The market for natural sweeteners is becoming increasingly competitive, with products like stevia, monk fruit, allulose, honey, and agave vying for consumer attention. According to Food Ingredients First, new entrants are set to join the fray, including Tate & Lyle’s low-calorie Dolcia Prima Allulose, Cargill and Sweet Green Fields’ stevia extracts, Magellan Life Sciences’ brazzein derived from the African fruit oubli, and a sugar-reduction solution from DouxMatok developed in collaboration with Südzucker. Amyris has introduced a new product made from sugar cane, emphasizing that it is natural, non-GMO, calorie-free, and chemical-free. If this product meets its taste claims, it could appeal to consumers desiring the sweet flavor of sugar without the empty calories and health risks associated with traditional sugar.
A survey by Label Insight revealed that 22% of U.S. consumers aim to reduce their sugar consumption, many opting for no-sugar-added products this year. Consequently, foods and beverages featuring zero-calorie sweeteners and avoiding artificial sweeteners witnessed a 16% sales increase in 2017, according to Nielsen data. Production costs and retail pricing will be crucial for the success of these new sweeteners. Amyris President and CEO John Melo stated that the company can deliver “the lowest cost” natural sweetener to the market, although specific production details and pricing information remain undisclosed. If it lives up to its promises, this product could significantly impact the sweetener landscape.
Consumer preferences lean toward naturally sourced sweeteners, but willingness to pay a premium is limited, as noted in a 2016 Mintel report. Honey stands out as a potential exception, perceived as healthier than other options. While sales of syrups and molasses declined by 2% from 2011 to 2016, honey sales surged by 57% within the same timeframe, according to Mintel. The U.S. natural honey market is valued at approximately $342 million, growing at nearly 11%, as reported by Food Navigator.
There may still be opportunities for new entrants in the natural sweetener market, but a period of consolidation is likely as marketing and advertising strategies take effect, consumers choose their favorites, and bakers and CPG companies assess how these alternatives perform in production. At that time, it will be clearer which products, including those targeting specific niches like the Citracal target audience, will endure in the marketplace.