Consumers today are well aware that an unchecked sweet tooth can have serious consequences. With health-conscious shoppers better understanding the association between sugar and prevalent health conditions such as diabetes and obesity, industry analysts see a push toward healthier options without added sugar.

Market research firm Mintel reported that consumers seem to grasp the negative effects that sugar can have on their health, with 21% of U.S. consumers choosing no-calorie sweeteners because they or a family member are diabetic. Furthermore, a majority (54%) said they wanted healthier options available to them at supermarkets to help manage their weight.

Using fruit juice as an example, Mintel found that 29% of consumers reported looking for “no sugar added” when buying juice or juice drinks (compared to 23% looking for “low sugar” and 17% “reduced calorie”), while 34% said they either stopped or bought fewer juice products because they contained too much sugar.

This is just the tip of the iceberg. With FDA’s newly proposed updates to the Nutrition Facts Label requiring labeling of “added sugars” in all food products, government attempts to ban sugary drinks and soda, and USDA’s elimination of high sugar and soda products from its school foodservice program, the crackdown on sugar is widespread. At the same time, taste is still king, and U.S. consumers are accustomed to sweet-tasting foods and beverages.

Luckily, a variety of artificial and natural sweeteners have entered the marketplace to provide viable sweetening alternatives to meet the concerns of consumers and manufacturers alike.

Packaged Facts, Rockville, MD, estimated the current U.S. retail market for zero-calorie sweeteners at $685 million, with sucralose accounting for the largest share at 45%. However, David Sprinkle, research director, noted, “Artificial sweeteners sucralose, aspartame and saccharin have all lost share to natural plant-derived stevia since its introduction as a tabletop sweetener at retail in 2009.” 

‘Natural Halo’
While 49% of consumers still rely on white table sugar to sweeten their food, research from the Natural Marketing Institute (NMI), Harleysville, PA, showed that many are vying for more natural options like honey (44%) or raw sugar (23%). While these options are still sugar-based, they benefit from what many consider a “natural halo,” or the perception of being better for you because they’re unprocessed or non-artificial.

Popular artificial alternatives like sucralose and aspartame still make up a large market share, with 17% and 14% of consumers, respectively, using these ingredients. However, the increasingly popular stevia now makes up 17% of sweetener use, according to NMI estimates. Meanwhile, other natural sweeteners are growing in prominence with 10% using agave, 9% using molasses, 3% using monk fruit and another 3% using beet sugar. (See Figure 1.)

The market power of these natural sweeteners has begun to have a significant impact on traditional artificial sweeteners in recent years, said Alice Chin, director of quality control for Green Wave Ingredients (GWI), La Mirada, CA. “The output capacity of artificial sweeteners is increasing rapidly, however, the market demand is decreasing. This is because more people are pursuing natural sweetener alternatives such as stevia and monk fruit.” This has resulted in a significant price drop for artificial sweeteners, she noted. “One product particularly affected is sucralose—once valued at $110 per kilo, it is now selling for $60/kilo,” said Ms. Chin, citing GWI’s independent research.

Cecilia McCollum, executive vice president, Blue California, Rancho Santa Margarita, CA, expressed that some consumers have begun to shy away from artificial sweeteners over concerns they may negatively impact their health. However, she said, “concern about potential health problems with the use of artificial sweeteners has created the perfect opportunity to launch consumer products sweetened with other natural alternatives like stevia extracts. Identifying a product as one that contains ‘no artificial sweeteners or flavors’ is a plus to most consumers for the simple reason that consumers simply know now that ‘natural’ is always better than ‘artificial’ when it comes to food.”

Although the term “natural” is not clearly defined, and subject to debate, it’s abundantly clear that consumers value products they perceive to be natural. This value ascribed to natural ingredients has led to “incredible interest and growth in the natural/alternative sweetener market,” according to Peter Sokoloski, key account manager, HealthCo, Bloomingdale, IL. “Retailers and consumers are driving growth of both standalone sweeteners and also foods that utilize these in the interests of calorie reduction and health benefits. There has always been a core group of healthy lifestyle consumers opting for alternative natural sweeteners, but this number has grown in recent years with the rapid expansion of the stevia market driven by large mainstream producers.”

Stevia Leads the Pack
Of the multitude of natural sweeteners available in the market today, stevia stands out as the front-runner. Producer and marketer of high-purity stevia ingredients, PureCircle, Chicago, IL, reported that more than 2,100 stevia-sweetened products were launched internationally within the last year, up 73% from just one year ago. The increase in product launches was strongest in the carbonated soft drinks, dairy, baked goods, juices and drink mix concentrates categories.

Mintel and Leatherhead Food Research projected that the market for stevia would continue to grow looking ahead to 2017 as a result of increased consumer interest, improved taste and texture, and EU regulatory approval. The value of stevia as an additive for use in food and beverage manufacturing accounted for $110 million in 2013, and the market research firms predicted it would grow to $275 million by 2017.

Blue California produces Good&Sweet Reb-A 99%, a high-purity stevia extract that contains no other steviol glycosides in order to preserve purity, sweetness and taste. Ms. McCollum said that an additional advantage to working with a high-purity single compound is that it can be easily blended with other sweeteners or steviol glycosides to achieve various sweetness levels and tastes. “Good&Sweet is Generally Recognized As Safe (2009), BRC-certified, kosher and halal, and furthermore it not only meets but exceeds the requirements for the stevia extract additive approved for use in the European Union (E960), which requires a purity of no less than 95% of total steviol glycosides.”

The Netherlands-based DSM has expanded the sweetening power of stevia with the launch of a new platform based on fermented stevia, which the company expects to introduce to the market within approximately 18 months after completing the necessary regulatory approvals, according to Ardy van Erp, business development manager with DSM Food Specialties. “Fermentative stevia is exactly the same product as stevia extract and is made from the leaves of the stevia plant,” explained Ms. van Erp. “The process of how to make it is also similar to a large extent. Whether plant-extracted or made via fermentation, the stevia molecules will go through filtration, separation, purification and crystallization, for instance. The initial step of the production process, however, is different. DSM uses a yeast that produces steviol glycosides, comparable to yeast producing alcohol.” While fermentative stevia is identical to the plant extract, it yields a higher purity, according to DSM. Fulfilling consumer demand for high-intensity sweeteners, fermented stevia offers a sustainable and cost effective option for manufacturers.

ViaTech stevia-based sweeteners represent Minneapolis, MN-based Cargill’s growing stevia portfolio, targeting calorie reductions of greater than 50% in more challenging applications like carbonated soft drinks. Pam Stauffer, global marketing programs manager, said key goals of the brand are to deliver optimal taste and sweetness while reducing the typical off notes associated with stevia-based sweeteners.

Innovative Food Processors Inc. (IFP), Faribault, MN, is known for its product development and contract manufacturing of stevia Reb-A blends. “We have accrued a keen understanding of formula nuances and have developed both ingredient and technological enhancements to deliver high-performing, cost-effective sweetener systems,” said Ephi Eyal, president and CEO. “Truvia is case in point. We have worked closely with Cargill on optimizing their tabletop, bake blend and industrial blend.”

In addition to its stevia offering ENLITEN Reb A, Ingredion Incorporated, Westchester, IL, provides a full range of sweetener solutions using its proprietary DIAL-IN Sweetness technology. Alyssa Turner, product specialist with the company, commented, “Whether the goal is reducing sugar naturally with ENLITEN Reb A, reducing costs with aspartame or creating a perfectly balanced flavor profile using a combination of sweeteners, Ingredion can help.”

HealthCo distributes Stevia FSE, an organic, enzyme-treated stevia sweetener with zero calories and a low glycemic impact. “With commonly-used high Reb A stevias, bitter aftertaste has been a primary concern, both for manufacturers and consumers alike,” noted the company’s Mr. Sokoloski. To address this concern, HealthCo developed a proprietary enzymatic processing method that “virtually eliminates any bitter aftertaste, thus no flavorings or masking agents (such as erythritol) are needed with Stevia FSE,” he explained. “This natural enzyme treatment enhances its organoleptic (sensory) properties. NOP certified organic, kosher and halal, Stevia FSE is 60-100 times sweeter than sugar (sucrose). It is the only organic and enzyme-treated stevia extract currently in the U.S. market.” In addition to stevia, HealthCo offers sweetening alternatives such as dextrose, Sucanat, erythritol, fructose, beet sugar and date sugar.

Stevia, Sustainability & Supply Chain
With stevia entering mass-market levels of success, the sustainability of the plant crop is of great interest for all links in the supply chain.

“The demand for stevia is growing in the market and it is very likely it will outgrow supply,” warned DSM’s Ms. van Erp. “Different production methods of stevia are therefore likely to fulfill a market need.” The company’s fermentative stevia platform is in part a response to the industry’s need for “a larger, more predictable supply that is also sustainable,” she said.

“Ensuring sustainability to large customers with potential global reach is a major responsibility as a manufacturer,” said Ms. McCollum of Blue California. “Ensuring a sustainable resource of stevia leaves to cope with ever-growing demand will eventually be a challenge.” Such concerns over a sustainable and reliable supply of stevia have also led Blue California to explore fermentation as a possible solution. “Blue California has been working through our R&D centers on developing the fermentation process of Reb-A and other steviol glycosides for the past four years. We are in the process of completing our new manufacturing facility with large capacity for production by fermentation. This process offers an alternative solution to the problem of sustainability, eliminating the problem of inconsistent or unpredictable supply resources, ensures consistent quality and practically eliminates price fluctuation as well.”

However, she said that fermentation requires continuous production to ensure efficiency and commercial feasibility. “Production of steviol glycosides by fermentation will become a necessity as consumers globally embrace this natural, non-caloric sweetener and demand continues to grow. For now, cultivation of stevia in China and other parts of the world is sufficient to meet the global demand of stevia extracts, but we expect changes as consumers accept stevia-sweetened products in their homes and children grow up with the taste of stevia.”

Supply chain transparency is also crucial to ensuring a sustainable, unadulterated crop with minimal impact to the local environments and communities where the stevia is harvested.

GWI harvests its stevia crop from China and India through its exclusive partner Chenguang Biotech. Chenguang’s direct relationship with the growers at 12 agriculture bases “gives them an advantage from seed to powder, allowing them to completely monitor the full life cycle of the product. They are also extremely in tune with trends and changes in the stevia market,” said GWI’s Ms. Chin.

Ingredion’s ENLITEN Reb A stevia sweetener is sourced from a single farmer in the south of Brazil, according to the company’s Ms. Turner. “The supply chain is entirely vertically integrated, and the prosperity of the people growing the plants, and planet on which they are growing, are a key foundation of Ingredion’s ENLITEN production. The farmer is supported with insurance against crop attrition and natural disasters, as well as capital to purchase needed equipment.”

Up-And-Coming Sweeteners
Various nutritive and non-nutritive sweetening agents are also available to consumers and manufacturers looking to limit sugar intake.

BENEO Inc., Morris Plains, NJ, developed the sweeteners Palatinose and Isomalt derived from the sugar beet. Through an enzymatic linkage, Palatinose becomes a slowly digestible carbohydrate that provides energy sustenance over a longer period of time, explained Joe O’Neill, president and general manager for the company. He noted that Palatinose “brings nutritional and technical benefits for formulators with a similar mouth-feel to sucrose, and can be combined with high-intensity sweeteners with no aftertaste.”

Isomalt, which is made from pure beet sugar, offers a natural taste and sweetness while being kind to teeth, containing half the calories of beet sugar and offering a low glycemic response.

BENEO also offers Orafti—a range of high performance, highly soluble inulin ingredients. Mr. O’Neill explained, “Orafti oligofructose is a natural sugar replacer and provides all the nutritious benefits of fiber. It’s beneficial in the following three ways: as a natural sugar reducer, it is more stable in low pH preparations for foods such as yogurt, and it offers superior texture for food preparation. It also can complement stevia because of its profile being closer to sugar.”

With approximately 30% of the sweetness of sucrose, BENEO’s highly soluble inulin and oligofructose deliver fiber and a mildly sweet flavor. Mr. O’Neill added that the Orafti line’s natural sweetness profile lends itself to combination with high-intensity sweeteners in order to create a “more balanced and sugar-like palate without any off-taste.”

IFP offers a wide range of natural and artificial sweetener solutions. According to Mr. Eyal the company supports the high-intensity sweetener industry in two ways: by selling value-added specialty ingredients that act as carriers for full sweetener systems, and by providing clients with customized development and co-manufacturing of full sweetener systems that contain its value-added carriers. “We support the development and regularly manufacture a wide range of finished sweetener products and systems based on natural high-intensity sweeteners including stevia, monk fruit, xylitol and erythritol and artificial systems including sucralose, aspartame and acesulfame potassium. Our sweetener systems are based on various carriers including an option of natural and organic for inulin and rice, corn and potato maltodextrin based sweeteners.”

In addition to its stevia offerings, Cargill offers a broad portfolio of nutritive and non-nutritive specialty sweeteners. For example, Xtend sucromalt, a slowly and fully digestible carbohydrate sweetener syrup, supports a steady energy release at 70% of the sweetness of sugar and can offer simple sugar reduction of 50%, explained the company’s Ms. Stauffer.

Cargill also produces Zerose erythritol, a bulk sweetener that has “zero sugar, zero calories and zero aftertaste.” The company estimated that Zerose tastes about 60 to 70% as sweet as sugar, while providing bulk and masking the aftertaste of other high-intensity sweeteners. Recommended use for the product includes applications for dental health, weight management and sugar elimination. 

Adding supporting evidence to Zerose erythritol’s health claims, Cargill’s Ms. Stauffer cited a recent three-year clinical study evaluating the dental effects of erythritol, xylitol and sorbitol among elementary-school-age children. “Results showed that erythritol demonstrated significant caries, dental plaque and Streptococcus mutans reduction versus sorbitol and xylitol,” she said.

Meanwhile, Cargill’s TREHA trehalose is a naturally occurring sugar that can be found in significant amounts in many common foods including mushrooms (8-17%), honey (0.1-1.9%) and baker’s yeast (15-20%). “Trehalose is perhaps most well-known in nature for the role it plays in the ability of Selaginella lepidophylla, also called the ‘resurrection plant,’ to endure years of desiccation and then revive within hours to normal function with only the addition of water. There are many other examples where the presence of trehalose in the organism protects plants and animals from death during times of freezing, dehydration and heat,” explained Ms. Stauffer. Trehalose’s ability to protect organisms during periods of extreme stress is a result of its unique ability to stabilize biologically important molecules against irreversible damage.

Cargill harnesses these abilities as a preserving agent and sweetener in food and beverage applications. Ms. Stauffer explained, “TREHA trehalose, used as a food and beverage ingredient, consists of two glucose molecules bound by an ,-1,1 glycosidic linkage. Each molecule of trehalose (two glucose molecules) in the crystal has two associated water molecules (dihydrate).

TREHA trehalose is manufactured from starch through a proprietary enzymatic process developed by Hayashibara Co., Ltd., Okayama, Japan, and comes in crystalline form similar to sucrose (table sugar). It is a non-reducing disaccharide that contains 4 kcal/g and is approximately 38% as sweet as sucrose (at 5% solution). TREHA trehalose provides many functional benefits, such as increasing the shelf-life and improving the texture of baked goods, stabilizing proteins, reducing freeze-thaw damage and improving flavor and aroma in a variety of food and beverage products.”

Formulation Challenges
While many consumers are looking to reduce their sugar intake, few are willing to make huge sacrifices on taste. Historically, sugar substitutes have struggled to match texture, mouth-feel and taste.

“The trend toward sugar reduction continues, and with it challenges regarding texture and mouth-feel,” said Ingredion’s Ms. Turner. To address these issues, Ingredion has developed a full line of texturizers and nutritional ingredients to help replace what is lost when sugar is removed, while also supporting nutritional content.

IFP specializes in formulation challenges for products in the sweeteners market, said Mr. Eyal. “We are particle engineers and work to enhance the performance of sweetener ingredients and/or formulas that have issues such as poor solubility, poor flowability, dustiness, negative ingredient interactions or bad taste profiles. We use our fluid-bed batch agglomeration and coating technologies to increase both the functionality and taste profiles of sweetener systems so manufacturers are able to overcome challenges and deliver higher quality, cost effective and uniform products.” He added, “Each sweetener system has it’s own set of formulation challenges. It is up to us to help our clients discover, develop and deliver a custom high performance formula for each, individual application.”

In addition to taste, mouth-feel and cost, “behavior of the sweetener at high temperature, pH levels, solubility, stability and synergies with other ingredients are considerations depending on the application,” noted DSM’s Ms. van Erp.

Despite stevia’s growing popularity, food and beverage manufacturers still struggle with its taste profile, according to Scott Fabro, global business development manager for Cargill. “In fact, taste is the single biggest barrier to growth for stevia-based sweeteners,” he said. To address this issue, the company’s ViaTech stevia-based sweeteners line features a “proprietary taste-prediction model that can precisely predict which combination of steviol glycosides deliver optimal taste and sweetness,” as well as access to “unique technology that results in a proprietary composition of ingredients that delivers optimum taste and performance for the most challenging reduced-calorie applications.”

Mr. Sokoloski of HealthCo said the concerns over stevia’s flavor profile come down to varying consumer tastes. “Just as every consumer has different tastes, it’s impossible to ensure that every food using an alternative sweetener will be able to work taste-wise. Cooks and food formulators should be open to working with a variety of different ingredients and be willing to experiment to get the desired results, whether it’s from a taste or health standpoint.” However, he warned against “enhancing” stevia with sugar alcohols and natural flavors, as it could “complicate product formulation compared with naturally non-bitter, pure stevia sweeteners like Stevia FSE.”

Future Sweetener Trends
As more consumers acquire a taste for sweetness without sugar, industry experts predicted that evolving food and health trends could shape the market for sweeteners. 

With gluten-free food making a huge impact on the market, HealthCo’s Mr. Sokoloski said natural sweeteners are important tools to keeping products healthy and tasty. “With the continued growth of gluten-free foods, some mainstream offerings tend to be heavy on sugar, but healthy lifestyle consumers are looking for alternatives with what they consider healthier sweeteners that also taste good. This trend is working well for us.”

BENEO’s Mr. O’Neill also noted the need to deliver fresher, moister and better-tasting gluten-free products, which sugar alternatives can help to support. In addition, low glycemic diets for diabetes control and weight management are significant opportunities for sugar-free or low-sugar sweeteners. “These diets can also help reduce the risk of heart disease as well as blood cholesterol levels,” he said.

The booming energy drink category is a prime opportunity for use of alternative sweeteners, said Cargill’s Ms. Stauffer. “We see a continued interest from customers in developing energy products (particularly beverages) without the use of caffeine and added sugar,” she said. Cargill’s Xtend sucromalt is uniquely positioned to help address this trend, since it is a slowly and fully digestible carbohydrate that delivers a slow energy release and does not impact the glycemic index. Though it contains calories, Xtend sucromalt can reduce sugar content by up to 50% on product labels.

Food and beverage companies want more versatile ways to reduce the calorie content of their products, said Ms. van Erp of DSM, and non-sugar alternatives are a key component of that process. “We think you will see that depending on the application, target audience and positioning, producers will have a toolkit of sugar and sweetener options produced in different ways, with different cost levels at their disposal, and will use them in combinations to achieve the optimal taste profile. In this way, they can continue to diversify their products. One outcome of this is that you, for instance, see there is a strong trend for more mid-calorie products on the market, as an example, in beverages.”

Quality and purity of sweeteners will be critical elements, according to Blue California’s Ms. McCollum. “The quality of the stevia sweetener you choose will dictate the success of your finished product. Unfortunately, too often procurement managers decide to ‘save’ a percentage on the cost of raw materials by purchasing inferior products to save money for the company,” she added.