Sugar Alcohols Market

The global sugar alcohols market is projected to witness significant growth during the forecast period, exhibiting a CAGR of 6.3%. The market was estimated to be USD 3,602.68 million in 2021 and is expected to reach a value of USD 6,198.03 million by the end of the forecast period (2022-2030).

Based on type, the sorbitol segment accounted for a market share of 25.7% in 2021 and is expected to grow a CAGR of 6.7% during the upcoming years. This is mainly owing to the wide usage of sorbitol in various applications such as pharmaceutical, cosmetics and food industry as a sweetener or humectant. Sorbitol is a tablet diluent used in wet granulation or dry compression formulations for medicinal uses. Due to its sweet flavor, it is frequently employed in chewable tablets, and it serves as a gelatin plasticizer in capsule formulations. Sorbitol is used as a stabilizer for medication, vitamin, and antacid suspensions as well as sugar-free liquid solutions. Crystallization around bottle lids is avoided when it is used in syrups. Additionally utilized in topical and injectable preparations, sorbitol has a medical application as an osmotic laxative.

Based on source, the fruits segment accounted for a market share of 25.6% in 2021. This is mainly owing to the wide extraction of sugar alcohols from various fruits and vegetables such as pineapples, olives, asparagus, sweet potatoes and carrots, mushrooms, cereals and many more. Mannitol usually occurs in some fruits such as asparagus, pineapples, olives, sweet potatoes, and carrots. It is taken from seaweed and used in the production of food. Mannitol has 50–70% of the relative sweetness of sugars. However, mannitol stays in the intestines for a long time, resulting in bloating and diarrhea.

Based on the form, the powder segment accounted for a market share of 63.9% in 2021 and is expected to exhibit a CAGR of 6.4% during the forecast period owing to wide usage of powder form in beverages coupled with the increased inclination of consumers towards low-sugar products. For instance, according to Wantstats analysis, in the UK, about 45% of consumers regard honey to be acceptable in foods and beverages, while only 21% approve of artificial sweeteners. At 29%, the level of acceptance for sugar in fruit juices is relatively high and ranks on par with that of plant-based sweeteners. White sugar is preferred by 26% of consumers, whereas 27% of consumers choose cane sugar.

Based on application, the bakery products segment accounted for a market share of 41.9% in 2021 and is expected to exhibit a CAGR of 6.7% during the forecast period owing to the growing sales of baked products across the North America region. For instance, according to the British American Association, the USD 423 billion economic effect of baked products produced and sold in the U.S. around USD 3 billion is made by retail bakeries each year, and USD 31 billion is sold by industrial bakeries. However, due to the growing price of wheat and sugar, profits are not exceptionally significant. When costs rise, bakeries are sometimes unable to pass those costs along to customers by raising pricing. 65 percent of bakeries employ fewer than ten people, 44 percent have one to four, and most small businesses have just one location. Overall, the baking sector supports close to 800,000 jobs and generates more than USD 44 billion in direct compensation.

Furthermore, the increasing demand for low-calorie food products due to rising health concerns and obesity issues are some of the vital factors contributing to its market growth. For instance, the American Diabetes Association estimates that 37.3 million Americans, or 11.3% of the population, had diabetes in 2019. Type 1 diabetes affects almost 1.9 million Americans, including about 244,000 children and teenagers. Furthermore, according to the Ministry of Health and Family Welfare, In India, there are 74.2 million diabetics between the ages of 20 and 79. But the Department of Health & Family Welfare, Government of India, offers technical and financial support to the States/UTs under the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases, and Stroke (NPCDCS), a part of the National Health Mission, based on the proposals received from the States/UTs and subject to the resource envelope. (NHM). The program focuses on enhancing infrastructure, developing human resources, promoting health, and raising awareness for NCD prevention, early diagnosis, management, and referral to a suitable level of healthcare facility for treatment.

Besides this, the growing demand for sugar alcohols in the pharmaceutical and food and beverage industry is another factor contributing to its market growth. For example, pharmaceutical companies frequently utilize wet granulation to create oral solid dose forms. Mannitol is being used more frequently as a pharmaceutical binder in these formulations due to its many advantageous properties. Despite being excellent for fluidized-bed granulation and wet granulation in organic solvents, standard crystallized mannitol in -polymorphic form frequently lacks sufficient binding and tableting properties for use with high/low-shear wet granulation processes. Apart from this, increasing research and development activities to produce new sugar alcohols with improved properties and applications may serve as an opportunity for market growth. However, the limited availability of raw materials and high production costs of sugar alcohols may restrain its market growth.