COVID-19 Impact on Pharmaceutical Packaging in Chemicals and Materials Industry

COVID-19 Impact on Sugar Substitutes Market in Food and Beverages Industry

  • Food & Beverage
  • Jul 13, 2021

COVID-19 Impact on Sugar Substitutes Market in Food and Beverages Industry


The COVID-19 pandemic has influenced the whole planet with its major impacts on the economy and businesses across the globe. The COVID-19 spread worldwide in unprecedented ways due to its high infectious and contagious nature and lack of availability of its vaccine. As a result, the greatest medical challenge in the 21st century is yet to be faced by physicians worldwide. Though the emergence of the virus can be traced back to Asia, many European countries along with the U.S. have been struck massively by the pandemic. The virus has spread across all regions ranging from North America, Europe, Asia-Pacific, Middle East, and Africa up to South America. The COVID-19 has been declared as a pandemic by World Health Organization (WHO) due to its increased spread across the globe. After the declaration of the pandemic, various countries announced the complete lockdown such as India, China, and other Asian countries to decrease its spread. According to the situation report of 7th June, 2021 by WHO stated 174 million cases of the corona have been reported globally and 3.7 million patients are dead due to the coronavirus. On a slightly positive note, a total of 157 million people have recovered and total of 1.9 million vaccine doses have been administered as well.

The outbreak of COVID-19 is directly affecting the production and supply chain of sugar substitutes. So, the key manufacturers are working on their business strategy to stabilize the market. During the second and third waves of COVID-19, which has again hit many of the countries, the manufacturers are unable stabilize the market. The manufacturers ensure safety in the manufacturing process by following the government's norms for the prevailing situations.

Moreover, the sudden outbreak of COVID-19 has led to a decrease in the demand and price for sugar worldwide and has impacted the sugar industry accordingly. The COVID-19 has disrupted the entire supply chain, affecting the manufacturers' consumption pattern and investment plans by forcing companies to adopt different and new operations policies with an eye on health and well-being problems for manufacturers in the production line. 


After the outbreak of COVID-19, the consumers have become more conscious about their health and looking for food products that offer them health benefits. Also, the awareness regarding the harmful effect of sugar on health is increasing among consumers, and therefore, people are more inclined towards low-calorie and low-sugar food products which will drive the market. The manufacturers of sugar substitute are following the norms set by the world health organization (WHO) with the safety of the employees along with the steps to manage the demand and supply of sugar substitute products.

The crisis of COVID-19 is creating a new trend among people by strongly demanding zero sugar and low caloric food products. The demand for sugar substitutes like sugar alcohols and sugar sweeteners has increased during the pandemic period. Moreover, sugar tends to affect the neurotransmitters of the brain. Excessive intake of sugars leads to health conditions like metabolic syndrome and obesity. All these factors lead to increase in the risk for health complications from COVID-19.

For instance,

  • According to U.S. Department of Health & Human Services, approximately 34.2 million people in the U.S. are suffering from diabetes which makes it about 10.5% of the population.
  • According to International Diabetes Federation, 436 million people are suffering from diabetes out of which 88 million people belongs to South East Asia region.

Also, manufacturers are taking initiatives and expanding their sugar substitutes business to fulfill growing demand of sugar substitutes among health conscious consumers and diabetic patients. The increase in demand but bad flow of imports and exports has led to a significant rise in the price globally.

Therefore, an increase in the prevalence of diabetes worldwide and a rise in the expansion by manufacturers to fulfill the growing demand for sugar substitutes will boost the growth of the global sugar substitutes market.


Initially, with the restriction on movement, de-globalization, loss of income, restriction on import and export of products, and restriction in the supply of raw materials, the growth of sugar substitute market have been impacted negatively.

But after the COVID-19, the demand for sugar substitute will increase among consumers and in various industries due to rising health concerns and more inclination of consumers towards healthy products to lead a healthy lifestyle. Due to these reasons, supply would have to restore so as to maintain the profit and growth level as excess demands needs to be met by adequate supply.


The market players with the high capital structure of the sugar substitute market have not faced a great loss during the pandemic. On the other hand, the small and medium scale manufacturers, who are serving locally, are facing a critical and challenging situation during the COVID-19 period. The SMEs (small and medium-sized enterprises) face a lack of initial investment with the buildup cost of the already manufactured sugar substitute products. But it has also been observed that COVID-19 boosted the demand for sugar substitute products, creating an aftermath of a good market opportunity for the market players at a global level. To help small and medium-sized enterprises, the Government of Romania (GOR) seeks to help these sectors through policy initiatives.

The pandemic has impacted the demand, supply import and export of sugar substitutes. Growing demand of sugar substitutes due to concern of healthy lifestyle and restrictions on the export and import of the sugar substitutes and regulations imposed by the respective government to stop the spread of corona virus has had a negative impact on the sugar substitute market.

For instance,

The global import and export of sorbitol has been changed drastically from 2019 to 2020. (In USD thousand)

Import/Export (Global)









For Instance,

As per Trade map, the import and export of sucralose has been slightly affected across the globe due to restrictions imposed by government during the pandemic. (USD thousand)

Import/Export (Global)









On the other hand, manufacturers like Tate and Lyle have taken ownership of risk during COVID-19. The company has taken a creative approach such as carrying out risk assessments, compliance checks and audits, carrying out online visits in order to manage the risk during COVID-19.

Thus, significant changes have been seen during the outbreak of COVID-19 pandemic on every aspect of the market across the globe. Restrictions imposed by government on the trade of the sugar substitutes to cope up with COVID-19 pandemic have resulted into decline in the growth of global sugar substitutes market.


Pandemic has taken a toll on every aspect of life, including the global economy. With the significant downfalls in many sectors, a collaborative effort of government, industry players, and consumers can win the fight against COVID-19.

It still continues to inflict the world with appalling economic and social dilemmas, capable enough to leave severe backlash on the economy for the next several years. The first wave had already inflicted severe blows to the population as well as the economy. The currently experiencing second wave is expected to be more disastrous not only to the masses but also to financial markets

Sugar substitutes are mainly used in food and beverage industry, personal care, medical purposes and others. The sugar substitutes market faces fluctuation in the demand of products due to the change in direction in industries with disrupted supply chain and shutdown of the industry.

With the rise in the demand of the food industry, the food industry market uses a sugar substitutes to produce low caloric food products, which is raising the sugar substitutes demand in the market. The panic buying of products and disruption in the supply chain reduces the availability of a product in the market. So, the government is taking initiatives to reduce COVID-19 impact on small and medium enterprises by changing the regulations to make the prevailing market condition better. The increased usage of sugar substitutes products has raised the demand of raw materials creating the market more competitive for raw material suppliers and manufacturers. Thus, COVID-19 has impacted the market of global sugar substitutes market in both positive and negative ways for the manufacturers and the suppliers.