It is suitable for use in carbonated soft drinks, yogurts, cakes, drink powders, bubble gums among other foods. It can be used as a table top sweetener for hot drinks like coffee. It covers bitter tastes (e.g. caffeine).
In 2002, FDA approved it as a non-nutritive sweetener and flavor enhancer within United States in foods generally, except meat and poultry. In 2010, it was approved for use in foods within EU with the E number E961. It has also been approved as an additive in many other countries outside US and EU.
Its metabolism is fast and it does not retain in the body. Methanol forms in its metabolism. Only trace amounts of neotame are added to foods, so the amount of methanol is insignificant for health. It is safe for type 2 diabetics and those with phenylketonuria.
In US and EU, the acceptable daily intake (ADI) of neotame for humans is 0.3 and 2 mg per kg of bodyweight (mg/kg bw), respectively. NOAEL for humans is 200 mg/kg bw per day within EU. Estimated possible daily intakes from foods are well below ADI-levels. Ingested neotame can form phenylalanine, but in normal use of neotame, this is not significant to those with phenylketonuria. It also has no adverse effects in type 2 diabetics. It is not considered to be carcinogenic or mutagenic.
The Center for Science in the Public Interest ranks neotame as safe.
Water solutions of neotame, that are equivalent in sweetness to sucrose water solutions, increase logarithmically in relative sweetness as the sucrose concentration of a comparably sweet sucrose solution increases, until a plateau is reached. Maximum sweetness is reached at neotame solution concentrations that are relatively as sweet as a water solution that is 15.1 percentage sucrose by weight, i.e. at 15.1 sucrose equivalence % (SE%). For comparison, acesulfame K, cyclamate and saccharin reach their maximum sweetness at 11.6 SE%, 11.3 SE% and 9 SE%, respectively.