At a glance

• Beyond sweetness, sugar affects texture, browning, moisture and shelf life in baked goods
• 59% of consumers avoid added sugars and 69% will pay more for "no sugar added" claims
• Stevia delivers 200–400 times the sweetness of sugar, while allulose offers 70% of sugar’s sweetness with enhanced functionality
• Different products need different approaches — cakes require moisture retention, cookies need texture control and frostings demand solubility
• Pre-blended sweetener systems deliver better results than substituting with individual ingredients

Sugar serves multiple critical functions in baked goods. Beyond simply providing sweet taste, it also plays a role in texture and volume, enables browning reactions, extends shelf life and helps maintain moisture. With all that it contributes to a formulation, finding the right sugar replacement can be a significant challenge. Successfully substituting sugar requires a comprehensive understanding of these roles and how different sugar replacements can address each functional requirement while meeting consumer expectations for taste, texture and clean labels.

The complexity is heightened by rising consumer demand for reduced-sugar products. With 59% of consumers actively trying to avoid added sugars1 and 69% willing to pay more for "no sugar added" claims,2 brands face an unprecedented opportunity to capture market share through smart reformulation. Yet replacing sugar in baking presents unique challenges that extend far beyond simple sweetness replacement.

Why sugar substitution in bakery is so complex

Sugar's multifaceted role in baking makes replacement particularly challenging compared to other food categories. Beyond delivering sweetness, sugar contributes to the Maillard reaction that creates appealing golden-brown colors and complex flavors. It provides bulk and structure, affects protein coagulation and starch gelatinization and influences moisture retention throughout shelf life.

Consumer expectations add another layer of complexity. Today's shoppers want reduced-sugar products that taste identical to full-sugar versions while featuring recognizable, clean label ingredients. They're scrutinizing nutrition panels more closely than ever. Approximately half of them say they would be less likely to purchase products based on added sugar content.³

For brands, this creates a delicate balancing act. Reformulation must deliver on health positioning without compromising the indulgent experience consumers expect from baked goods. The stakes are high: products that fail to meet taste and texture expectations will struggle in the marketplace, regardless of their health benefits.

No sugar vs. some sugar: Define your formulation goals

Before selecting a sugar substitute for baking, brands must clearly define their objectives. Are you targeting complete sugar elimination or moderate reduction? Different goals require different approaches and ingredient solutions.

Consider your specific application needs:

• Cakes and muffins require ingredients that support moisture retention and volume development
• Cookies and bars need solutions that deliver desired texture profiles, whether crisp or chewy
• Fillings and frostings must maintain spreadability and stability while avoiding graininess

Market positioning also influences ingredient selection. Brands pursuing "no added sugar" claims have different requirements than those targeting "reduced sugar" positioning. Understanding your end goal helps narrow the field of potential solutions and guides cost-benefit analysis.

Key considerations when choosing a sugar substitute

Sweetness profile and taste delivery

The most obvious consideration is sweetness delivery, but this involves more than simple intensity. Sugar provides a clean, familiar sweetness curve that builds quickly and dissipates smoothly. Achieving that same experience rarely happens with a single sugar substitute.

Successful replacements rely on well-designed sweetening systems that blend complex sweeteners that work together to mimic sugar’s taste profile and satisfy different product needs. This approach helps avoid the limitations of single sweeteners. High-intensity sweeteners can deliver rapid sweetness at the onset, but they may linger longer than desired or contribute bitter, metallic or cooling notes. These off-flavors become more pronounced in baked applications where heat can amplify undesirable characteristics.

Stevia has emerged as a leading natural sweetener option, with 74-75% of consumers considering it the most acceptable high-intensity sweetener across multiple product categories.⁴

But even stevia performs best as part of a system, because traditional extracts can introduce bitterness that becomes more noticeable once baked. Advanced stevia solutions, like PURECIRCLE™ Clean Taste Solutions, specifically address these challenges through proprietary processing that delivers cleaner taste profiles.

Functional performance

Sugar replacement must consider the functional roles sugar plays beyond sweetness. Texture development depends heavily on sugar's ability to tenderize proteins, retain moisture and contribute to browning reactions.

Volume and structure present particular challenges. Sugar helps create tender crumb structure in cakes and contributes to spread characteristics in cookies. Without adequate bulk replacement, baked goods may become dense or develop poor texture. This often necessitates combining high-intensity sweeteners with bulking agents like allulose, erythritol or soluble fibers.

Browning reactions require special attention in bakery applications. Some sugar substitutes support browning that consumers associate with properly baked goods, while others may inhibit these reactions, affecting both appearance and flavor development.

Labelling, consumer perception and compliance

Clean label considerations significantly influence sweetener selection. While artificial sweeteners like sucralose may provide excellent functionality, growing consumer preference for natural ingredients makes them less appealing.

Research shows 79% of consumers want to see "all-natural" claims, with 33% willing to pay 20-30% more for products meeting this criterion.⁵

Ingredient familiarity plays a crucial role in consumer acceptance. Recognizable options like allulose, stevia and monk fruit face less resistance than technical-sounding alternatives. However, functionality must still drive primary selection criteria, as even the most consumer-friendly ingredient will fail if it doesn't deliver acceptable taste and texture.

Regulatory compliance adds another layer of complexity, particularly for brands selling across multiple markets. Approved sweeteners vary by region, and concentration limits differ between jurisdictions.

For example, the EU has stricter definitions around novel ingredients such as allulose while the U.S. allows allulose labeling with a reduced caloric value. Early regulatory review ensures selected ingredients can support intended marketing claims and distribution strategies.

Types of sugar substitutes used in bakery

High-intensity sweeteners

High-intensity sweeteners provide intense sweetness at very low usage levels, making them cost-effective for achieving significant calorie reduction. Stevia leads this category for natural positioning, offering 200-400 times the sweetness of sugar while supporting clean label claims.

Modern stevia solutions have evolved significantly beyond early offerings. Advanced processing technologies now enable production of steviol glycosides with improved taste profiles and reduced bitterness. Rebaudioside M (Reb M) represents the most sugar-like molecule found in the stevia leaf, enabling formulations with minimal off-notes. Monk fruit provides another natural high-intensity option, though supply constraints and higher costs limit widespread adoption. Artificial alternatives like sucralose and acesulfame-K offer excellent stability and clean sweetness profiles but face consumer resistance in clean label formulations.

The primary limitation of high-intensity sweeteners is their lack of bulk. Replacing sugar's volume requires additional ingredients to maintain proper texture and mouthfeel in finished products.

Bulk sweeteners and rare sugars

Bulk sweeteners help replace sugar's functional properties while contributing sweetness. Allulose has gained significant attention as a rare sugar that provides approximately 70% of sugar's sweetness with minimal caloric contribution.

ASTRAEA^® allulose offers particular advantages in bakery applications. It supports browning reactions similar to sugar, maintains moisture throughout shelf life and contributes to desirable texture development. Importantly, while it’s not a calorie-free sweetener, allulose doesn't count toward total or added sugars on nutrition labels, enabling "reduced sugar" claims even when used at moderate levels. (However, per FDA guidance, it must still be included in the calorie calculation at 0.4 kcal per gram when determining “Calories” on Nutrition and Supplement Facts labels).

Erythritol provides another bulk option with zero calories and good heat stability. However, it may contribute cooling sensations and can crystallize in some applications, requiring careful formulation to avoid texture issues.

Soluble prebiotic fibers like NUTRAFLORA® can provide sweetness enhancement while contributing functional benefits. These ingredients add nutritional value through prebiotic properties while helping replace sugar's bulk and mouthfeel contributions.

Complete sweetener systems

Rather than selecting individual ingredients, many brands benefit from complete sweetener systems that combine high-intensity sweeteners with appropriate bulking agents. These systems are optimized for specific applications and can significantly reduce development time.

Application-based recommendations

Cakes and muffins

Tender crumb structure and moisture retention drive ingredient selection for cake and muffin applications. These products require ingredients that support volume development while maintaining soft texture throughout shelf life. High-intensity sweeteners combined with moisture-retaining bulking agents typically deliver optimal results. Allulose works particularly well in these applications, supporting both sweetness and functional requirements. Soluble fiber systems can provide additional benefits by enhancing moisture binding while contributing nutritional value.

Volume considerations may require adjustment of leavening systems when replacing significant amounts of sugar. Sugar's interaction with proteins affects gluten development, and replacement ingredients may necessitate formula optimization to maintain desired texture characteristics.

Cookies and bars

Texture control is paramount in cookie and bar applications, where consumers have specific expectations for crispness or chewiness. Sugar's role in spread characteristics and browning development significantly affects final product quality.

Polyol-based systems often perform well in cookie applications, particularly when crisp textures are desired. Erythritol can support browning while providing necessary bulk, though formulation adjustments may be needed to manage potential cooling effects.

For chewy textures, combinations of high-intensity sweeteners with appropriate humectants help maintain moisture while delivering sweetness. Careful attention to water activity ensures products maintain desired texture characteristics throughout shelf life.

Fillings, frostings and glazes

Smooth texture and stability present unique challenges in filling and frosting applications. These products require ingredients that dissolve completely while maintaining spreadability and preventing crystallization.

Solubility is crucial in concentrated systems like frostings. Some sugar substitutes may not fully dissolve, leading to grainy textures that consumers find objectionable. High-solubility options like PURECIRCLE™ Clean Taste Solubility Solutions address these challenges while delivering clean sweetness profiles.

Heat stability matters for applications requiring cooking or exposure to elevated temperatures during processing. pH stability also affects ingredient selection for fruit-based fillings or other acidic systems.

Partner with Ingredion for sugar reduction in bakery

Successfully navigating sugar reduction in bakery applications requires more than just selecting the right ingredients — it demands comprehensive technical support and market insight. Ingredion combines deep applications expertise with consumer research to help brands develop winning formulations efficiently.The Ingredion Idea Labs® innovation centers provide pilot plant capabilities for rapid prototype development and optimization. This hands-on approach accelerates time to market while ensuring formulations perform consistently at commercial scale.

To help customers keep up with modern market trends, our ATLAS consumer insights program offers unique visibility into evolving consumer preferences and acceptance thresholds for sugar-reduced products. This proprietary research, spanning over 100,000 consumer interviews across 33 global markets, helps brands position products for maximum market impact.

Regulatory expertise ensures formulations comply with regional requirements while supporting intended marketing claims. This guidance proves particularly valuable for brands operating across multiple markets with varying regulatory frameworks.

Ready to reformulate?

Sugar substitution in bakery applications requires more than sweetness replacement — it demands a strategic approach that balances taste, texture, cost and label appeal. The right solution considers application-specific requirements while meeting consumer expectations for indulgent experiences.

Success depends on understanding each ingredient's functional contributions and how they interact within complex bakery systems. Modern sweetener technologies offer unprecedented opportunities to deliver healthier products without compromising quality, but proper application requires expertise and careful optimization.

The growing consumer demand for reduced-sugar options represents a significant market opportunity for brands willing to invest in thoughtful reformulation. Those who succeed will capture premium pricing while building loyalty among health-conscious consumers seeking better-for-you indulgences.

Explore Ingredion’s sugar reduction solutions or talk to an expert today to start building your next bakery innovation.

Meet the expert

More on sugar reduction and bakery

Ingredion offers a powerful portfolio of ingredient innovations that blend science with sensory appeal. Whether you're reformulating for sugar reduction without sacrificing taste, exploring the clean-label potential of stevia through PureCircle™ Clean Taste Solutions or crafting bakery products that deliver indulgence with better nutrition, Ingredion equips you with the tools to differentiate your brand and accelerate product success. Discover how to turn formulation challenges into market-ready opportunities.

References:

1. Food and Health Report, IFIC, 2023

2. Ingredion Proprietary Research, Sugar Reduction Solutions Selling Data, 2024

3. Added Sugars Nutrition Labels Research, Ingredion, March 2017

4. Ingredion Proprietary Global Research, ATLAS, 2023

5. Sugars & Sweeteners: Navigating Avoidance and Moderation for Better-For-You Consumption Habits, Global Report, FMCG Gurus, 2024

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