Saccharin

Global Market Outlook on Saccharin

• The global HIS market is expected to grow at an average rate of 5.3 percent between 2023 and 2026, driven by increasing consumer awareness, cost-effective substitution, and continuous availability. The Ace-K market is estimated to be valued at about $0.025 billion with a CAGR of about 5.3 percent between 2023 and 2029

• Growth in demand is expected to be high in the Asia Pacific. China, India, and Australia will drive the demand for HIS, especially in the beverage industry

Global Sugar Substitute Market Outlook

• The global sugar substitute market (including artificial and natural) is estimated to be valued at about $17.6 billion in 2022 and is expected to grow at a CAGR of about 4.9 percent between 2022 and 2028. The negative health effects associated with sugar and increasing consumer awareness and preference for low/no sugar products, owing to growing health and wellness awareness, is expected to be the chief driver of the sugar substitute market

• Sugar and sugar substitutes, together, form the sweetener market. Growing health-conscious consumer base and preferrence toward low-calorie foods are the industry drivers of the sweeteners market

• Sugar market size in value fluctuates year-on-year, due to the fluctuating prices of sugar. In 2022, the estimated worth of the sugar market was $95 billion

• The sugar substitute market was valued at about $17.6 billion in 2022 and is expected to grow at a CAGR of about 4.9 percent between 2022 and 2028

Sweetener Market Dynamics

• Despite sugar prices decreasing and production increasing, alternative sweeteners are steadily eating into sugar’s market share, due to their lower prices and continuous availability.

• Increasing demand for artificial sweeteners from the calorie conscious consumer segment is likely to drive the market in the forecast period. Due to increasing use of artificial sweeteners in the baking industry, frozen foods, and other RTE foods, the market size is expected to increase further. However, shift in trend for natural sweeteners could impact the market share in the long term.

• 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 toward sweetener’s usage (e.g., Brazil and India) 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. At present, in the developed markets, sugar consumption is decreasing, whereas in the developing markets, sugar consumption is increasing moderately

Cost Structure Analysis : Saccharin

• Consolidated buying of HIS from two to three suppliers can benefit the buyers in the long run, owing to indirect cost and high consumables cost.

• Raw material is the major cost driver, amounting to 43 percent of the total cost of production. Sucrose contributes to about 14 percent to the total cost of production of sucralose

• Raw material cost contributes to 77 percent of the total cost of production of aspartame. Fluctuation in the prices of raw materials by +/- 10 percent has an impact on the production cost of aspartame by +/- 9 percent

• The production cost of acesulfame potassium is driven by the raw material and consumable costs. They contribute to about 48 percent and 44 percent to the production cost, respectively

Global Saccharin Trade Analysis

• Saccharin exports are driven by the personal care and beverage industries. Competition in the international market has increased, due to the increase in production and low-priced Chinese Saccharin. Potential market for saccharin is Asian countries, which is expected to grow at a faster rate compared to other countries.

Innovations/Trends : Saccharin

Innovations in the HIS industry is increasing, owing to increased demand among the consumers and competition between suppliers. Innovations are mainly concentrated in the natural-sweeteners segment, owing to consumer’s preference towards natural and organic products.

Protein based HIS

• In Southern Italy, a start-up company has developed a sugar substitute as a nutritive sweetener

• This sweetener is protein rich, low-calorie sugar substitute that would benefit obese and diabetic people

Natural Sweeteners

• Cargill is making significant investments in stevia to improve its performance in the beverage and food industry

• This specific variety of stevia is expected to have no blending issues and post-taste bitterness, which has been a major set back for stevia

Allulose

• Market share of allulose has increased significantly in the past couple of years

• Tate & Lyle in London introduced Dolcia Prima Allulose, which has 90 percent less calorie

• Applications in bakery would benefit in good browning effect and improved texture

• When used with sucralose, the sweetness increases by 10–40 percent compared to the usage of other sweeteners

Sucramask

• Blue Pacific Flavours have come up with a natural sweetener masking ingredient, known as sucramask/sucramet

• This is a grain-based product that masks lingering sweetness and metallic-off taste associated with HIS, especially stevia