Reduced Sugar Food and Beverages

Global Reduced Sugar Food and Beverages Market to Reach US$89.1 Billion by 2030

The global market for Reduced Sugar Food and Beverages estimated at US$57.9 Billion in the year 2024, is expected to reach US$89.1 Billion by 2030, growing at a CAGR of 7.5% over the analysis period 2024-2030. Bakery, one of the segments analyzed in the report, is expected to record a 5.6% CAGR and reach US$19.7 Billion by the end of the analysis period. Growth in the Beverages segment is estimated at 9.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$15.8 Billion While China is Forecast to Grow at 11.3% CAGR

The Reduced Sugar Food and Beverages market in the U.S. is estimated at US$15.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$18.5 Billion by the year 2030 trailing a CAGR of 11.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.9% and 7.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.9% CAGR.

Global Reduced Sugar Food & Beverages Market – Key Trends & Drivers Summarized

Why Is the Shift Toward Reduced Sugar Food & Beverages Gaining Momentum?

The rising prevalence of diabetes, obesity, and metabolic disorders has prompted consumers to seek healthier food and beverage options with lower sugar content. Governments worldwide are implementing sugar taxes and stricter labeling regulations, pushing manufacturers to reformulate their products with reduced sugar levels. The increasing demand for functional and better-for-you products has fueled innovation in sugar alternatives, including natural sweeteners like stevia, monk fruit, and allulose. Additionally, consumer awareness about the impact of excessive sugar consumption on long-term health has led to the growing popularity of reduced sugar snacks, soft drinks, dairy products, and baked goods. As the clean-label movement gains traction, brands are focusing on transparent ingredient lists and reduced sugar claims to attract health-conscious consumers.

How Are Technological Advancements Revolutionizing Sugar Reduction in Food & Beverages?

Food technology advancements have enabled the creation of sugar reduction solutions that maintain the taste, texture, and mouthfeel of traditionally sweetened products. The use of enzyme-based sugar modification, fiber-based bulking agents, and precision fermentation techniques has allowed manufacturers to achieve sugar reduction without compromising product quality. Additionally, the emergence of hybrid sweetener blends combining artificial and natural sugar substitutes has improved consumer acceptance of reduced sugar products. The integration of AI-driven flavor profiling has further refined product development, ensuring that sugar-reduced formulations deliver the expected taste experience. These innovations are making sugar reduction more feasible across various food and beverage categories, including carbonated drinks, dairy alternatives, confectionery, and savory foods.

What Market Trends Are Driving the Demand for Reduced Sugar Food & Beverages?

The growing influence of health-conscious consumers has led to increased demand for reduced sugar and no-added-sugar product lines across grocery shelves. The expansion of dietary trends such as keto, paleo, and intermittent fasting has further encouraged the adoption of low-sugar and sugar-free alternatives. Major beverage brands are reformulating their best-selling soft drinks with lower sugar content, responding to both regulatory pressures and shifting consumer preferences. Additionally, the rise of functional beverages, such as gut-friendly kombuchas and protein shakes, has expanded the market for naturally sweetened, nutrient-enhanced options. E-commerce and direct-to-consumer brands are leveraging digital platforms to introduce reduced sugar products to niche health markets, further driving category growth.

What Are the Key Growth Drivers of the Reduced Sugar Food & Beverages Market?

The growth in the global reduced sugar food & beverages market is driven by several factors, including rising health concerns related to sugar consumption, government initiatives to curb sugar intake, and advancements in sugar alternative technologies. The increasing availability of natural sweeteners and novel sugar reduction techniques has encouraged manufacturers to develop more appealing low-sugar products. The expansion of health-focused product categories, including functional snacks and beverages, has further boosted demand. Additionally, the influence of social media and digital marketing has accelerated consumer awareness about sugar reduction, prompting more brands to innovate in this space. With continued advancements in ingredient technology and regulatory support for healthier food choices, the reduced sugar food & beverages market is expected to see significant expansion, shaping the future of global nutrition.

SCOPE OF STUDY:

The report analyzes the Reduced Sugar Food and Beverages market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product (Bakery, Beverages, Confectionery, Dairy, Snacks, Others); Distribution Channel (Supermarkets / Hypermarkets, Convenience Stores, Online, Others)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 37 Featured) -

• Arboreal
• Bayn Europe AB
• Cargill, Incorporated
• Chobani LLC
• Danone S.A.
• DouxMatok
• General Mills, Inc.
• Givaudan S.A.
• Mars Incorporated
• Mondelez International Inc.
• Nestlé S.A.
• NOW Foods
• PepsiCo Inc.
• Sensient Technologies Corporation
• Siggi`s Dairy
• Simply Good Foods Co.
• Strauss Group Ltd
• The Coca-Cola Company
• The Hershey Company
• The Kraft Heinz Company

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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