Citing the ‘proven success the sugar tax’ has had in the soft drinks category, health watchdogs like Action on Sugar are now calling on the UK government to extend the tax to cakes, biscuits and chocolates. Consumers, too, are demanding healthier options. A 2023 survey by the International Food Information Council revealed 74% are actively reducing their sugar intake, with 45% specifically seeking products that sport sugar substitutes.
Sweeteners like xylitol and maltitol have long paved the way – and while these sugar alcohols still have a place in the market – consumer preferences are shifting toward more natural and clean-label alternatives. This trend is particularly pronounced among millennials and Gen Z, who are concerned about what they consume and demand ingredients derived from natural sources rather than synthetic or heavily processed alternatives.
So, with policymakers and governments increasingly placing the onus on the shoulders of the food industry to help consumers eat smarter, natural sugar alternatives are a hot topic. But can these products overcome industry’s biggest challenges – to balance taste, texture and functionality while maintaining cost-efficiency and clean-label credentials?
Bakery&Snacks took to the SIAL show floor – recently staged in Paris – to find out what’s trending in this arena.
Clean label and health-first
The shift toward natural and low-calorie sugar alternatives has led bakery and snack manufacturers to embrace ingredients that offer health benefits while maintaining the quality and sensory experiences expected from traditional products. However, this transition presents a challenge: sugar not only provides sweetness but also plays a critical role in the texture, browning and moisture retention of baked goods.
Producers, therefore, must root out sweeteners that replicate these functional properties without negatively impacting taste, cost or shelf life.
Among the most popular natural sweeteners in the bakery and snack sectors are stevia and monk fruit, both known for their plant-based origins and consumer appeal as clean ingredients.
Stevia – derived from the leaves of the Stevia rebaudiana plant – is up to 300 times sweeter than sugar, meaning only small amounts are needed to achieve the same sweetness. It has become a favourite for use in products like cookies, muffins, snack bars and breakfast cereals.
Monk fruit – native to southern China – offers a clean sweetness without the aftertaste sometimes associated with stevia. This zero-calorie sweetener, extracted from mogrosides in the fruit, is increasingly used in premium and health-focused products because of its versatility and the growing consumer preference for natural, low-calorie ingredients.
Despite their popularity, stevia and monk fruit come with formulation challenges. Neither provides the bulk that sugar contributes to baked goods, so manufacturers often combine them with bulking agents such as erythritol, fibres or other ingredients to replicate the texture and mouthfeel of sugar-rich products.
Another sweetener gaining attention is allulose, a rare sugar naturally found in foods like figs, raisins and wheat. Allulose is about 70% as sweet as sugar but contains only 10% of the calories, making it an attractive option for reducing sugar in bakery applications such as cakes, cookies and pastries. One of allulose’s key advantages is its ability to behave like sugar in terms of browning, caramelisation and providing texture.
It comes with benefits, too: as it’s not metabolised by the body like traditional sugar, it doesn’t raise blood glucose or insulin levels. This makes it especially appealing to those producers targeting diabetic or ketogenic customers. Moreover, allulose has gained regulatory support in the US, where the FDA permits it to be excluded from total and added sugars on nutritional labels.
Dried fruits, especially raisins, are also emerging as popular natural sugar alternative.
South African raisins, in particular, are prized for their natural sweetness and rich nutrient profile. They provide a concentrated source of natural sugars, making them an excellent substitute for refined sugars in cookies, breads, muffins and energy bars. And in addition to their sweetening capabilities, raisins improve the texture and moisture of baked goods, extending shelf life and adding functionality
“South African raisins offer a rich, naturally sweet flavor, and they align with the trend toward healthier snacking,” a spokesperson from Raisins South Africa told us.
“Unlike refined sugar, raisins also contribute fibre, antioxidants, potassium and iron, enhancing the nutritional value of products.”
Dried cacao fruit: A sustainable sugar alternative
Another exciting alternative is a dried cacao fruit ingredient that serves as a natural sugar alternative with a lower glycaemic index for chocolate and other confections.
Developed by Swiss startup KOA, the fruit from the cacoa seed contains about 60% sugar – along with vitamins, minerals and potassium – to provide a ramped-up natural sugar reduction solution.
“The best part? It can be incorporated into the chocolate-making process in the same way as traditional sugar,” business development director Ståle Brinchmann told us.
What sets KOA apart is its sustainability and traceability ethos.
The company’s journey began when its founders, working in Ghana’s solar industry, stumbled upon the cacao fruit.
“They were fascinated by the flavour of the previously unused pulp,” said Brinchmann.
“Through that discovery, they set out to work with farmers and use solar energy to create value from cacao pulp.”
The pulp is sourced from smallholder farmers in Ghana, who benefit from additional income streams by selling both the cacao beans and the pulp.
“We have a database that tracks where each batch of cacao comes from and which farmers benefitted. So not only does this product help reduce refined sugar, but it also supports local communities in Ghana.”
KOA’s product is already being used by premium chocolate brands like Lindt and shows great potential for broader adoption by the bakery, confectionery, beverage and even savoury snacking categories.
“A German company, for example, uses our product in a vinegar, which gives a fantastic twist to salad dressings and sauces.”
Incredo Sugar: Rethinking sugar reduction
New sugar reduction technologies are emerging to help manufacturers cut sugar while maintaining taste and texture. One such approach involves enzyme-based solutions that break down starches into sweet-tasting compounds, reducing the need for added sugar without affecting flavor.
Flavor modulation technologies are also gaining traction, as they enhance the perception of sweetness in a product, allowing for sugar reduction without compromising on the taste profile.
Such as the novel tech developed by Israeli FoodTech innovator Incredo. Founded a decade ago as an R&D company, its mission is rooted in using natural ingredients to make sugar more efficient by altering its crystallisation process. This adjustment allows the sugar to break down faster when it hits the saliva, increasing its surface area on the tongue and enhancing its sweetness perception.
“Typically, only about 70%-80% of the sugar’s sweetness is tasted,” Shiri Ranot, VP of Marketing & Business Development, told Bakery&Snacks.
“More of Incredo Sugar’s sweetness is experienced in the first few seconds, so you can reduce the overall sugar content by up to 70% while maintaining the taste.”
Incredo’s innovation stands out because it avoids artificial additives, sugar alcohols and other alternative sweeteners.
“We’re focused on the mass market where sugar remains a key ingredient,” said Ranot.
“We can lower sugar levels without losing taste, which remains the top priority for consumers.”
This technology also helps manufacturers replace the bulk that sugar provides with healthier alternatives, such as proteins (dairy or plant-based) or fibre.
“We’ve done extensive development work across different applications – from baked goods to chocolates – so we can recommend the best bulking agents to maintain taste and texture,” said Ranot.
Although the company’s product – which is backed by over 20 patents – was only commercialised in 2021, it has gained momentum, particularly with smaller disruptors. According to Ranot, they’re faster than most of the tier one companies, are more nimble, perhaps more edgy and want to differentiate their offerings.
Big or small though, Incredo is dealing a market “where sugar remains a key ingredient in most products,” said Ranot.
“People aren’t going to stop buying their favourite sweet treats, but with Incredo, producers can reduce sugar levels without sacrificing the taste, which is still the number one driver of food purchases.”
