Sugar-free market to rise in value

The rising number of diabetes cases, rising demand for food with low calories and sugar taxes imposed on sugary drinks are the main reasons driving the growth of the sugar-free products market, as it is expected to reach US$65.31 billion by 2029.

According to an article published by the Massachusetts General Hospital in 2021, cutting down 20% of sugar from packaged foods and 40% from beverages could prevent 2.48 million cases of cardiovascular disease, 490,000 deaths related to the disease and 750,000 diabetes cases in the US. As a result, many companies in the food industry have already started cutting down on sugars and producing sugar-free products sweetened with sugar substitutes or naturally sweetened.

The market is segmented based on type – sugar-free beverages, sugar-free products, sugar-free bakery, sugar-free confectionery and so on – sugar-free nutrition and health supplements, distribution channel and geography.

In 2022, the sugar-free beverages is estimated to account for the largest share of the market as a result of consumers’ preference for healthy food, changing dietary patterns and extensive use of sugar substitutes in different food products including confectionery.

Based on distribution channel in 2022, the supermarkets or hypermarket segment is expected to dominate the market. This is attributed to factors such as rising disposable incomes, increasing adoption of healthy eating habits and rapid growth of the urban population. The online retail segment is expected to register the highest CAGR during the forecast period (2022-2029) due to the wide variety of options available at discounted rates compared with traditional retail stores.

Based on geography, in 2022 North America is expected to account for the largest share of the sugar-free food and beverage market due to the growing diabetic and obese population, rising health and wellness concerns, the well-established industry in the US and high demand for sugar-free products. Asia-Pacific is slated to register significant market growth due to changing lifestyles, rising trend of healthy diets and increasing awareness about the health benefits of sugar-free products.

Some of the key players in the market are The Hershey Company, PepsiCo, The Coca-Cola Company, Nestle, Mars, Mondelēz International and others.

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Media contact

Caitlin Gittins
Editor, International Confectionery
Tel: +44 (0) 1622 823 920

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