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The Sugar Free F&B Market size is forecast to increase by USD 51.2 billion at a CAGR of 10.85% between 2023 and 2028. The growth of the natural sweeteners market is driven by several key factors, including the expanding influence of online retailing, the increasing demand for naturally derived sweeteners, and the trend toward product premiumization. As consumers increasingly prefer healthier and more natural options, there is a notable shift towards zero calories sweeteners sourced from natural ingredients, which, coupled with the rising popularity of online shopping, underscores the market's trajectory towards further expansion and development. The growing preference for natural and organic products, sugar free carbonated drink combined with the convenience and accessibility offered by e-commerce platforms, has created a favorable environment for the natural sweeteners market to thrive, with manufacturers and retailers adapting to meet the evolving consumer demands for premium, health-conscious sweetening solutions across various product categories and sales channels.
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The rise of health-related concerns like diabetes and obesity has sparked a growing demand for alternatives to traditional sugar-laden products. As a result, the market has witnessed a surge in the popularity of low-calorie beverages, sugar substitutes, and sugar-free alternatives. Additionally, dietary preferences such as veganism and gluten-free diets have influenced the development of raw, refined sugar-free, and organic options. With a focus on taste, calories, and addressing health concerns, the market is evolving to cater to the diverse needs of health-conscious consumers while navigating regulatory measures like sugar taxes.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market share growth of the supermarkets or hypermarkets segment will be significant during the forecast period. Supermarkets and hypermarkets offer high product volumes that give these outlets greater buying power. This helps these retail outlets in pricing products at competitive prices by offering discounts, which rivals may find difficult to match. Consequently, consumers can benefit as they can get at discounted rates. These factors will positively impact the growth of the supermarkets and hypermarkets segment of the market growth during the forecast period.
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The supermarkets or hypermarkets segment was valued at USD 36.80 billion in 2018. Supermarkets and hypermarkets are the most popular and preferred distribution channels, given that they offer the convenience of availing of a wide assortment of products under one roof. Furthermore, factors such as discounts and an enhanced shopping experience enabled by attractive shelf displays entice consumers to purchase from supermarkets and hypermarkets.
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North America is estimated to contribute 41% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US, Canada, and Mexico are the major contributors to the market in the region. The rising number of people with obesity in the region and an increase in the number of people with diabetes have led consumers to find healthy foods and beverages, which, in turn, is driving the growth of the market in North America.
Most of the major food and beverage companies are concentrated in North America. Coca-Cola and Hershey are some of the major Companies in the market that are headquartered in the region. Millennials in the region are expected to contribute to the major consumption of sugar-free foods and beverages, such as sugar-free confectionery and beverages. Chewing gums are the major contributors to the sugar-free confectionery segment of the market. The easy availability of a wide variety of sugar-free foods and beverages is another major factor driving the growth of the market in the region. The strong distribution network between Companies and retailers increases purchase options for consumers, which will further fuel the growth of the market in the region.
In the ever-evolving landscape of the food and drink industry, several key trends are emerging. Veganism is gaining traction as more consumers opt for plant-based alternatives, while concerns about health have led to a demand for sugar-free and low-calorie products. Moreover, there's a growing awareness about the impact of sugar on health, with reducing sugar intake becoming a priority for many. In response, product formulators are innovating with alternatives like maltitol and tablespoons sweeteners to create sugar-free food and beverage options, catering to the preferences of health-conscious consumers. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market has experienced substantial growth in the last decade due to the rise of e-commerce. This trend allows consumers to access a wide range of sugar-free options, including ready-to-drink protein drinks in flavors like vanilla, chocolate, mint chip, and strawberry. The shift towards sugar-free alternatives is driven by the health concerns related to obesity and various disorders associated with added sugar. As a result, the sugar-free products industry, which includes low-calorie and zero sugar options, has seen significant expansion. Brands and retailers, such as Amazon and eBay, offer a variety of sugar-free choices to cater to the increasing demand. These sugar-free and low-calorie foods are not only preferred for their taste but also for their health benefits, as they help reduce calorie intake and offer nutritious alternatives.
The food industry's response to this trend includes the production of dairy-free, lactose-free, and sugar-free processed foods. The sugar-free concept is gaining popularity due to the increasing awareness of the health risks associated with sugar and the implementation of sugar taxes. Overall, the sugar-free products industry is a growing sector that prioritizes hygiene, nutritious foods, and disease prevention, including cardiovascular disease.
The food and beverage industry is witnessing a shift towards sugar-free alternatives in response to the growing health and wellness trend. Consumers are increasingly willing to pay more for low-calorie, sugar-free options, including ready-to-drink protein drinks in flavors like vanilla, chocolate, mint chip, and strawberry. The rise of sugar-free concepts is particularly relevant for those seeking to manage overweight/obesity and related disorders. With added sugar a major concern, sugar alternatives are gaining popularity. Processed food and fast food sales are being impacted as consumers opt for dairy-free, lactose-free, and sugar-free products.
The sugar-free products industry is thriving, offering zero sugar options that maintain great taste while reducing calories. However, hygiene and nutritional value remain crucial considerations. The food industry must continue to innovate and provide nutritious foods that cater to various dietary needs and preferences, while also addressing diseases such as cardiovascular disease associated with sugar consumption. Sugar taxes may further drive demand for sugar-free products.
The sugar-free market growth is being hindered by decreased acceptance caused by uncertainties surrounding the safety profile of artificial sweeteners. Studies conducted by different institutions highlight the adverse health effects of conventional sweeteners. Artificial sweeteners have been known to cause health-related problems. The risk of metabolic syndromes was compared in two groups of people-one group comprised people who consumed sugar-sweetened beverages, and the other comprised people who consumed artificially sweetened beverages. Results suggested that the risk was similar for both groups. Women who consumed more than two sugar-sweetened or artificially sweetened beverages a day were found to have a significantly greater risk for coronary heart disease. Similar results emerged from other studies conducted to measure the elevated risk for hypertension and vascular conditions. Due to the adverse health effects, many limit their consumption of sweeteners. Artificial sweeteners are used in diabetic food to lower the calorie content. Thus, the adverse health effects of sweeteners will affect the global diabetic food market as well.
The report includes the adoption lifecycle of the sugar-free beverages market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the sugar-free beverages market.
Russell Stover Chocolates - The company offers sugar free food that include chocolates that are made from milk and cocoa. Additionally offers traditional boxes of chocolate, candy gifting, gift baskets, sugar-free candies, seasonal chocolates, and more.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth driven by increasing health consciousness among consumers and rising concerns over conditions like type 2 diabetes cases, pre-diabetes, and obesity. With a surge in demand for healthier alternatives, consumers are gravitating towards low-calorie beverages, sugar-free bakery products, and other sugar-free products. Major players like Mondelez International are introducing innovative offerings such as sugar-free nutrition and health supplements and Ready-To-Drink whey protein drink to cater to health-conscious customers. This market expansion is further fueled by the availability of vegan, gluten-free, refined sugar-free, organic, and non-GMO options, appealing to those following specific diets. As supermarkets and hypermarkets stock up on these sugar substitutes, the industry continues to evolve to meet the evolving needs of healthier food and beverage product seekers.
The demand for sugar-free and low-sugar food products is on the rise, driven by concerns over glycation, diabetes, and inflammatory digestive conditions such as irritable bowel disease and Crohn's disease. Consumers are increasingly seeking alternatives like biscuits, cookies, and muffins that are free from sucrose and glucose, opting instead for options sweetened with sugar substitutes or naturally sweetened alternatives. This trend extends to various products, including dairy-free coconut milk ice cream, low-carb beverages, and no-sugar & immunity-boosting offerings, catering to those embracing healthy living and mindful dietary habits. As a result, supermarkets & hypermarkets are expanding their selections to meet this growing demand, navigating challenges such as raw material & workforce shortages while addressing the pressing health concerns surrounding diabetes and cardiovascular disease.
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Sugar-Free Food and Beverages Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.85% |
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Market growth 2023-2027 |
USD 51.2 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
9.47 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, China, Germany, Italy, and UK |
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Competitive landscape |
Leading Companies , Market Positioning of Companies , Competitive Strategies, and Industry Risks |
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Key companies profiled |
Atkinson Candy Co., Britvic Plc, Chocoladefabriken Lindt and Sprungli AG, Flowers Foods Inc., General Mills Inc., Gujarat Cooperative Milk Marketing Federation, Jones Soda Co., Kellogg Co., Keurig Dr Pepper Inc., Monster Energy Co., Nestle SA, PepsiCo Inc., Russell Stover Chocolates, Suntory Holdings Ltd., The Coca Cola Co., The Hershey Co., The Kraft Heinz Co., Turkey Hill Dairy, Vadilal Industries Ltd., and Wells Enterprises Inc. |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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