Increase in Health Concerns Boosts Global Low-calorie Food Market

According to the WHO, 1.5 mn deaths are directly associated with diabetes each year. WHO statistics from 2014 also show that 13% of adults around the world were suffering from obesity and 39% of adults were found to be overweight. Wrong food habits and high calorie intake are the prime reasons why an increasing number of people across the globe suffer from ailments such as diabetes and obesity. Thanks to the availability of low-calorie food, there is still hope for preventing obesity. Low-calorie food uses artificial sweeteners in place of sugar, thus developing the same amount of sweetness, but without the use of sugar. The increasing awareness among people about health issues and the rising incidence of diabetes and obesity have together shaped the global market for low-calorie food.

Transparency Market Research (TMR), a leading business intelligence firm, in its recent report, mentions that the global market for low-calorie food is set to expand at a CAGR of 5.9% for the period from 2014 to 2019, reaching a total market value of US$10.4 bn by 2019. The modern-day lifestyle, in which junk food is being consumed more than ever, has given rise to the high incidence of obesity, which consequently often leads to diabetes, propelling the demand for low-calorie food. Consumers are increasingly beginning to view low-calorie food as a feasible way to combat and even prevent obesity and diabetes, thus fueling the low-calorie food market.

High Prevalence of Obesity in Developed Nations Boosts the Market for Low-calorie Food

Obesity is rampant in developed nations such as the U.K., the U.S., and Australia, where 20% of the population suffers from obesity. The increase in the disposable income among the people in developed nations allows them to conveniently stock up a wide variety of low-calorie food, thus stimulating the market for low-calorie food.

Growing Interest from Industry Participants Drives Low-calorie Food Market

Consumers have, in recent years, become increasingly health-conscious and more aware about the consequences of having sugary food and beverages. An increasing number of consumers prefer and demand low-calorie salad dressings, dairy products, low-calorie beverages, and sugar-free chewing gum. This demand from the consumers has compelled the participants of the food and beverages industry to make healthier food, driving the market for low-calorie food.

Evidence of Artificial Sweeteners Being Unsafe Restrains Low-calorie Food Market

Contrary to the popular belief that low-calorie foods and beverages help lose weight and prevent diabetes, an increasing amount of evidence shows that artificial sweeteners such as aspartame can cause weight gain, affect the blood glucose level, and even interfere with insulin response. The growing evidence of artificial sweeteners being unsafe is a major challenge faced by the low-calorie food market.

Another factor that can restrain the market for low-calorie food is the high price of low-calorie food. This is especially true for APAC and RoW, making it difficult for market players to expand their operations in these regions.

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Global Low-Calorie Food Market Dynamics Shifting Rapidly with Consumer Awareness

In the past few decades, the awareness of consumers regarding the effects of food on the human body has grown significantly. This consumer awareness is also shaping the dynamics of the global low-calorie food market. On the basis of product, the global low-calorie food market is divided into stevia, sucralose, cyclamate, saccharin, and aspartame. The development of the global low-calorie food market, particularly the low-calorie sweeteners segment, has caused turbulence in market dynamics.

This is closely related to the growing consumer awareness, which is closely related to the growing research that demonstrates the effect unhealthy food can have on the body. In 2014, around 39% of adults were overweight, while 13% were obese, says the WHO. Furthermore, obesity has become an epidemic in many developed countries such as Australia, the U.K., and the U.S., where the rate of obesity is higher compared to other nations. Prompted by lifestyle conditions such as diabetes, obesity, and hypertension, consumers in today’s world are seeking healthy products to help better manage their conditions. Furthermore, the growing demand for preventive healthcare observed in both developing and developed nations is also driving the demand for low-calorie sweeteners from the global low-calorie food market.

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3 Key Trends in Global Low-calorie Food Market

Here are top three trends that have impacted and will continue to impact the global low-calorie food market.

• Aspartame Leading the Market: In 2013, the aspartame segment led the global low-calorie food market due to its easy substitutability with sugar in terms of both product preparation and taste. However, due to growing awareness about aspartame and its possible ill effects, there has been a decline in the popularity of this sugar substitute in the global low-calorie food market. Aspartame is considered unsafe for some demographics, such as children.
• Popularity of Other Sugar Substitutes Grows: With growing research, consumers have become more aware about other sugar substitutes and the availability of other sweeteners has grown in the past few years. As a result, segments such as sucralose and stevia have observed a surge in demand.
• Demand for Natural Sweeteners on the Rise: Although aspartame has ruled the global low-calorie food market in the past and this segment is still witnessing significant demand, its popularity is declining. Amidst these trends, the popularity of stevia is rising. Stevia is a natural sweetener and this gives it a distinct advantage over artificial sweeteners such as aspartame. Furthermore, stevia has an extremely low glycemic index as compared to other sweeteners and releases zero to little glucose into the bloodstream after digestion. The preference of consumers towards natural products has increased substantially in the past few years. Driven by these trends, the stevia segment is projected to grow strongly in the coming few years.

These were the 3 key dynamic shifts the global low-calorie food market has witnessed recently. The research data in favor of low-calorie sweeteners is growing, which will boost the overall low-calorie food market significantly. According to research published in the International Journal of Obesity on November 10, 2015, consumption of sugar substitutes such as aspartame, stevia, saccharin, and sucralose helps reduce calorie intake and decrease body weight.

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Although the research data is growing in favor of low-calorie sweeteners, the segment that will benefit the most in the foreseeable future is going to be the stevia segment, as it continues to gain momentum from the preference of consumers towards natural food.