“Navigating the Natural Sweetener Market: Layn’s Strategic Investments and Innovations in Sugar Alternatives”
Recent regulations from the Food and Drug Administration mandating food manufacturers to disclose the amount of added sugars on Nutrition Facts Panels have prompted many companies to reformulate their products. This shift aims to avoid high sugar levels that may deter health-conscious consumers. As a result, alternative sweeteners have gained popularity, with this segment estimated to be worth between $16 billion and $20 billion. One of the most favored alternatives is stevia, which is approximately 200 times sweeter than sugar and was valued at $590 million globally in 2020. Layn produces a range of stevia products derived from Reb A, Reb C, Reb D, and Reb M, primarily sourcing its stevia from Northern China. The company has established strong relationships with local farmers, allowing it to maintain full control over its supply chain. In its latest investment announcement, Layn highlighted its ability to ensure a steady supply for its customers over the past year, even amid surging demand for natural ingredients.
Additionally, Layn is recognized as the world’s largest producer of monk fruit extract, offering both concentrate and powder forms. It sources monk fruit from farms in the Guilin region of China, which accounts for over 98% of global production. The company is continually working to enhance the sweetness of its extracts. In 2019, Layn developed a proprietary non-GMO variety of monk fruit that contains 20% more sweet components known as mogrosides. This Super V Fruit variety can assist food and beverage manufacturers in reducing sugar content while minimizing the land, water, and other resources necessary for monk fruit production.
Layn’s multimillion-dollar investment comes as various ingredient manufacturers are actively pursuing opportunities in the natural sweetener market. For instance, SweeGen has launched a network of regional innovation centers for stevia research to foster collaboration with customers in developing reduced-sugar products. In December, Tate & Lyle expanded its natural sweeteners portfolio by acquiring stevia producer Sweet Green Fields.
In addition to sweeteners, Layn has made significant investments in botanical extracts. In November 2020, it acquired Wagott, the largest Chinese exporter of green tea extract, in addition to producing tea and resveratrol extracts. The company has also ventured into the CBD market, investing $60 million to build a U.S.-based facility capable of processing at least 5,000 tons of hemp biomass annually, yielding 160 tons of high-purity CBD and 290 tons of full-spectrum oil each year. Given the growing consumer demand for foods and beverages with functional benefits, such investments appear to be a sound strategy.
In a related note, consumers often wonder about the differences between calcium magnesium and calcium citrate, particularly when considering dietary supplements that may complement their health and wellness goals. Understanding these distinctions can help consumers make more informed choices as they navigate the landscape of nutritional products.
