Global Sugar Alcohol Market Grows Steadily at a CAGR of 5.9%

Introduction

Sugar alcohol is considered safe for human consumption owing to its purity (lack of additives). The alcohol's grade, concentration, and purity level are determined by its intended application. It comes from various materials, including sugarcane, sugar beet, molasses, grains, fruits, and other things. Contrary to their name, sugar alcohols are white, water-soluble solids produced intentionally from sugars or occur naturally. Sugar alcohols' texturizing and sweetening properties make them useful in various industries.

Market Dynamics

Rising Demand for Polyols in Food Industry Drives the Global Market

In the commercial food sector, polyols have grown in popularity as the healthiest substitute for sugar in various meals, including chocolate, desserts, spreads, baked products, and non-alcoholic beverages. They are also often used for stabilizing, emulsifying, bulking, flavoring, and crystallization. Since polyols offer a wide range of functional and organoleptic properties, they are ideal for most food applications. Manufacturers use them more frequently in food compositions because they make it possible to replace conventional sugar without changing the sensory qualities of the final product (flavor, color, and texture). This makes polyols a perfect alternative to conventional sugar or sugar-free sweeteners in traditional recipes.

Product Development and Innovation Creates Tremendous Opportunities

To enhance the number of goods they offer and their market share, manufacturers in the sugar alcohol industry continually invest in R&D. For instance, ERYSTA, the first polyol sweetener released by Ingredion EMEA. It gives manufacturers the ability to replace or reduce sugar in a variety of applications so that they may satisfy nutrition-related claims such as "no added sugar" or "calorie-reduced." Consumers in the Asia-Pacific region are spending more money on food and nutraceutical products, which supports their choice to live a healthy lifestyle. In addition, increased disposable income, consumer spending, and health consciousness drive the region's demand for low-calorie and low-sugar food products. The use of sugar replacements like sugar alcohols may consequently become prevalent. Polyol producers may see this as an opportunity to grow and prosper in the sugar alcohol market.

Regional Analysis

Europe is the most significant revenue contributor and is expected to grow at a CAGR of 5.1% during the forecast period. Additionally, a bigger proportion of the pharmaceutical industry's contributions come from European countries. This promotes producing numerous medicinal products using sugar alcohols, including tablets, pills, syrups, and soft gels. Europe is also one of the significant consumers of confectionery products. The demand for sugar alcohol as a component in low-calorie and healthy confectionery and baked products is a significant factor that supports the sugar alcohol market.

North America is expected to grow at a CAGR of 6.00%, generating USD 1,422.8 million during the forecast period. North America is one of the regions with the most significant rates of obesity and related health problems. Poor eating practices and high consumption of foods high in sugar are to blame for this. As a result, manufacturers are steadily making products that emphasize health. Additionally, consumers' preferences for low-calorie foods are growing, which has raised concerns about health consciousness and increased attention to consuming low-calorie and sugar-free foods.

Included are the nations of China, India, Japan, Australia, New Zealand, and the remainder of Asia-Pacific. The demand for nutraceuticals is soaring in the Asia-Pacific region due to urban population growth, rising living standards, and growing health consciousness. In addition, consumers prefer goods created from sustainable sources and transparent ingredients. People consequently flavor products made with sugar and alcohol. These features predict that Asia-Pacific would experience the highest CAGR growth during the projection period.

Key Highlights

• The global sugar alcohol market was valued at USD 3,402.30 million in 2021. It is projected to reach USD 5,699.4 million by 2030, growing at a CAGR of 5.9% during the forecast period (2022-2030).
• Based on type, the global sugar alcohol market is bifurcated into sorbitol, xylitol, mannitol, maltitol, isomalt, and others. The sorbitol segment is the highest contributor to the market and is expected to grow at a CAGR of 5.5% during the forecast period.
• Based on form, the global sugar alcohol market is bifurcated into powder and crystal, liquid and syrup. The powder and crystal segment owns the highest market share and is expected to grow at a CAGR of 5.6% during the forecast period.
• Based on application, the global sugar alcohol market is bifurcated into food and beverages, pharmaceutical, cosmetic and personal care. The food and beverages segment is the highest contributor to the market and is expected to grow at a CAGR of 5.4% during the forecast period.
• Europe is the most significant revenue contributor and is expected to grow at a CAGR of 5.1% during the forecast period.

Competitive Players

1. Archer Daniel Midland Company
2. Associated British Food Plc.
3. Atlantic Chemicals Trading GmbH
4. Cargill Inc.
5. Dupont De Nemours Inc.
6. Ingredion Incorporated
7. Mitsusrhi Corporation Life Sciences Limited
8. Roquette Frères Sa.
9. Spectrum Chemical Manufacturing Corporation.
10. Tate and Lyle Plc.

Recent Developments

• February 2024 - At its current facility in Hubli, Karnataka, Gujarat Ambuja Exports announced the successful commissioning of a 100 tonnes per day (TPD) Sorbitol machine. With a total capacity of 500 TPD across 4 locations, the company now holds the title of largest Sorbitol manufacturer in India, according to a statement from Gujarat Ambuja.

Segmentation

1. By Type
   1. Mannitol
   2. Sorbitol
   3. Xylitol
   4. Mannitol
   5. Maltitol
   6. Isomalt
2. By Form
   1. Powder and Crystal
   2. Liquid and Syrup
3. By Application
   1. Food and Drink
   2. Pharmaceuticals
   3. Cosmetics and Personal Care