Market Outlook

Caramel is one of the confectionery ingredients, widely used for the filling, and flavoring applications in the food & beverage sector. These days’ consumers are adopting sugar-free food and beverages, this due to increasing awareness regarding the health impact of sugar-based products. Due to this, food and beverage product manufacturers are focusing on the procurement of sugar-free ingredients including sugar free caramel. The sugar free caramel has a range of applications for the preparation of various food and beverages.

The ongoing clean label and free-from trend are the major factors surging the demand for sugar free caramel. The sugar free caramel is available in various form that powder, granule, and paste. Considering the utility of sugar free caramel, manufacturers of sugar free caramel are focusing on the new product launches for their business expansion. The rising trend of fancy food and beverage products such as cake dressing, ice-cream, and innovation in traditional food recipe are the factors that are boosting the demand for sugar free caramel and is anticipated to grow over the forecast years.

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Rising Demand for Confectionary Products Propelling the Growth of Sugar Free Caramel Market

The demand for sugar free caramel is increasing in the confectionery industry, as the consumers are trying to reduce the sugar from their diet. Due to shifting consumer’s preference, the demand for sugar free caramel-based confectionery products and use of sugar free caramel as food and beverage ingredient is surging the growth of sugar free caramel market across the globe. Increasing expenditure on healthy food and beverages and the changing lifestyle of the consumers are some of the key factors that are giving an impetus to sugar free caramel market around the world.

However, significant growth is observed in the beverage industry that includes non-alcoholic and alcoholic products. Sugar free caramel ingredients including powdered and liquid caramel colors along with caramelized syrups of sugar are widely used to prepare alcoholic and non-alcoholic beverages such as lemonade, tea, fruit drink, beer, and powdered drink mix among others. These are the major factors propelling the market of sugar free caramel market. As an opening, caramel ingredient has a huge potential in the market by steering untapped nations or developing countries.

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Global Sugar Free Caramel: Market Segmentation                                                                                                                                                                Based on form, the global sugar free caramel market has been segmented as-

  • Powder
  • Liquid
  • Solid
  • Granules

Based on functional property, the global sugar free caramel market can be segmented as-

  • Flavor
  • Color
  • Fillings
  • Toppings
  • Others

Based on application, the global sugar free caramel market can be segmented as-

  • Confectionery
  • Bakery
  • Ice-cream
  • Dessert
  • Malted food
  • Sauces
  • Breakfast cereals
  • Beverage
    • Non-alcoholic
    • Alcoholic
  • Others

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Global Sugar Free Caramel Market: Key Players

The players operating in global sugar free caramel market includes BURKE CANDY & INGREDIENTS, Werther’s Original (August Storck KG), Cocomels (JJ’s Sweets), Ricola, The J.M. Smucker Co., and R. Torre & Company, Inc. among others.

For instance, in February 2018, Ricola – a Swiss confectioner introduced herbal, lactose-free, as well as sugar free caramel in the U.K. market.

Opportunities for Market Participants:

The increasing demand for healthy confectionery products such as chocolates, bars, candies, among other products is surging the demand for sugar free caramel. Apart from that, caramel has a range of application in the production of bakery products, beverages, and ice cream production, which augmenting the overall production of sugar free caramel.  North America followed by Europe has a large number of bakery producers, which is creating lucrative prospects for the manufacturers operating in the global sugar free caramel market. However, the surging incidences of diabetes, obesity, CVDs and other sugar-borne diseases are creating opportunities for the sugar free caramel producers to generate more revenue.

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