The Sweetener Industry: Honey, Sugar, and Other Alternatives

Throughout the years, the sweetener industry has changed significantly. For thousands of years, honey has been among the few sweet products available. Then humans discovered sugarcane and sugar beets. Their cultivation over the years has led to their widespread use. However, sugarcane (the main plant used to make sugar) requires specific climate conditions. This makes the sugar market dependent on maritime trade. In the past 50 years, technologies and science have led to the development of many sugar substitutes. These alternatives can be low-calorie sweeteners, plant-based products, artificial sweeteners that are cheap to manufacture, or simply healthier sugar substitutes. In this extensive guide, we’ll share more about the different products in the sweetener industry, their pros, cons, and how businesses use them. If you’re looking for a reliable distributor of these products, check out our post on the top sugar wholesale suppliers.

Sales of Wholesale Sugar

Most sugar sales are for large quantities of granulated or brown sugar. It’s used by manufacturers of beverages and sweets. Cafes, hotels, and businesses in the restaurant industry also buy sugar wholesale. They purchase large quantities of packaged sugar (used as a condiment for beverages) and bulk sugar to use in desserts and pastries. Pharmaceutical companies and distilleries might also purchase wholesale sugar as it plays a role in distilling spirits and as an ingredient in some medicines (primarily syrups).

Types of Sugar Sold Wholesale

As different sugar varieties have distinct applications, there’s demand for virtually all types of sugar. Brown and white sugar are the most common varieties used by businesses. Powdered sugar is also used by businesses like commercial bakeries primarily as a decoration. Liquid sugar varieties are also sold by specialized and broadline distributors. Business owners might also need specialized sugar types. This category includes sparkling or decorative sugar that is used by catering businesses, bakeries, cafes, and other companies. If you need a supplier of bulk sugar, check out our post on where to buy wholesale sugar.

Sugar Trends and Innovations

Like any other industry, the sweetener market is also shaped by innovations and trends. Let’s examine some of the main trends in the sector.

Change in preferences. A growing number of people have switched from products with regular sugar to low-carb alternatives. That includes confectionery goods like desserts, snacks, and chewing gums. This shift has also been catalyzed by regulatory changes that aim to promote healthier lifestyle choices.
Market changes. Although the US and other developing countries still account for a large percentage of sugar consumption, emerging markets like India and Africa have increased their market share. This has led to supply chain disruptions and increased prices of sugar across the globe.
Technological innovations. Thanks to robotics, software solutions for automation, and various other new technologies, the sweetener industry has become more efficient. From manufacturers of sugar to wholesale suppliers, companies aim to reduce the cost of goods sold and optimize the sugar shipping process. AI and robotics are likely to play an even greater role in the sector in upcoming years.
Focus on organic. More and more consumers prefer to buy less processed and organic products. That’s also true for the sweetener industry. This has led to increased market share for stevia and monk fruit sweeteners which are considered the healthiest low-calorie sweeteners. Honey (especially raw honey) has also become increasingly popular.

Sugar Worldwide: The Global Sugar Market

Agricultural innovations and processing technologies have made sugar manufacturing much easier in recent decades. That has led to the growth of the global sugar sector. Currently, its size is around $66 billion. However, this number includes only sugar (brown, white, powdered, and liquid sugar products). The size of the broad sweetener market is estimated to be roughly $160 billion. Sugar still holds a major market share but sweeteners like aspartame and stevia have increased their share in recent years. Honey products have a fairly small market share of the broad sweetener industry estimated at roughly $10 billion.

Developing markets are likely to increase their market share in upcoming years. That’s why many large manufacturers of sugar and other sweeteners have switched their focus to regions like India, Africa, and the Asia-Pacific region. In terms of sources, sugarcane still dominates the global market. Roughly 80% of sugar worldwide is made of sugarcane and the rest is manufactured from sugar beets.

Artificial Sweeteners and Sugar Alternatives

Sugar substitutes have drastically shifted the sweetener industry. Ingredients like aspartame and sucralose are among the most commonly used sweeteners by manufacturers of diet beverages, sugar-free confectionery items, and pastries suitable for people with diabetes. There are three main categories of sweeteners.

Natural sweeteners. This category includes primarily monk fruit and stevia sweeteners. They are plant-derived products and are considered among the healthiest options in the sweetener market. Both stevia and monk fruit sweeteners are low in calories and are suitable for people with dietary restrictions.
Sugar alcohols. These sweeteners occur naturally in certain berries and fruits. Although they are similarly sweet to regular sugar, these organic compounds are much lower in calories. Xylitol and erythritol are the most common sugar alcohols.
Artificial sweeteners. Aspartame is the most widely used artificial sweetener. It’s the main ingredient in diet sodas and sugar-free confectionery items. Sucralose and acesulfame potassium (commonly referred to as Ace-K) are other examples of artificial sweeteners. A growing number of consumers aim to avoid products with artificial sweeteners.

Pros and Cons of Artificial Sweeteners

There are various reasons for the popularity of artificial sweeteners and other sugar substitutes. Here are some of them.

They don’t cause tooth decay and cavities;
They contain little calories and are suitable for people on a diet;
They often have lower prices compared to sugar;
Some sweeteners are hundreds of times sweeter than regular sugar. That’s why they can easily be used by large manufacturers.

Allow us to also mention some of the cons of sweeteners and why many consumers look for products that don’t contain artificial sweeteners.

They might affect gut health negatively;
Some sweeteners are not suitable for baking or cooking;
They have a distinct flavor and aftertaste. This means products with aspartame or other sweeteners taste differently.

Main Types of Sweeteners and Sugar Alternatives

As we already mentioned the main benefits and disadvantages of sugar substitutes, it’s time to also share which are the most popular products that fall under this category.

Monk fruit sweeteners. It’s extracted from a fruit known as luo han guo in China. It’s native to the East Asian region where it has been used as a sweetener for centuries. Raw monk fruit extract is roughly 200 times sweeter than sugar. That’s why it’s used in very small quantities or bought in bulk by the food and beverage industry. Sweeteners sold in retail stores usually combine monk fruit extract with other ingredients in order to reduce its sweetness.
Stevia. Just like monk fruit sweeteners, it’s also derived from plants and is considered one of the healthiest sweeteners. Stevia extract is 300 times sweeter than sugar. The high price of stevia sweetener makes it a less common sugar alternative compared to artificial sweeteners. However, beverages and sweets with stevia have grown in popularity in recent years.
Aspartame. It’s one of the most common products in the sweetener industry. It’s also considered a more controversial ingredient due to potential health concerns and side effects of aspartame. Nevertheless, it’s still the ingredient used by most manufacturers of sugar-free drinks and sweets. Aspartame is 200 times sweeter than sugar and its wholesale prices are among the lowest in the sweetener industry.
Sucralose. It’s also primarily used commercially by large manufacturers. Sucralose is around 600 times sweeter than sugar. It’s heat-stable and, unlike aspartame, can be used in baking.
Xylitol and erythritol. Although they are often considered to be artificial sweeteners, they fall under the category of sugar alcohols. Both are slightly less sweet compared to regular sugar but they have far fewer calories.

Wholesale Honey

Although the market share of honey is much smaller in the broad sweetener industry, it still plays an important role. Sales of wholesale honey have increased in recent years as consumer preferences have switched to confectionery items with natural sweeteners. Furthermore, honey is also used by cosmetics manufacturers and other businesses. Cafes, hotels, and restaurants purchase large quantities of honey packets as it’s one of the most popular condiments for beverages. Currently, the most trendy products in the honey sector are raw honey and various types of infused honey products.

Bulk honey is usually sold in large buckets or bottles. Many businesses choose to purchase it in bulk from local bee farms as this reduces their transportation costs and helps local businesses.

Types of Honey

Honey can be categorized into a few main categories. Let’s examine the main types of honey.

Polyfloral honey. Often called wildflower honey, it has a complex flavor as it is derived from multiple floral sources.
Monofloral honey. It’s made from the honey nectar of a single floral source. Monofloral honey varieties can be very different. For example, acacia honey is light in color and mild in flavor. On the other hand, buckwheat honey is dark and has a rich taste. Orange blossom honey is another popular variety and it has a citrusy flavor.
Raw honey. This unfiltered variety is natural and nutritious. Raw honey often comes in natural combs. It may contain traces of pollen or harmful bacteria.
Processed honey. Honey sold in retail stores is usually filtered and pasteurized. This kills all bacteria, removes any pollen or wax, and makes the product ready for consumption. Bakery businesses, restaurants, coffee shops, and other companies primarily use processed honey.
Specialty honey varieties. There are dozens of other types of honey. Infused honey is a popular alternative. It’s mixed with herbs, nuts, or other ingredients. Infused honey products are often used in gift baskets and associated with boutique products. Hot honey is also a variety of infused honey as it’s mixed with chili peppers or their flakes. Honey lovers might also find vegan honey and zero-calorie honey. Although these products are marketed as honey, they are made of maple syrup or monk fruit sweetener mixed with a liquefying or thickening agent. E

Selling Honey

Many farmers also maintain beehives as this helps with pollination of crops. That’s why you’ll often see people selling honey at farmers’ markets and roadside stalls in rural areas. Here are some useful tips on selling honey.

In order to sell honey wholesale, make sure you comply with all regulations. There are specific requirements related to beekeeping as well as regulations about selling in bulk. Read our post on how to become a wholesaler and how to get a wholesale license.
Selling honey to retail customers means that you need to offer more value compared to honey products sold in retail stores. Most sellers achieve that by offering products like raw honey, different types of monofloral honey, or other types of bee products (like natural wax or beeswax candles). Bee farms can also set up their online presence through their own eCommerce website or by selling on third-party platforms.
Bee farms can also improve their honey sales and brand awareness by expanding their business. For example, consider adding more revenue streams like organizing farm visits or workshops on how to make beeswax candles.

Honey Business Ideas

Selling honey can be a profitable endeavor. As a growing number of consumers look for healthy and natural alternatives to processed sugar, honey has increased its market share in the sweetener industry. Here are some ideas for honey-related businesses.

Bee farming and honey production. Naturally, most people associate honey businesses with beekeeping. It doesn’t require a large capital investment and has fairly small upkeep costs. However, bee farming requires a lot of knowledge in proper bee care and hive maintenance.
Manufacturing food products with honey. From sweets with honey instead of sugar to honey-flavored soda drinks, there are various honey-based products that sell well. You can either invest in manufacturing equipment or partner with a producer that offers white-labeling services.
Beauty products. Many cosmetic products use honey as an ingredient. Starting a business that makes and sells organic products like soaps, face masks, and lip balms can be very lucrative and profitable.
Wholesale bee products. The increased demand for honey and other bee products means that selling them in bulk can be a profitable business endeavor. Distributors of honey often sell beeswax, royal jelly, propolis, and other bee products as well.

Sugar VS Sweeteners VS Honey

The three main categories in the sweetener industry are sugar (white, powdered, and brown), sweeteners (stevia, aspartame, erythritol), and honey. Each category has its pros and cons. Let’s briefly compare and examine the main applications of these products.

When to Use Sugar

Both white and brown sugar are the go-to ingredients for people who bake at home or for food service businesses. They are versatile and easy to work with. The retail price of sugar is also affordable.

When to Use Honey

The natural benefits and nutritional value of honey make it a preferred option to sweeten a beverage or as a natural remedy for coughs and sore throats. Honey also has many commercial and industrial uses in the beauty industry.

When to Use Sweeteners

Sugar substitutes have multiple applications. They can be used to bake goods (not all of them), manufacture sugar-free confectionery products, and sweeten drinks. Some sweeteners are much cheaper than regular sugar. However, they might have an aftertaste or cause certain health issues like bloating and digestive problems.

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