2021 U.S. Sweeteners Market Data

Recently, the market research agency Spins released the sales data of major sweeteners in the U.S. market in the past year, as well as the use of sweeteners by sub-categories. Which sweeteners saw higher growth last year? Which sweeteners are trending in the food and beverage sub-categories? What factors will further drive the sweeteners market?

Natural sweeteners are highly regarded

According to the latest report from Values Reports, the global natural sweeteners market size is expected to grow from USD 22.49 billion in 2020 to USD 27.94 billion by 2026, representing a compound annual growth rate of 3.7%. Out of consideration for natural health, both consumers and businesses are increasingly turning to natural sweeteners and avoiding artificial sweeteners. Among the main sweeteners, Luo Han Guo achieved a market growth rate of 20% last year. The categories that use the most natural sweeteners are protein supplements/meal replacements, frozen desserts, and bars and gels; the fastest-growing categories are refrigerated and plant-based yogurts, refrigerated entrees, and shelf-stable desserts.

Although it is still unpopular in the Chinese market where it originated, the Monk fruit sugar substitute has developed rapidly in the U.S. market in recent years. Compared with stevia, Luo Han Guo has no after-bitter taste and has a better taste, and can be used in combination with other sweeteners to optimize the taste; it also has obvious clean label advantages, and can be added in the form of Luo Han Guo powder, Luo Han Guo concentrated juice, etc. in food and beverages. The name of steviol glycosides on the food label is "steviol glycosides", which is a food additive, and there are requirements for use scope and limit, but Luo Han Guo can be directly marked as "Luo Han Guo powder / Luo Han Juice" at home and abroad, which can be used as a natural ingredient in food. The raw material is not limited by the amount of addition.

Behave Foods' new low-sugar gummies, made with monk fruit, chicory root fiber and other natural flavors, were inspired by customer requests for tropical and sour products. Each bag of candy has 60 calories, 10 mg of sodium, 32 g of total carbohydrates, 4 g of protein and 88 mg of calcium, with no added sugar.

Stevia achieved 15% market growth last year, with popular categories including protein supplements/meal replacements, refrigerated and plant-based yogurts, and room temperature bottled water. Faster-growing categories include no-cook cereals, frozen breakfasts and seasonings.

Consumer interest in stevia continues to grow, with the number of stevia-containing products launched globally increasing by more than 16% annually between 2016 and 2020, according to Innova Market Insights. The global stevia market was valued at USD 637.1 million in 2018 and is expected to reach USD 1,169.4 million by 2026, growing at a CAGR of 8.0% from 2019 to 2026. According to Ingredion's internal analysis, the global stevia market size is estimated to exceed USD 1.6 billion by 2028. In terms of products, with the gradual improvement of regulations in various countries, steviol glycosides with high sweetness and no bitter aftertaste, such as Rebaudioside M and Rebaudioside D, have begun to occupy the mainstream market. Rebaudioside prepared by fermentation Glycoside M and rebaudioside D have also begun to be used in some foods and beverages.

PureCircle has partnered with Synergy Flavors to launch a sparkling water sweetened with PureCircle Reb M Stevia Extract.

Sugar alcohols saw 3% growth last year, with major application categories including oral care, confectionery, and functional beverages; the fastest-growing categories included no-cook cereals, refrigerated and plant-based yogurts, and frozen breakfasts.

Like the domestic situation in China, products using sugar alcohols (mainly erythritol) as beverage sweeteners in the U.S. market are also growing rapidly, and are well-received by consumers for their highly similar taste to sucrose. Erythritol is sweet, cool and pure, without bad aftertaste, and can be used alone. In addition, erythritol has stable pH (suitable for pH 2-12), strong heat resistance, and will not decompose or change color at high temperature of 160 degrees, which can meet the processing requirements of various beverages. Moreover, compared with other sugar alcohols, erythritol is also more safe and intestinally tolerated.

In addition, with the popularity of the oral care market, sugar alcohols are also widely used in oral care functional foods. Tooth decay is mainly due to carbohydrates and sugars contained in food, which, when fermented, produce organic acids that destroy tooth enamel. The sugar alcohols will not be fermented and utilized by oral bacteria, and can promote the secretion of saliva and reduce the acid erosion of teeth.

Important application categories for sweeteners - beverages

Among various application categories, beverages are the fastest growing and larger market for sweeteners. Beverage companies are driving product innovation through sweeteners to attract consumers with the concept of "zero sugar and zero calories".

The data shows that coconut sugar is the fastest growing sweetener in beverages, with a growth rate of 21.1%, followed by sugar alcohols (20.6%), stevia (10.3%), no sweeteners (1.3%), Luo Han Guo ( 1.3%).

Coconut candy is extracted from the juice of coconut flowers. The entire extraction process of coconut candy is very natural, gluten-free, additive-free, preservative-free, low-glycemic index, similar to caramel in taste and color, and can be 1: 1Replace sucrose and blend better with rich flavors such as coffee, oatmeal, cocoa, and roasting.

Sugar substitute is a key innovative element in food and beverages

The data shows that in various applications, the market sales of sugar-free / sugar substitute products are growing rapidly. In jerky snacks, market sales of products using sugar substitutes increased by 50%, compared with a 14% overall growth rate for the category; in biscuit snacks, market sales of products using sugar substitutes increased by 26%, compared with the category The overall growth rate was 7%; in confectionery, market sales of products using sugar substitutes increased by 11%, while the overall growth rate for the category was 5%.

In addition, American consumers' respect for ketogenic and whole30 diets has further promoted the development of the sugar replacement market. In 2018, the global ketogenic food market was $970 million, and according to market research by The Insight Partners, the ketogenic market will grow at a CAGR of 5.5% to $1.564 billion by 2027, of which snacks and beverages will become The most important category of ketogenic products. Sugar substitute is a very important ingredient in ketogenic food. Stevia, monk fruit, erythritol, and allulose are the most commonly used sugar substitutes, and some products directly use coconut as sugar substitute.