Despite companies’ efforts, products containing artificial sweeteners still trail behind sugary foods and beverages in popularity. Consumer reluctance has been reinforced by a World Health Organization (WHO) report released last year, which stated that sweeteners like aspartame could be “potentially carcinogenic” and may elevate the risk of type 2 diabetes and cardiovascular diseases, while offering no benefits for weight loss.
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Zydus Wellness, a producer of sugar-free sweeteners, reported a 3% year-on-year sales drop to INR 400.10 crore in the December 2023 quarter. According to a recent report by ICICI Securities, the company’s food and nutrition segment declined by 5% year-on-year, primarily due to persistent challenges in the artificial sweetener market and the influence of the WHO report on non-nutritive sweeteners.
Executives emphasized that safety apprehensions regarding artificial sweeteners, particularly aspartame, persist across various product categories.
Coca-Cola, the beverage manufacturer, observed that its no-sugar drink, Coke Zero, is experiencing faster growth compared to Diet Coke, despite having a smaller consumer base. Executives attributed this trend to Coke Zero’s “zero sugar” branding on its signature red bottles and cans, along with its identical taste to the original Coca-Cola. Additionally, the company’s advertising strategy prioritizes Coke and Coke Zero over Diet Coke, aligning with its global policy of not actively promoting Diet Coke.
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“Diet Coke has its share of loyal consumers and remains a strong brand, but Coke Zero has overtaken it in terms of growth,” said one of the executives.
Various renowned actors, including Jhanvi Kapoor and Tiger Shroff, endorse both Coke and Coke Zero. However, in retail stores and on e-commerce platforms, all three variants of Coca-Cola receive equal promotion. In response to inquiries, a spokesperson for Coca-Cola stated via email that Diet Coke “is performing satisfactorily” in the India and South West Asia markets.
“We are committed to Diet Coke,” the spokesperson said.
Producers of low-sugar biscuits, chocolates, and ice-cream reported that sales of these products account for less than 2% of their total portfolio at a national level. Numerous launches of such products in India have either been deprioritized or discontinued.
“The sugar-free category for biscuits is less than 1% and hasn’t taken off, except for a few local niche brands,” said Mayank Shah, senior category head at biscuits maker Parle Products. “People consuming products like biscuits do so to satiate their sweet tooth and derive value out of it; we are not considering entering this space as of now at least,” he said.
As per the guidelines established by the Indian Council of Medical Research (ICMR) for the usage of artificial sweeteners, particularly the widely used aspartame, there is “limited evidence” of carcinogenicity in humans. However, the International Agency for Research on Cancer (IARC) classifies aspartame as “possibly carcinogenic,” thus setting an acceptable daily intake of 40 mg/kg body weight accordingly.
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