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Research and Markets: Sales for Sugar-Free Food and Beverages Growing in US

Posted on: Friday, 26 August 2005, 09:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c23245) has announced the addition of Sugar-free Food and Beverages in the United States to their offering.

This report explores the dynamics of the sugar-free market broken down into the following segments: carbonated beverages, gums, desserts, mints, and condiments. Sugar-free products in these segments were distinguished from sugared products by searching through UPC descriptions in the IRI database using the keywords: "sugar-free,""sugar free," or products containing "Nutra-Sweet,""NutraSweet,""Splenda," or "Sweet'N Low." Although this search technique may have missed some new low-carb products, the primary purpose of this report is to discuss the sugar-free market and the potential for product development and marketing based on the "sugar-free" product attribute.

Diet Rite, the first diet soft drink, was rolled out nationally in 1962, spurring the start of the food and beverage industry's system of dual offerings: sugar-free and regular versions. Just one year later, Coca-Cola launched Tab and the proliferation of sugar-free options exploded from there. While the sugar-free category is not new, it is taking newer forms (sweetened with Splenda) and facing newer threats ("natural foods,""reduced sugar" product varieties, etc.) Still, the market, defined as products made without sugar through the use of an artificial sweetener ingredient, has sales of $5.7 billion in 2004--an increase of 24% in current prices since 1999.

Sales increases have been driven by the increasing number of diabetics, the low carb trend and new product innovations, including great excitement regarding Splenda. But, perhaps the most influential factor is the vast number of American consumers willing to make small changes to their diet for weight reduction and improved health. In short, using sugar-free products provides people with weight issues and diabetes the opportunity to use food and beverage categories otherwise entirely off-limits. Additionally, in the eyes of some consumers, the use of sugar-free products in one eating occasion gives them permission to indulge in another.

This report focuses on processed foods that are rendered sugar-free through the use of a sweetener ingredient that is a direct replacement for refined sugar or a sugar product. Not included are foods that are naturally sugar-free (e.g. vegetables, meat) or foods that naturally contain some alternate form of sugar (e.g. lactose in milk, fructose in fruit). Also excluded are processed foods in which formulations do not include sugar (e.g. savory products such as processed soups or entrees). Sugar substitutes sold on their own (e.g. Splenda, Equal, Sweet'N Low) are not included; these products are covered in Sugar and Sweeteners--U.S., June 2004.

Major Manufacturers Include:

Coca-Cola Inc.

PepsiCo, Inc.

Cadbury Schweppes

Wm. Wrigley Jr.

Kraft Foods

Hershey Foods

Murray Sugar Free

Smucker's

B&G Foods (Polaner)

Specialty Brands of America (SBA)

For more information visit http://www.researchandmarkets.com/reports/c23245

Source: Business Wire

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