Next Generation Sweeteners Market

OPPORTUNITIES: Increased R&D and biotech innovation

Research and development, and biotech innovation, such as precision fermentation and enzymatic production, are producing exciting opportunities in Next Generation Sweeteners. Specifically, these technologies allow the manufacturer to create sweeteners with efficiency, purity, and sustainability to address some limitations at the source for plant extracts. For example, Sweegen’s Ultratia brazzein was developed, using precision fermentation, as a sweet protein 500-2000 times sweeter than sugar, free of the bitterness from stevia, giving consumer products many options, especially beverage applications and prepared foods. Similarly, Elo Life Systems is already doing molecular farming using monk fruit to produce better taste profiles in monk fruit with more mogroside-V content than currently available, which allows for reduced costs and better yield. Similarly, in the enzymatic innovations, researchers at Jiangsu University for 2024 produced D-tagatose from L-arabinose isomerase with 90% yield in mild conditions. Companies such as Ambrosia Bio, in partnership with Ginkgo Bioworks, have established industrial levels of enzymatic allulose production. Also, in South Korea, Samyang is pushing the limits of allulose production using enzyme innovation and advanced crystallization. These technological innovations not only support clean label diets and sustainable sourcing but also open up potential for similar products in functional foods, beverages, and pharmaceuticals.

CHALLENGES: Confusion between artificial vs. natural sweeteners is affecting trust

The artificial/natural confusion is a big problem for the Next Generation Sweeteners market, especially regarding consumer trust. These next-Next Generation Sweeteners, like stevia, monk fruit, allulose, and tagatose, might be derived from natural sources, or maybe naturally fermented, but most consumers view them as additives that they cannot trust because they do not recognize the chemical name or the labeling is not clear, as in the case of "Rebaudioside M" and "Mogroside V" - at first glance, they may seem synthetic, but they are from a plant. This confusion leads to reluctance to consume anything with Next Generation Sweeteners in it, particularly health-focused consumers who want clean-label products.

Additionally, concerns about artificial sweeteners like aspartame and saccharin have been around for a long time and have contributed to skepticism regarding any low-calorie sweetener regardless of its origin, and can create issues with purchasing decisions, which limit adoption to reformulated food & beverage products. For those in manufacturing, addressing consumer confusion requires an improvement in clarity and labeling on the ingredient statement, and an expanded educational strategy to identify the natural origins, safety, and benefits of Next Generation Sweeteners. Until this confusion is alleviated, even the most modern sweetening technology may struggle to achieve widespread consumer acceptance.