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U.S. Artificial Sweeteners Market will exceed US$1.2 billion by 2024, driven by increased awareness regarding health benefits of low-calorie sugar substitutes

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Kajal Patil
U.S. Artificial Sweeteners Market will exceed US$1.2 billion by 2024, driven by increased awareness regarding health benefits of low-calorie sugar substitutes

The U.S. artificial sweeteners market has witnessed steady growth over the past few years. Artificial sweeteners are sugar substitutes that provide a sweet taste like sugar but with low to no calories. Some of the popular artificial sweeteners include aspartame, sucralose, saccharin, neotame, and advantame. These sweeteners are widely used in beverages, dairy products, baked goods, confectionery items, dietary supplements, and tabletop sweeteners among others. The demand for low-calorie and sugar-free food products has increased considerably among health-conscious consumers to manage their blood sugar levels and weight. This growing health-consciousness about the ill-effects of excessive sugar intake is a major factor driving the growth of the U.S. artificial sweeteners market.U.S. artificial sweeteners market is expected to be valued at US$ 2.66 Bn in 2023, and is expected to reach US$ 4.14 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2023 to 2030.

Key players operating in the U.S. artificial sweeteners are Cargill, Tate & Lyle, Archer Daniels Midland, Ingredion, and Roquette among others.

Key TakeawaysKey players operating in the U.S. artificial sweeteners are Cargill, Tate & Lyle, Archer Daniels Midland, Ingredion, and Roquette. Cargill offers a wide range of stevia and sugar substitutes, including Equal and Truvia. Tate and Lyle is a leading global provider of low-calorie and no-calorie sweeteners such as Splenda

The US Artificial Sweeteners Market demand for low-calorie sugar substitutes is expected to grow significantly during the forecast period, driven by the increasing health consciousness among consumers and growing prevalence of obesity and diabetes. According to the Centers for Disease Control and Prevention, over 30 million Americans have diabetes and nearly 100 million have prediabetes.

Artificial sweetener manufacturers are focusing on innovations and new product launches. For instance, in 2021, Cargill launched EverSweet, a next-generation stevia leaf extract that delivers sugar-like taste with no aftertaste. Such innovations are expanding application in new product categories.

Market TrendsNatural and Clean Label Trend - There is growing demand for natural and clean label products. Several manufacturers are focusing on naturally-derived sweeteners like stevia to market their products as "all-natural" or "non-GMO".Flavor Innovation - Manufacturers are innovating new flavors based on consumer preferences for different beverages and food applications. Flavors like vanilla, berry, cream are increasingly being added to sugar substitutes.

Market OpportunitiesLow-calorie Beverages - With increasing health awareness, the demand for low-calorie and sugar-free beverages is on the rise. This provides opportunities for artificial sweetener brands to partner with beverage manufacturers.New Application Areas - With technological advancements, artificial sweeteners are finding new applications beyond foods and beverages in personal care products, pharmaceuticals, and other areas. This opens up new growth avenues.

Impact of COVID-19 on U.S. Artificial Sweeteners Market

The COVID-19 pandemic has impacted the U.S. artificial sweeteners market in multiple ways. During the initial outbreak and subsequent lockdowns, sweetener demand witnessed a significant decline from the food and beverages industry as restaurants and stores were closed. Artificial sweetener sales through retail channels saw higher demand as people stocked up snacks and drinks for homes. However, larger production facilities faced disruptions and supply issues hampered the market growth. With countries slowly lifting restrictions in 2021, foodservice channels have started recovering.

Artificial sweetener producers focused on strengthening distribution networks and adjusting production volumes as per demand fluctuations witnessed across regions. Several companies enhanced their e-commerce presence to cater delivery of packaged food products containing sweeteners. To reduce dependence on China for raw material sourcing, key players evaluated alternative suppliers from other Asian and European countries. Overall, the pandemic emphasized the need for resilient and flexible supply chain management strategies.

Geographical Regions with Highest Value Concentration of U.S. Artificial Sweeteners Market

The artificial sweeteners market in the United States sees highest value concentration in Western and Midwestern states. California accounts for the largest demand owing to its huge population size and concentration of food and beverage companies. States like Texas, Florida and Illinois also represent major consumption markets. The mid-Atlantic region comprising New York, New Jersey and Pennsylvania as well as the Midwest states of Ohio, Michigan and Wisconsin have sizeable artificial sweetener requirements from food processors and retail buyers. Strong distribution networks ensure smooth supply to these densely populated areas generating highest revenues for market participants.

Fastest Growing Region for U.S. Artificial Sweeteners Market

The Southern region of the United States has been witnessing rapid market expansion for artificial sweeteners over the past few years. States such as Georgia, North Carolina and Virginia fall under this category. Driven by population growth, rising health consciousness and proliferation of smaller food brands, the demand from bakeries, protein bar manufacturers and diet carbonated drinks has supported market value hike. Ease of logistics and transportation along the eastern seaboard has encouraged producers to enhance distributions coverage across Eastern states. The increasing focus on business expansion towards Southern USA makes it the fastest growing region for the artificial sweeteners industry.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

(https://www.linkedin.com/in/ravina-pandya-1a3984191)

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