The size of the local consumer-bought sugar market declined by 29.6 percent from 2013 to reach 143.9 billion won ($124 million) in 2015. Sales of alternative sugar products doubled from 5.9 billion won in 2013 to 10.5 billion won in 2015, according to local market researcher LinkAzetec.

In light of the shifting consumption patterns, market leader CJ CheilJedang said it has been working to strengthen its portfolio of healthier sugar substitutes such as Xylose sugar and Allulose, which taste similar to sugar but contain fewer calories.

“General food companies are geared to favor sugar substitutes over regular sugar in the future, as they seek to appeal to a growing number of health-conscious consumers who prefer less sugary products,” a CJ Cheil Jedang spokesperson told The Korea Herald.

CJ’s sugar sales have declined over the past three years, but its alternative sugar sales have jumped from 5.6 billion won in 2013 to 10.2 billion won as of last year. The firm expects this upward trend to continue.

The beverage and dairy industries are also lowering their products’ sugar content in response to growing demand for healthy food and low-sugar diets.

For instance, Korea Yakult has been running a campaign since August 2014 to drive down the sugar content of all of its dairy products. Sales of Yakult Light, which contains about half as much sugar compared to regular Yakult, rose on-year by 336 percent as of January this year, the firm said.

Last year, Maeil Dairies Industry and Namyang Dairy Products launched yogurt products that have 30 percent less sugar content, with competing brands introducing similar products.

Starbucks launched its “light frappuccino syrup,” which has reduced sugar content by 70 percent compared to the original, and introduced low-fat milk options in 2015. 

Coca-Cola Korea is currently reviewing plans to locally launch Coca-Cola Life, which has 35 percent less sugar and calories, alongside other beverage brands headed in a similar direction.

By Sohn Ji-young (jys@heraldcorp.com)