The pursuit of sugar reduction products is triggered by multiple push factors. Globally, ASEAN has the second highest incidence of diabetic populations. The implementation of sugar tax by governments in some of the ASEAN countries also pushes the reduction of sugar.

1. march 2018 ASIA PACIFIC FOOD INDUSTRYingredients & additives
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“Sugar reduction will result in compromised taste”—this
is a general consumer perception as sweet taste serves
as a source of pleasure for many of us. Sweetness also
enhances the palatability of food. For example, chocolate
milk has added sugar to increase taste so that kids will
continue to drink milk as it provides important nutrients for
proper growth and development. Hence, it is challenging for
food manufacturers to overcome this perception because
consumers associate low/no/reduced sugar food products
with a lack of taste.
Why Sugar Reduction?
The pursuit of sugar reduction products is triggered by
multiple push factors. Globally, ASEAN has the second highest
incidence of diabetic populations. The implementation of
sugar tax by governments in some of the ASEAN countries
also pushes the reduction of sugar. Thailand is leading in
this initiative with its national “war with sugar” campaign,
implementing sugar tax to curb soft drinks and sugary drinks
consumption. Other ASEAN countries are expected to follow
suit by imposing an excise tax on sugar-sweetened drinks,
Michelle Lee, regional marketing manager of DuPont (ASEAN), posits that
new regulatory frameworks, coupled with strong consumer interest in
reducing sugar intake in their diets, have put tremendous pressure on food
manufacturers to invest, revamp and reformulate existing products.
TheTasteofLowSugar
aligned with the efforts to increase health awareness and
fight against diabetes. In the long term, this new regulation is
likely to result in consumers ditching sugars.
Consumers are becoming more health conscious and
aware of the need to opt for healthier snacks and beverages.
They are also increasingly paying more attention to the
amount of sugar they consume. Discerning consumers also
understand that sugar may be derived from different sources,
and are making smarter food and diet choices. According to
Innova Market Insights, “low-no-reduced” sugar is one of the
key factors that influence consumers’ purchase decisions,
especially in milk and milk drinks, yoghurt and drinking
yoghurts categories. Manufacturers ought to ensure that
milk drinks with reduced sugar taste as good as the regular
variants, in an attempt to encourage consumers to choose
healthier products.
In supermarkets, there have been emerging initiatives
to offer “reduced sugar” and “no added sugar” products to
replace the existing range. However, it proved to be unpopular
because consumers were not willing to compromise on
the sweet taste that they have always loved. It is time for
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2. it is challenging for food
manufacturers to overcome
this perception because
consumers associate low/no/
reduced sugar food products
with a lack of taste.
ASIA PACIFIC FOOD INDUSTRY march 2018 ingredients & additives
4141
manufacturers to explore different ways to improve the taste
of reduced sugar variants so that they deliver their product
promise to consumers.
The rise of childhood obesity is an alarming issue in
ASEAN; it not only worries parents but also health experts.
The increased prevalence is partially contributed by
children’s consumption of high sugar products and the lack
of guidance from parents in making healthier food choices.
According to the World Health Organisation (WHO), in 2015,
12 percent of children aged five and below are overweight in
Indonesia, and 11 percent of children in the same age group
are overweight in Thailand. In Malaysia, the prevalence rate
is at 7 percent. It is, thus, imperative for food and beverage
manufacturers to expedite product innovation to offer
healthier and reduced sugar options to help overcome this
health concern. Parents are equally responsible to cultivate
healthy eating habits for their children, and ensure that they
choose the right nutritious foods for healthy development.
In summary, the new regulatory frameworks, coupled with
strong consumer interest in reducing sugar intake in their
diets, have put tremendous pressure on food manufacturers
to invest, revamp and reformulate existing products. The
industry needs to step up with new offerings that meet
Globally, the sugar-free food market is forecast to grow at a CAGR of 10.16 pe
(2017-2022). Beverages, dairy and confectionery are the top three largest foo
categories with market shares of 35 percent, 26 percent and 22 percent
respectively. In ASEAN, the dairy category has the highest number of new pro
launched with low/no/reduced sugar positioning, followed by spreads and soft
drinks (Figure 1).
Figure 1: ASEAN new product launches with “reduced sugar” claim between Ja
2015-October 2017.
In Figure 2, spoonable yoghurt, drinking yoghurt, and milk and milk drinks ha
recorded the highest number of low/no/reduced sugar product launches in the
category.
0
2
4
6
8
10
12
14
16
18
Figure 2: New product launches in ASEAN with
“reduced sugar” claims in the dairy category from
January 2015 to October 2017.
Figure 1: ASEAN new product launches with “reduced sugar” claims between January 2015 to October 2017.
market demand so that they do not miss out on these
sizeable opportunities.
Reduced Sugar and Sugar-Free: Is It A Fad?
Globally, the sugar-free food market is forecast to grow at a
CAGR of 10.16 percent (2017 to 2022). Beverages, dairy and
confectionery are the top three largest food categories with
market shares of 35 percent, 26 percent and 22 percent
respectively. In ASEAN, the dairy category has the highest
number of new products launched with low/no/reduced sugar
positioning, followed by spreads and soft drinks (Figure 1).
In Figure 2, spoonable yoghurt, drinking yoghurt, and milk
and milk drinks have recorded the highest number of low/
no/reduced sugar product launches in the dairy category.
The recent shift in consumer behaviour, linking sugar
with an unhealthy connotation, has made sugar-free, low-
sugar, reduced sugar trending buzzwords in the market,
41%
5%
18%
24%
Spoonable yogurt
Cheese
Milk & Milk drinks
Drinking yogurt & Fermented beverages
Figure 2: New product launches in ASEAN wi
category from January 2015 to October 2017
The recent shift in consumer behaviour, linki
connotation, has made sugar-free, low-sugar
the market, and this trend is foreseen to stay
consumers reported that they are following a
reported the same in North America and Eur
41%
5%
18%
24%
Spoonable yogurt
Cheese
Milk & Milk drinks
Drinking yogurt & Fermented beverages
Spoonable yogurt
Cheese
Milk & milk drinks
Drinking yogurt &
fermented beverages
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3. Remember that taste is king, but texture
should not also be sacrificed. A good
reduced sugar solution should provide
a good balance and not compromise on
taste and texture.
march 2018 ASIA PACIFIC FOOD INDUSTRYingredients & additives
42
and this trend is foreseen to stay. In Asia Pacific, 27 percent
of consumers reported that they are following a low sugar
diet while 22 percent reported the same in North America
and Europe.
Many large food manufacturers are committed to
helping consumers reduce their sugar intake through the
introduction of reduced sugar products. It is encouraging
to see multinational companies leading with innovations in
sugar reduction initiatives.
Sugar Alternatives: Are They Healthier?
Sugar alternatives, commonly known as sweeteners, are
used to replace sugar in product formulations. Sweeteners
used in food and beverages can be naturally occurring or
synthetically produced, and they can be further divided into
nutritive and non-nutritive sweeteners. Nutritive or caloric
sweeteners are usually made from fruits, sugar cane and
sugar beets, providing four calories per gram on the average,
while non-nutritive or high-intensity sweeteners contribute
few or no calories when added to foods. These products
can be naturally derived from plant sources such as stevia
and monk fruit. They can also be synthetically produced, for
example acesulfame K, aspartame and sucralose, et cetera.
and perception of sweeteners vary across geographical regions and age. Globally,
53 percent of consumers mentioned that they will avoid foods that contain artificial
sweeteners, while 80 percent of consumers in Asia Pacific are concerned about the
long-term health impact when using artificial ingredients, including artificial
sweeteners, in foods. According to a Mintel report, in the US, 42 percent of the
iGeneration and 37 percent of Generation X agree that artificial sweeteners are bad
for health, while a smaller proportion within the same groups, 11 percent and 6
percent respectively, think that natural sweeteners are bad for health. Another
report in the US stated that 35 percent of consumers agree that products labelled
with “reduced sugar” often contain a high percentage of artificial sweeteners.
Additionally, 37 percent of the consumers would like foods and drinks to have
clearer labels if they contained artificial sweeteners.
Data from the Mintel Global New Product Database has shown that trends for the
use of natural and artificial sweeteners are moving in different directions (Figure 3).
Natural sweeteners in new dairy products and soft drinks are on the rise every
year, while artificial sweeteners are on a decline. This shows a gradual demand
from consumers for natural ingredients, and food producers are responding to this
trend. In the past 5 years, between 2012 and 2017, there has been an increased
use of stevia in both dairy and soft drink products with reduced sugar propositions,
and this is aligned with the increasing demand for natural sweeteners in the market
(Figure 4).
Figure 3: New product launches for dairy and soft drinks containing artificial
or natural sweeteners in the Asia Pacific.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2012 2013 2014 2015 2016 2017
Artificial Non-nutritive Sweeteners Natural Non-nutritive Sweeteners
Figure 3: New product launches for dairy and soft drinks containing artificial or natural sweeteners in the Asia Pacific.
All these sweeteners, be it natural, synthetic, nutritive
or non-nutritive have created confusion among consumers.
This is because consumers’ understanding and perception
of sweeteners vary across geographical regions and age.
Globally, 53 percent of consumers mentioned that they
will avoid foods that contain artificial sweeteners, while 80
percent of consumers in Asia Pacific are concerned about the
long-term health impact when using artificial ingredients,
including artificial sweeteners, in foods. According to a
Mintel report, in the US, 42 percent of the iGeneration and
37 percent of Generation X agree that artificial sweeteners
are bad for health, while a smaller proportion within the
same groups, 11 percent and 6 percent respectively, think
that natural sweeteners are bad for health. Another report
in the US stated that 35 percent of consumers agree that
products labelled with “reduced sugar” often contain a high
percentage of artificial sweeteners. Additionally, 37 percent of
the consumers would like foods and drinks to have clearer
labels if they contained artificial sweeteners.
Data from the Mintel Global New Product Database
has shown that trends for the use of natural and artificial
sweeteners are moving in different directions (Figure 3).
Natural sweeteners in new dairy products and soft drinks are
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4. ASIA PACIFIC FOOD INDUSTRY march 2018 ingredients & additives
4343
ENQUIRY No. 0250 Enquire at page 79 or log on to
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on the rise every year, while artificial sweeteners are on a
decline. This shows a gradual demand from consumers for
natural ingredients, and food producers are responding to
this trend. In the past 5 years, between 2012 and 2017, there
has been an increased use of stevia in both dairy and soft
drink products with reduced sugar propositions, and this is
aligned with the increasing demand for natural sweeteners
in the market (Figure 4).
Is Replacing Sugar Enough?
Some food manufacturers find it difficult to achieve a good
balance for a healthy and tasty product without adding sugar.
This may be due to the misconception that sugar is only a
sweetener and not a multi-functional ingredient. With the
right understanding, formulating low, no or reduced sugar
products that taste as delicious as the regular variant will no
longer be a major innovation challenge.
Manufacturers need to distinguish the strengths,
weaknesses and limitations of each of the alternative
Figure 4: New product launches for dairy and soft drinks containing stevia in
the Asia Pacific.
Is Replacing Sugar Enough?
Some food manufacturers find it difficult to achieve a good balance for a healthy
and tasty product without adding sugar. This may be due to the misconception that
sugar is only a sweetener and not a multi-functional ingredient. With the right
understanding, formulating low, no or reduced sugar products that taste as
delicious as the regular variant will no longer be a major innovation challenge.
Manufacturers need to distinguish the strengths, weaknesses and limitations of
each of the alternative ingredients. It can be a demanding task to ensure that the
final application meets both cost and taste requirements, and it is important to find
practical and applicable solutions. For example, although there is a growing interest
in natural sweeteners, their application in food presents a set of intricate
challenges. Hence, possessing the technical know-how is crucial here.
In addition, replacing sugar is just one part of the equation. Sugar has other
functional properties, for example, it acts as a stabiliser, preservative, thickener or
even as fermentation substrate in a wide range of products. One should not forget
that the use of sugar helps to create distinctive flavours and colours as it reacts and
interacts with other food ingredients. All these important functions and attributes
cannot be achieved when using sweeteners on their own. Other bulking agents,
such as polydextrose or texturising culture bacteria, would help to improve the
palatability of products and increase consumer acceptance rates, especially in
reduced-sugar milk and yoghurt products.
Reformulation For The Future
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
2012 2013 2014 2015 2016 2017
Stevia
Figure 4: New product launches for dairy and soft drinks containing stevia in the Asia Pacific.
ingredients. It can be a demanding task to ensure that the
final application meets both cost and taste requirements,
and it is important to find practical and applicable solutions.
For example, although there is a growing interest in natural
sweeteners, their application in food presents a set of
intricate challenges. Hence, possessing the technical know-
how is crucial here.
In addition, replacing sugar is just one part of the
equation. Sugar has other functional properties, for example,
it acts as a stabiliser, preservative, thickener or even as
fermentation substrate in a wide range of products. One
should not forget that the use of sugar helps to create
distinctive flavours and colours as it reacts and interacts
with other food ingredients. All these important functions
and attributes cannot be achieved when using sweeteners
on their own. Other bulking agents, such as polydextrose
or texturising culture bacteria, would help to improve the
palatability of products and increase consumer acceptance
rates, especially in reduced-sugar milk and yoghurt products.
Reformulation For The Future
It is important for manufacturers to have a reformulation
strategy in place as they attempt to tackle sugar reduction.
Ultimately, the success of the new launch is determined
by the taste of the product, which is the most important
factor for consumers when making their purchase decision.
Remember that taste is king, but texture should not also be
sacrificed. A good reduced sugar solution should provide a
good balance and not compromise on taste and texture.
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