Sugar substitute market projected to be worth $13.7 billion by 2018

MarketsandMarkets, a market research and consulting firm, projects that by 2018, the global market f…

MarketsandMarkets, a market research and consulting firm, projects that by 2018, the global market for sugar substitutes will be worth $13.8 billion. Based on increasing awareness, consumption and demand for low-calorie sweeteners including stevia, sorbitol, tagatose, aspartame, sucralose and xylitol, MarketsandMarkets expects the sugar substitute market to achieve a compound annual growth rate (CAGR) of 4.5 percent over the next five years.

Estimated to be worth $10.5 billion in 2012, the sugar substitute market has benefitted from rising use of low-calorie sugar alternatives in many consumer products, and in particular, food and beverages, according to MarketsandMarkets. In the North American market, which accounts for 49.0 percent of the market share in 2012, consumers are increasingly shifting toward healthier consumption and lifestyles, and demand for low caloric foods and low intensity sweeteners is projected to grow by 3.9 percent from 2013 to 2018.

While North America is expected to continue leading the world in consumption of sugar substitutes, because of the increasing impact for demand of convenience health and functional foods and beverages MarketsandMarkets expects the Asian Pacific region (APAC) to drive the growth of the industry over the next few years. China and India are leading demand for sugar substitutes in the region due to their booming economies, which are resulting in changing lifestyles and a focus on alternate sources of sugar in convenience products.