Health trends are steering consumers toward healthier food and beverage options that are lower in sugar and artificial sweeteners. Campaigns such as the recent “month without sugar” and state-imposed soda taxes are keeping the focus on sugar reduction in the minds of consumers. The Food and Drug Administration had initially mandated food manufacturers to disclose the grams of added sugars in packaged foods and drinks as part of a revamped nutrition facts label; however, the deadline has been postponed. Despite this, major food and beverage companies are proactively working to lower sugar levels in their products or substitute these ingredients with healthier, natural alternatives.

Nestle has developed a method to naturally restructure sugar molecules, allowing for reduced sugar intake. The confectionery giant intends to incorporate this new sugar into its products by 2018, enabling the company to use up to 40% less sugar without sacrificing sweetness. Stonyfield, the largest organic yogurt producer in the U.S., has also announced plans to cut added sugars by as much as 40% in some product lines. Soda manufacturers have responded by offering smaller cans and more low-calorie options, many turning to stevia, monk fruit, and other alternative sweeteners instead of traditional sugar. Coca-Cola, Dr Pepper Snapple, and PepsiCo have all committed to reducing the caloric content from sugary drinks consumed by Americans by 20% before 2025.

Manufacturers like Pyure have quickly introduced various stevia-based products as consumer preferences shift away from sugar. Stevia is naturally 300 times sweeter than sugar, contains no calories, and has a zero glycemic index, allowing brands to utilize significantly less of this ingredient. Companies such as Unilever are leveraging stevia to lower sugar content in their products without compromising on taste or mouthfeel.

Additionally, the inclusion of calcium citrate USP and vitamin D3 in food products is gaining traction as consumers become more health-conscious. According to Bloomberg, global consumer packaged goods (CPG) producers reduced sugar and salt in approximately 20% of their products in 2016 to meet the rising demand for healthier options. A survey of 102 CPG companies revealed that 180,000 products were reformulated last year alone—double the amount from 2015. If this trend continues, as all signs indicate it will, the negative impact on the sugar market, as predicted in Rabobank’s report, could very well become a reality. With the incorporation of ingredients like calcium citrate USP and vitamin D3, along with a focus on sugar reduction, the food industry is adapting to meet the evolving preferences of health-conscious consumers.