The global reduced sugar food & beverages products market was valued at USD 140.1 billion in 2022 and is expected to expand at a CAGR of 4.1% from 2023 to 2030. The demand for reduced sugar food & beverages products is increasing due to the growing health concerns among consumers, especially in developed countries. Various companies are focusing on launching new products with reduced sugar content, which is driving the market. For instance, in 2021, PepsiCo launched a new reduced sugar variant of their iconic brand Pepsi in the UK. The new product contains 38% less sugar than the regular Pepsi variant.

The increasing prevalence of diabetes and obesity is accelerating the demand for reduced sugar products. According to the World Health Organization, in 2020, around 463 million people were affected by diabetes, which is expected to reach 578 million by 2030. Moreover, the rise in disposable income, coupled with the increasing awareness regarding healthy eating habits, is further propelling the demand for reduced sugar food & beverages.

The growing trend of premiumization in reduced sugar food & beverages products is expected to further drive the market. Companies are focusing on launching premium reduced sugar products to attract consumers. For instance, in January 2021, Starbucks launched its new reduced sugar Frappuccino, which contains 30% less sugar than the regular Frappuccino. Furthermore, the introduction of new products with reduced sugar content, such as protein-based snacks and beverages, is expected to fuel the market.

Furthermore, the growing demand for plant-based beverages, such as coconut milk and almond milk, is expected to drive the market in the coming years. Companies are focusing on launching new reduced sugar products to cater to the rising demand for plant-based beverages. For instance, in June 2021, Danone launched a new reduced sugar almond milk in the US. The new almond milk contains 50% less sugar than the regular almond milk.

The increasing demand for natural sweeteners, such as stevia and monk fruit, is driving the market. Companies are focusing on launching products using natural sweeteners to cater to the growing demand for healthy products. For instance, in 2021, PepsiCo launched a new range of carbonated soft drinks in the US and UK, which are sweetened with natural stevia. The introduction of new products with natural sweeteners is expected to drive the market in the coming years.

The reduced sugar food and beverages segment is anticipated to expand at the fastest CAGR of 8.6% over the forecast period. Growing awareness regarding the health benefits of consuming reduced sugar products and the availability of reduced-sugar variants of food and beverages is driving the demand for reduced sugar food and beverages. According to an article published by FoodIngredientsFirst, in October 2019, the demand for reduced sugar products is driven by consumers seeking healthier options. Furthermore, the rising popularity of low-calorie products is also driving the demand for reduced sugar products.

The frozen food segment is expected to remain the largest segment, accounting for a share of around 34.2% in 2022. The increasing health concerns among consumers, rising demand for convenient and ready-to-eat meals, and increasing disposable income are some of the key factors driving the demand for frozen food products. According to an article published by the USDA, in January 2020, the frozen food market is growing as consumers are preferring ready-to-eat meals. The availability of a wide variety of frozen food products is also driving the market growth.

The supermarkets and hypermarkets segment captured the major share of over 33.9% in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase food and beverage products. According to a study by FoodNavigator.com in 2020, people are increasingly opting for reduced sugar food and beverages, and supermarkets & hypermarkets offer a wide range of such products. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required food and beverage product.

The online segment is anticipated to expand at the highest CAGR of 14.2% over the forecast period. E-commerce development in the food and beverage industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in January 2022, Amazon launched a new section dedicated to reduced sugar food and beverages. The website will offer brands across categories like snacks, beverages, breakfast cereals, and other food products. In addition, it will also offer the best brands and products with reduced sugar along with expert advice and opinions on choosing the best product.

The low sugar segment accounted for the largest revenue share of 57.4% in the year 2022. The growing demand for reduced sugar food and beverages products is mainly attributed to the rising health concerns among consumers, especially in developed regions. Consumers are increasingly focusing on eating nutritious food, while reducing sugar intake. This is prompting food and beverage manufacturers to introduce reduced sugar products. For instance, in March 2021, PepsiCo Inc., a major player in the food and beverage industry, launched a new reduced sugar variant of its popular beverage, Pepsi Max, in the U.K.

The no sugar segment is expected to expand at the highest CAGR of 10.3% over the forecast period. The increasing awareness of the adverse effects of sugar on health has fueled the demand for no sugar food and beverage products. Manufacturers are offering a wide variety of no sugar food and beverage products to satisfy the growing demand from health-conscious consumers. For instance, in December 2020, PepsiCo Inc. launched a new range of no sugar beverages, Pepsi Max Zero Sugar, in the U.K. The company has also introduced a range of no sugar variants of its popular beverage, Pepsi Max, in the U.S. and the U.K.

Europe is expected to remain the largest regional market over the forecast period. This is attributed to the increasing focus of consumers on health and wellness, along with the presence of various government initiatives and regulations, encouraging the development and consumption of reduced sugar food and beverages in the region. For instance, in July 2021, the European Commission introduced a legislative proposal to limit the added sugar content in certain food and beverages.

The Asia Pacific is expected to witness the fastest growth in the coming years. This is due to the growing popularity of healthy products and the increasing consumer health awareness in the region. Moreover, the presence of several local players offering a wide range of reduced sugar food and beverages is expected to drive the regional market growth. For instance, in May 2021, Pascati Chocolates launched a range of vegan, keto-friendly dark chocolates with fewer calories and no added sugar in India.

In this part of the reduced sugar food & beverages products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your reduced sugar food & beverages business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a reduced sugar food & beverages products business comes from the sale of the products. Here you will find a list with a description of other possible sources of profit such as fundraising, food & beverage, the sale of merchandise, and leasing the place for parties and corporate events.

Projecting Expenses
In this section, all the regular expenses related to keeping the reduced sugar food & beverages products business running will be described. The list of operating expenses includes ingredients costs, wages, marketing, research and development, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the reduced sugar food & beverages market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In May 2022, PepsiCo Inc. launched a range of reduced sugar beverages in the US, with 40% less sugar than traditional beverages.

– In January 2022, Nestlé SA launched the ‘Nestlé Health Science’ range of products with reduced sugar content.

– In December 2022, Kellogg Co. launched a range of cereals with reduced sugar content.

Some of the prominent players in the reduced sugar food & beverages market include:

– PepsiCo Inc.
– Nestlé SA
– Danone SA
– Coca-Cola Company
– Kellogg Co.
– Dr Pepper Snapple Group
– Mondelez International, Inc.
– General Mills, Inc.
– Unilever Plc
– Hershey Company

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global reduced sugar food & beverages products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Carbonated Beverages
– Juice
– Dairy
– Snacks
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Convenience stores
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Low Sugar
– Sugar-free

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Factors Driving the Reduced Sugar Food & Beverages Market?
[A]: The rising awareness about health among consumers, increase in health-related diseases due to excessive sugar consumption, and the availability of reduced sugar food & beverages products are some of the factors driving the growth of the reduced sugar food & beverages market. Additionally, the growing demand for substitutes for sugar in food & beverages products, the introduction of innovative products with reduced sugar content, and the increasing demand for healthier food & beverage options are some of the factors driving the market further.

[Q]: What are the Key Players in the Reduced Sugar Food & Beverages Market?
[A]: Some of the key players in the reduced sugar food & beverages market are PepsiCo Inc., The Coca-Cola Company, Nestle S.A., Unilever, Danone S.A., Kraft Heinz Company, General Mills, Inc., Kellogg Company, Mars Inc., and Associated British Foods Plc.

[Q]: What are the Strategies Used by the Market Players to Increase Sales?
[A]: Key strategies used by the market players to increase sales include product innovations, mergers & acquisitions, joint ventures, and strategic partnerships. Product innovations help companies to differentiate their products from their competitors and attract more customers. Mergers & acquisitions help companies gain access to new markets, technology, and resources. Joint ventures and strategic partnerships allow the companies to expand their offerings and explore new opportunities.

[Q]: What are the Key Regions in the Reduced Sugar Food & Beverages Market?
[A]: North America, Asia Pacific, Europe, South America, and the Middle East & Africa are some of the key regions in the reduced sugar food & beverages market. North America is expected to hold the largest market share due to the increasing demand for healthier food & beverage options in the region.

[Q]: What are the Factors Restraining the Reduced Sugar Food & Beverages Market?
[A]: Factors such as the high cost of reduced sugar food & beverages products and the lack of awareness about the health benefits of reduced sugar food & beverages are restraining the growth of the reduced sugar food & beverages market. Additionally, the lack of availability of reduced sugar food & beverages products in certain countries is impeding the market’s growth.