on product type can be further segmented into Beverages, Confectionery, Dairy, Bakery, Ice-Creams, and Others. The Bakery segment held the largest market share in 2021. This growth is owing to the bakery products being consumed every day and being an integral part of breakfast. The use of sugar in bakery products gives them crispiness owing to the property of the sugar and water bond. However, the use of sugars in dairy products limits diabetic people from consumption of such products. The report by FMGC Gurus in 2021, reported that 66% of consumers claim to reduce their sugar intake owing to health concerns. The soaring preference for sugar free bakery products is further propelling the growth of the Bakery segment.
Furthermore, the Beverages segment is estimated to grow with the fastest CAGR of 7.3% during the forecast period 2022-2027 owing to the soaring demand for healthy beverages with sugary beverages replaced with healthier options like fat-free and low-fat milk and 100% juices. Most carbonated beverages, juice, syrups, and tonics are high in sugar content which is a concern for health-conscious consumers and a risk factor for diabetic patients. The research article published by National Center for Biotechnology Information (NCBI) in 2019, found that Cola and lemonade had relatively high sugar content that is 9.7g per 100ml. The surging inclination of consumers towards reduction of sugar intake is further propelling the growth of the Beverages segment.
Sugar Free Market Segment Analysis - By Distribution Channel
The Sugar Free Market based on distribution channel can be further segmented into Supermarkets, Hypermarkets, E-commerce Websites, and Others. The Supermarkets Segment held the largest market share in 2021. This growth is owing to the easy availability of a variety of sugar free products, and the increasing demand for such products attributed to the increasing prevalence of obesity and diabetics. Consumers set a high priority to reduce sugar intake. According to the Consumer Health and Nutrition Survey: more than 53% of consumers eat less sugar for weight loss, 58% of respondents stated that it ‘better for me to avoid it’ followed by 57% who stated ‘feel me healthier’. The soaring demand for sugar-free products results in a high stocking of sugar free products in supermarkets which are propelling the growth of this segment.
Furthermore, the E-commerce Websites segment is estimated to grow with the fastest CAGR of 7.1% during the forecast period 2022-2027 owing to the wide availability of sugar free products on e-commerce websites launched by key market players, and attributes of online services like fast delivery, free delivery, discount on purchase, easy payment method, and an increasing number of online purchases of grocery. In the U.S. household's online purchases of groceries, hiked from 16 million in August 2019 to 64 million in October 2021, was observed. The heightening inclination of consumers to buy online is further propelling the growth of this segment.
Sugar Free Market Segment Analysis - By Geography
The Sugar Free Market Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America and Rest of the World. Asia-Pacific held the largest share with 38% of the overall market in 2021. The growth of this region is owing to the hectic lifestyle and increasing consumption of fast-food resulting in increasing cases of obesity and related diseases like cardiovascular diseases, hypertension, diabetes, and others in the North American region. As per the Centers For Disease Control And Prevention (CDC), 37.3 million Americans are living with diabetes. The surging introduction of novel sugar free products like Heinz sugar free ketchup which can remain a part of fast foods thereby retaining their delectability with reduced calorie inclusion is further propelling the growth of the Sugar Free Market in the North American region.
Furthermore, the North America region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like the increasing predominance of diabetics and oral health issues in the Asia-Pacific region. As per the Asia-Pacific food industry report, the majority of Asian consumers are moderating or dropping sugar intake from their diets. In Asian countries like China, cardiovascular diseases and diabetics cause 89% of annual deaths as per World Health Organization (WHO). To tackle this, China’s government has taken the initiative to reduce sugar by 17% which is 10.5 grams per day in 2010 to 5 grams per day by 2030. These kinds of government initiatives and increasing awareness among consumers is further propelling the growth of the Sugar Free Market in the Asia-Pacific region.
Sugar Free Market Drivers
Increasing Count Of Diabetics Patients Around The World Is Driving The Market Growth
Sugar content is a source of concern for consumers, owing to diabetes and obesity. Low-calorie, high-cocoa, and practical ingredient-based sweets are among the healthier options sought by consumers. Consumers all across the world are reporting concerns about the number of functional claims on food labels. Additionally, with raising awareness of the perils of excessive sugar consumption and the rising prevalence of diabetes around the world, the demand for sugar free products is heightening. Current data by World Health Organization (WHO) shows that 442 million people worldwide live with diabetes and 1.5 million deaths are directly attributed to diabetes each year. Owing to these big figures, most people are moving towards sugar free food and beverages. The increasing count of Diabetics patients around the world is therefore driving the growth of the Sugar Free Market during the forecast period 2022-2027.
Increasing Number Of Health-Conscious Consumers Helps In the Growth Of The Market
Consumers are aware of the bad impact of sugar consumption on health. According to Harvard Health, high intake of sugar leads to high blood pressure, inflammation, weight gain, diabetes, and fatty liver disease. According to National Cancer Institute, adult men consume an average of 24 teaspoons of added sugar which is equivalent to 384 calories and sufficient to lead to weight gain. However, American Heart Association suggests that women consume no more than 100 calories, that is 6 teaspoons or 24 grams of sugar per day, and for men, it is 150 calories about 9 teaspoons or 36 grams of sugar per day. Such regulations by governments and a soaring count of consumers who wish to reduce their sugar intake are health-conscious and therefore propelling the growth of the Sugar Free Market during the forecast period 2022-2027.
Sugar Free Market Challenges
Adverse Health Effects Of Artificial Sugar Are Hampering The Market Growth
As per the journal science direct, in the U.S. about 25% of children and 41% of adults consume artificial sweeteners. According to the Mayo clinic, artificial sweeteners and other sugar substitutes may lead to a variety of health problems including cancer as studies dating to the 1970s linked the artificial sweetener saccharin to bladder cancer in laboratory rats. Artificial sweeteners are regulated by the U.S. Food And Drug Administration (FDA). According to a research article published in PLOS Medicine, in March 2022, a study of 102,865 adults from the French population found that artificial sweeteners (especially aspartame and acesulfame-K), are associated with increased cancer risk. The count of recorded cases of high risk with overall cancer was 3358 cancer cases, breast cancer was 979 cases and obesity-related cancer cases was 2023. This kind of increase in cancer risk by consuming artificial sweeteners is restraining the growth of the Sugar Free Market.
Sugar Free Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Sugar Free Market. The top 10- Sugar Free Market companies are:
- Amy's Kitchen
- Hain Celestial
- Nature's Path Foods
- Organic Valley
- Albert's Organics
- The Hershey Company
- The Kellogg Company
- Mars Incorporated
- Nestle S.A.
- Unilever PLC.
Recent Developments
- In December 2021, Hain Celestial declared its agreement to gain high-growth better-for-you snacking brands like ParmCrips and Thinsters which are consumer favorites from Clearlake Capital Group. ParmCrisps® are high-protein, low-carb cheese crisps and snack mixes. Thinsters® are crispy thin cookies prepared from high-quality, non-GMO constituents.
- In August 2021, Karnataka Co-operative Milk Producers Federation, as part of the festival season offer, launched five sugar free products, in addition to a heap of schemes. The sugar free sweets are milk peda, kesar peda, besan laddu, coconut burfi, and chocolate burfi. KMF is commemorating Sihi Utsav by offering a 10% discount on all Nandini sweets, natural ice creams, and shrikhand for 15 days beginning from Thursday.
- In February 2021, CEO Mark Schiller declared to analysts that Hain Celestial is in the market for acquisitions to “bulk up in the categories that we prioritize,” even as it continues to shed underperforming brands and those with less mainstream consumer appeal. He elucidated that this could involve acquisitions in North America “in the categories that we think have the most growth potential and where we have a significant presence”. These involve brands in the immunity-boosting and stress-reduction space like Celestial Seasonings, which observed a 50% surge in the fourth quarter of 2020 and 20% growth overall.
Relevant Titles
Report Code: FBR 37626
Report Code: FBR 16979
Report Code: FBR 0070
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1. Sugar Free Market Overview
1.1 Definitions and Scope
2. Sugar Free Market - Executive Summary
3. Sugar Free Market – Market Landscape
3.1 Company Benchmarking- Key Companies
3.2 Key Company Financial Analysis
3.3 Market Share Analysis
3.4 Patent Analysis
3.5 Pricing Analysis (Comparison of General Price Offerings in the Market)
4. Sugar Free Market – Startup Company Scenario (Premium)
4.1 Investment
4.2 Revenue
4.3 Venture Capital and Funding Scenario
5. Sugar Free Market – Industry Market Entry Scenario Premium (Premium)
5.1 Regulatory Scenario
5.2 New Business and Ease of Doing business index
5.3 Case Studies of Successful Ventures
6. Sugar Free Market - Market Forces
6.1 Market Drivers
6.2 Market Constraints
6.3 Porters five force model
6.3.1 Bargaining power of suppliers
6.3.2 Bargaining powers of customers
6.3.3 Threat of new entrants
6.3.4 Rivalry among existing players
6.3.5 Threat of substitutes
7. Sugar Free Market – By Strategic Analysis
7.1 Value Chain Analysis
7.2 Opportunities Analysis
7.3 Market Life Cycle Analysis
8. Sugar Free Market – By Product Type (Market Size –$Million/$Billion)
8.1 Beverages
8.2 Confectionery
8.2.1. Sweet & Candy Confectionery
8.2.2. Chocolate Confectionery
8.3 Dairy
8.4 Bakery
8.5 Ice-Creams
8.6 Others
9. Sugar Free Market – By Distribution Channel (Market Size –$Million/$Billion)
9.1 Supermarkets
9.2 Hypermarkets
9.3 E-commerce Websites
9.4 Others
10. Sugar Free Market - By Geography (Market Size -$Million/Billion)
10.1 North America
10.1.1 U.S
10.1.2 Canada
10.1.3 Mexico
10.2 Europe
10.2.1 Germany
10.2.2 France
10.2.3 UK
10.2.4 Italy
10.2.5 Spain
10.2.6 Russia
10.2.7 Rest of Europe
10.3 Asia-Pacific
10.3.1 China
10.3.2 Japan
10.3.3 South Korea
10.3.4 India
10.3.5 Australia & New Zealand
10.3.6 Rest of Asia-Pacific
10.4 South America
10.4.1 Brazil
10.4.2 Argentina
10.4.3 Chile
10.4.4 Colombia
10.4.5 Rest of South America
10.5 Rest Of The World
10.5.1 Middle East
10.5.2 Africa
11. Sugar Free Market - Market Entropy
11.1 New product launches
11.2 M&A's, collaborations, JVs and partnerships
12. Sugar Free Market – Industry Competition Landscape (Premium)
12.1 Market Share Analysis
12.1.1 Global Market Share – Key Companies
12.1.2 Market Share by Region – Key Companies
12.1.3 Market Share by Countries – Key Companies
12.2 Competition Matrix
12.3 Best Practices for Companies
13. Sugar Free Market – Key Company List by Country Premium (Premium)
14. Sugar Free Market - Company Analysis
14.1 Company 1
14.2 Company 2
14.3 Company 3
14.4 Company 4
14.5 Company 5
14.6 Company 6
14.7 Company 7
14.8 Company 8
14.9 Company 9
14.10 Company 10
"*Financials would be provided on a best-efforts basis for private companies"