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Sugar Alcohol Market

ID: MRFR/FnB/0885-CR
128 Pages
Pradeep Nandi
May 2023

Sugar Alcohols Market Research Report Information by Type (sorbitol, xylitol, mannitol, maltitol, and others), Source (fruits, vegetables, grains, sugarcane & molasses, and others), Form (powder and liquid), Application (bakery products, confectionery & chewing gums, beverages, and dairy & frozen desserts), And by Region (North America, Europe, Asia-Pacific, and Rest of the World) - Forecast Till 2035

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Sugar Alcohol Market Summary

As per MRFR analysis, the Sugar Alcohols Market Size was estimated at 4.312 USD Billion in 2024. The Sugar Alcohols industry is projected to grow from 4.614 USD Billion in 2025 to 9.076 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.0 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Sugar Alcohols Market is experiencing robust growth driven by health trends and technological advancements.

  • Health-conscious consumer trends are propelling the demand for sugar alcohols, particularly in North America.
  • Technological advancements in production are enhancing the efficiency and quality of sugar alcohols, especially in the Asia-Pacific region.
  • Sorbitol remains the largest segment, while xylitol is emerging as the fastest-growing segment due to its favorable health attributes.
  • Rising demand for low-calorie sweeteners and increased application in food and beverage products are key drivers of market expansion.

Market Size & Forecast

2024 Market Size 4.312 (USD Billion)
2035 Market Size 9.076 (USD Billion)
CAGR (2025 - 2035) 7.0%

Major Players

Archer Daniels Midland Company (US), Cargill, Incorporated (US), Mitsubishi Corporation (JP), BASF SE (DE), Ingredion Incorporated (US), Roquette Freres (FR), Tate & Lyle PLC (GB), Sweetener Supply Corporation (US), Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (CN)

Sugar Alcohol Market Trends

The Sugar Alcohols Market is currently experiencing a notable transformation, driven by increasing consumer awareness regarding health and wellness. As individuals become more conscious of their dietary choices, the demand for low-calorie and sugar-free alternatives is on the rise. Sugar alcohols, which serve as effective substitutes for traditional sugars, are gaining traction in various food and beverage applications. This shift is further supported by the growing prevalence of diabetes and obesity, prompting manufacturers to innovate and expand their product offerings. Additionally, the versatility of sugar alcohols in enhancing flavor profiles without contributing to caloric intake is appealing to both consumers and producers alike. Moreover, the Sugar Alcohols Market is witnessing advancements in production technologies, which may enhance the efficiency and sustainability of sugar alcohol manufacturing. As companies strive to meet the evolving preferences of health-conscious consumers, there is a potential for increased investment in research and development. This could lead to the introduction of new sugar alcohol variants that cater to specific dietary needs. Furthermore, the market is likely to benefit from the rising trend of clean label products, as consumers seek transparency in ingredient sourcing and processing. Overall, the Sugar Alcohols Market appears poised for growth, driven by a combination of health trends and technological innovations.

Health-Conscious Consumer Trends

The Sugar Alcohols Market is increasingly influenced by the rising health consciousness among consumers. Individuals are actively seeking alternatives to traditional sugars, leading to a surge in demand for low-calorie and sugar-free products. This trend is particularly evident in the food and beverage sector, where sugar alcohols are being utilized to create healthier options without compromising taste.

Technological Advancements in Production

Innovations in production technologies are playing a crucial role in shaping the Sugar Alcohols Market. Enhanced manufacturing processes may lead to improved efficiency and sustainability, allowing producers to meet the growing demand for sugar alcohols. These advancements could also facilitate the development of new variants that cater to diverse consumer preferences.

Clean Label Movement

The Sugar Alcohols Market is benefiting from the clean label movement, as consumers increasingly prioritize transparency in food ingredients. This trend encourages manufacturers to adopt natural and recognizable ingredients, including sugar alcohols, which align with the demand for healthier and more wholesome products. As a result, the market is likely to see a rise in clean label offerings.

Sugar Alcohol Market Drivers

Growing Awareness of Sugar Substitutes

The Sugar Alcohols Market is benefiting from a growing awareness of sugar substitutes among consumers. As more individuals become informed about the health risks associated with excessive sugar consumption, there is a marked shift towards alternative sweeteners, including sugar alcohols. This trend is particularly pronounced among consumers seeking to reduce their sugar intake for health reasons, such as managing diabetes or preventing weight gain. Recent surveys indicate that a significant percentage of consumers are actively seeking products that contain sugar substitutes, which has led to an increase in the availability of sugar alcohols in various food products. The rising awareness of the negative health impacts of sugar consumption is likely to continue driving the demand for sugar alcohols, positioning the Sugar Alcohols Market for sustained growth in the foreseeable future.

Rising Demand for Low-Calorie Sweeteners

The Sugar Alcohols Market is experiencing a notable increase in demand for low-calorie sweeteners, driven by a growing awareness of health and wellness among consumers. As individuals become more health-conscious, they are actively seeking alternatives to traditional sugars that can help manage weight and reduce caloric intake. According to recent data, the sugar alcohols segment is projected to grow at a compound annual growth rate of approximately 5.5% over the next few years. This trend is particularly evident in the food and beverage sector, where manufacturers are reformulating products to include sugar alcohols, thereby catering to the preferences of health-oriented consumers. The rising prevalence of obesity and diabetes further fuels this demand, as consumers look for healthier options without sacrificing taste. Consequently, the Sugar Alcohols Market is poised for substantial growth as it aligns with these evolving consumer preferences.

Regulatory Support for Sugar Alternatives

The Sugar Alcohols Market is experiencing favorable regulatory support that encourages the use of sugar alternatives. Various health organizations and government bodies are promoting the reduction of sugar consumption due to its association with health issues such as obesity and diabetes. This regulatory environment is conducive to the growth of sugar alcohols, as they are often viewed as safer alternatives to traditional sugars. For instance, certain sugar alcohols have been granted Generally Recognized As Safe (GRAS) status, which facilitates their incorporation into food products. This regulatory backing not only enhances consumer confidence but also incentivizes manufacturers to explore the use of sugar alcohols in their formulations. As regulations continue to evolve in favor of healthier food options, the Sugar Alcohols Market is likely to benefit from increased adoption and innovation in product development.

Increased Application in Food and Beverage Products

The Sugar Alcohols Market is witnessing an expansion in the application of sugar alcohols across various food and beverage products. These ingredients are increasingly utilized in a wide range of items, including sugar-free candies, baked goods, and beverages, due to their ability to provide sweetness without the associated calories of traditional sugars. Market data indicates that the food and beverage sector accounts for a significant share of the sugar alcohols market, with a projected valuation reaching several billion dollars in the coming years. This growth is attributed to the rising consumer demand for healthier alternatives, as well as the increasing prevalence of dietary restrictions such as low-carb and ketogenic diets. As manufacturers continue to innovate and develop new products featuring sugar alcohols, the market is likely to see further diversification and expansion, reinforcing the importance of sugar alcohols in the food and beverage landscape.

Innovation in Sugar Alcohol Production Technologies

The Sugar Alcohols Market is witnessing significant innovation in production technologies, which is enhancing the efficiency and sustainability of sugar alcohol manufacturing. Advances in fermentation processes and enzymatic methods are enabling producers to create sugar alcohols more efficiently, reducing production costs and environmental impact. Recent technological developments have led to improved yields and purity of sugar alcohols, making them more appealing to manufacturers. This innovation is crucial as it allows for the scaling up of production to meet the rising demand from various sectors, including food, pharmaceuticals, and personal care. As production technologies continue to evolve, the Sugar Alcohols Market is expected to see a surge in the availability of high-quality sugar alcohols, further driving market growth and expanding application possibilities.

Market Segment Insights

Segment Insights

Sugar Alcohols Type of Cover Insights

The Sugar Alcohols Market segmentation, based on the type, includes sorbitol, xylitol, mannitol, maltitol, and others. The Xylitol segment held the majority share in 2021 contributing concerning the Sugar Alcohols industry revenue. The Xylitol has been categorized as sugar alcohols. It is a lower-calorie sugar substitute along with a low glycemic index. It has been a common ingredient in various product that has been commonly found such as from sugar free chewing gum to toothpaste.

It has been added in various food products like sugar-free candies, jams & jellies, honey, yogurt, nut butters, and in some dental care products also there are added such as toothpaste, mouthwash, and other fluoride products. It is a natural sugar alcohol that assist in preventing the cavities. Figure 1: Sugar Alcohols Market, by Type, 2021 & 2030 (USD Billion)  

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Sugar Alcohols Source Insights

The global source market data has been bifurcated by fruits, vegetables, grains, sugarcane & molasses, and others. Vegetable is a kind of plant life or plant product, usually refers to the fresh edible portions of certain herbaceous plants—roots, stems, leaves, flowers, fruit, or seeds. These plant sections are either eaten fresh and natural or prepared in a several ways, usually as a savory, rather than sweet, dish. Like sorbitol includes Aubergine, broccoli, fennel, ready-made salads, paprika and red cabbage, and in mannitol olives, asparagus, sweet potatoes, and carrots. This has further broadened the growth opportunity for the sugar alcohols industry. 

Figure 2: Sugar Alcohols Market, by Source, 2021 & 2030 (USD Billion)  

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Sugar Alcohols Form Insights

Based on form, the global sugar alcohols industry has been segmented into powder and liquid. Powder is a loose material that is developed in extremely tiny, dry, solid grains. There's a border in between a grain and a powder, but typically powders have the quality of clumping together, while grains are looser and more separate. Like xylitol that is one of the sugars alcohol types which is used as a sweetener in the form of a white crystalline powder.

It occurs naturally in low collection in the fibres of many fruits and vegetables and can be extracted from a variety of berries, oats, and mushrooms as well as fibrous materials such as corn husks and bagasse. It is a chemically pure and have no additives, preservatives, or colors.       

Sugar Alcohols Regional Market Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. The Europe region has become a significant player in the Sugar Alcohols Market, and the trend towards healthier consumption habits is continuing to grow. Europe basically includes France, Germany, Italy, Spain & Portugal, Austria & Switzerland, UK & Ireland, Benelux, Nordics, Central and Easter Europe, Southern Europe, and Rest of the Europe are all included in the analysis of the European market.

According to the Union of European Soft Drinks Associations (UNESDA) it has been revealed that increasing health and nutrition awareness that assist the Europeans manage intake of added sugars by soft drinks to reduce calories by 10 percent by 2025. Along with associations the key sugar reduction players, including SweeGen, Kerry, Roquette and Sensient, also investing to launch the products those are containing low calorie or sugar in the product.  The growing trend of clean label products and the reduced calorie products, manufactures have started focusing on these key forcing areas to capitalize the demand in the region.

For instance, in June 2022, Ingredion EMEA organized a campaign the taste sweet liberation for representing the products of sweeteners as low calorie or sugar reducing ingredients in food and beverage products and also offered the consumers to try the product with low sugar. Manufactures are also focused on introducing new product and investing on expansions which will drive the market growth. For instance, in April 2020, Ingredion EMEA introduced its first polyol sweetener under the brand name- ERYSTA Erythritol.

Get more detailed insights about Sugar Alcohol Market

Regional Insights

North America : Market Leader in Sugar Alcohols

North America is the largest market for sugar alcohols, holding approximately 40% of the global share. The region's growth is driven by increasing health consciousness among consumers, leading to a rising demand for low-calorie sweeteners. Regulatory support for food safety and labeling, along with innovations in product formulations, further catalyze market expansion. The U.S. is the primary contributor, followed by Canada, which is experiencing a surge in demand for sugar-free products. The competitive landscape in North America is robust, featuring key players such as Archer Daniels Midland Company, Cargill, and Ingredion. These companies are investing in research and development to enhance product offerings and meet consumer preferences. The presence of established distribution networks and a growing trend towards healthier food options are also significant factors contributing to the market's growth in this region.

Europe : Emerging Market with Regulations

Europe is witnessing a significant rise in the sugar alcohols market, holding around 30% of the global share. The growth is primarily driven by stringent regulations on sugar consumption and a shift towards healthier alternatives. Countries like Germany and France are leading the market, supported by government initiatives promoting low-calorie sweeteners. The European Food Safety Authority (EFSA) has also played a crucial role in establishing safety standards, which enhances consumer confidence in sugar alcohols. Leading countries in Europe include Germany, France, and the UK, where the demand for sugar alcohols is on the rise due to increasing health awareness. The competitive landscape features major players like BASF SE and Roquette Freres, who are focusing on innovation and sustainability. The presence of a well-established food and beverage industry further supports the growth of sugar alcohols in this region.

Asia-Pacific : Rapid Growth in Emerging Markets

Asia-Pacific is emerging as a significant player in the sugar alcohols market, accounting for approximately 25% of the global share. The region's growth is fueled by rising disposable incomes, urbanization, and a growing awareness of health and wellness. Countries like China and Japan are at the forefront, with increasing demand for sugar-free products driven by changing dietary habits and lifestyle choices. The regulatory environment is also becoming more favorable, encouraging the use of sugar alcohols in food products. China is the largest market in the region, followed by Japan and India, where the presence of key players like Mitsubishi Corporation and Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. is notable. The competitive landscape is characterized by a mix of local and international companies, all vying for market share. The increasing focus on product innovation and the expansion of distribution channels are further propelling the growth of sugar alcohols in Asia-Pacific.

Middle East and Africa : Emerging Opportunities in the Region

The Middle East and Africa region is gradually emerging in the sugar alcohols market, holding about 5% of the global share. The growth is primarily driven by increasing health awareness and a shift towards healthier food options among consumers. Countries like South Africa and the UAE are leading the charge, with rising demand for sugar substitutes in various food applications. The regulatory landscape is evolving, with governments promoting healthier dietary choices, which is expected to further boost market growth. In this region, South Africa is the largest market, followed by the UAE, where the presence of key players is still developing. The competitive landscape is characterized by a mix of local and international companies, with opportunities for growth in product innovation and distribution. As consumer preferences shift towards healthier alternatives, the sugar alcohols market in the Middle East and Africa is poised for significant expansion.

Sugar Alcohol Market Regional Image

Key Companies in the Sugar Alcohol Market market include

Industry Developments

In 2023: Companies like Archer Daniels Midland, Cargill, and Ingredion, major players in the sugar alcohol market, might have invested in research to develop new sugar alcohols with improved taste profiles. This could involve masking aftertastes or creating sugar alcohols that blend better in different applications. 

November 2022 Cargill Incorporated introduced its ingredients at the Food Ingredients Europe (FIE), such as a series of plant-based ingredients along with its soluble fibre for bakery and confectionery applications. 

November 2022 Tate & Lyle announced the expansion of its product portfolio of reduced sugar alternatives as it launched Erytesse Erythritol – which contains 70% of the sweetness of sucrose and has zero calories. July 2022 Roquette Frères announced about the expansion of the PEARLITOL SD mannitol range for APIs. June 2022 Ingredion Inc launches a new ad campaign in EMEA to create awareness regarding the product portfolio of texturizers and sweeteners to fulfill the surging demand of consumers for improved Nutri-Score and reduced-sugar products.

Future Outlook

Sugar Alcohol Market Future Outlook

The Sugar Alcohols Market is projected to grow at a 7.0% CAGR from 2024 to 2035, driven by rising health consciousness, demand for low-calorie sweeteners, and expanding applications in food and pharmaceuticals.

New opportunities lie in:

  • Development of innovative sugar alcohol blends for enhanced taste profiles.
  • Expansion into emerging markets with tailored marketing strategies.
  • Investment in sustainable production methods to reduce environmental impact.

By 2035, the Sugar Alcohols Market is expected to achieve robust growth, positioning itself as a key player in the sweetener industry.

Market Segmentation

Sugar Alcohol Market Form Outlook

  • Powder
  • Liquid

Sugar Alcohol Market Type Outlook

  • Sorbitol
  • Xylitol
  • Mannitol
  • Maltitol
  • Others

Sugar Alcohol Market Source Outlook

  • Fruits
  • Vegetables
  • Grains
  • Sugarcane & Molasses
  • Others

Sugar Alcohol Market Application Outlook

  • Bakery Products
  • Confectionery & Chewing Gums
  • Beverages
  • Dairy & Frozen Desserts

Report Scope

MARKET SIZE 20244.312(USD Billion)
MARKET SIZE 20254.614(USD Billion)
MARKET SIZE 20359.076(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.0% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing demand for low-calorie sweeteners drives innovation in the Sugar Alcohols Market.
Key Market DynamicsRising consumer demand for low-calorie sweeteners drives innovation and competition in the sugar alcohols market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Pradeep Nandi
Senior Research Analyst

I have a bachelor's degree in mechanical engineering and an MBA. I have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. A firm believer in lifelong learning and sharing of knowledge. Having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. Introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest. 

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FAQs

What is the projected market valuation of the Sugar Alcohols Market by 2035?

The Sugar Alcohols Market is projected to reach a valuation of 9.076 USD Billion by 2035.

What was the market valuation of the Sugar Alcohols Market in 2024?

In 2024, the Sugar Alcohols Market was valued at 4.312 USD Billion.

What is the expected CAGR for the Sugar Alcohols Market during the forecast period 2025 - 2035?

The expected CAGR for the Sugar Alcohols Market during the forecast period 2025 - 2035 is 7.0%.

Which company is a key player in the Sugar Alcohols Market?

Key players in the Sugar Alcohols Market include Archer Daniels Midland Company, Cargill, Incorporated, and BASF SE.

What are the projected valuations for Sorbitol in the Sugar Alcohols Market?

The projected valuations for Sorbitol in the Sugar Alcohols Market are expected to range from 1.5 to 3.2 USD Billion.

How does the market for Xylitol compare to that of Mannitol in 2025?

In 2025, the market for Xylitol is projected to be valued between 1.0 and 2.1 USD Billion, whereas Mannitol is expected to range from 0.8 to 1.5 USD Billion.

What is the expected market size for the Beverages application segment by 2035?

The Beverages application segment is projected to reach a market size of 2.415 USD Billion by 2035.

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