For a variety of reasons, consumers have expanded the scope of their demand for products featuring low or no sugar content. In response, food and beverage formulators have invested in research and development to uncover further innovative approaches to ingredient technologies. In tandem with the consumer and industry momentum in the sugar reduction category, additional market forces may contribute to future investment in sugar reduction product development.
Prices of raw sugar and cocoa touched 10-year and seven-year highs respectively in April 2023, The Smart Cube reports, due to tight supply and rising demand for both commodities.
“Sugar output has largely been impacted by variable weather conditions," says Nidhi Jain, associate specialist at The Smart Cube. "In India, the likely fall in sugar production for the marketing year 2022/23 can be attributed to lower yields, as the key producing states were affected by unseasonal rain. In turn, this saw lower cane availability, causing early closure of sugar mills in the country. Meanwhile, sugar output in China is estimated to drop due to dry weather in the key sugarcane-producing province of Guangxi. Although Brazil is expected to witness a bumper crop this year – up 15% YOY – ongoing logistical bottlenecks and supply chain issues are restricting sugar shipments from the country. Furthermore, rains have delayed sugarcane crushing in the country.
Top Zero Sugar Beverages Trends
Governments worldwide are taking steps to reduce sugar consumption by imposing taxes on sugary drinks and promoting healthy beverage options
The global zero sugar beverages market size is estimated to represent a value of $3.3 billion in 2023. It is predicted to accelerate with a CAGR of 14.7% from 2023 to 2033. The global market is set to exceed a value of more than $13 billion by 2033. In place of energy-producing sugars, zero sugar beverages are sweetened with one or more high-intensity sweeteners. Shifting attitudes toward sugar consumption and the rising prevalence of diseases such as diabetes & obesity is set to drive the market.
According to the National Library of Medicine, there are around 6.7 million types 2 diabetics living in Germany alone. As a result, changing behavior toward better food choices is being driven by growing awareness of health and fitness. Long working hours of individuals have increased demand for healthy food & beverage products. Today’s consumers are looking for new beverages that can give them the proper nutrition they need to go through their daily tasks successfully.
Hence, customers are nowadays preferring on-the-go beverages. These include milk-based drinks and energy drinks, which is further boosting the zero sugar beverages market's expansion. Governments worldwide are taking steps to reduce sugar consumption by imposing taxes on sugary drinks and promoting healthy beverage options. These initiatives have contributed to the expansion in the zero sugar beverages industry.
The World Health Organization (WHO), for instance, has put forward guidelines to control sugar consumption worldwide. As per the organization, adults and kids must consume preferably 5% or less than 10% of free sugar on a daily basis. However, the difficulty that numerous manufacturers face is that several sweeteners have problems that go beyond taste. Most of these components have off-notes. These often throw the flavor out of balance if an individual is also attempting to add active substances to make their drinks healthy.
According to Future Market Insights (FMI), the zero sugar beverages market is estimated to exhibit a CAGR of 14.7% between 2023 and 2033. It witnessed moderate growth at a CAGR of 12.5% between 2018 and 2022. Key companies are always focusing on boosting their capacity and developing alliances with distributors. They are also using several other operational techniques in order to gain an advantage in the cutthroat market climate.
The global market has experienced significant growth in recent years. It is mainly driven by increasing awareness about the negative health effects of sugar consumption and the rising demand for healthy beverage options.
Top Zero Sugar Beverages Market Trends· Zero sugar beverages usually contain artificial or natural sugar substitutes such as aspartame, stevia, and sucralose which are safe for healthy adults, which makes them popular.
· Sweeteners can be a short-term way to manage or reduce weight, as well as avoid regular consumption of processed sugar in the diet, thus acting as viable alternatives to conventional products.
· Artificial sweeteners can also lower the risk of tooth cavities, which is pushing consumers to adopt zero-sugar options.
· Demand for artificial sweeteners is rising, which is likely to benefit zero-sugar beverage sales.
· Growing awareness of the numerous health benefits of consuming low-calorie, sugar-free beverages has led to increasing zero-sugar beverage demand.
· Modern consumers are increasingly looking for healthy beverage options that are low in calories and do not contain added sugars, which is skyrocketing demand in this market.
· Zero sugar beverages often use artificial sweeteners or natural sweeteners, which a few people might find less appealing or less satisfying than regular sugar.
· While several consumers are looking to reduce their sugar intake, a few might perceive zero-sugar beverages as being overly processed or less healthy than other options.
· Consumers often believe beverages with artificial sweeteners are not good for their health, and they might be less likely to purchase them.
· Zero-sugar beverages can be more expensive than their sugary counterparts due to the cost of ingredients or manufacturing.
Innova Insights: Sweeteners & Sugar Reduction
Explore sugar reduction with Innova Market Insights’ Co-Founder and Global Insights Director Lu Ann Williams. Innova research shows consumers expressing continued strong interest no- and low-calorie products. New alternative sweeteners and sugar reduction formulations drive many new foods and beverages as well as on-pack product claims.
Welch’s ZERO SUGAR Fruity Bites
New Welch’s® ZERO SUGAR Fruity Bites were unveiled at Sweets & Snacks Expo, and is the latest innovation from PIM Brands, makers of Welch’s® Fruit Snacks. Welch’s® ZERO SUGAR Fruity Bites are chewy, fruity and 100% sugar-free, with 25% fewer calories than the original Welch’s® Fruit Snacks but all the great taste. The new treats are fat-free, gluten-free, aspartame-free, and contain no preservatives.
According to a Comprehensive Research Report by Marketing Research Future (MRFR), the global market for sugar-free treats is projected to increase by 6.9%, reaching almost $7 billion by 2030.
Splenda Peel & Pour Zero Calorie Drink Mix
Splenda® and its parent company Heartland Food Products Group, expanded into the drink mix category with the introduction of New Splenda® Peel & Pour™ Zero Calorie Drink Mix. The liquid pods filled with concentrated drink mix make it easy and convenient to create a pitcher of refreshing zero calorie, zero sugar beverages in seconds. Splenda Peel & Pour is available in fourflavors: Pink Lemonade, Sweet Tea, Fruit Punch and Peach Mango.
Splenda Peel & Pour Drink Mix pods are portioned with flavor, making it an easy, powder-free option. Simply Peel back the lid of the liquid pod, Pour into two quarts of water in a pitcher, and Enjoy a zero calorie, zero sugar refreshment over ice or chilled. Splenda Peel & Pour Drink Mix is available in the drink mix aisle at select retailers nationwide, including Publix, HEB, The Giant Company and Shop Rite, Albertson's, Safeway, Food Lion, Hannaford and Stop & Shop, and coming soon to select Walmart stores. The product is also available on Amazon.
Splenda Peel & Pour Drink Mix is sold in 6-count packages for a suggested retail price of $6.99.
SmartyPants Vitamins New Sugar Free Gummy Multivitamin
For its most innovative launch to-date, SmartyPants Vitamins announced new SmartyPants Sugar Free Multi & Omegas gummy multivitamins in Kids, Women’s, and Prenatal formats. SmartyPants’ new Sugar Free Multi & Omegas don’t use sugar alcohols.
The new premium, all-in-one supplement contains 0g sugar§ and 0g net carbs‡, and is sweetened with plant-derived monk fruit and allulose, meaning it’s formulated to not cause the digestive upset that can be associated with sugar alcohols. The product is thoughtfully formulated with better ingredients like Omega-3 ALA essential fatty acids (sourced from plant-based flaxseed oil) and Vitamins D3 for immune support.
