|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Exploring healthy diet alternatives with naturally derived sweeteners
|
|
Friday, 01 August, 2025, 16 : 00 PM [IST]
|
|
Nandini Roy Choudhury
|
Naturally derived sweeteners are defining consumer taste and approach of food manufacturers pertaining to products imparting sweetness. Derived from fruits, plants, and other natural sources, these products offer an apt alternate to refined sugar. Natural ingredients including stevia, monk fruit, and allulose provide sweetness to product. Moreover, these ingredients possess lesser calories, give a low glycaemic impact, and has clean-label structure which falls in line with the requirements of healthy & nutritious diet plans.
Escalating product penetration in confectionery, food & beverages, and dairy & baked products is due to a surge in demand for healthy formulations. In comparison to conventional sugar substitutes, naturally derived sweeteners provide new benefits like stability during processing, Keto friendly food, and appropriate for consuming by diabetics. This has made the naturally derived sweeteners as a key food & beverages ingredient. However, they have played a key role for the players in confectionery sector to innovate and strengthen the position of their brands in the global markets.
Furthermore, natural sweeteners play a pivotal role in routine human diet and have influenced the food habits of individual. Other than sucrose, a naturally-derived sweetener from sugarcane and sugar beet, there are also other natural sweeteners including fructose and glucose whose source is fruit and honey. According to NCBI, natural sweeteners are used as moisturisers, preservatives, stabilisers, texturisers, dispersants, bulking agents, flavour carriers, decorative agents, and fermentation substrates. Reportedly, people prefer these products as they possess high nutritive value as well as high percentage of healthy compounds.
Reportedly, low calorie content as well as anti-cariogenic & anti-oxidant features have propelled the product demand globally. Humungous customer preference for natural ingredients has produced huge demand for plant- based sweeteners including agave sweeteners, stevia, and monk fruit. Sustainability trends and need for cleaner labelled products have proliferated the demand for naturally derived sweeteners. The global naturally derived sweeteners market will expand from US$ 11.4 billion in 2025 to US$ 20.2 billion by 2035 at a growth rate of nearly 5.9%, according to future market insights.
The confectionery segment is experiencing a massive change with use of cutting-edge tools such as AI. These breakthroughs are altering the way functional ingredients such as natural sweeteners will be produced, thereby resulting in healthy diet with good taste & texture. For the record, the integration of biotech & AI is projected to scale up the research on creating heathy & nutritive products, thereby shaping the expansion of confectionery segment. With presence of vitamins and minerals, naturally-derived sweeteners have contributed to nutritious diet.
With an increase in the health-consciousness in consumers along with need for clean labels, naturally derived sweeteners are garnering massive significance in fast-moving consumers’ goods sector. These products are not only aligning with the current food preferences but have also successfully addressed issues regarding sustainability. A large number of FMCG brands are trying to stay competitive in the business and hence are adopting new innovation strategies that can help in new product development, thereby increasing the application of natural sweeteners in more food products.
For a large number of FMCG firms and food & beverage ingredient providers, allocating funds for deriving natural sweeteners will help them in gaining humungous benefits such as improving their brand equity, gaining entry into new markets, and adding to their ESG commitments. For instance, in 2020, Ingredion Inc., a US-based food & beverage ingredient provider, acquired PureCircle Limited, a key manufacturer of stevia sweeteners for food & beverages segment. Apart from this, in November 2024, Tata & Lyle, a UK-based sugar refining firm, acquired CP Kelco, a key manufacturer of natural hydrocolloid food ingredients and provider of natural ingredients, for about US$1.8 billion. The move is aimed at offering the consumers with healthy food alternatives.
New product launches and mergers & acquisitions as well as joint ventures are projected to play a pivotal role in the earnings of confectionery segment, thereby lucratively impacting the demand for naturally derived sweeteners.
New product launches and collaborations taking place in the confectionery segment and its impact on the sale of naturally derived sweeteners - In March 2022, Conagen Inc., a biotech firm developing synthetic biology solutions for various end-use sectors, has increased the manufacture of two natural high-intensity natural sweeteners that are derived from thaumatin proteins. In August 2023, PureCircle, a key manufacturer of natural sweetener stevia, and Cargill, Inc., a US based food corporation, joined hands to produce stevia-based candies and chocolates in 2024 and 2025. In October 2024, 1-2-Taste India Private Limited introduced FSSAI-approved allulose. In July 2023, MycoTechnology declared that it discovered sweet protein originating from honey truffles. Reportedly, the sweet protein provides natural sweetness to the product in which it is used.
Naturally derived sweeteners segment has also witnessed a large number of mergers & acquisitions. Let us glance through them and get an overview of the activities occurring in the segment: In first half of 2022, Tata & Lyle, a key player in fortification, sweetening, and mouthfeel, acquired Quantum Hi-Tech Biological Company Limited, a Chinese food research firm, for expanding its food ingredient suite. In the second quarter of 2024, Tata & Lyle completely acquired CP Kelco from the company J.M. Huber. The strategic move is likely to help Tata & Lyle expand its product portfolio.
A surge in the use of naturally derived sweeteners can bring a transformative change in the FMCG segment. With changing consumer preferences, firms in the FMCG segment are likely to bring a paradigm shift in the food & beverages sector along with increasing its revenue. Moreover, these products are preferred more by people who are aware of their health & fitness and want to further improve it. Escalating preference for low-calorie diet with sugar-free ingredients due to changing food habits has further added to the demand for natural sweeteners. Large-scale focus on health & wellness activities has prompted people to go for natural sweeteners for maintaining their health.
(The author is principal consultant, client partner for food & beverages at Future Market Insights)
|
|
|
|
|
|
|
|
|
|