Technology Advances Enabling Sugar Reduction in Food and Beverage Products

The Impact of the Top 3 Strategic Imperatives on Sugar Reduction Strategies for Food and Beverage (F&B) Products

DISRUPTIVE TECHNOLOGIES

• Why:

  • The prevalence of health issues including obesity, diabetes, and metabolic disorders linked to excessive sugar intake necessitate innovative approaches to reduce sugar consumption and improve public health.
  • Consumers' evolving preference for healthier and cleaner-label products drives the need for sugar alternatives.
• Frost Perspective:
  • Short-term efforts will likely emphasize natural sweeteners such as stevia, monk fruit, and erythritol.
  • More optimized blends of different sweeteners will emerge in the mid-term to achieve a better sugar-like taste and functionality.
  • The continuous monitoring and adjusting of sweetness profiles in food products to ensure consistent taste experiences will occur in the long term.

INNOVATIVE BUSINESS MODELS

• Why:

  • New business models in the sugar reduction space must be innovative, consumer-centric, and adaptable to cater to evolving consumer preferences, regulatory requirements, and technological advancements.
  • They should focus on delivering not only healthier alternatives but also engaging experiences that resonate with consumers.
• Frost Perspective:
  • Business models that foster collaboration between food tech start-ups, research institutions, and established companies could drive innovation in sugar reduction technologies and the development of novel sweetening agents.
  • Subscription-based models offering personalized sugar reduction plans or customized products would prove beneficial.

COMPETITIVE INTENSITY

• Why:
  • Competitive intensity in the sugar reduction space has been increasing, primarily due to growing consumer awareness about the health risks associated with excessive sugar consumption.
  • This trend has sparked a surge in companies offering sugar reduction solutions.
• Frost Perspective:
  • Companies will offer a wide range of alternative sweeteners from various sources, including plants, microbes, and upcycled ingredients to support sugar surface modification strategies, such as pulverization and coatings.
  • Companies researching biotechnology, precision fermentation, formulation science, and materials technology will face tough competition to offer better sweeteners.

Research Segmentation

• Sugar Reduction

  • Replacement

    • Plant Extracts
      • Sugars
      • Proteins
      • Fibers
    • Sugar Alcohols
    • Rare Sugars
    • Upcycled Sugars
    • Blends
    • Others*
  • Structural Modification
    • Emulsification
    • Encapsulation
    • Gel-aeration
    • Enzymatic conversion
    • Flavor modification
    • Spraying
    • Advanced manufacturing
    • Particle reduction

Growth Drivers

Health Concerns:

Growing awareness of health issues related to excessive sugar consumption, such as obesity, diabetes, and dental problems, has prompted a shift toward alternatives that offer sweetness without the adverse health effects.

Regulatory Changes:

Evolving regulations and government initiatives aimed at reducing sugar intake in F&B products have stimulated the search for alternative sweeteners that comply with regulatory standards while meeting consumer preferences.

Technological Advancements:

Advances in biotechnology, precision fermentation, formulation science, and food technology have enabled the development of novel sweetening agents with improved taste, stability, and functionality.

Sustainability Focus:

Concerns about the environmental impact of traditional sugar production methods have propelled the search for sustainable alternatives, encouraging the exploration of new sources and innovative production techniques.

Diverse Applications:

Increased demand for sweeteners extends beyond the F&B industry to pharmaceuticals, cosmetics, and materials science, prompting the development of sugar replacements suitable for various applications.

Growth Restraints