Future Market Insights (FMI), in its newly released data, estimates USD 3.31 billion in revenue in 2023 for the sugar alcohol market. The market also holds the potential to surpass a valuation of USD 4.59 billion by 2033. With the increased consumer demand for low-carbohydrate foods and beverages, market participants could anticipate a CAGR of 4.2% during the forecast period.
Sugar alcohol is an organic compound created from sugars that include a carbon hydroxyl group. Sugar alcohols that are often utilized include sorbitol, xylitol, maltitol, lactitol, maltitol, glycerol, arabitol, erythritol, isomalt, and hydrogenated starch hydrolysates (HSHs).
The sugar alcohol market is experiencing an upward trend owing to several drivers that have emerged in recent years. Sugar alcohols, also known as polyols, are commonly used as a sugar substitute in a wide range of food and beverage products, as well as in the pharmaceutical industry. Sugar alcohol is a low-calorie and low-glycemic index alternative to traditional sugar. It has gained popularity owing to increasing health awareness among consumers.
Growing numbers of obese and diabetic individuals are likely to continue to fuel sugar alcohol demand. The health risks associated with consuming excessive amounts of sugar have become widely known. This has prompted many consumers to seek out sugar alcohol as a healthier alternative. The growing interest in health and fitness has also fueled demand for low-sugar or sugar-free products. This, in turn, presented opportunities for manufacturers to capture the growing market.
In cases where obesity and diabetes in the world are rising rapidly, consumers, from the point of view of trying to become healthier, and instead of conventional sweeteners, transitions to sugar alcohols in food and beverage formulations occur. Low-calorie, nutrient-sugar alcohol products are acquired in a global city population statistic that is a more susceptible lifestyle basis.
Sugar alcohol sales are also propelled by the increasing demand for functional food and beverages. Sugar alcohols are frequently used as functional ingredients in various products such as energy drinks, protein bars, and dietary supplements. Demand for functional food and beverages is expected to rise as consumers become more health-conscious and seek out products that offer additional nutritional benefits. This, in turn, is likely to spur sugar alcohol consumption.
The market is also profiting from different key trends, one of which is the rise in the usage of natural sweeteners. Many food and beverage manufacturers are switching to natural alternatives like sugar alcohols since consumers have become aware of the potential health risk associated with artificial sweeteners. This trend is likely to persist, creating opportunities for manufacturers to capitalize on the growing demand for healthier and more sustainable products.
The rising popularity of low-carb and ketogenic diets is yet another trend in the sugar alcohol market. These diets typically restrict the consumption of high-car foods, including sugar, making sugar alcohol an attractive alternative. The increasing popularity of these diets is expected to drive up the demand for sugar alcohols, particularly in the bakery and confectionery industry. This is likely to present opportunities for manufacturers to address the rising demand for healthier alternatives.
| Attributes | Details |
|---|---|
| Sugar Alcohol Market Value (2023) | USD 3.31 billion |
| Sugar Alcohol Market Expected Value (2033) | USD 4.59 billion |
| Sugar Alcohol Market Projected CAGR (2023 to 2033) | 4.2% |
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The sugar alcohol market is forecast to expand at a CAGR of 4.2% during 2023 to 2033 in comparison to a 3.4% CAGR registered from 2018 to 2022. During the historical period, sugar alcohols gained popularity as a sweetener option in the booming health and wellness industry.
The food and beverage industry also witnessed huge demand for sugar alcohols, and companies were looking to reduce the sugar content in their products. As a result, the market size was recorded at USD 3.18 billion in 2022. The market is currently experiencing a substantial upswing, offering a diverse array of opportunities for businesses operating in the sector.
These factors are anticipated to support a 1.4X increase in the sugar alcohol market between 2023 and 2033. The market is projected to be worth USD 4.59 billion by the end of 2033, according to FMI analysts.
| Country | United States |
|---|---|
| CAGR % 2017 to 2022 | 1.8% |
| CAGR % 2023 to End of Forecast(2033) | 4.4% |
| Country | United Kingdom |
|---|---|
| CAGR % 2017 to 2022 | 5.4% |
| CAGR % 2023 to End of Forecast(2033) | 6.4% |
| Country | Germany |
|---|---|
| CAGR % 2017 to 2022 | 6.2% |
| CAGR % 2023 to End of Forecast(2033) | 7.0% |
| Country | Spain |
|---|---|
| CAGR % 2023 to End of Forecast(2033) | 3.2% |
| CAGR % 2017 to 2022 | 5.4% |
| Country | China |
|---|---|
| CAGR % 2017 to 2022 | 3.2% |
| CAGR % 2023 to End of Forecast(2033) | 4.7% |
Europe is an important and fast-growing market for sugar alcohol. Strong confectionery sales in the region, especially in urban areas, support long-term growth by increasing consumer awareness of sugar alternatives and the formulation of sugar-free processed foods and beverages.
In addition to research and development, market players have invested heavily in expanding manufacturing capacity, and expanding their product portfolio with nutritious, low-calorie products that meet regulatory standards. They also focus on fragmenting a wide range of applications to catch up with foods and medicines for long-term growth.
| Country | Growth Aspect |
|---|---|
| United Kingdom | Sugar alcohol consumption is increasing in the United Kingdom owing to the growing awareness of the negative health effects of consuming high amounts of sugar. The commonly used sugar alcohols in the country are erythritol, xylitol, sorbitol, and maltitol. The United Kingdom's sugar alcohol market is primarily driven by the food and beverage industry. Sorbitol and maltitol are widely used in the food and beverage industry as sweeteners, as these have a sweetness level that is similar to sugar. In addition to the food and beverage industry, the market is also driven by the increasing demand for sugar-free and low-calorie products in the pharmaceutical and personal care industries. Sugar alcohols are typically used in cough syrups and other medications as a way to improve taste and reduce sugar content. They are also used in personal care products like toothpaste and mouthwash as a way to provide a sweet flavor without promoting tooth decay. Therefore maltitol market is likely to witness significant growth in the United Kingdom as it does not result in tooth damage or cavities. The use of sugar alcohol in the food and beverage industry in the United Kingdom is also driven by government regulations that encourage the reduction of sugar. In April 2018, the country enacted a levy on sugar-sweetened beverages known as the Soft Drinks Industry Levy. This has prompted manufacturers to reduce the sugar content in their products and explore alternative sweeteners such as sugar alcohols. |
| Germany | Individuals in Germany appear to have an unduly optimistic attitude toward their health, which is surprising given the high rates of obesity in the country's population. It appears that Germans are oblivious to their harmful behaviors, which may indicate that they are unsure of what leading a healthy life entails. Diabetes is a serious medical issue and one of the significant challenges confronting German healthcare systems. Type 1 and type 2 diabetes are quite common in the adult population of Germany. During the next several years, type 2 diabetes is anticipated to become more prevalent as a result of an aging population and an unhealthy lifestyle. Yet, the pandemic made many people reflect more deeply on their diets and general well-being. As a result, the Germany sugar alcohol market is witnessing substantial growth, with an increasing number of manufacturers incorporating these sweeteners into their products. The Germany bakery market is also having a significant impact on the sales of sugar alcohols. The bakery industry is one of the leading consumers of sugar in Germany. The increasing demand for healthier and reduced-sugar baked goods has stimulated manufacturers to incorporate sugar substitutes, including sugar alcohols, in their products. Owing to its usage as a humectant, moisture-stabilizer, and texturizer in the creation of baked products, both the lactitol market and sorbitol market is expanding considerably in Germany. |
| Spain | The Spain sugar alcohol market is expected to continue its upward trajectory during the forecast period. The market is driven by factors such as changing consumer preferences, increasing health awareness, and rising incidence of lifestyle diseases such as diabetes and obesity. With the growing number of people in Spain focusing on fitness and wellness, there has been a surge in demand for low-calorie and sugar-free products. This has led to the development of a wide range of sugar-free and low-calorie food and beverages, which are often sweetened with sugar alcohol. The increasing popularity of low-carb and ketogenic diets has also played a significant role in boosting sugar alcohol consumption in Spain. The demand for sugar alcohols is anticipated to rise further over the upcoming years, given the popularity of these diets. |
North America is second only to Europe in sugar alcohol consumption. The growth of the market in this region is due to the relatively high user base of hand sanitizers and the prevalence of obesity and diabetes, especially in the United States.
The United States sugar alcohol market has experienced significant growth in recent years. The primary reason behind this is the increased demand for low-calorie and low-glycemic index sweeteners. The wellness sector is expanding fast in the country. More than 50% of individuals now rank well-being as a top priority in their daily lives.
During the last two decades, the prevalence of diabetes has sharply grown in the United States. Recent research by the American Association of Clinical Endocrinologists (AACE) has revealed that 22.2-26.9% of patients hospitalized in the country for serious illness reported having diabetes. Therefore, the high prevalence of diabetes and obesity has propelled consumers to seek alternative sweeteners that provide the same level of sweetness without any negative health consequences.
Chewing gum is one of the leading industries in the sugar alcohol market in the United States, with xylitol being the commonly used sugar alcohol in this category. Xylitol is also used in candies and mints and is known for its cooling effect and ability to prevent tooth decay.
Sugar alcohols are used in the personal care and cosmetics industry due to their pleasant and sweet taste. These products are also applied as a humectant to soothe the skin, and sorbitol is used as a hydrating and moisturizing agent in skincare products. As a result, the global sorbitol market is witnessing growth. Beta-glucans can also serve as prebiotic agents that help protect the skin from harmful bacteria and infections. This encourages the use of sugar alcohol in cosmetics, which can further stimulate the growth of the sugar alcohol cosmetics industry.
Sugar alcohols are a cost-effective and efficient way to achieve sweetness in various food products like cereals while remaining just as delicious; this has led to their growing popularity in the sugar manufacturing sector. The rising usage of isomalt to enhance the sweetness in fruity candy and delicacy-flavoured sweets in the food industry is enhancing the sugar alcohol market's advancement. Isomalt is ideally suited for preserving freshness in products, particularly if they're found in convenience and confectionary stores. It is, therefore, frequently used to increase shelf life in products such as candy, chewing gum, and baked goods, thus contributing to the industry.
The China sugar alcohol market has experienced a significant growth trail over the past decade. The rapidly expanding population, coupled with increasing health consciousness, has fueled the sugar alcohol demand in the country. China is the leading producer of xylitol. Hence the xylitol market is expanding considerably in the country.
In China, the prevalence of diabetes is rising. By 2045, 147 million people in this country are anticipated to have diabetes. Furthermore, about one in seven people and one in three people, respectively, satisfy the criteria for overall obesity and abdominal obesity, according to the research published in June 2021 by Frontiers in Endocrinology in China.
Urbanization, rising living standards, and an aging population, in the opinion of health professionals, are the main causes of this surge. This has led to an upsurge in the adoption of a healthy diet and lifestyle. As a result, the demand for sugar-free products has increased, leading to a surge in the use of sugar alcohol in food and beverage formulations.
| Segment | Product Type |
|---|---|
| Attributes | Xylitol |
| CAGR % 2018 to 2022 | 2.5% |
| CAGR % 2023 to End of Forecast (2033) | 3.6% |
| Segment | End-use Industry |
|---|---|
| Attributes | Food & Beverage |
| CAGR % 2018 to 2022 | 4.8% |
| CAGR % 2023 to End of Forecast (2033) | 5.3% |
In comparison to other product types, xylitol is used frequently as a preferred sugar alcohol for different factors. The primary factor is its low glycemic index (GI) of 7. This makes it a suitable alternative sweetener for individuals with diabetes or those on a low-calorie diet. Its taste and sweetness are identical to sugar. This is another factor that makes it a suitable sugar alternative in recipes without compromising taste.
Given that it has 40% fewer calories than sugar, xylitol is also regarded as a sweetener that is suitable for those trying to lose or manage weight. It also has dental benefits as it is non-cariogenic and does not promote tooth decay like sugar. Xylitol also has a cooling effect on the mouth. This makes it an ideal ingredient in products like toothpaste, mouthwash, gum, and mints.
As xylitol is a natural product, often derived from corn cobs or other natural sources, it is ideal for consumers looking for natural sweeteners without the use of artificial ingredients. Furthermore, xylitol is well-tolerated by maximum individuals and does not cause gastrointestinal distress like other sugar alcohols such as sorbitol and maltitol.
The food and beverage industry serves as the primary end-use industry for sugar alcohols because of their unique properties and functional benefits that cater to the specific needs and preferences of consumers. Sugar alcohols have become increasingly popular in recent years owing to their ability to provide sweetness without contributing to the high-calorie content of traditional sugars. The food and beverage industry has embraced sugar alcohols as a valuable ingredient due to their ability to provide sweetness, low-calorie content, and unique functional properties.
Sugar alcohol possesses unique properties that make them well-suited for use in food and beverage products. They are relatively stable at high temperatures and can be used in various applications, including baked goods, confections, and desserts. As the demand for low-calorie sweeteners continues to grow, sugar alcohol is likely to remain a popular choice for food and beverage manufacturers.
Sugar alcohols are widely used in baked goods and confectionery. Its use as a sugar substitute and as a moisturizer, texture, and moisturizer will have a positive impact on the market in the long run, especially for consumers looking for healthier ingredients in a wide variety of final products.
Bakery and confectionery sales declined during the Covid-19 pandemic. However, sales may recover and remain positive for the rest of the forecast period. Growth was supported by the potential uses of nutritional and functional food and beverage formulations. Sales continue to be strong in Europe.
Manufacturers are actively engaged in the sugar alcohol market as these sweeteners are increasingly in demand by health-conscious consumers seeking low-calorie and diabetic-friendly options. To meet this demand, manufacturers are investing in research and development to develop new sugar alcohol products that offer improved taste and texture compared to earlier versions. They are also expanding their production capabilities and distribution networks to ensure sufficient supply and availability of sugar alcohols in the food and beverage industry. Certain manufacturers are also partnering with food and beverage companies to incorporate sugar alcohol into their products.
Key Market Players and Their Recent Developments in Sugar Alcohol Market
Tate & Lyle PLC (Tate & Lyle): The company sells ingredients and solutions for the food and beverage industries. The company's product line includes fiber enrichments, texturants, and sweeteners. Moreover, it offers starches, corn syrup, dextrose, glucose, sucralose, crystalline fructose, sweeteners, and animal feeds.
Ingredion Incorporated: It is a top provider of ingredient solutions worldwide. It produces sweeteners, starches, nutrition-related components, and biomaterials that consumers use in various goods daily, including food and drink, paper, and medicines. It transforms cereals, fruits, and vegetables into substances that make confectionery sweet, yogurt creamy, and lotions and creams smooth. With simple ingredients, gluten-free or high-fiber foods that appeal to modern consumers, its unique ingredient solutions help customers stay on trend.
Archer Daniels Midland Company (ADM): It is a pioneer in both human and animal nutrition and is one of the top nutrition firms in the world. It unleashes nature's power and transforms crops into ingredients and solutions for foods, beverages, and dietary supplements for everyone on earth. It also offers a full variety of products and services for pets, aquaculture, and livestock.
The market is estimated to be worth USD 4.59 billion by 2033.
The current worth of the market is USD 3.31 billion.
Consumers are switching to sugar-restricted ketogenic diets. This is the key trend in the market.
The market in China is expected to advance at a CAGR of 4.7% through 2033.
Xylitol is expected to dominate the sugar alcohol market with a CAGR of 3.6% through 2033.
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Sugar Alcohol Market
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