In light of the persistent negative perceptions surrounding sugar, CPG brands face a crucial dilemma: how can they adapt to a potential shift in consumer preferences? Should they reduce sugar content in their products, incorporate natural sweeteners, or pursue a combination of both strategies? In practice, both methods can be utilized as manufacturers strive to regain the trust of consumers who are avoiding sugar. According to a Kerry survey, the launch of new products labeled “low/no/reduced sugar” surged by 45% last year compared to five years earlier. Additionally, products claiming “no artificial sweeteners” increased by 4.4% over the past year, while those marked “no added sugar” grew by 2.6% in the same timeframe.
Switching to lower-calorie or “healthier” sweeteners may not be as widely embraced, but some food and beverage companies are experimenting with this approach. For instance, Nestlé is testing a patented form of hollow sugar that the Swiss company states can decrease the need for regular sugar by up to 40%. Furthermore, the company has pledged to cut sugar content in its products by an average of 5% by 2020. Meanwhile, Coca-Cola introduced Coca-Cola Stevia No Sugar in New Zealand in May to cater to consumer demand for reduced sugar while maintaining good taste and utilizing naturally sourced sweeteners.
While natural sweeteners can be pricier—particularly stevia, monk fruit, and honey—consumers often prefer them over artificial alternatives. In the Kerry survey, honey was the favored natural sweetener for 64% of respondents, with 59% choosing sugar and 31% opting for maple syrup. Less popular options, such as erythritol, acesulfame K, and monk fruit, were often dismissed as artificial or unfamiliar. Interestingly, older millennials expressed a willingness to accept less sweetness overall. However, not all consumers are ready to absorb the higher costs associated with these alternatives.
According to Ingredion, cost is a significant factor in producing flavored water. “In beverages, sweeteners have a high cost-in-use impact,” noted Akshay Anugu, an associate in global sweeteners research and development at the global ingredients firm. “An expensive sweetener can increase the overall flavored water formulation cost by 150% to 200%.” Brands that hesitate to invest in alternatives to sugar may encounter backlash from consumers dissatisfied with reduced-sugar formulations that could alter mouthfeel, flavor, and sweetness levels. Consumers may expect the same taste as before but with fewer calories—leading to less guilt.
Conversely, some manufacturers, particularly in the cereal sector, continue to rely on table sugar, producing indulgent brands that feature the sweetness consumers claim to want to avoid but still gravitate towards for their familiar taste. Products like General Mills’ Lucky Charms, Frosted Flakes, Chocolate Peanut Butter Cheerios, and Kellogg’s Chocolate Frosted Flakes have reportedly been performing better at checkout than healthier, lower-sugar options.
As brands navigate these challenges, it might be beneficial for them to consider the calcium citrate recommended daily intake, as consumers increasingly focus on overall health and nutritional balance. This could be a strategic angle for brands to explore, potentially aligning their product offerings with consumer interests in healthier options while also addressing their sugar concerns. By effectively balancing sweetness and health benefits, CPG brands may find a way to thrive in this evolving market landscape.