Global Market Outlook on High Intensity Sweeteners

  • The global high intensity sweetener market is expected to grow at an average rate of 5.8 percent until 2020 driven by the increasing consumer awareness, cost-effective substitution and continuous availability
  • Growth in demand is expected to be high in Asia Pacific. China, India and Australia will drive the demand for HIS, especially in the beverage industry


Contract Structure

  • Length of the contract depends upon the buyer’s Minimum Order Quantity (MOQ) 
  • MOQ for a one year contract ranges between 1-2 MT, usually procured by large scale beverage manufacturers 
  • Personal care and pharmaceutical industry, procuring less quantity (400-600 kg), normally go for 1-3 months contracts 
  • Buyers with quantity less than 100 Kg choose spot buying

Best Sourcing Region

  • For all sweeteners, China is the best sourcing country. Low cost of production is the key advantage the country holds when compared to other producers 
  • US is the next best country for sourcing sweeteners. Sourcing sucralose from the US will benefit in the future as Tate & Lyle is in the process of consolidating its sucralose production in the US, increasing the competition in the marke

Global Sweetener Market Outlook

  • Growth of 4.5 percent between 2016-2020 can be seen in the global sugar substitute market, by value. This growth will be driven by soda manufacturers.The increasing consumption of beverages in the developing countries is expected to drive the market size by 1.05 percent between 2016-2020, by volume

  • Sugar and sugar substitutes, together, forms the sweetener market. Growing health conscious consumer base and preferrence towards low calorie foods are the primary drivers of sweeteners market 
  • Sugar market size in value fluctuates year-on-year due to the fluctuating prices of sugar. In 2017, estimated worth of sugar market was $ 81.52 billion 
  • Sugar substitute market is valued at around $ 13.85 million and is expected to reach $ 16.52 million in 2020. This growth can be seen in-line with the growing global economy

Sweetener Market Dynamics

With sugar prices increasing and production decreasing, alternative sweeteners are steadily eating into sugar’s market share due to their lower prices and continuous availability.Innresing use of artificial sweetner in Backing industry,frozen foods and other RTE foods,the market size is expected toincrese further

  • Demand for sugar vs. artificial sweeteners’ depends, to a great extent, on the domestic availability of sugar. In case of high sugar availability, there is less inclination towards sweeteners usage (e.g. Brazil, India) as compared to countries that are deficit in sugar production (e.g. US and EU) 
  • Currently, Brazil is the only country producing sugar from cane at profits. On the other hand, in the EU, France and Germany are able to produce sugar from sugar beet profitably 
  • These factors are driving the global sweetener market since 1985. At present, in developed markets, sugar consumption is decreasing, whereas, in the developing markets sugar consumption is increasing moderately