Sugar Alcohol Market

Sugar Alcohol Market Outlook

Future Market Insights (FMI), in its newly released data, estimates US$ 3.31 billion in revenue in 2023 for the sugar alcohol market. The market also holds the potential to surpass a valuation of US$ 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.

2018 to 2022 Global Burn Care Market Outlook Compared to 2023 to 2033 Forecast

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 US$ 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.

• Short Term (2023 to 2026): The demand for sugar alcohol products is on the rise as consumers become increasingly health-conscious and seek out healthier alternatives to traditional sugar. In addition, the increasing prevalence of diabetes and other health issues related to sugar consumption is also likely to contribute to market growth.
• Medium Term (2026 to 2029): Manufacturers of food and beverages try to lower the sugar content of their products. The rapid expansion of the food and beverage industry is expected to result in an increase in the sugar alcohol demand. Furthermore, the growing popularity of low-carbohydrate diets and other health trends are expected to drive demand for sugar alcohol as a sugar substitute.
• Long Term (2029 to 2033): The growth in the global population is anticipated to drive demand for food and beverages, leading to a corresponding increase in demand for sugar alcohol. Additionally, the rising popularity of functional foods, which offer added health benefits beyond basic nutrition, is also likely to fuel market growth. As health awareness of consumers about the impact of sugar consumption continue to increase, the demand for sugar alcohols as a natural sugar substitute is expected to remain strong.

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 US$ 4.59 billion by the end of 2033, according to FMI analysts.

Country-wise Insights

Sales to Remain Strong in Europe

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.

In the United States, the Focus is on Cosmetics and Personal Care

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.

Asia Pacific has Significant growth across Bakery and Confectionery Application

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.

Nandini Roy Choudhury

Principal Consultant

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Category-Wise Insights

Why is Xylitol a Preferred Type of Sugar Alcohol over other Product Types?

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.

Why is the Food & Beverage Industry the Primary End-use Industry for Sugar Alcohols?

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.

Bakery and confectionery applications increase sales

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.

Competitive Landscape

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.

• In November 2022, ERYTESSETM Erythritol was added by Tate & Lyle PLC to its line of sweeteners. This addition increases its capacity to assist clients in meeting consumer demand for healthier, sugar- and calorie-reduced goods through a strategic partnership distribution deal with a top supplier of erythritol. Moreover, it strengthens Tate & Lyle's position as the industry pioneer in ingredient alternatives for better-for-you foods and beverages.
• In August 2022, with the inclusion of more farmers in China, Tate & Lyle PLC (Tate & Lyle) began the next stage of its sustainability initiative for stevia, a popular and plant-derived low-calorie sweetener. The initiative will aid participating farmers in putting top practices discovered in their 2019 stevia life-cycle study and confirmed in their 2021 on-farm pilot into action.

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.

• In June 2022, Ingredion EMEA launched "Taste Sweet Liberation," a new campaign that demonstrates how its portfolio of sweeteners and texturizers enables food and beverage formulators to meet the expanding consumer demand for reduced-sugar products. This campaign also showcases how its sweeteners improve Nutri-Score and align with government health initiatives such as HFSS, all without sacrificing taste or texture.
• In April 2020, with the release of ERYSTA® Erythritol, Ingredion EMEA introduced its first polyol sweetener. To accomplish nutrition-related claims, such as "no added sugar" or "calorie-reduced," in various applications, producers can decrease or replace sugar with this sweetener.

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.

• In January 2018, ADM revealed an agreement to obtain a 50% ownership position in the sweeteners and starches division of Russia-based Aston Foods and Food Ingredients.
• In March 2017, ADM introduced fresh sweeteners made with monk fruit and stevia. It brought two brand-new brands of sweeteners to the market: VerySweet monk fruit and SweetRight stevia. These two new additions to the ADM portfolio give food and beverage producers entree to ADM's wide range of ingredients.

Other Key Players Operating in the Sugar Alcohol Market

• DuPont
• Cargill, Inc.
• BENEO GmbH
• Roquette Freres
• Beckmann Kenko GmbH
• Mitsubishi Shoji Foodtech Co. Ltd.
• Fraken Biochem Co. Ltd.
• A&Z Food Additives Co. Ltd.
• SPI Pharma
• Lonza Group
• Atlantic Chemicals Trading GmbH

Sugar Alcohol Market Key Segments

By Product Type:

• Sorbitol
• Xylitol
• Maltitol
• Lactitol
• Erythritol
• Isomalt
• Mannitol
• Others

By End-use Industry:

• Food & Beverages
• Pharmaceuticals
• Others

By Application:

• Bakery Goods
• Sweet Spreads
• Confectionery & Chewing Gum
• Beverages
• Dairy Products
• Others

By Region:

• North America (USA & Canada)
• Latin America (Brazil, Mexico, & Rest of Latin America)
• Europe (Germany, Italy, France, Spain, United Kingdom, BENELUX, Nordic, Russia, Poland, & Rest of Europe)
• South Asia (India, Thailand, Indonesia, Malaysia & Rest of South Asia)
• East Asia (China, Japan, & South Korea)
• Oceania (Australia, New Zealand)
• the Middle East & Africa (GCC, Southern Africa, and Rest of MEA)