Reduced Sugar food and Beverage Market

The global reduced sugar food & beverages market is projected to witness significant growth during the review period, exhibiting a CAGR of 7.17%. The market was estimated to be USD 58.63 billion in 2021 and is expected to reach a value of USD 108.49 billion by the end of the forecast period (2022-2030).

The main driver of market expansion is the rising global awareness of calorie- and sugar-reduced, nutritious foods. The manufacturers operating in the global reduced sugar food & beverages market are focusing on the introduction of fortified food & beverages.

Global consumer food consumption behaviors during times of lockdown have undergone substantial adjustments, which has also supported market expansion. During the height of the epidemic, there was a surge in interest in low-sugar and other healthful diet products, which helped the industry to grow. During the COVID-19 pandemic, doctors recommended eating healthily on a regular basis to keep the body healthy and its immune system strong. Online sales of food and drink items skyrocketed during the shutdown, which aided the market’s expansion. Customers spent more time at home during the COVID-19 outbreak, which may have sparked an uptick in interest in topics like personal health and weight control. As a result, sales of items containing less sugar increased. In order to keep a healthy immune system and reduce the danger of getting COVID-19, the World Health Organization (W.H.O.) also recommended consuming a diet with fewer sweetened products.

Also, the growing trend among consumers worldwide to cut back on their sugar intake helps to the market's expansion. The expansion of the market is significantly attributed to the rising demand for food products with fewer sweeteners in developed nations including the U.S., UK, Germany, Canada, and China. Customers routinely review the nutritional information on food packaging while making food purchases and are increasingly conscious of the quantity of sugar in food. The consumers are focusing on the eradication of sugar from their diet owing to incidences of various disease such as obesity, CVDs (cardiovascular diseases), diabetes, and other health ailments.

Based on type, the beverages segment accounted for the largest market share of 45.86% in 2021 and is expected to exhibit a CAGR of 8.19% during the forecast period. It is followed by bakery & confectionary segment which accounted for 22.10% market share in 2021. This is primarily due to the rising popularity of reduced sugar and sugar-free bakery and confectionary products among the consumers.

Based on consumer group, the Gen X segment accounted for a market share of 29.46% in 2021 owing to the increasing demand for healthy and reduced sugar food & beverages among the consumers. Apart from that, the increasing demand for customized and personalized products that in turn gaining traction among the consumers. Gen X is followed by Millennials which accounted for another 29.15% market share in 2021 and is poised to grow at a CAGR of 6.63% during 2022-2030. The surging prevalence of obesity among the all-age groups owing to consumption of various processed food and changing lifestyle pattern are the major factors bolstering the demand for reduced sugar food & beverages among the consumers.

Based on the end users, the residential segment accounted for a market share of 61.35% in 2021 and is expected to exhibit a CAGR of 7.46% during the forecast period owing to the growing sales of various innovative products with functional benefits among different consumer groups, who consumer them on a regular basis.

Based on the distribution channel, the hypermarket & supermarket segment held the market share of 40.01% in 2021 and is anticipated to exhibit a CAGR of 7.15% during the forecast years owing increase in consumer preference towards procuring newer product from their nearby hypermarket and supermarkets.

Out of the regions considered, Asia Pacific accounted for largest market share of 32.7% in terms of overall consumption and is poised to grow at a higher CAGR of 8.19% during 2022-2030. Asia Pacific is closely followed by North America and Europe accounting for nearly 31.0% and 27.22% share respectively.