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Increasing epidemic of diabetes and obesity has driven the awareness of consumers towards sweet foods and beverages, wherein the demand for products containing artificial sweeteners is dwindling rapidly. In order to add the sweet taste to food products, companies are increasing the use of natural compounds such as sugar alcohols. Food regulatory bodies in different countries are acting as proponents for the growing use of sugar alcohols. In addition, scientific studies have dubbed sugar alcohols as nutritive sweeteners, which can not only regulate the metabolism of a diabetic person, but also lower the blood sugar responses.

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However, companies partaking in the global sugar alcohol market are faced by a slew of challenges, particularly associated with the production of sugar alcohols. Procuring raw ingredients and edible alcohols at feasible costs has become a key concern for companies producing sugar alcohols. Moreover, the global sugar alcohol landscape is witnessing more complexities in the supply chain, particularly with respect to storage of sugar alcohols. According to a recently published forecast study by Persistence Market Research, the global sugar alcohol market is pegged to expand at a sluggish pace, registering an estimated 2.1% CAGR during the forecast period, 2017-2026. The report further assesses that by the end of this period, the global market for sugar alcohols will reach a value of nearly US$ 1.4 Bn.

Demand for Sugar Alcohols to Remain Concentered in the APEJ Region

The study has projected that the Asia-Pacific excluding Japan (APEJ) region will register highest sales of sugar alcohols in the foreseeable future. In 2017, the APEJ sugar alcohol market has been estimated to have reached value of nearly US$ 500 Mn. Procurement of raw ingredients in countries such as China and India remains relatively easy, which is compelling manufacturers to extend their production bases in the APEJ region. The region will remain lucrative in the production and sales of sugar alcohols, primarily due to the flourishing food and beverage sector, high presence of diabetics, and an overall vast consumer base. The report further reveals that Europe and North America will be among the leading consumer marketplaces for sugar alcohols through 2026.

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Sorbitol to Witness Highest Revenue Growth through 2026

In 2017 and beyond, sorbitol is poised to register highest sales in the global sugar alcohol market. Representing the fastest top-selling product in the global sugar alcohol market, sorbitol is estimated to bring in more than US$ 550 Mn in global revenues by the end of 2026. While consumption of sorbitol does cause gastrointestinal distress, consumers are expected to continue preferring it for being far less harmful than artificial sweeteners. The report further reveals that sugar alcohols will be predominantly used in the food & beverage industry. By the end of 2026, sugar alcohols sold across the global food & beverage industry are expected to bring in US$ 1 Bn.

Key Producers of Sugar Alcohols

With challenges in supply chain and raw material procurement, global sugar alcohol production is likely to face impediments in the near future. The report has revealed that majority of sugar alcohols will be used in the production of beverages. In 2017, more than US$ 240 Mn worth of sugar alcohols were sold for their beverage applications. This has served as an indicator for manufacturers, who are likely to focus on improving the application purview of their products. Companies namely, Tate & Lyle PLC, MacAndrews & Forbes Incorporated, DuPont, Niutang Chemical Ltd., Ajinomoto Co., Inc., Cargill, Incorporated, Symrise AG, Archer Daniels Midland Company, Associated British Foods PLC, Nestlé S.A., Ingredion Incorporated, Wilmar International Limited, American Sugar Refining, Inc., and Roquette Frères are expected to actively instrument the global production of sugar alcohols through 2026.

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