POLYOL SWEETENERS MARKET ANALYSIS

The global polyol sweeteners market was valued at US$ 3,195.8 Million in 2022 and is expected to register a CAGR of 5.79% in terms of revenue, over the forecast period (2023–2030), to reach US$ 5,015.2 Million by 2030. Polyols are non-sugar carbohydrates and are considered potential sweeteners with reduced calorific value. Polyol sweeteners are also termed ‘sugar replacers’ or ‘sugar alcohols’ as their chemical structure resembles sugar. According to Calorie Control Council, polyols provide fewer calories per gram as compared to sugar. Currently available polyols sweeteners include erythritol, maltitol syrups, isomalt, lactitol, maltitol, mannitol, sorbitol, and xylitol. The product is also used as a beneficial "natural" ingredient in a variety of applications, including food, pharmaceutical, cosmetics, and other technical and chemical industries. The global polyol sweeteners market in the U.S. is expected to grow rapidly due to rising consumer demand for healthier and lower-calorie food products. Furthermore, the product is used in the tobacco, textile, and paper industries as a bulking agent, binder, humectant, and chemical reactant.

Global Polyol Sweeteners Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has had a significant impact on the global polyol sweeteners market, as it has affected the demand and supply of these products. Polyol sweeteners are used as sugar substitutes in various food and beverage products, including confectionary, bakery, and dairy items. The most significant impact of COVID-19 on the polyol sweeteners market has been a shift in consumer preferences towards healthier food options. As people become more health conscious and aware of the negative effects of excessive sugar intake, they are increasingly turning to sugar-free and low-calorie products, which has led to an increased demand for polyol sweeteners. On the other hand, the pandemic has also affected the supply chain of polyol sweeteners, as many manufacturers faced disruptions due to restrictions on the movement and transportation of goods. Additionally, some manufacturers faced supply chain disruptions during the pandemic, which affected their production and delivery schedules. For instance, Ingredion Incorporated, a leading manufacturer of polyol sweeteners, reported a decline in its net sale in the second quarter of 2020 due to supply chain disruptions caused by the pandemic.

Global Polyol Sweeteners Market - Drivers

• Rising Demand for Healthy Sugar Substitutes

The global polyol sweeteners market is expanding rapidly due to rising demand for healthier sugar substitutes. Sucrose, a common table sugar, has a high-calorie content and is thought to contribute to lifestyle disorders such as diabetes, obesity, cardiovascular disease, and tooth decay. Polyols are carbohydrates, so they are sugarless sweeteners. As sugar substitutes, these are commonly found in baked goods, carbonated beverages, powdered beverage mixtures, jams, jellies, and dairy products. They are also used in the production of frozen desserts, fruit juices, chewing gums, and gelatines. For instance, According to the American Heart Association, sugary drinks are the largest source of added sugars consumed by people. The rising demand for sugar-free beverages among consumers drives the growth of the global polyol sweeteners market.

• Growing Demand from the Food and Beverages Industry

The food and beverage industry is constantly innovating and introducing new products to meet consumer demand. For instance, In March, 2018, Nestle recently launched a range of sugar-free chocolate bars in the U.K., which use a combination of polyol sweeteners and a natural sweetener called stevia. The bars are marketed as a healthier alternative to traditional chocolate bars, which are high in sugar. This factor may propel the growth of the global polyol sweereners market.

• Technological Advancements

One of the main challenges with polyol sweeteners is their aftertaste and texture. However, new technologies are being developed to overcome these challenges. For instance, Cargill has developed a new polyol sweetener called Zerose, which has a clean taste and texture, making it suitable for use in a wide range of products. Cargill is an agribusiness company, providing products and services in the food, financial products, agricultural, industrial and risk management fields.

Global Polyol Sweeteners Market - Restraints

• High Cost of Polyol Sweeteners

Polyol sweeteners are generally more expensive than traditional sugar. For instance, in the U.S., a 5-pound bag of granulated sugar can cost around US$ 2, whereas the same amount of erythritol or xylitol can cost up to 10 times as much. This higher cost can make it difficult for some consumers to justify purchasing polyol sweeteners. This factor may hinder the growth of the polyol sweetener market through out the forecast period.

Among function type, flavoring or sweetening agents accounted for the largest market share in 2022, with 63.20% of the share. Flavoring agents are among the most significant additives used in foods and medicines in order to enhance taste. They can be either naturally or synthetically obtained. Natural flavoring agents are substances such as essential oils, oleoresin, distillate, or any other essences acquired directly from natural products such as fruits, spices, animals, seafood, dairy, and others through a chemical process. The primary function of these agents is to provide flavor to eatables and not necessarily nutritional properties

Figure 1. Global Polyol Sweeteners Market, By Function, 2022

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Global Polyol Sweeteners Market – Regional Insights

North America has dominated region because of the growing popularity of clean-label products, this region to see significant growth With a market share of 44.20%, in 2022. The growing popularity of sugar-free foods and beverages is driving the growth of the global polyol sweeteners market in the region. New product launches by beverage giants, such as sugar-free energy drinks, soda, and soft drinks containing these sweeteners, are expected to contribute to the region's market growth.

Europe is expected to hold a significant market share in the global polyol sweeteners market over the forecast period. This can be attributed to increasing government initiatives in the region to reduce sugar content in food products as higher sugar intake can have adverse effects on human health and lead to diseases such as diabetes. According to the report, ‘Sugar Reduction: Achieving the 20%’ published in March 2017 by the department of ‘Public health England’ of the government of U.K, in August 2016, the U.K. government set the aim to reduce the overall sugar content of food and beverage products by at least 20% by 2020. Therefore lowering sugar consumption is expected to shift consumer preference towards non-sugar-based sweeteners, which in turn is expected to drive growth of the global polyol sweeteners market in the region.

Asia Pacific is the fastest-growing region in the global market. Asia Pacific held a significant revenue share in the global polyol sweeteners market in 2022, owing to the growth of end use industries such as bakery and dairy industries in the region. For instance, according to the India Brand Equity Foundation (IBEF) report on ‘Agriculture & Allied industries’ published in April 2018, in India, the dairy sector is expected to register a CAGR of 15% from 2016 to 2020 to reach US$ 146.2 billion by 2020.

Figure 2. Global Polyol Sweeteners Market, By Region, 2022

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Global Polyol Sweeteners Market - Recent Developments

• In May 2020, Ingredion, Inc. EMEA launched a polyol sweetener ERYSTA Erythritol to fulfill the growing demand for ‘no added sugar’ and ‘calorie-reduced’ label claims among consumers Ingredion Incorporated is a multinational ingredient provider based in Westchester, Illinois, producing mainly starches, non-GMO sweeteners, stevia, and pea protein. The company turns corn, tapioca, potatoes, plant-based stevia, grains, fruits, gums, and other vegetables into ingredients for the food, beverage, brewing, and pharmaceutical industries, and numerous industrial sectors
• In October 2019, Portland-based Icon Foods introduced a new sweetener, IconiSweet, a combination of allulose, erythritol, and stevia and monk fruit. The new product has various technological advantages over traditional single sweetener products
• In 2018, Cargill Inc., announced that it came in the collaboration with Procter and Gamble, this will enable the company to innovative sustainable products. Cargill Inc. (Cargill) is an agribusiness company, providing products and services in the food, financial products, agricultural, industrial and risk management fields. It carries out the marketing, processing, and distribution of grains, oilseeds, sugar, meat and other food products, as well as cotton.
• In 2019, Batory Foods, announced that it acquired the assets to polypro International Inc. which is a Minneapolis based company and is one of the largest suppliers of hydrocolloids in the market.

Global Polyol Sweeteners Market - Key Players

Major players operating in the global polyol sweeteners market include Cargill Inc., Archer Midland Daniels Company, Ingredion Incorporated, Roquette Freres, B Food Science Co. Ltd., Tereos Starch and Sweeteners, DuPont de Nemours, Inc., Gulshan Polyols Ltd., Jungbunzlauer Suisse AG, and Merck Group. 

Definition: Polyols are a specific group of sugar alcohols that are formed via the catalytic hydrogenation of carbohydrates. They are found naturally in certain fruits, vegetables, and mushrooms; however, they are also commonly used as sugar-free sweeteners in products such as chewing gum, candies, and beverages.