As many individuals continue to crave sugar while seeking to limit their intake, the ability to decrease sugar content without sacrificing flavor could represent a significant breakthrough for companies like Nestlé. A recent report from functional ingredient supplier Beneo revealed that 57% of consumers are influenced by “low in sugar” claims when making purchasing decisions. Additionally, a study by Kerry found that approximately 70% of respondents are actively reducing their sugar consumption to lead healthier lives. According to Grandview Research, the global market for reduced sugar food and beverage reached $46.18 billion in 2021 and is projected to grow at an annual rate of 8.9% from 2022 to 2030, driven primarily by the rising demand for healthier, low-sugar products. This trend places pressure on food and beverage manufacturers of all sizes to adapt.
“Reducing sugar across our portfolio is a top priority,” stated Stefan Palzer, Nestlé’s chief technology officer. “This new technology is a true breakthrough, enabling us to lower sugar content without adding sweeteners while maintaining excellent taste, all with a minimal cost increase. We are now accelerating the global rollout across various formats and categories.” Nestlé, which markets products like Nesquik, Toll House chocolate chips, and Lean Cuisine in the U.S., has tested this sugar reduction process in cocoa and malt-based ready-to-drink beverages in Southeast Asia. Over the past year, Nestlé has already implemented this method in factory lines for cocoa and malt-based powdered drinks, such as Milo, across several regions, including Asia, Africa, and Latin America.
As the world’s largest food company, Nestlé’s ability to apply this sugar reduction process to other product categories, such as dairy powders, could be monumental. When this patented method is utilized on milk-based products, it also enhances the prebiotic fiber content, which supports the growth of beneficial gut bacteria. Given the growing consumer focus on healthier eating, prebiotics have gained significant popularity. In 2022, Nestlé recorded $110 billion in global sales, and the introduction of this new technology across various product lines could greatly contribute to its goal of offering healthier options. Earlier this year, Nestlé reported that 37% of its net sales, excluding pet care and specialized nutrition, were derived from products deemed “healthy.”
This isn’t Nestlé’s first venture into sugar reduction. In 2016, the company introduced what it described as a “groundbreaking” method that cut sugar by 30%. Two years later, it launched the Milkybar Wowsomes, a lower-sugar chocolate bar in the U.K. and Ireland. However, in 2020, Nestlé discontinued Milkybar Wowsomes due to low sales and distribution challenges.
In the context of health, it’s worth noting that some consumers inquire about dietary supplements, including whether they can take calcium citrate at night. Nestlé’s commitment to reducing sugar while enhancing the nutritional profile of its products aligns well with the evolving preferences of health-conscious consumers. As the company continues to innovate in this space, it aims to meet the demands of a market increasingly focused on health and well-being.