Sugar Substitutes Market to reach $23.3 Billion by 2031; Increasing prevalence of obesity and diabetes, government-imposed sugar tax and. Increase in the demand for low-calorie food and beverages

The Sugar Substitutes Market size is estimated to reach $23.3 Billion by 2031, growing at a CAGR of 4.4% during the forecast period 2025-2031, according to a recent report published by IndustryARC, titled, “Sugar Substitutes Market – By Type (High Fructose Syrup, High Intensity Sweeteners and Low Intensity Sweeteners), By Source (Natural and Artificial), By Form (Tablets/Pellets, Powder and Liquid), By Application (Pharmaceuticals, Cosmetics & Personal Care, Food & Beverage and Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2025-2031”

The rising prevalence of obesity and diabetes is driving the demand for sugar substitutes. Government-imposed sugar taxes are encouraging healthier consumption choices. The increasing demand for low-calorie food and beverages is further boosting this trend. Growing awareness of healthy alternatives is also contributing to the rise in sugar substitute usage.

The sugar substitute market is dominated by North America because of the high diabetes rates and increasing consumer interest in healthier options. The Government of Canada reported that 3.7 million Canadians had diabetes in 2023 corresponding to 9.4% of the population. The dominant type 2 diabetes represents 90–95% of all cases but new daily diagnoses reach 549. Diabetes patient numbers continue to rise as an increasing burden on healthcare services where diabetes-related expenses have become a major financial challenge. People are adopting healthier eating choices which include sugar substitutes to combat and stop diabetes development. The awareness about sugar risks and the concurrent rise in sugar alternative demand positions North America as a primary market for sugar substitutes. North America dominates the worldwide sugar substitute market because its population focuses on health.

The growing number of people with obesity and diabetes drives the sugar substitute market since patients actively search for better alternatives to control and prevent these diseases. Type 2 diabetes affects 77 million adults in India above age 18 and prediabetes exists in 25 million additional people who face higher risk to develop the disease according to World Health Organization statistics. The rising number of patients with chronic diseases drives a parallel increase in market demand for sugar substitutes which help people control their sugar consumption while improving their dietary choices. The market continues to grow because consumers view sugar substitutes as a practical way to handle their health needs while sustaining balanced lifestyles even though diabetes relates to high sugar intake. 

The market for sugar substitutes expands because consumers now focus more on diet-based health management. The proprietary research conducted by Archer-Daniels-Midland (ADM) shows that 57% of U.S. adults practice blood sugar control and 40% measure their levels at home. The research shows diet and nutrition play an essential role in wellness goal achievement because 44% of participants selected these factors as the most important. Consumers pay close attention to sugar content due to their 84% avoidance or reduction of this ingredient in their food choices. A majority of 70% of consumers want to introduce low-sugar products to their diets and 37% intend to use sugar alternatives. The market demand for healthier sweetening solutions is increasing across various product categories such as yogurts and protein shakes as well as alternative dairy beverages.

Key companies profiled in the Sugar Substitutes Market are Tate and Lyle Plc, Archer Daniels Midland Company, Cargill, GLG Life Tech Corporation, Ingredion Inc., DuPont de Nemours and Company, Wisdom Natural Brands, Evolva Holding SA, Merisant Company, SweeGen Inc. and others.

Non Sugar Sweeteners Market - Non Sugar Sweeteners Market size is estimated to reach $14,147.26 by 2030 with a CAGR of 3.04% during the forecast period 2024-2030. Growth is driven by the rising prevalence of diabetes and obesity, increasing demand for low-calorie alternatives, expanding applications in food and beverages, and stricter regulations on sugar consumption.

Alternative Sweeteners Market - The Alternative Sweeteners Market size is estimated to reach $5.6 billion by 2027. Furthermore, it is poised to grow at a CAGR of 3.9% over the forecast period of 2022-2027. Key drivers include the growing prevalence of diabetes, rising demand for low-glycemic and natural sweeteners, stricter sugar taxation policies, and advancements in sweetener formulations for food and beverages.

Naturally Derived Sweeteners Market - The Naturally Derived Sweeteners Market size is estimated to reach $4.1Billion by 2026, growing at a CAGR of 5.9% during the forecast period 2021-2026. Growth is fueled by the increasing demand for plant-based sweeteners, clean-label and organic food trends, growing awareness of sugar reduction, and regulatory support for natural alternatives over artificial sweeteners.