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18 June 2026

Sugar reduction without sacrificing flavour

Posted in Industry News

Sugar reduction has become one of the most important shifts in the global beverage industry. Changing consumer expectations, combined with government regulation, are pushing brands to rethink how drinks are formulated. For beverage manufacturers, reformulation is no longer a ‘nice to do’, it’s central to staying relevant, competitive and trusted.

Why consumer demand is driving change

Consumers today are more aware of the link between sugar intake and health. Concerns around obesity, diabetes and general wellbeing have led many people to actively look for drinks with less sugar or no added sugar. This has changed purchasing behaviour, with more shoppers choosing lower sugar alternatives over traditional full sugar options.

Consumers are also becoming more cautious about artificial sweeteners, which is adding another layer of complexity to sugar reduction strategies. Whilst low and no calorie sweeteners have played an important role in reducing sugar, some consumers remain sceptical about their perceived health impact and are actively seeking alternatives they view as more natural. This has led to growing interest in plant-based options such as stevia and monk fruit. As a result, manufacturers are increasingly exploring how to balance effective sugar reduction with cleaner label expectations, using blends of sweeteners and flavour technologies to deliver a more natural positioning without compromising on taste.

It goes without saying that taste remains critical. Consumers are not willing to compromise on flavour, which makes reformulation both a technical and creative challenge. Brands need to reduce sugar whilst maintaining the same enjoyable drinking experience. This balance between health and taste is now a key battleground in the category.

The role of regulation and sugar taxes

Government intervention has accelerated the pace of change. In the UK for example, the Soft Drinks Industry Levy has been particularly influential. Introduced in 2018, it was designed not just to raise revenue but to encourage manufacturers to reduce sugar levels in their products. HM Treasury data shows that the policy led to a 46 percent average reduction in sugar in affected soft drinks between 2015 and 2020. (HM Treasury, Soft Drinks Industry Levy Review)

The impact has been significant. Total sugar sold in soft drinks fell by more than a third between 2015 and 2019. (Institute for Government, Sugar Tax Explainer) This shows that reformulation can deliver real change at scale when the right incentives are in place.

More recently, the UK government has announced plans to tighten the rules further by lowering the sugar threshold at which the levy applies. (BeverageDaily, UK sugar tax analysis) This means manufacturers face ongoing pressure to continue reformulating if they want to avoid higher costs or price increases.

How major beverage companies are responding

Large global beverage companies have been quick to adapt. Reformulation has become a core part of their long-term strategy.

PepsiCo is a clear example. The company has committed to reducing added sugars across its drink’s portfolio by 25 percent by 2025 and 50 percent by 2030. (FoodNavigator, PepsiCo reformulation strategy) It has also reformulated its core cola product in some markets, cutting sugar content by more than half to bring it below key tax thresholds. (The Grocer, Pepsi reformulation report)

The Coca-Cola Company has taken a similar approach. They have expanded their range of low and no sugar options, while reformulating existing products and adjusting portion sizes. Its strategy focuses on offering consumers more choice while steadily reducing overall sugar across its portfolio.

Across the industry, many brands have reformulated products to sit just below tax thresholds, such as the 5g per 100ml level in the UK. (BeverageDaily, UK sugar tax analysis) This highlights how closely reformulation strategies are linked to both regulation and commercial performance.

Innovation beyond simple sugar reduction

Reformulation is not just about removing sugar. It is also driving broader innovation. Companies are investing in new sweetener systems, flavour technologies and product concepts to deliver the same taste with fewer calories.

There has also been growth in entirely new product categories, such as flavoured waters, functional drinks and low-calorie carbonates. These products are designed from the ground up to meet modern expectations around health and wellbeing.

At the same time, brands are learning that reformulation must be handled carefully. Changes to taste can lead to strong consumer reactions, which means gradual improvements and clear communication are often the most effective approach.

Why reformulation will continue to matter

Sugar reduction is not a short-term trend. It is a structural shift in the beverage industry. Consumer expectations will continue to evolve, and regulation is likely to become stricter in many markets.

For manufacturers, reformulation offers both a challenge and an opportunity. Those that can deliver great taste with less sugar will be well placed to build long term loyalty and stand out in a crowded market.

Discover how TM2 from CO2Sustain can play a key role in making reformulation challenges easier.

Our low cost in use flavour with modifying properties is perfect for removing the negative aftertastes associated with high intensity natural and artificial sweeteners, reducing the foaming often seen with stevia and retain carbonation if your drink is a carbonated beverage. Download our brochure

 

References

 

@CO2Sustain
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Industry News

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