Sugar Alcohol Market

Sugar Alcohol Market Outlook (2024 to 2034)

Worldwide sales of sugar alcohol are estimated at US$ 1.39 billion in 2024. The global sugar alcohol market has been forecast to expand at a 5.9% CAGR and reach a value of US$ 2.46 billion by the end of 2034.

Sugar alcohols, commonly known as polyols, are substances used to sweeten and bulk foods. They occur naturally in foods and are derived from plants such as fruits and berries. Sugar alcohols have fewer calories than regular sugar because they are converted to glucose at a slower rate, need little or no insulin to be digested, and do not produce abrupt blood sugar rises. This makes them popular among diabetics, although they are now used by almost everyone. Market growth is being driven by the increased preference for lower-calorie food and healthier alternatives to regular sugar. The utilization of sugar alcohols in the food and beverage industry is on the rise to create products with clean-label ingredients.

Key Market Growth Drivers

• Compared to typical sugars, sugar alcohols provide a sweetening option with lower calories and glycemic index, which appeals to health-conscious customers trying to control their blood sugar and weight.
• The rising prevalence of obesity and diabetes worldwide is leading people to cut back on sugar consumption, which is boosting the demand for sugar alcohol.
• Sugar alcohols offer a sweet flavor without the detrimental effects on metabolism that come with sucrose and high-fructose corn syrup, which makes them healthy substitutes for people with diabetes or looking to lose weight.
• Demand for low-carb and low-sugar products is rising due to the growing popularity of low-carb and ketogenic diets.
• Sugar alcohols, such as erythritol and xylitol, are widely used to add sweetness to low-carb and ketogenic foods and drinks without having a major effect on blood sugar levels or ketosis.
• One of the key sugar alcohol market trends is the increasing preference for clean labels and natural ingredients in the food & beverage industry.
• Natural sugar alcohols such as erythritol from fruits or xylitol from birch trees fit in with this trend and appeal to customers who want healthy, less processed sweetener substitutes.
• Sugar alcohols are useful in various foods & beverages, from dairy products to confections to baked food and drinks.
• Sugar alcohols’ capacity to replicate the flavor and consistency of sugar while simultaneously adding volume and sweetness makes them an essential component for creating an extensive variety of low-sugar and sugar-free products.

Report Attribute	Detail
Sugar Alcohol Market Size (2024E)	US$ 1.39 Billion
Forecasted Market Value (2034F)	US$ 2.46 Billion
Global Market Growth Rate (2024 to 2034)	5.9% CAGR
North America Market Share (2024E)	23.9%
East Asia Market Value (2024E)	US$ 311 Million
Bakery Goods Segment Value (2034F)	US$ 465.6 Million
Pharmaceuticals Segment Value (2034F)	US$ 913.9 Million
Key Companies Profiled	BENEO GmbH; Beckmann Kenko GmbH; Atlantic Chemicals Trading GmbH; A&Z Food Additives Co. Ltd.; Roquette Freres; DuPont; Lonza Group; Fraken Biochem Co. Ltd.; Mitsubishi Shoji Foodtech Co. Ltd.; Cargill, Inc.; SPI Pharma.

Which Factors are Responsible for Up-Trending Sales of Sugar Alcohol?

“Growing Preference for Sugar Alcohol among Patients with Diabetes”

Increasing rates of obesity and diabetes are boosting the consumption of foods and beverages that contain sugar alcohol instead of regular sugar, as they are harmful to people with these problems. To maintain sugar levels and weight, many people have started to use sugar alcohol. Sugar alcohols are gaining popularity as they offer sweetness without the adverse metabolic effects of sucrose and high-fructose corn syrup. In the food and beverage industry, they are increasingly favored for their low-calorie attributes, making them suitable for diabetes management and weight control.

What’s Hampering the Expansion of the Sugar Alcohol Market Size?

“Concerns about Potential Side Effects Associated with Sugar Alcohol”

Primary barriers preventing the widespread use of sugar alcohol in the food and beverages industry are texture, taste, and broader concerns. Sugar alcohol sweeteners provide a cooling effect and flavors distinct from sucrose, which many individuals prefer due to their familiarity with regular sugar. Additionally, some individuals may experience gastrointestinal discomfort or laxative effects when consuming excessive amounts of certain sugar alcohols, like sorbitol and mannitol.

Sugar alcohol manufacturers face competition from alternative products such as high-intensity sweeteners, including stevia and sucralose, as well as natural sweeteners. Examples of natural sweeteners serving as alternatives to sugar alcohols include honey and maple syrup. These alternatives appeal to consumers for various reasons, such as taste preferences, health benefits, and concerns about potential side effects associated with sugar alcohol. Moreover, individuals seeking minimally processed ingredients and a more wholesome product experience tend to prefer natural sweeteners.

Country-wise Insights

The North American region is poised to lead with 23.9% of the global sugar alcohol market share in 2024, due to the high prevalence of obesity and diabetes in several countries. Sales of sugar alcohol in East Asia are projected to rise at a 6.2% CAGR from 2024 to 2034.

Which Industry is Contributing to Substantial Market Growth in the United States?

“Chewing Gum Industry Accounts for High Demand for Xylitol”

Attribute	United States
Market Value (2024E)	US$ 147.7 Million
Growth Rate (2024–2034)	6.3% CAGR
Projected Value (2034F)	US$ 273 Million

There is one noticeable trend in the United States that is benefiting producers of sugar alcohols: the increasing consumer demand for natural component compositions and clean labels for food & beverage items. Manufacturers involved in the food & beverages industry are utilizing sugar alcohols made from fruit (erythritol) or trees (xylitol) to satisfy consumer demand.

Expansion of the chewing gum industry in the United States is also contributing to sugar alcohol market growth as xylitol is widely used for producing them. Xylitol, an ingredient in sweets and mints, has a cooling effect and helps stop tooth decay.

How is the Personal Care & Cosmetic Industry Driving Sales of Sugar Alcohol in South Korea?

“Rising Utilization Sorbitol in Personal Care & Cosmetic Products”

Attribute	South Korea
Market Value (2024E)	US$ 69.1 Million
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 131.4 Million

The well-known personal care and cosmetic industry of South Korea is generating demand for sugar alcohols, particularly sorbitol. This ingredient is the latest trend in cosmetics and personal care products due to its abundant moisturizing and nourishing qualities. Sorbitol, a type of carbohydrate classified as a sugar alcohol, is also used to preserve and enhance the texture of personal care and cosmetic products.

Category-wise Insights

Based on product type, the market is segmented into sorbitol, mannitol, xylitol, maltitol, lactitol, erythritol, and isomalt. Xylitol is projected to hold a significant market share throughout the projection period as it is a preferred sugar alcohol that is utilized more often than other products. Its low glycemic index (GI) of 7 is the main contributing factor. For people on a low-calorie diet or those with diabetes, this makes it a good substitute sweetener. It has the same sweetness and flavor as sugar.

Why is Use of Sugar Alcohol Increasing in Bakery Goods?

“Role of Sugar Alcohol in Extending Shelf Life of Bakery Products”

Attribute	Bakery Goods
Market Value (2024E)	US$ 258.3 Million
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 465.6 Million

Sugar alcohol is increasing in the production of bakery goods as a sugar substitute, moisturizer, and texture enhancer. Erythritol, xylitol, and sorbitol are examples of sugar alcohols that impart sweetness without affecting blood sugar levels like ordinary sugar. This makes them a preferred option for those managing diseases such as diabetes or looking to reduce sugar intake. Sugar alcohol also helps prolong shelf life and gives baked items a moist texture. Additionally, it is appealing to those seeking reduced-calorie solutions because it has fewer calories than sugar.

What Distinct Qualities Make Sugar Alcohol a Preferred Choice in the Food and Beverage Industry?

“Ability of Sugar Alcohol to Maintain Stability at High Temperatures”

Attribute	Food & Beverages
Market Value (2024E)	US$ 487.4 Million
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 881.9 Million

Due to sugar alcohol's distinct qualities and practical advantages that meet customer demands and preferences, the food and beverage industry is the main end-use market for sugar alcohol. Because they add sweetness without adding to the high-calorie content of typical sugars, sugar alcohols have gained popularity in recent years. Sugar alcohols have gained recognition as a significant component in the food and beverage industry because of their low-calorie content, unique functional qualities, and ability to give sweetness.

Sugar alcohols are ideal for use in food & beverage products because of their special qualities. They are used in various recipes, such as baked products, confections, and sweets, and are comparatively stable at high temperatures. Sugar alcohol is projected to remain a popular option for food and beverage producers as the market for low-calorie sweeteners expands.

Competitive Landscape

Key players in the sugar alcohol industry are adopting digital media to promote their products across domestic as well as international areas. Manufacturers are actively participating in the market for sugar alcohol because health-conscious customers, looking for low-calorie, and diabetic-friendly choices are becoming more in demand for these sweeteners.

Manufacturers are investing in R&D to create new sugar alcohol products that have better flavor and texture than previous iterations to satisfy consumer demand. Additionally, they are extending their manufacturing capacity and distribution networks to guarantee an adequate supply and availability of sugar alcohols in the food & beverages industry.

• In December 2023, Beijing Xinhefeng Agricultural Materials began selling the innovative sugar alcohol Fenglihui Anjiachun, introduced to the Chinese market by the renowned American company Brandt.
• In November 2022, ERYTESSETM Tate & Lyle PLC expanded its range of sweeteners to include erythritol. This acquisition, which comes from a strategic partnership distribution agreement with a leading erythritol supplier, boosts its ability to help customers fulfill consumer demand for healthier, lower-calorie, lower-sugar products. Furthermore, it solidifies Tate & Lyle's standing as the industry leader in substituting ingredients for healthier meals and drinks.
• In August 2022, Tate & Lyle PLC (Tate & Lyle) launched the next phase of its sustainability project for stevia, a well-liked low-calorie sweetener produced from plants, by adding additional farmers in China. Participating farmers will benefit from the program as they implement best practices that were identified in their 2019 stevia life-cycle research and validated in their 2021 on-farm pilot.
• In March 2022, one of the leading companies in the corn-derived sweetener market, Sunar Misir, announced the release of Sunsorb, a brand-new Sorbitol powder, backed by a substantial investment in state-of-the-art production facilities in Türkiye.

Fact.MR provides detailed information about the price points of key manufacturers of sugar alcohol positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Sugar Alcohol Market Research

• By Product Type :

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

• By Application :

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

• By End Use :

  • Food & Beverages
  • Pharmaceuticals
  • Direct Sales

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa