2 min read · Dec 7, 2022
--
Have you ever wondered why items created with sugar replacement ingredients tend to be expensive even though they have many health benefits and are really less expensive than sugar?
Well, here is the real answer for you!
Sugar substitutes, when used in sugar-free products, replace sugars, impart sweetness, and lower the products’ calorie content & glycemic index, benefitting overall health. Sugar substitutes are cheaper than sugar and are not taxed when used in the manufacture of sugar-free products; however, they lack the other functional properties of sugar, such as flavor, texture, color, moisture retention, mouthfeel, and slowing protein coagulation.
Hence, additional alternative preservatives are used in sugar free products to match the taste & overall consistency of sugar-sweetened products, significantly increasing product prices.
Moreover, the fluctuating prices of sugar substitutes also affect the prices of sugar-free products. Stevia, a natural sugar substitute, is commonly used in sugar-free products. Stevia leaf prices vary widely according to quality, processing method, components, and yield.
Stevia is still an uncommon crop in many countries, with wholesale and retail prices varying depending upon the variety. Stevia is generally more expensive than artificial sweeteners such as saccharin, aspartame, and sucralose.
Such fluctuations in raw material prices and availability leads to higher prices of sugar-free products. This hinders the growth of the whole market for sugar-free products, which is projected to increase at a CAGR of 6.2% from 2022 to 2029 to reach $65.31 billion, according to Meticulous Research.
To learn more about this market, download sample report here!
