Market Trends of Sugar-Free Food And Beverage Industry
Growing Trend of Consuming Sugar-free Beverages Creating Opportunities for Sugar-free Food & Beverage Segment
The trend of consuming sugar-free beverages is on the rise, and it is significantly driving the sugar-free food and beverage market. As consumers become more health conscious and aware of the negative impacts of excessive sugar consumption, they are actively seeking alternatives to traditional sugary beverages. The rise of dieting trends and wellness lifestyles has led consumers to prioritize low-calorie and sugar-free beverages as part of their dietary choices. Furthermore, the availability of a wide range of sugar-free beverage options, including diet sodas, flavored water, and sugar-free energy drinks, has made it easier for consumers to make a switch. Thus, the increasing demand for sugar-free beverages is not only driving innovation in the beverage industry but also spurring growth in the overall sugar-free food and beverage market.
In the past few years, numerous prominent traditional beverage companies and a few up-and-coming brands have embraced the trend and entered the market for sugar-free beverages, aiming to secure a share of it. Conversely, the World Health Organization (WHO) has urged all nations worldwide to implement substantial taxes on sugary drinks as a means to combat the global obesity and diabetes epidemic. This recommendation has prompted beverage manufacturers to embark on a journey of product range redesign, repositioning, and product formula verification as their primary strategy to cater to diverse demands, strengthen their consumer base, and consequently venture into the sugar-free beverage market.
North America Holds the Largest Market Share
With increasing concerns about health and wellness, North American consumers are actively seeking alternatives to traditional sugary products. The growing awareness of the adverse effects of excessive sugar consumption, such as diabetes and obesity, has driven individuals to opt for sugar-free options. In 2022, around 5% and 3% of people in the United States are suffering from obesity and diabetes, respectively, according to a survey conducted by Research America. Such factors create promising demand in the sugar-free food and beverage market in the United States.
US consumers, therefore, have accepted the sugar-free concept offerings very well. Thus, manufacturers have commenced repositioning and validating the recipe of their products as the primary strategy to cater to the diverse demands and strengthen their consumer base. For instance, in March 2022, MusclePharm, a global provider of leading sports nutrition and lifestyle branded nutritional supplements, launched a high whey protein drink line (Ready-To-Drink protein drink) with over 20 g of protein in multiple sugar-free flavors. Sugar-free products are heavily marketed in the region, making them accessible to consumers. Furthermore, the regulatory environment in the region, including labeling requirements and health guidelines, encourages the development and consumption of sugar-free products. Clear labeling of sugar content and the promotion of healthier eating habits contribute to the popularity of sugar-free food and beverages in the regional market.
