Asia-Pacific Sugar Substitute market is projected to grow at a CAGR of 3.28% during the forecast period, 2020 - 2025.
- The increasing prevalence of diabetes and weight-related issues has led to more individuals opting for healthier products made from sugar alternatives, such as natural and non-calorie sweeteners.
- Food product manufacturers are constantly improvising their nutritional labels by incorporating natural sweeteners, catering to the consumer’s increasing demand for natural, safe, and healthy sweetener systems. For example, stevia sweeteners can help companies deliver on the significant opportunity for products boasting reduced sugar content. Resultantly, stevia, among other substitutes emerged as the prominent segment, witnessing robust demand in the region.
Key Market Trends
Stevia Held the Largest Market Share
Sugar alcohols, such as sorbitol and maltitol are proven to be cause of digestive problems, and thus, are being fast replaced by natural sweeteners stevia in the market. Clean Label has triggered the demand for natural sweeteners especially stevia, and both food and beverage producers have supported innovation and product launches by using stevia as a natural clean labeled sweetener. Moreover, key players in natural sweeteners are expanding in the Asia-Pacific region, as it is emerging as a prominent market for clean labeled natural stevia.
China Leads the Regional Market
China is the major market for sugar substitutes in the Asia-Pacific region and will continue to dominate the market in the forecasted period. China, as the world’s production base for sugar substitutes, is becoming an important end-user market, aided by the huge and fast-growing end-user industries. This dramatic growth was driven by the fast development of the end-user industries, especially functional beverages and foods, glazed fruits, tea and juice beverage, medicines, and others, which are the major application fields for stevia in China. Moreover, the country accounts for about 80% of the global demand for stevia.
Asia-Pacific sugar substitute market is fragmented with key players being Cargill, Archer Daniels Midland Company, and Ajinomoto. The major players have a broad range of products and a strong geographical presence. These factors give them a competitive advantage in the market. These companies are focused on innovative product launches, as they are trying to cater to various preferences of the consumers. In order to sustain in the competitive market, the companies are enhancing their product portfolios constantly and strategically tapping into the possibilities of the new markets and segments.
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