High-intensity sweeteners face slow growth in Europe and North America, study finds

Published: 21-Aug-2014

But demand for artificial sweeteners is still strong in Asia and South America


The high-intensity sweetener market is a study in contrasts. Although new, natural sweeteners such stevia extract are gaining ground, consumption growth for high-intensity sweeteners has slowed to near zero in North America and Europe, according to new research from IHS. The decline, is due, in part, to the fall in soft drink consumption in these regions.

In contrast, demand for the entire range of high-intensity sweeteners remains strong in South America and Asia, the research has found.

'Worldwide consumption of high-intensity sweeteners is largely dependent on production of diet carbonated soft drinks and low-calorie food,' said Marifaith Hackett, Director of Specialty Chemicals Research at IHS Chemical and principal author of the report, IHS Chemical Economics Handbook – High Intensity Sweeteners.

Beverages are the largest end-use for high-intensity sweeteners, followed by food, tabletop sweeteners, personal care products (such as toothpaste), and pharmaceuticals.

Global consumption of high-intensity sweeteners totalled more than 139,000 metric tons in 2013, Hackett said. Consumption of these products worldwide for sweetener applications was more than 129,000 metric tons in 2013, equivalent (in terms of sweetness) to more than 18 million metric tons of table sugar. The value of the market for high-intensity sweeteners in sweetening applications was more than US$2bn in 2013.

China is the world’s largest source of high-intensity sweeteners, accounting for more than 70% of world production in 2013. Indonesia was a distant second, followed by the US and Western Europe.

China is the world’s largest source of high-intensity sweeteners, accounting for more than 70% of world production in 2013

Diet soft drinks, low-calorie yogurt and sugar-free jam taste as sweet as their 'regular' counterparts because they contain these sweeteners, the IHS report said. Aspartame, sucralose, acesulfame K, saccharin and other high-intensity sweeteners have zero calories, but they are many times sweeter than table sugar. Another benefit is that high-intensity sweeteners do not cause tooth decay.

'Growing concerns regarding obesity and the connection between diet and major diseases such as diabetes and heart disease have caused consumers to re-examine their diets and lifestyles and seek healthier alternatives, including low- or no-calorie versions of food and beverages,' Hackett said.

'High-intensity sweeteners enable food producers to deliver reduced-calorie products that taste good. Sugar-free gum, for example, outsells regular gum.'

Regulations also have an impact on the use of high-intensity sweeteners by food producers and an increasing number of national and local governments – concerned about the rise of obesity and diabetes – are considering taxing high-calorie soft drinks and processed foods, the IHS report said. The Mexican government, for example, recently put a tax on high-calorie processed foods, including carbonated soft drinks.

Owing to the decline in consumption of soft drinks in North America and Europe, demand for some artificial sweeteners is flat or decreasing.

'We are seeing a significant shift in consumer behaviour and preferences in Western Europe and North America,' Hackett said. 'Health-conscious consumers are drinking fewer sodas. In addition, they are seeking out beverages and foods made with natural ingredients, including sweeteners such as stevia extract. The challenge for food producers is to find sweeteners that meet consumer expectations but also taste good and meet cost and performance parameters. When it comes to taste, refined sugar remains the ‘gold standard’.'

Hackett added: 'Beverage companies are slow to tinker with marquee products, but they do experiment with new sweetener combinations when they introduce new products.'

Coca-Cola, for example, introduced Coca-Cola Life, a reduced calorie soft drink sweetened with stevia extract and sugar, in Argentina and Chile last year. The product will make its debut in US and UK markets during 2014.

The growing concern over health and nutrition is also driving increased interest in natural sweeteners

According to the IHS report, the growing concern over health and nutrition is also driving increased interest in natural sweeteners. Stevia extract, derived from the leaves of the stevia shrub and growing naturally in South America, has been the primary beneficiary of consumer interest, followed by monk fruit extract. Monk fruit, a green melon-like fruit from China, is a relative of watermelons and pumpkins. Both of these fruits have been used as sweeteners in their native countries for hundreds of years.

Hackett said: 'Last year, global demand for stevia extract was slightly more than 2,000 metric tons, which is quite small when compared with demand for some of the more established sweeteners such as saccharin or cyclamate, but demand is growing in both developed and developing markets, and by 2018, we expect demand for stevia extract to reach 3,000 to 4,000 metric tons annually.'

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