Beverage Sweetener Market Report

The global beverage sweetener market is experiencing a significant shift as post-pandemic consumers increasingly prioritize health-conscious choices. Research from Kerry reveals that 77% of global consumers place the greatest prominence on the type of sweetener used in products, with 75% preferring natural sweeteners. In particular, the APMEA region shows strong resistance to artificial sweeteners, with 98% of consumers expressing negative health and taste perceptions, especially regarding synthetic options like sucralose and acesulfame K. This growing preference for cleaner, naturally sourced ingredients has led to a surge in demand for natural sweeteners, making them the dominant segment in the market. As consumer awareness rises, natural sweeteners are positioned to redefine beverage formulations and attract a more health-savvy global consumer.

Sucrose continues to dominate the global beverage sweetener market in 2024, driven by its natural origins and widespread consumer acceptance. Derived from sugar cane and sugar beets, sucrose is giving increasingly greater acceptance to the call for natural, minimally processed ingredients, thereby merging with the clean label trend. It is well known for its sweetness and has a familiar taste profile, which is accepted by soft drinks, juices, and other beverages while providing the sweetness balanced by improving the mouthfeel. Additionally, due to its widespread and efficient supply chain network, sucrose is always available for use at reasonable prices. Although there are other sweeteners like stevia and monk fruit that are being adopted by many consumers, the production and distribution of large quantities of sucrose help to keep its prices low, making it the main ingredient that beverage manufacturers who wish to compromise between quality and cost in beverage formulations.

The global beverage sweetener market is developed for innovation, driven by the growing demand for natural, sustainable alternatives to artificial options. The World Health Organization’s classification of aspartame as a “possible carcinogen” and consumer preference for sugar over artificial sweeteners are pushing brands to explore plant-based solutions. Coca-Cola's testing of a monk fruit and stevia blend for Diet Coke highlights this modification. Emerging sweeteners, like MycoTechnology’s honey truffle-derived protein, present unique opportunities by offering intense sweetness without aftertastes, addressing clean-label trends. Similarly, Ciranda’s new agave and tapioca syrups, certified organic and Fairtrade, align with consumer desires for sustainability and transparency. These advancements highlight a significant market opening for disruptive, health-focused, and ethical sweetener innovations.

The global beverage sweetener market faces challenges restricted by growing health and safety concerns. Despite approval by regulatory agencies such as the FDA, synthetic sweeteners like aspartame, sucralose, and saccharin are still under much controversy. In 2023, the International Agency for Research on Cancer (IARC) classified aspartame as "possibly carcinogenic," which only increased public scepticism. There are concerns about the long-term health effects of this situation involving possible connections to cancer and metabolic issues as well as related to its customers more and more opting for "clean label" goods which prioritize natural sweeteners such as stevia monk fruit and agave syrup this change, in tastes is compelling beverage manufacturers to modify their formulas driving conventional artificial sweeteners to keep up in a market that emphasizes reliability and perceived health advantages.

The key restraining factor in the global beverage sweetener market is the challenge of balancing sweetness, flavour, and health benefits. While high-potency sweeteners (HIS) can mimic sugar’s sweetness, they often come with aftertaste like bitterness or astringency, which can deter consumer acceptance. Moreover, these sweeteners lack the mouthfeel and viscosity of sugar, affecting the overall drinking experience. Additionally, the removal of sugar can flatten the flavour profile, making the beverage less vibrant. Despite the demand for natural sweeteners, cost remains a significant barrier, as brands are hesitant to adopt higher-cost alternatives, even when consumers are willing to pay a premium. Finally, maintaining a clean label while reducing sugar content complicates formulation, as manufacturers must balance simplicity with product effectiveness.

Major market leaders employ marketing tactics focused on introducing new products, merging with other companies, and acquiring new businesses to grow their customer base and enhance their range of products. In August, 2024, HOWTIAN introduced SoPure Dorado, an innovative golden stevia extract aimed at meeting the growing demand for minimally processed, plant-based sweeteners in the food and beverage industry. This unrefined, zero-calorie product caters to consumers seeking transparency and simplicity in their diets. The launch aligns with a 2024 Innova Trends Survey showing 67% of consumers prefer reducing processed food consumption for healthier lifestyles.

However, in July, 2024, NutraEx Food, Inc., a prominent natural sweetener supplier, launched BI-Sugar an innovative sweetener solution that inhibits sugar digestion. Developed using patented dry-embedding technology, BI-Sugar bonds L-arabinose with sucrose and other natural sweeteners like stevia. This breakthrough offers reduced calories, blocked glycaemic spikes, and improved energy, making it an ideal sugar-reduction tool for the food and beverage industry.

Moreover, in July 2023, Tate & Lyle PLC introduced the TASTEVA SOL Stevia Sweetener, an innovative solution in stevia technology. This premium sweetener, with over 200 times the solubility of Reb M and D, addresses solubility challenges in high sugar-replacement applications like beverage concentrates and dairy. TASTEVA® SOL enhances Tate & Lyle’s portfolio, catering to the growing demand for healthier, sugar-reduced food and beverage options.

Furthermore, in June 2023, Wisdom Natural Brands expanded its SweetLeaf product range with innovative sugar alternatives for the food and beverage market. The latest products introduced were SweetLeaf Indulge Zero Calorie All-Purpose Sweeteners and SweetLeaf 50% Reduced Calorie Sugars. These products, made from natural ingredients like allulose, stevia, and monk fruit, deliver the taste, texture, and baking performance of sugar without artificial additives or the cooling effect typical of other substitutes.

The global beverage sweetener market is experiencing robust growth, with North America leading the charge due to its highly developed food and beverage industry and consumer preference for healthier alternatives. Consumer attitudes towards low-calorie and sugar-free beverages have made a remarkable switch, and it is only health awareness that primarily drives the growth rate towards variations related to it like obesity and diabetes. Besides increasing the preference towards lower-sugar, clean-label sweeteners, the consumer trend in North America specifies well for sweetening products that are in accordance with a healthy lifestyle orientation. Advances in technology, such as fermentation-based sweeteners, are accelerating this trend, offering more sustainable and natural solutions. Major industry players, including Cargill, Tate & Lyle, ADM, Ingredion, and Stevia First Corporation, are spearheading innovation in the region, reinforcing its dominance in the global beverage sweetener market.

The Asia Pacific region is rapidly emerging as the fastest-growing market for beverage sweeteners, driven by a surge in health-conscious consumers seeking alternatives to sugar-loaded drinks. Obesity and diabetes probably are the most apparent rising health issues that many consumers face, making them more cautious about the products that contain less sugar or no sugar at all. As cited by the United States Department of Agriculture (USDA), China will consume 15.6 million tons of sugar in the sugar flows by season 2024/25, which depicts the demand for a sweetener industry. The demand for sweeteners such as stevia and monk fruit are increasing notably in the Asia Pacific due to the rising health awareness levels in countries like China, India, and Japan. China leads as the consumer embracing both natural and artificial sweeteners; meanwhile, India's increasing diabetes rates are pushing up the need, for sugar free beverages and Japan favours stevia and zero-calorie sodas. Meanwhile, Southeast Asia and Australia are embracing clean-label, low-sugar, and functional beverages, further fuelling the market's expansion.