As the quest for guilt-free indulgence takes center stage, the South Korean food and beverage industry finds itself in the midst of a "healthy pleasure" revolution. Consumers, increasingly mindful of their sugar intake, are eagerly embracing products that promise the joy of sweetness without the associated health concerns. This shift in consumer preferences has given rise to a burgeoning market for sugar substitute products, ranging from soft drinks and alcoholic beverages to desserts and condiments.
The domestic beverage market has been on a steady upward trajectory, growing at an average rate of over 5% annually since 2018. In 2022, the market size reached an impressive $7.49 millio), marking a 7.6% increase from the previous year, according to the Food Information Statistics System of the Korea Agro-Fisheries & Food Trade Corporation. Within this thriving market, the zero-sugar carbonated beverage segment has witnessed a remarkable surge, with its market size nearly quadrupling from 92.4 billion won in 2020 to 368.3 billion won in 2022.
Leading the charge in this sugar substitute revolution are industry giants such as Lotte Chilsung, Nongshim, and HiteJinro. Lotte Chilsung, which made its foray into the sugar substitute market with the launch of a zero-sugar and zero-calorie version of its iconic Chilsung Cider in 2021, has since expanded its portfolio to include zero-sugar versions of popular beverages like Hot6ix, Milkis, and the recently introduced Mountain Dew Zero Sugar Blue. The company's zero-sugar carbonated drink sales have skyrocketed from 89 billion won in 2021 to 273 billion in 2023, underlining the growing consumer demand for healthier alternatives.
Not to be outdone, Nongshim and Paldo have also joined the fray, introducing zero-sugar versions of their beloved products. Nongshim launched Welch's Zero in 2022 and recently added Welch's Zero Cherry Strawberry and the sports drink Dayplus to its lineup. Meanwhile, Paldo has given a sugar-free twist to its traditional Korean rice drink, Sikhye, in a bid to cater to health-conscious consumers.
The zero-sugar trend has also made its way into the alcoholic beverage market, with Lotte Chilsung and HiteJinro leading the charge. Lotte Chilsung's Saero, the first zero-sugar branded soju, has been a runaway success, selling 100 million bottles within just seven months of its release. HiteJinro has followed suit with the launch of Jinro Gold, a newly branded artificially sweetened soju, earlier this year.
Beyond beverages, the sugar substitute craze has permeated the world of desserts, ice cream, condiments, and various food items. Lotte Wellfood's ZERO dessert line, which utilizes the artificial sweetener maltitol, offers a range of guilt-free indulgences, including chocolate bars, cookies, jelly, and ice cream. The company has also introduced zero-calorie ice pop products, substituting sugar with allulose, a low-calorie sweetener. Dongwon F&B has joined the fray with a series of sugar substitute condiments and canned products, while even fried chicken chain Chicken Plus has introduced a zero-sugar "yangnyeom", spicy-sweet sauce, chicken, boasting a 23% reduction in calories compared to its regular menu.
However, amidst the growing popularity of zero-sugar branded products, concerns have been raised regarding their actual health benefits. The World Health Organization has cautioned against the use of non-sugar sweeteners for weight loss and reducing the risk of noncommunicable diseases. Francesco Branca, WHO Director for Nutrition and Food Safety, emphasized the importance of reducing the overall sweetness of the diet, rather than relying on NSS as a substitute for free sugars. Furthermore, the WHO and the International Agency for Research on Cancer have classified the NSS aspartame as possibly being carcinogenic, further fueling the debate surrounding the health implications of sugar substitutes.
The Korea Consumer Agency has also shed light on the discrepancy between consumer perceptions and the actual calorie content of zero-sugar products. In a research conducted in May, the agency found that the calorie difference between regular and sugar substitute versions of soju ranged only from 2 to 15 calories, despite 68.6% of survey participants believing that zero-sugar soju would have significantly fewer calories. The agency has called for improvements in "zero" labeling and better consumer education regarding the calorie content and health implications of zero-sugar products.
