Health trends are steering consumers toward healthier food and beverage options that are lower in sugar and artificial sweeteners. Initiatives such as the recent “month without sugar” and state soda taxes have kept sugar reduction at the forefront of consumers’ minds. The Food and Drug Administration initially mandated that food manufacturers display the grams of added sugars in packaged foods and drinks on redesigned nutrition labels, although the deadline for compliance has been extended. Nevertheless, major food and beverage companies are actively working to lower sugar levels or substitute these ingredients with healthier, natural alternatives.
For instance, Nestlé has developed a method to naturally restructure sugar molecules, allowing for a reduction in the amount consumed. The confectionery giant plans to incorporate this new sugar into its products in 2018, enabling a reduction of up to 40% in sugar while maintaining sweetness. Similarly, Stonyfield, the largest organic yogurt producer in the U.S., has announced plans to cut added sugars by as much as 40% in certain product lines.
Soda manufacturers are also responding to these trends by introducing smaller cans and a greater variety of low-calorie beverages, many of which replace sugar with stevia, monk fruit, and other sweeteners. Coca-Cola, Dr Pepper Snapple, and PepsiCo have all committed to reducing the caloric content of sugary drinks consumed by Americans by 20% before 2025. Manufacturers like Pyure have quickly launched various stevia-based products as consumer preference shifts away from sugar. Stevia offers 300 times the sweetness of sugar without any calories, maintaining a zero glycemic index, which allows brands to use significantly less of the ingredient. Companies such as Unilever are incorporating stevia to lower sugar content in their products while preserving taste and mouthfeel.
According to Bloomberg, global CPG producers eliminated sugar and salt from approximately 20% of their products in 2016 due to increasing consumer demand for healthier options. A survey of 102 CPG companies revealed that 180,000 products were reformulated last year alone—double the number from 2015. If this trend continues—and all signs suggest it will—the adverse effects predicted for the sugar market in Rabobank’s report could indeed come to fruition. Moreover, as we move further into the 21st century, the importance of calcium and other essential nutrients in diet trends will likely become even more pronounced, influencing product formulations and consumer choices alike.