Sugar-free Sweets Market By Source; By Nature; By Product Type; By Distribution Channel; By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032

Sugar-free Sweets Market Overview and Definition

The global sugar-free sweets market size was estimated at USD 3.8 billion in 2021 and is expected to reach USD 6.4 billion by 2032, growing with a CAGR of 5.7% over the forecast period of 2022 to 2032. The sugar-free sweets market has been growing in recent years due to increasing health consciousness and a rise in the number of people with diabetes and other health conditions that require them to limit their sugar intake.

Consumers are seeking alternative options to traditional sweets and confectionery items that are not only tasty but also offer health benefits. Sugar-free sweets, which are sweetened with artificial sweeteners such as stevia, aspartame, and saccharin, are becoming increasingly popular.

Sugar-free sweets are broadly produced by food manufactures due to high demand from diabetic population. According to the International Diabetes Federation, 425 million people are living with diabetes till 2021 and it is projected that it will raise to 625 million by 2045. Moreover, raising diabetes disease amongst consumer is the biggest driver which has forced consumer to shift towards sugar-free sweets. The sugar-free sweets market is projected to grow in forecast period owing to raising awareness of health and wellness worldwide.

Sugar-free Sweets Market Key Drivers

Rising health awareness and healthy dietary habits among consumers have led to an increase in the demand for sugar-free sweets market. Moreover, attractive packaging method adopted by stakeholders along with clean labels for product is further augmenting the growth of the market. Furthermore, raising consumer inclination towards vitamins, minerals and addition attributes have resulted in attracting huge consumer base in last couple of years which also resulted in boosting the market growth. Increasing demand for sugar-free confectionery due to benefits provided by them like healthy snacking, taste and convenience is further driving the growth of the sugar-free sweets market.

Moreover, raising number of health conscious and vegan population is increasing exponentially owing to which demand for plant-based and gluten-free products is raising. Furthermore, increase in use of natural sweetener which has low calorie or no calorie, non-cariogenic and low glycemic index has further increased the consumption of sugar-free sweets. Natural sweeteners demand in food and beverages is raising owing to its qualities such as flavor enhancer, prevents fermentation & discoloration, stabilizer and others. In addition, it is also available in powder, liquid and other forms in the market which helps in making sugar-free sweets and hence results in boosting the market growth. 

Furthermore, sugar-free sweets have no calories which makes them lucrative in weight loss diets owing to which most of the dietitian prefer it. Stakeholders such as Nestle SA, Chupa Chups SA., Cadbury PLC., Kraft Foods Inc., Ferrero SpA., The Hershey Company, and others are engaged in online advertisement of their sugar-free sweets products which helps in increasing their customer reach.

Sugar-free Sweets Market Challenges

Despite the growth in the sugar-free sweets market, there are several challenges that the industry faces:

Controversy Over Artificial Sweeteners: Despite the growing popularity of sugar-free sweets, there remains a significant amount of controversy over the safety and health effects of artificial sweeteners. Some studies have suggested that these sweeteners may be linked to negative health outcomes, such as cancer and weight gain, leading to consumer concerns.

High Cost of Sugar-Free Products: Sugar-free sweets are often more expensive than traditional sweets and confectionery items. This can make them less accessible to price-sensitive consumers, which can limit growth in the market.

Lack of Awareness: In some regions, there may be a lack of awareness about the benefits of sugar-free sweets and the impact of sugar consumption on health. This can limit demand for these products, particularly in developing countries.

Limited Availability: Sugar-free sweets may not be widely available in all regions, especially in rural areas. This can limit access to these products and hinder growth in the market.

Taste and Quality: Sugar-free sweets may not always taste as good as traditional sweets, which can be a barrier to consumer adoption. In addition, some sugar-free products may have a less satisfying texture and mouthfeel compared to traditional sweets.

Sugar-free Sweets Market Segmentation

By Source Insights 

By source analysis, the sugar-free sweets market is segmented into animal based and plant based. The plant-based segment holds the major market share and it is expected to retain its dominance during the forecast period. Growing trend of consuming sugar-free sweets by health-conscious consumer and increase in demand for low calorie sugar products has boosted the sugar-free sweets market.

By Nature 

On the basis of nature, the sugar-free sweets market is divided into organic and conventional.  The organic segment holds the major share owing to raising consumer awareness regarding health, along with clean labels for product is further augmenting the boosting the growth  of the market.

By Product Type

Based on product type, the sugar-free sweets market is divided into jellies and gums, hard-boiled sweets, toffees and caramels, medicated confectionary, mints and others. The jellies and gums segment is projected to grow and is expected to retain its demand in forecast period.

By Distribution Channel

By distribution channel, the sugar-free sweets market is segmented into hypermarkets/supermarket, specialty stores, brand stores, convenience and online sales channel. Convenience stores segment holds the major market share and it is expected to retain is dominance during the forecast period. Raising disposable income and rapid urbanization have resulted in emergence of convenience stores. In addition, serving more locations, longer open hours, and having shorter cashier lines have further resulted in popularity of convenience stores. Moreover, convenience stores are replacing old-fashioned general stores. Therefore, convenience stores are expected to emerge as the fastest distribution channels in the upcoming years.   

Sugar-free Sweets Market Regional Synopsis

The sugar-free sweets market is growing globally, but the level of growth varies by region.

North America: North America is a mature market for sugar-free sweets, with a high level of consumer awareness and a large number of products available. The United States is a major market, driven by high levels of health consciousness and a large number of people with diabetes.

Europe: Europe is another mature market for sugar-free sweets, with growing awareness about the negative health effects of consuming high amounts of sugar.

Asia-Pacific: The Asia-Pacific region is a rapidly growing market for sugar-free sweets, driven by the growing incidence of diabetes and obesity.

Middle East and Africa: The sugar-free sweets market in the Middle East and Africa is relatively small, but it is growing as consumer awareness about the benefits of sugar-free products increases.

South America: The South American market for sugar-free sweets is growing, driven by increase in disposable income.

Recent Developments

There have been several recent developments in the sugar-free sweets market:

Product Innovations: Companies in the sugar-free sweets market are investing in product innovations to improve the taste and quality of their products, as well as to make them more appealing to consumers. This includes the development of new artificial sweeteners, such as allulose, and the use of natural sweeteners like stevia.

Expansion of Distribution Channels: Companies in the sugar-free sweets market are expanding their distribution channels to reach more consumers. This includes the use of online platforms, such as e-commerce websites, as well as partnerships with supermarkets and specialty stores.

Increased Marketing and Advertising: Companies in the sugar-free sweets market are increasing their marketing and advertising efforts to raise consumer awareness about their products and to promote their benefits. This includes the use of social media, influencer marketing, and product demonstrations.

Mergers and Acquisitions: There have been several mergers and acquisitions in the sugar-free sweets market in recent years, as companies seek to expand their product portfolios and reach new markets.

Growing Demand for Plant-Based Sugar-Free Sweets: There is a growing demand for plant-based sugar-free sweets, as consumers look for healthier and more sustainable food options. This has led to an increase in the number of products made with natural sweeteners, such as stevia, and with alternative ingredients like coconut sugar.

Sugar-free Sweets Market Key Players

• Chupa Chups SA
• Cadbury PLC
• Kraft Foods Inc
• Ferrero SpA
• The Hershey Company
• Perfetti Van Melle S.P.A
• Adams and Brooks Candy
• Jelly Belly Candy
• AS Kalev
• Mapro Industries Ltd
• Nestle SA