Alternative Sweeteners

US industry forecasts for 2013 & 2018

Publication Date	May 2009
Publisher	Freedonia Group
Product Type	Report
Pages	226
ISBN Number	not applicable
Product Code	FED00280

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Summary

Conventional vs. alternatives

Few food ingredients have garnered as much attention or been more influenced by the latest food fads than sweeteners. This is partly because we consume so much of them, nearly $12 billion in 2008, but also because all sweeteners have some significant flaw, whether it be health concerns, taste or cost. For the most part, sugar and high-volume corn sweeteners such as high fructose corn syrup (HFCS) remain the dominant products, with sugar benefitting more recently from its rebranding as a pure, natural product (and by lower costs than HFCS). But sugar and HFCS are increasingly challenged by alternative sweeteners, which target consumers that want to reduce their caloric intake or who are concerned about diseases such as diabetes.

Alternative sweeteners are expected to account for 12 percent of the market by 2013 (totalling $1.3 billion), with growth driven by strong advances for established products like sucralose and by the development of new products like stevia extract. While the large, but now slow growing carbonated soft drink market has been the key focus of alternative sweetener suppliers in the past, growth in other food applications will become more critical to future success. That success also depends on the development of products with better taste profiles than the existing leading brands and a continued reduction of sweetener costs.

Record of success
To date, the great successes for alternative sweeteners have been in diet soft drinks, sugarless gum, and tabletop sweetener products. Diet soft drinks have gained a third of the market, mainly because aspartame and ace-K have found consumer favor as an alternative to sugar and HFCS, building on a much smaller share of the market held by drinks sweetened with saccharin. Sugarless gum now outsells sugared gum, as blends of polyols and high-intensity sweeteners such as sucralose and ace-K can be combined to provide the right combination of bulk, texture, flavor profile and
sweetness. The tabletop segment has long been receptive to alternative sweeteners. Saccharin retains a presence there and, more recently, sucralose has become ominant in the tabletop market. Natural alternatives such as reb-A and agave nectar are also gaining market presence.

Hope for the future
In other potential markets, adoption of alternative sweeteners has been slower. Although they can deliver the requisite sweetness for nearly any food or beverage application, they have generally fallen short in one way or another. Some are insufficiently stable when heated, limiting their use in baked goods and other processed foods, while others have an unpleasant aftertaste. And few alternatives successfully mimic the other hysical properties beyond sweetness that make sugar a nearly indispensible ingredient in many food items. In some cases, the reasons for sluggish growth are less readily explained.

Sucralose has not made a significant dent in the carbonated soft drink market, which remains by far the largest single outlet for alternative sweeteners. In contrast, ace-K is not widely used in applications outside of soft drinks. Stevia nd its extracts will benefit from efforts to promote it as a natural alternative to other high intensity sweeteners, but offtastes remain

Content

INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT
        General
        Demographic Trends
        Macroeconomic Overview
        Consumer Spending
        Dietetic Food Overview
        Health Overview
          Diabetes
          Obesity & Dieting
        Pricing & Product Mix
        Regulatory Overview
        International Activity
        Foreign Trade

III. SWEETENER OVERVIEW
        General
        Conventional Sweetener Overview
          Sucrose
          Corn Sweeteners
           High Fructose Corn Syrup (HFCS)
           Other Corn Sweeteners
          Other Conventional Sweeteners
        Sugar Equivalency

IV. PRODUCTS
        General
        High Intensity Sweeteners
          Aspartame
           Markets
           Suppliers
          Sucralose
           Markets
           Suppliers
          Saccharin
           Markets
           Suppliers
          Acesulfame Potassium (Ace-K)
           Markets
           Suppliers
          Neotame
        Polyols
          Sorbitol
          Mannitol
          Xylitol
          Maltitol
          Erythritol
          Other Polyols
        Other Alternative Sweeteners
          Stevia
          Agave Nectar
          All Other

V. MARKETS
        General
        Food
          Food Industry Overview
          Alternative Sweetener Demand
          Tabletop Sweeteners
           Tabletop Sweetener Overview
           Alternative Sweetener Demand
          Candy & Confections
           Candy & Confections Outlook
             Alternative Sweetener Demand
             Chewing Gum
             Chocolate Candy
             Other Candy & Confections
          Dairy Products
           Dairy Product Overview
           Alternative Sweetener Demand
             Ice Cream
             Yogurt
             Other Dairy Products
          Other Food Products
        Beverages
          Beverage Industry Overview
          Alternative Sweetener Demand
          Carbonated Soft Drinks
           Carbonated Soft Drink Overview
           Alternative Sweetener Demand
          Other Beverages
           Other Beverage Overview
           Alternative Sweetener Demand
        Personal Care Products
          Personal Care Product Overview
          Alternative Sweetener Demand
        Pharmaceuticals
          Pharmaceutical Industry Overview
          Alternative Sweetener Demand

VI. INDUSTRY STRUCTURE
        General
        Market Share
        Formulators
        Competitive Strategies
        Cooperative Agreements
        Research & Development
        Marketing
        Distribution

Company Profiles
          Ajinomoto Company Incorporated
          Alberto-Culver Company
          Alcan Incorporated, see Rio Tinto
          Archer-Daniels-Midland Company
          Arnhem Group
          BENEO-Palatinit, see Suedzucker
          Cargill Incorporated
          Celanese Corporation
          Corn Products International Incorporated
          CSM NV
          Cumberland Packing Corporation
          Danisco A/S
          JMC Corporation
          Johnson & Johnson
          Makhteshim-Agan Industries Limited
          MC-TOWA International Sweeteners Company
             Limited, see Mitsubishi
          McNeil Nutritionals LLC, see Johnson & Johnson
          Merisant Company
          Mitsubishi Corporation
          NOW Health Group Incorporated
          NutraSweet Company
          Nutrinova Nutrition Specialties & Food Ingredients
           GmbH, see Celanese
          Pharmed Medicare Private Limited
          PMC Global Incorporated
          PureCircle Limited
          Rio Tinto Group
          Roquette Freres SA
          San Fu Chemical Company Limited
          Suedzucker AG
          Sugar Foods Corporation
          Tate & Lyle plc
          United American Industries Incorporated
          Whole Earth Sweetener Company LLC, see
           Merisant
        Other Companies Mentioned in Study

LIST OF TABLES


        SECTION I -- EXECUTIVE SUMMARY
        Summary Table

        SECTION II -- MARKET ENVIRONMENT
      1 Population & Households
      2 Macroeconomic Indicators
      3 Personal Consumption Expenditures
      4 Diabetes & Obesity Conditions
      5 Selected Alternative Sweetener Prices

        SECTION III -- SWEETENER OVERVIEW
      1 Sweetener Demand by Type & Market
      2 Conventional Sweetener Demand by Type
      3 Sucrose Demand by Market
      4 Corn Sweetener Demand by Type & Market
      5 High Fructose Corn Syrup (HFCS) Demand by Type & Market
      6 Other Corn Sweetener Demand by Type & Market
      7 Other Conventional Sweetener Demand by Type
      8 Sugar Equivalency

        SECTION IV -- PRODUCTS
      1 Alternative Sweetener Demand by Type
      2 High Intensity Sweetener Demand by Type
      3 Aspartame Demand by Market
      4 Sucralose Demand by Market
      5 Saccharin Demand by Market
      6 Acesulfame Potassium (Ace-K) Demand by Type
      7 Neotame Demand by Market
      8 Polyol Demand by Type
      9 Sorbitol Demand by Market
     10 Mannitol Demand by Market
     11 Xylitol Demand by Market
     12 Maltitol Demand by Market
     13 Erythritol Demand by Market
     14 Other Polyol Demand by Market
     15 Other Alternative Sweetener Demand by Type & Market

        SECTION V -- MARKETS
      1 Alternative Sweetener Demand by Market
      2 Food Shipments
      3 Food Markets for Alternative Sweeteners
      4 Tabletop Market for Alternative Sweeteners
      5 Candy & Confection Shipments
      6 Candy & Confection Market for Alternative Sweeteners
          by Application & Type
      7 Chewing Gum Market for Alternative Sweeteners
      8 Chocolate Candy Market for Alternative Sweeteners
      9 Other Candy & Confection Market for Alternative Sweeteners
     10 Dairy Product Shipments by Type
     11 Dairy Market for Alternative Sweeteners by Application
           & Type
     12 Other Food Markets for Alternative Sweeteners
          by Application & Type
     13 Beverage Production
     14 Beverage Markets for Alternative Sweeteners
     15 Carbonated Soft Drink Production
     16 Carbonated Soft Drink Market for Alternative Sweeteners
          by Type
     17 Other Beverage Production
     18 Other Beverage Markets for Alternative Sweeteners by
          Application & Type
     19 Cosmetic & Toiletry Supply & Demand
     20 Personal Care Product Market for Alternative Sweeteners
          by Type
     21 Pharmaceutical Shipments
     22 Pharmaceutical Market for Alternative Sweeteners

        SECTION VI -- INDUSTRY STRUCTURE
      1 US Alternative Sweetener Sales by Company, 2008
      2 Selected Cooperative Agreements


LIST OF CHARTS


        SECTION III -- SWEETENER OVERVIEW
      1 Sweetener Demand by Market, 2008
      2 Conventional Sweetener Demand by Type, 2008

        SECTION IV -- PRODUCTS
      1 Alternative Sweetener Demand by Type: Volume &
          Value, 2008
      2 High Intensity Sweetener Demand by Type, 2008

        SECTION V -- MARKETS
      1 Alternative Sweetener Demand by Market, 2008
      2 Food Markets for Alternative Sweeteners, 2008

        SECTION VI -- INDUSTRY STRUCTURE
      1 Alternative Sweetener Market Share, 2008