Abstract
US sweetener market continues to evolve
Sugar and corn sweeteners, particularly high fructose corn syrup (HFCS),
continue to dominate the overall sweetener market, accounting for over 95
percent of demand in volume terms and more than 85 percent of dollar demand.
However, the market for alternative sweeteners has reached $1.1 billion and
continues to increase its share of sweetener consumption. The leading products
are the high intensity sweeteners aspartame and sucralose, as well as
sorbitol, the leading polyol. All of these products are expected to maintain
prominent market positions, but faster growth is expected in so-called second
generation polyols such as xylitol and erythritol, and for some natural
alternatives such as agave nectar and stevia.
Efforts to build on previous sweetener successes
To date, the great successes for alternative sweeteners have been in diet soft
drinks, sugarless gum, and tabletop uses. Diet soft drinks have gained a third
of the market in large part because aspartame and ace-k have found consumer
favor. Sugarless gum now outsells sugared gum, as blends of polyols and
high-intensity sweeteners such as sucralose can be combined to provide the
right combination of bulk, texture and sweetness. The tabletop segment has
long been receptive to alternative sweeteners. Saccharin retains a presence
there, long after being eclipsed by aspartame. More recently, sucralose has
become the dominant sweetener in the tabletop market, although polyols and
natural alternatives are also beginning to increase their market presence.
Health, dietary concerns drive sweetener demand
Obesity and diabetes are the main reasons that artificial sweeteners such as
saccharin first emerged as viable products decades ago. Since then, a number
of other concerns have improved market prospects for alternative products.
Although the feverish hype surrounding low-carb diets has subsided, low-carb
products remain popular, and sugar has become a prime target for carbohydrate
reduction, creating market opportunities for alternative sweeteners. A renewed
focus on natural foods has opened the door for products such as agave nectar
and stevia, as consumers wary of artificial sweeteners seek viable
alternatives to refined sugar and HFCS.
Quest for a perfect sweetener
The perfect sweetener remains elusive. A product that has a clean, sweet taste
with no aftertaste, is noncaloric, has no negative health effects, is
inexpensive and can be used equally well in baking, coffee, soft drinks and
other applications is still nonexistent. Every sweetener product, conventional
or alternative, offers one or more of these attributes. But none offers the
total package.
Study coverage
This new Freedonia industry study, Alternative Sweeteners, presents historical
demand data for 1995, 2000 and 2005 and forecasts to 2010 and 2015 by product
and market. The study also considers market environment factors, evaluates
company market share and profiles 24 key US industry competitors.
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