In the past year, global sugar prices have risen 41.9%, leading to the term “sugarflation.” This sharp inflation has also impacted natural alternatives, with demand-boosting stevia as a solution for cost savings. Howtian, a global leader in producing and supplying premium-quality natural sweeteners, has seen a sugar-replacement revolution in the food and beverage industry. Stevia, a popular natural sugar alternative, has emerged as a promising solution for confectionery applications, as bulking back is required when reducing sugar, or else the confection would also reduce in size.
Howtian’s DGS series offers a direct 1:1 replacement of sugar with stevia as the high-potency sweetener and bulking provided by allulose, fiber, and/or erythritol. These bulking agents also provide the upfront sweetness that sugar provides, making them a great replacement for many applications. The company is continually evaluating alternative bulking agents and sweeteners, such as protein-based sweeteners, and may introduce them to its product portfolio if the cost-in-use, quality, and regulatory requirements meet their company standards for commercial viability.
Howitan recently announced another significant price reduction for its popular SoPur Stevia Reb-A 97 for industry and manufacturing customers. Prices for Reb A have come down this year, and higher sugar prices along with lower stevia prices are a great enticement for CPGs to partially replace sugar with Reb-A. For example, in many beverages, it is fairly easy to replace about 50% of the sugar with Reb A and save a significant amount of sugar without affecting quality. Other applications where bulking isn’t required can also reduce sugar by 25–50% and save a good chunk of money.
Sugarflation has come off the back of declining production figures in key producing nations such as India, Thailand, and China during the 2022–2023 sugar season, leading to a steep rise in sugar prices over the past few months. Additionally, a low beet harvest in the European Union (EU) has exacerbated the situation, with cold and wet weather during spring in EU nations such as France, Germany, and Poland. In May 2023, India, the second-largest sugar producer globally, banned sugar exports to ensure domestic availability, further supporting the upward trend in sugar prices.
Variable weather conditions, largely led by the El Niño phenomenon, are affecting sugar output in the remainder of the calendar year. Sugar prices are expected to surge in H2 2023 due to an anticipated rise in demand from key sugar-consuming countries. Small players, such as bakeries and hotels, that depend on sugar as a crucial ingredient for their products are reportedly suffering diminishing profit margins as they struggle to absorb the increasing prices without passing them on to their clients.
Stevia extract, extracted from natural plant sources, is a good choice for companies that want to avoid artificial sweeteners. Howtian’s commitment to innovation and customers’ needs is expected to boost the continued growth and success of the sugar replacement revolution in these turbulent times. The company has seen a wealth of success in transitioning popular products to delicious, cost-effective alternatives throughout the years.