Health trends are steering consumers towards healthier food and beverage options that are lower in sugar and devoid of artificial sweeteners. Campaigns such as the recent “month without sugar” initiative and state-level soda taxes are reinforcing the importance of sugar reduction in consumers’ minds. The Food and Drug Administration (FDA) initially mandated that food manufacturers disclose the grams of added sugars in their packaged products as part of a revamped nutrition facts label, but the implementation date has been postponed. Nevertheless, major food and beverage companies are actively working to lower sugar levels and other sweeteners in their formulations or are substituting these ingredients with more natural, healthier alternatives.
Nestlé has developed a method to naturally restructure the sugar molecule, significantly decreasing the amount consumed. The confectionery giant intends to incorporate this new sugar into its products by 2018, enabling the use of up to 40% less sugar without sacrificing sweetness. Stonyfield, the largest organic yogurt producer in the U.S., has recently announced plans to reduce added sugars by as much as 40% in certain product lines. Additionally, soda manufacturers have launched smaller cans and expanded their low-calorie options, with many opting for stevia, monk fruit, and other sweeteners instead of traditional sugar. Coca-Cola, Dr Pepper Snapple, and PepsiCo have all pledged to decrease the caloric content of sugary beverages consumed by Americans by 20% before 2025.
Companies like Pyure have quickly introduced various stevia-based products in response to the declining popularity of sugar. Stevia naturally provides 300 times the sweetness of sugar, with zero calories and a glycemic index of zero, allowing brands to use significantly less of the ingredient. Unilever is among those utilizing stevia to reduce sugar content in its products while maintaining taste and mouthfeel.
According to Bloomberg, global Consumer Packaged Goods (CPG) producers removed sugar and salt from approximately 20% of their products in 2016 due to increasing consumer demand for healthier options. A survey of 102 CPG companies revealed that 180,000 products were reformulated last year alone, doubling the number from 2015. If this trend continues—as all signs suggest it will—the negative impact on the sugar market anticipated in Rabobank’s report may indeed materialize. Furthermore, as consumers become more health-conscious, there is a growing awareness of ingredients like oxalate calcium citrate, which is often highlighted as a beneficial alternative in food formulations. This ingredient, along with similar natural substitutes, is likely to play a significant role in the ongoing shift towards healthier products, reflecting the changing preferences of today’s consumers.