Sugar-free sweetener manufacturer Zydus Wellness reported a 3% year-on-year decline in sales to ₹400.10 crore during the December 2023 quarter. This downturn was primarily attributed to a 5% decline in the company’s food and nutrition segment, driven by ongoing challenges in the artificial sweetener portfolio and the influence of the World Health Organization (WHO) report on non-nutritive sweeteners, as highlighted in a recent report by ICICI Securities.
Despite efforts by companies, products based on artificial sweeteners continue to struggle to gain traction compared to sugary foods and beverages. Consumer resistance has been bolstered by the WHO report, which raised safety concerns regarding sweeteners like aspartame, linking them to potential health risks such as increased risk of type 2 diabetes and cardiovascular diseases, along with a lack of efficacy in weight loss.
Executives across various sectors have acknowledged persisting safety concerns surrounding artificial sweeteners, particularly aspartame. Coca-Cola, for instance, has witnessed its no-sugar drink, Coke Zero, surpassing Diet Coke in growth, attributed to its ‘zero sugar’ tagline and identical taste to the original Coke. While both variants are endorsed by notable personalities, Coca-Cola’s marketing strategy focuses more on promoting Coke and Coke Zero, in line with its global approach.
However, despite the commitment to products like Diet Coke, makers of low-sugar biscuits, chocolates, and ice cream have observed minimal success, with sales of such items accounting for less than 2% of their overall portfolios nationally. Launches in this category in India have often been either defocused or withdrawn due to low demand.
Mayank Shah, senior category head at biscuit maker Parle Products, noted that the sugar-free category for biscuits remains less than 1% and has not gained significant traction. He emphasized that consumers typically seek sweet indulgence from products like biscuits and derive value from them, indicating a lack of immediate plans to enter the sugar-free space.
While the Indian Council of Medical Research (ICMR) guidelines suggest limited evidence of carcinogenicity in humans from widely used artificial sweeteners like aspartame, the International Agency for Research on Cancer (IARC) classifies aspartame as “possibly carcinogenic,” setting an acceptable daily intake limit at 40 mg/kg body weight.