Expanded Sugar Reduction Market Sales Forecasted to Reach USD 18.8 Billion by 2034
The global sugar reduction market is witnessing a significant transformation, with key players like Ajinomoto Co. and Danone S.A. leading the charge in the development of low-sugar alternatives.
Ajinomoto Co. is focusing on sugar reduction through partnerships and new product platforms, including the creation of high-intensity sweet proteins that can replace up to 70-90% of sugar sweetness without impacting blood sugar levels.
In terms of market share, North America leads the pack, accounting for a substantial 46.20% in 2025, reaching a value of USD 4.4 billion. Bakery products continue to dominate the market, holding a 47.30% share. Powdered forms are preferred due to their stability and ease of use in processing, representing 43.20% of the market.
The Asia Pacific region is rapidly emerging as a high-growth region, supported by factors like urbanization, evolving dietary habits, and rising health awareness in countries such as China, Japan, and India.
The growth of the artificial sweeteners market within the global sugar reduction landscape is driven by several key factors. Rising health awareness and the incidence of diabetes & obesity are boosting demand for artificial sweeteners, as consumers seek low-calorie alternatives. Consumer demand for low-calorie products, particularly clean-label and zero-calorie offerings, is fueling the adoption of artificial sweeteners across various food and beverage sectors.
Technological advancements have made artificial sweeteners more appealing, enhancing their sensory profiles and facilitating broader applications in industries such as bakery, beverages, confectionery, dairy, and nutraceuticals. Supportive regulatory frameworks also play a role in the integration of artificial sweeteners into sugar reduction strategies.
The market grew from USD 9.2 billion in 2024 with a CAGR of 7.4% between 2025 and 2034. Artificial sweeteners lead the market by type, accounting for 41.30% of the total share in 2024. Cargill Inc. is expanding its sugar reduction toolkit, offering label-friendly stevia sweeteners and complementary texturizers and bulking agents for beverages and foods.
In terms of functional use, sweetening agents dominate, making up 63.30% of the market. Europe is witnessing steady growth in the sugar reduction market, largely fueled by stringent regulations aimed at reducing sugar content in processed foods and the increasing demand for clean-label and healthier alternatives among health-conscious consumers.
The global sugar reduction market is projected to reach approximately USD 18.8 billion by 2034. Bayn Europe AB has launched The Sugar Reduced Community, an open-forum platform aimed at uniting stakeholders to collaborate on reducing added sugar consumption.
The Middle East & Africa region is experiencing moderate growth in the sugar reduction market, with health and wellness trends beginning to influence purchasing decisions, particularly in Gulf Cooperation Council (GCC) countries. Latin America also plays a role in the market's global expansion, with countries like Brazil and Mexico implementing sugar taxes and promoting low-sugar food choices as part of national health initiatives.
In conclusion, the global sugar reduction market is poised for robust growth in the coming years, driven by consumer demand for healthier alternatives, technological advancements, and supportive regulatory frameworks. Key players are investing in research and development to create innovative low-sugar products, and regional markets are experiencing significant growth due to factors like urbanization, rising disposable incomes, and shifting consumer preferences.
Finance plays a crucial role in the global sugar reduction market as companies invest in research and development to create innovative low-sugar products, aiming to capitalize on the rising consumer demand for healthy alternatives.
Technology enhances the sensory profiles and facilitates broader applications of artificial sweeteners in various industries like bakery, beverages, confectionery, dairy, and nutraceuticals, contributing to the market's growth in the health-and-wellness space.
