For one in three consumers, "naturalness" is the most important feature in a healthy food or beverage product, reports Tom Fuzer, VP of Market Strategy, Howtian. He explains: "64% of consumers say, 'I try to reduce my consumption of processed foods because they are less healthy.'" What specific healthy attributes are consumers seeking now? Our experts point to four.
Consumers are sweet on low-sugar options
The global natural sweeteners market size was valued at $24.48 billion in 2023, and that number is expected to continue to soar to $42.61 billion by 2032. Fueling the rise: “Consumer interest in natural flavors, sweeteners, and colors has reshaped the market, driven by increasing health awareness and social media trends," explains Doris Ip, Marketing Manager at Layn Natural Ingredients. "Since 2010, the push for sugar reduction has gained momentum as consumers become more health-conscious, particularly in fitness and sports. This demand for healthier, natural products has led companies to develop new, clean-label ingredients that align with these trends."
Indeed, says Fuzer, "Over the last couple of years, food and beverage manufacturers around the world have launched twice as many products with 'natural flavoring' declared on the label than with 'artificial flavorings.'"
Data from Innova Market Insights suggests sugar-free and no added sugar are the two most common sugar-related claims. Appearing on two-in-five launches with a sugar-related claim, these statements are becoming more synonymous with products that promote health benefits—energy, vegan, and plant-based claims.
"Natural sweeteners are now being applied beyond traditional categories like tabletop sweeteners and dairy, expanding into snacks, baked goods, and beverages," says Ip. "Companies are focusing on versatile, low-calorie sweeteners that can support a broader range of food and beverage applications to meet the growing demand for clean, functional products."
There's a notable shift in the beverage category, where consumers increasingly prefer simple, recognizable ingredients, Ip says. "Companies are responding by focusing on natural flavors, sweeteners, and colors, removing artificial additives and creating transparency. Layn has championed the production of these natural ingredients, helping brands meet consumer expectations for healthier, clean-label products that align with wellness and sustainability trends."
The evolution of stevia is a major factor here. "Arguably one of the most significant changes in sweeteners is the commercialization of lesser-known stevia glycosides like Reb D and Reb M, which offer a clearer taste than Reb A," Ip contends. "While Reb A has been a mainstay of the natural products industry for decades, many people did not like the bitter, licorice-like aftertaste it produced. These 'new' glycosides are more expensive, but with Layn’s investment in new infrastructure to bring them to market, manufacturers can now combine them with Reb A or other natural sweeteners like monk fruit to achieve a taste more akin to sugar. This development has also enabled 100% sugar replacement, addressing the growing demand for low-calorie, healthier alternatives."
At Howtian, the company has been successfully marketing its new SoPure glucosylated steviol glycoside products as a versatile, plant-based, natural taste enhancer and flavor modifier product range. "While these products are fundamentally designed for achieving optimal, complex flavor solutions naturally, they are more and more often used by some manufacturers for sugar reduction purposes as well, when applied in smaller quantities," says Fuzer.
Colors are getting cleaner
Focusing on shifts in the coloring space, Alice Lee, Technical Marketing Manager, GNT USA, LLC, points out that in the past year, natural colors have become more of a necessity for product innovation, driven largely by regulatory changes, such as the recent bans in California on certain artificial ingredients like Red 3. She says these regulations, coupled with growing consumer demand for natural products, have accelerated the transition to plant-based colors.
So what's new in the space? "Recent innovations mean that manufacturers are now able to get even more creative with natural coloring solutions," notes Lee. "For instance, due to advances in formulation technology and updated U.S. FDA regulations, it’s now possible to achieve natural blue shades with the superfood spirulina in a wider range of applications. Manufacturers can use spirulina to create vibrant blue beverages, including products like enhanced waters and sports and energy drinks. We also now offer an oil-soluble orange paprika concentrate that can provide a clean-label solution for snacks like cheese puffs and many other fat-based products."
The visual appeal of natural colors helps products stand out on the shelf or menu and also plays a crucial role in setting up product expectations, Lee stresses. "A bold orange shade could be used to help communicate both the functional benefits and the flavor of an orange-flavored vitamin gummy, for example. With something like a blue spirulina smoothie, you can showcase the hero ingredient and create a bold visual statement. As a result, manufacturers are recognizing the multifaceted value of natural colors as a key component in delivering a holistic and engaging consumer experience."
"The visual appeal of these natural colors not only helps products stand out on the shelf or menu but also plays a crucial role in setting up product expectations. A bold orange shade could be used to help communicate both the functional benefits and the flavor of an orange-flavored vitamin gummy, for example. With something like a blue spirulina smoothie, you can showcase the hero ingredient and create a bold visual statement. As a result, manufacturers are recognizing the multifaceted value of natural colors as a key component in delivering a holistic and engaging consumer experience."
Health-conscious shoppers seek function
"While natural ingredient lists remain a top priority for consumers, there is a growing expectation for additional benefits such as enhanced health attributes, a premium flavor experience, and a compelling sustainability story," points out Lee.
On the functional sweetener front, Ali Wing CEO of Oobli, notes, "There’s been growing interest in exploring sweet proteins as an innovative new sweetener option as CPG companies look to create better low-sugar product lines."
Wing brings up another point: "Recent reports have linked alternative sweeteners like sucralose and aspartame to gut issues, and the sugar alcohols xylitol and erythritol to an increased risk of cardiovascular disease. Oobli sweet proteins are plant proteins that are up to 5,000x sweeter than sugar and can replace 70-90% of sugar in most food and beverage products. Derived from fruits and berries that grow near the equator, sweet proteins are gut- and blood-sugar friendly because they are just like any other dietary proteins, the large-molecule building blocks of our bodies."
Sustainability makes the winning difference
In addition to demanding excellent taste and an array of functional wellness benefits, today's consumers also want to trust that the products they spend their hard-earned money on are indeed making a positive difference for the wellbeing of the planet. While consumer awareness on the sustainability front is still growing, findings from a PwC survey prove that consumers are willing to pay a premium if they believe a product is better for the planet. This is most closely related to sustainably produced or sourced products.
Using colors as one example of the positive impact that is possible, Lee explains: "There's a growing emphasis on sustainability within the natural colors sector. That can include cutting the carbon footprint of colors through superior agricultural methods and enhancements and greater efficiency in production. We’re also seeing the introduction of more sustainable color sources, such as algal carotene, which offers a renewable source of beta-carotene. These innovations not only meet the demand for natural and vibrant colors but also align with the industry’s broader sustainability goals." WF