WELLESLEY, Mass.The global market for sugar and sweeteners totaled about $77.5 billion in 2012 and is projected to increase at a compound annual growth rate (CAGR) of 4.6% and reach nearly $97.2 billion by 2017, according to a new report from BCC Research.

In this market, sugar holds the majority share, comprising an 83% to 85% share. It is worthwhile to note that, although the volume of sugar consumption is rising globally by a compound annual growth rate (CAGR) of approximately 4%, the sugar market value in dollar terms is largely dictated by sugar prices, which are extremely volatile, leading to market-value fluctuations on a year-on-year basis.

The sugar alcohol segment grew from nearly $1.9 billion in 2011 to $2 billion in 2012. This market is expected to grow at a 5-year CAGR of 7.9% and reach a value of nearly $3 billion by 2017. The market for high-intensity sweeteners is expected to reach nearly $1.9 billion in 2017. The non-nutritive category has been growing at a faster pace at a CAGR of 5.2%. This growth is due to increased awareness and usage of dietary foods. The growing population of overweight, obese, and diabetic patients globally also is fueling the growth of the category.

Sugar has been the most widely used sweetener in the world, with its closest substitute being high-fructose corn syrup (HFCS). The share of other caloric sweeteners is not significant in the global sweeteners market, but their shares are expected to rise in the coming years, due to increasing cases of obesity, diabetes, and growing health concerns among the people.

The sugar alcohol industry has witnessed an uptrend in the past decades. Driven by increasing demand, there is a drive for additional manufacturing capacity in major manufacturing bases of the world such as China and India. The biggest consumer market for alcohols is Europe, which uses them in various areas such as baked products, confectionaries and frozen desserts.

The food and beverage industry is increasingly replacing sugar or corn syrup with non-nutritive sweeteners in a range of products traditionally containing sugar. Aspartame is currently the most popular artificial sweetener in the U.S. food industry, as its price dropped significantly since the Monsanto Co. patent expired in 1992. Since 2008 sucralose has become the most popular sweetener, quickly replacing aspartame to artificially sweeten foods and beverages.

Learn more about how the future of sweeteners in food product development in the Food Product Design Sweeteners For The Future" free digital issue.