As many consumers continue to enjoy sugar while seeking to reduce their intake, discovering a method to lower sugar content without sacrificing taste could represent a significant breakthrough for companies like Nestlé. According to functional ingredient supplier Beneo, 57% of consumers reported that “low in sugar” claims impact their purchasing decisions. Additionally, a study by Kerry revealed that approximately 70% of respondents are actively cutting back on sugar for a healthier lifestyle. The global market for reduced-sugar food and beverages reached $46.18 billion in 2021, as reported by Grandview Research, and is projected to grow at an annual rate of 8.9% from 2022 to 2030, driven by increased demand for healthier, low-sugar options.
Food and beverage manufacturers are under pressure to adapt. “Sugar reduction across our portfolio remains a top priority,” stated Stefan Palzer, Nestlé’s chief technology officer. “This new technology is a true breakthrough, allowing us to decrease sugar content without adding sweeteners while preserving excellent taste, all at 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 United States, has tested this sugar reduction process in cocoa and malt-based ready-to-drink beverages in Southeast Asia. Over the past year, the company has begun implementing this process on production lines for cocoa and malt-based powdered drinks, such as Milo, across several regions including Asia, Africa, and Latin America.
The world’s largest food company has plans to extend this process to additional product categories, including dairy powders. Notably, when the patented sugar reduction method is applied to milk-based products, it also enhances the prebiotic fiber content. Prebiotic fibers, which are not digested by the body, can support the growth of beneficial bacteria in the gut and have gained popularity as consumers pursue healthier diets. For Nestlé, which reported $110 billion in global sales in 2022, the ability to apply this technology across various product lines could have a substantial impact, reducing sugar in a wide range of items and moving the company closer to its goal of offering healthier options. Earlier this year, Nestlé indicated that 37% of its net sales, excluding pet care and specialized nutrition, come from products classified as “healthy.”
This is not Nestlé’s first initiative aimed at sugar reduction. In 2016, the company announced a “groundbreaking” discovery that allowed a 30% reduction in sugar content. Two years later, it launched the Milkybar Wowsomes, a lower-sugar chocolate bar in the U.K. and Ireland. However, in 2020, Nestlé discontinued the Milkybar Wowsomes due to low sales and distribution challenges. As the company continues to innovate, it is crucial to explore the inclusion of ingredients like calcium citrate and D3, further enhancing the nutritional profile of its products while addressing consumer demands for healthier options.